Urges and requests the commissioner of conservation to develop and implement a pilot program to reduce the cost of plugging orphaned wells and decrease the number of wells on the orphan wells list
If enacted, HCR72 would provide a structured alternative for contracting well plugging services, allowing operators with good compliance records to participate without the need for a contractor's license. This change is aimed at increasing the efficiency of the restoration process while managing costs. The pilot program is intended to operate over a period of three years, during which annual reports on the program's status would be submitted to the relevant legislative committees. This approach aims to address both environmental concerns and economic efficiency in well site restoration.
House Concurrent Resolution 72 (HCR72) urges the Louisiana Department of Natural Resources to develop and implement a pilot program focused on reimbursing operators for plugging orphaned oil and gas wells. These orphaned wells are abandoned sites where no operator can be located or where previous operators have failed to comply with state regulations. The resolution highlights the urgent need for a more efficient and cost-effective approach to plug these wells, currently numbering over three thousand statewide, particularly in areas with higher environmental risks.
The overall sentiment surrounding HCR72 has been largely supportive, as it seeks to tackle the pressing issue of orphaned wells that pose environmental hazards. Stakeholders in the oil and gas industry generally welcome the resolution as it presents opportunities for businesses to engage in remediation work. However, there may be concerns from environmental advocates regarding the effectiveness of the proposed contractor requirements and how they may impact the quality of work performed on the wells.
While there is a clear acknowledgment of the need to prioritize the closure of orphaned wells, debates around HCR72 focus on how to implement the proposed changes without sacrificing safety and environmental standards. Critics may argue that reducing requirements for contractors could lead to potential oversights in well plugging quality. The resolution aims to strike a balance by allowing flexibility in contracting while still ensuring that operators adhere to necessary compliance requirements.