Louisiana House Bill HB819

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16
• Report Pass: 4/20/16
• Engrossed: 4/28/16
• Refer: 5/2/16
• Report Pass: 5/18/16
• Enrolled: 6/3/16
• Chaptered: 6/17/16
• Passed: 6/17/16

Caption

Provides for the Oilfield Site Restoration Fund (EN SEE FISC NOTE SD EX)

Impact

If enacted, HB 819 will enhance the state's ability to manage and mitigate environmental risks associated with inactive oilfield sites. It establishes a transparent process for collecting fees necessary for site assessments and restoration efforts. Furthermore, it places restrictions on the use of the funds in the Oilfield Site Restoration Fund to ensure that they are exclusively used for oilfield site restoration, thereby reinforcing financial accountability within the Department of Natural Resources. This amendment to existing legislation intends to create a more sustainable system for oilfield management in Louisiana.

Summary

House Bill 819 establishes guidelines for the Oilfield Site Restoration Fund in Louisiana, which is designed to support the restoration of oilfield sites that have fallen into disrepair. The bill provides for the issuance of revenue bonds financed through fees collected from crude petroleum and gas production. It aims to ensure that adequate financial mechanisms are in place for the cleanup of orphaned oilfield sites, which can pose environmental hazards if left unattended. The bill emphasizes that all funds collected will be specifically allocated for restoration purposes and will not be diverted to other government uses.

Sentiment

The general sentiment surrounding HB 819 is largely supportive among environmental advocates and industry stakeholders alike, who recognize the importance of responsible oilfield management. Proponents argue that the establishment of the Oilfield Site Restoration Fund will provide a much-needed structure to address the historical neglect of orphaned oil sites. However, some concerns have been raised regarding the adequacy of the fees and whether they will be sufficient to cover all potential restoration costs given the scale of the issues across the state.

Contention

Notable points of contention in relation to HB 819 include the potential financial sustainability of the Oilfield Site Restoration Fund and whether the proposed fees will adequately reflect the actual restoration costs involved. Critics of the bill worry that reliance on production fees may not generate enough revenue to tackle restoration projects effectively, especially in light of fluctuating oil prices. Additionally, discussions around the limitations placed on fund usage and the accountability of the Department of Natural Resources could lead to future debates over the bill's effectiveness in fulfilling its intended purposes.