The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Alan Miller.
DIGEST
SB 388 Engrossed 2016 Regular Session Cortez
Present law authorizes an owner drilling or intending to drill a unit well, a substitute unit well, an
alternate unit well, or a cross-unit well on any drilling unit heretofore or hereafter created by the
commissioner, may, by registered mail, return receipt requested, or other form of guaranteed delivery
and notification method, not including electronic communication or mail, to notify all other owners
in the unit prior to the actual spudding of any such well of the drilling or the intent to drill and give
each owner an opportunity to elect to participate in the risk and expense of such well.
Proposed law eliminates the notification provision to all other owners in the unit prior to the actual
spudding of the well.
Proposed law requires the payment of estimated drilling costs be deemed timely if received by the
drilling owner within 60 days of the spudding of the well or the receipt by the notified owner of the
notice provided for in present law, whichever is later.
Present law provides for a drilling unit being created around certain wells and for a drilling unit
being revised. The owners will have 60 days from the order creating the new or revised unit to
participate in the well.
Proposed law removes the 60-day provision.
Proposed law provides that failure of the drilling owner to provide written notice as required by
present law to an owner will not affect the validity of the written notice properly provided to any
other owner in the unit.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 30:10(A)(2)(a)(i)(intro para), (b)(i), (c) and (d)(i); adds R.S. 30:10(A)(2)(i))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to the
original bill
1. Technical changes.
2. Adds provision regarding failure of the drilling owner to provide written notice as
required by present law to an owner will not affect the validity of the written notice
properly provided to any other owner in the unit.