RDCSB388 375 4602
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)]
SB 388 Engrossed 2016 Regular Session Cortez
Present law authorizes an owner drilling, intending to drill, or who has drilled 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.
Present law requires the notice contain the authorization of expenditure form, as of 120 days
of the notice, the proposed location and depth, estimated ownership or percentage of well
participation, and data of the proposed well.
Proposed law provides for the notice for wells drilled prior to the notice include the actual
cost, location, depth, and various data 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. Specifies that 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), (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.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Natural Resources and
Environment to the engrossed bill:
Page 1 of 2 RDCSB388 375 4602
1. Add authority to an owner who has drilled a well to notify all owners of the
drilling and give the opportunity to those owners to elect to participate.
2. Add such notice include for wells drilled prior to the notice the actual cost,
location, depth, and various data of the well.
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