Louisiana 2016 2016 Regular Session

Louisiana Senate Bill SB371 Comm Sub / Analysis

                    The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by J. W. Wiley.
DIGEST
SB 371 Engrossed	2016 Regular Session	Allain
Present law provides recovery of site restoration costs. Further provides that the secretary of
Department of Natural Resources 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 reduces the restoration costs limitation from $250,000 to $100,000.
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 reduces the restoration costs limitation from $250,000 to $100,000.
Effective if and when the NYMEX price per barrel of crude oil is $60 per barrel or greater. 
(Amends R.S. 30:93(A)(1) and (A)(3)(intro para))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to the
original bill
1. Changes the restoration costs limitation.
2. Provides a contingent effective date.