SLS 15RS-1088 ENGROSSED 2015 Regular Session SENATE CONCURRENT RESOL UTION NO. 89 BY SENATORS ALLAIN AND WALSWORTH CONSERVATION. Establishes a task force to study the performance audit on the regulation of oil and gas wells and management of orphaned wells. 1 A CONCURRENT RESOL UTION 2 To establish a task force to study the performance audit on the regulation of oil and gas 3 wells and management of orphaned wells. 4 WHEREAS, the oil and gas industry is a vital part of Louisiana's economy; and 5 WHEREAS, effective regulation is important for efficient operation of the industry, 6 reducing environmental and public safety risks, preventing the contamination of ground and 7 surface water, and preventing operators from abandoning their wells; and 8 WHEREAS, in May 2014, the Louisiana legislative auditor released a performance 9 audit analyzing the oil and gas regulatory program, which is administered by the office of 10 conservation, Department of Natural Resources; and 11 WHEREAS, the purpose of the performance audit was to determine whether the 12 office of conservation regulates oil and gas wells effectively to ensure operators comply with 13 regulations and to evaluate whether the office of conservation has managed the number of 14 orphaned wells effectively in the state; and 15 WHEREAS, establishing a task force of stakeholders and experts is an important first 16 step in analyzing and achieving the goals outlined in the report. 17 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby 18 establish a task force to address the issues outlined in the performance audit and any current Page 1 of 3 SCR NO. 89 SLS 15RS-1088 ENGROSSED 1 and proposed rules promulgated by the Department of Natural Resources relative to the 2 financial security for the plugging and abandonment of oil and gas wells and determinations 3 of future utility, and to report its findings to the legislature. 4 BE IT FURTHER RESOLVED that the task force shall be composed of the 5 following members: 6 (1) The chairman of the Oilfield Site Restoration Commission or his designee. 7 (2) The commissioner of conservation or his designee. 8 (3) The president of the Louisiana Mid-Continent Oil and Gas Association or his 9 designee. 10 (4) The president of the Louisiana Oil and Gas Association or his designee. 11 (5) The executive director of the Louisiana Landowners Association, Inc. or his 12 designee. 13 (6) The Louisiana legislative auditor or his designee. 14 (7) One member of the Louisiana State Senate, appointed by the president. 15 (8) One member of the Louisiana House of Representatives, appointed by the 16 speaker. 17 (9) One member, chosen by the chairman of the Oilfield Site Restoration 18 Commission, from those companies listed as an operator of record with the office of 19 conservation for the greatest number of inactive wells no longer producing oil and gas. 20 (10) One member, selected by the board of directors of the Sierra Club. If the Sierra 21 Club fails to name a member within thirty days of the filing of this Resolution with the 22 Secretary of State, the chairman of the Oilfield Site Restoration Commission shall notify The 23 Nature Conservancy and request that the conservancy shall name a member to be named 24 within thirty days of such notification. 25 (11) One member to be named by the Louisiana Association of Business and 26 Industry. 27 BE IT FURTHER RESOLVED that the members of the task force shall serve 28 without compensation, except per diem or expense reimbursement to which they may be 29 individually entitled as members of the constituent organization. 30 BE IT FURTHER RESOLVED that a majority of the total membership shall Page 2 of 3 SCR NO. 89 SLS 15RS-1088 ENGROSSED 1 constitute a quorum of the task force and any official action by the task force shall require 2 an affirmative vote of a majority of the quorum present when voting. 3 BE IT FURTHER RESOLVED that the task force shall meet as necessary and shall 4 report its findings to the legislature no later than February 1, 2016, and shall terminate upon 5 the date of submission of such report or on February 1, 2016, whichever comes first. 6 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the 7 secretary of the Department of Natural Resources, the commissioner of conservation, the 8 director of the Louisiana Mineral Law Institute, the president of the Louisiana 9 Mid-Continent Oil and Gas Association, the president of the Louisiana Oil and Gas 10 Association, the executive director of the Louisiana Landowners Association, the Louisiana 11 legislative auditor, the board of directors of the Sierra Club, and the executive director of the 12 Louisiana Association of Business and Industry. The original instrument was prepared by McHenry Lee. The following digest, which does not constitute a part of the legislative instrument, was prepared by Thomas F. Wade. DIGEST SCR 89 Engrossed 2015 Regular Session Allain Establishes a task force to study the performance audit on regulation of oil and gas wells and management of orphaned wells. Summary of Amendments Adopted by Senate Senate Floor Amendments to original bill 1. Adds two members to the task force, one selected by the board of directors of the Sierra Club, with an alternative from The Nature Conservancy should the Sierra Club not act, and one selected by the Louisiana Association of Business and Industry, with notification to each organization. Page 3 of 3