DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 837 Original 2016 Regular Session Gisclair
Abstract: Provides relative to the establishment, operation, procedures, and penalties associated
with site-specific trust accounts for certain oil field sites.
Present law authorizes the establishment of a site-specific trust account for an oilfield site that is
transferred from one party to another party.
Proposed law requires the establishment of a site-specific trust account for an oilfield site that is
transferred from the operator of record to another operator.
Present law provides for the procedure of declaring an oilfield site as orphaned. Requires that prior
to declaring a site orphaned, the assistant secretary of Dept. of Natural Resources (DNR) must notify
the last operator of record.
Proposed law requires the asst. secretary of DNR to notify all operators.
Proposed law provides that if the current operator of record fails to respond or fails to close and
restore an oilfield site when ordered by the asst. secretary, then the asst. secretary must order, in
reverse chronological order from the date of the notice provided in present law, the former operators
of record to close and restore the oilfield site.
Proposed law provides for penalties and the recovery of site restoration costs to be assessed against
the operator who fails to close and restore the oilfield site.
Present law provides recovery of site restoration costs. Further provides that the secretary of DNR
is not authorized to recover restoration costs from parties that formerly operated or held a working
interest in an orphaned oilfield site unless restoration costs for a particular orphaned oilfield site
including support facilities exceed $250,000.
Proposed law changes the restoration costs limitation from $250,000 to $50,000.
Present law provides that if the oilfield site does not meet the provisions of R.S. 30:88(F) and
restoration costs exceed $250,000, recovery of costs will be from the parties in inverse chronological
order from the date on which the oilfield site has been declared orphaned, except that a party will
be exempt from liability for restoration of an orphaned oilfield site if the party meets certain
requirements. Proposed law changes the restoration costs limitation from $250,000 to $50,000.
(Amends R.S. 30:88(A), (B), (C), (E), (F), (G), and (H), 91(B)(1), 93(A)(1) and (3)(intro. para.);
Adds R.S. 30:91(B)(5))