Provides for drilling units and authorizes the permitting of cross-unit wells. (8/1/15)
Impact
The implementation of SB 88 could significantly affect state laws on oil and gas production, particularly regarding how drilling units are regulated and how cross-unit wells are authorized. The bill mandates that the commissioner has the authority to permit cross-unit wells, provided certain conditions are met, including public notice and the ability for affected parties to object. This regulatory framework aims to facilitate coordination in resource extraction across different property and drilling unit boundaries.
Summary
Senate Bill 88 aims to amend existing laws related to oil and gas conservation in Louisiana, specifically focusing on drilling units and the permitting of cross-unit wells. The legislation seeks to establish clear definitions and regulations governing cross-unit wells, which are those drilled horizontally under multiple drilling units. This initiative is intended to optimize the efficient extraction of resources while minimizing waste and the unnecessary drilling of new wells.
Sentiment
The overall sentiment around SB 88 appears to lean towards being supportive of enhanced operational flexibility for oil and gas producers. Proponents may argue that the bill is essential for adapting to the needs of modern extraction technologies, which often require horizontal drilling across multiple units. However, there may be concerns from various stakeholders, including residents and environmental advocates, about potential overreach and the impacts on local communities and resources.
Contention
Notable points of contention surrounding SB 88 revolve around the rights of local parties affected by drilling activities. While the legislation aims to streamline the permitting process, there are apprehensions regarding the adequacy of notification and objection processes, especially for those who may not have extensive resources to participate in public hearings. The challenge lies in balancing the economic benefits of increased drilling efficiency with safeguarding the interests of local residents and property owners.