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)]
HCR 72 Original 2016 Regular Session Jim Morris
Urges and requests the Dept. of Natural Resources, office of conservation, to develop an alternate
method of contracting for services to plug orphaned oil and gas well sites and to implement the
alternative method as a pilot program for three years beginning FY 2016-2017. Also urges and
requests the office of conservation to report annually on the status of the pilot program to the House
Committee on Natural Resources and Environment and the Senate Committee on Natural Resources
beginning no later than March 1, 2017.
Provides that the alternative method of contracting shall include, but not be limited to, the following:
(1)Require that the operators in the program have a good record of compliance, in lieu of
holding a contractor's license, with the office of conservation with no outstanding violations.
(2)Develop criteria for qualified bidders that are not a current operator.
(3)Require a performance bond or letter of credit to amount below 50% of the contract.
(4)Provide for a completion date in the contract in lieu of providing for penalties for lapse in
work resulting from equipment failure or inclimate weather.
(5)Provide for weekly, or less frequently, reporting of work performed by the contractor in lieu
of daily reporting.
(6)Require that the type equipment used by the contractor be based on the physical
characteristics of the well to be plugged.
(7)Require any pit used during the restoration process be properly lined and properly disposed
of after work is completed and limit reporting requirements for such pit.
(8)Consider payment for the contract be on a cost plus a prenegotiated percentage.
(9) Prioritize the focus of the pilot program on a large number of land based orphaned wells that
would otherwise not be a priority under the current method of contracting.
Directs the Dept. of Natural Resources, office of conservation when the pilot program is
implemented, from the monies appropriated to the office to fund the pilot program in an amount not
less than $1,000,000 to plug orphaned wells drilled to a depth less than 3,000 feet in the office of conservation's Shreveport and Monroe districts beginning FY 2016-2017 and through the end of FY
2018-2019.