Louisiana 2015 2015 Regular Session

Louisiana Senate Bill SB88 Comm Sub / Analysis

                    RÉSUMÉ DIGEST
Act 253 (SB 88) 2015 Regular Session	Adley
Prior law authorized the commissioner to establish drilling unit or units for each pool, except
for those pools which, prior to July 31, 1940, had been developed to an extent and where
conditions exist making it impracticable or unreasonable to use a drilling unit at the present
stage of development.  Further provided for the definition of a "drilling unit".
New law changes the definition of "drilling unit" from a "maximum area which may be
efficiently and economically drained by one well" to a "maximum area which may be
efficiently and economically drained by any well or wells designated to serve the drilling unit
as the unit well, substitute unit well, or alternate unit well". 
New law defines "cross-unit person", "cross-unit well", "short unit", and "timely objection". 
New law authorizes the commissioner to permit the drilling of cross-unit wells.
New law provides that the commissioner cannot authorize or permit a cross-unit well
proposed that is to have less than 500 feet of perforated lateral in any unit to be served by the
cross-unit well if one of the following requirements occur:
(1)The preapplication notice and hearing application do not expressly set forth the cross-
unit person's right to object to the application.
(2)A timely objection is filed by a cross-unit person who owns an interest in a short unit,
and on the date of the application hearing, the short unit either is not producing or is
producing only from one or more horizontal laterals with a combined length of
perforated lateral of less than 500 feet.
Effective August 1, 2015.
(Amends R.S. 30:9(B); adds R.S. 30:9.2)