Dedicates the annual assessment on an operator who chooses not to plug an inactive well. (gov sig) (EN INCREASE SD RV See Note)
Impact
The bill will directly impact state laws by increasing the financial obligations of operators who do not plug inactive wells, thereby providing a source of funding intended for oilfield site restoration efforts. This new regulatory framework aims to ensure that funds are available for the remediation of sites that otherwise pose environmental hazards due to neglected or inactive oil wells. The allocation of fees collected will help mitigate potential costs to taxpayers by ensuring that operators bear responsibility for their wells.
Summary
Senate Bill 425 aims to amend the laws concerning the management of inactive wells in Louisiana by establishing a contribution mechanism for operators who choose not to plug these wells. Specifically, the bill creates an Oil and Gas Regulatory Fund and an Oilfield Site Restoration Fund, into which operators will pay fees based on their inactive well classifications. This represents a legislative step towards encouraging the responsible management of oil and gas resources and addressing environmental concerns associated with inactive wells.
Sentiment
General sentiment surrounding SB 425 appears to be supportive among legislators concerned with environmental issues and regulatory oversight of the oil and gas industry. The bill received a unanimous vote in the House, indicating a strong bipartisan agreement on the importance of addressing the problem of inactive wells and ensuring proper funds for restoration. However, opposition may arise from industry stakeholders who feel that increased fees could burden operators and impact economic activities in the region.
Contention
Notable points of contention regarding SB 425 may relate to the balance between regulatory responsibilities and economic impacts on the oil and gas industry. While the intent is to hold operators accountable for inactive wells, potential concerns about the financial implications of increased assessments on these operators could lead to discussions about the viability of their operational strategies. Legislators and stakeholders may continue to debate the effectiveness of such measures in achieving environmental protection without overregulating the industry.
Establishes procedures for review of future utility of well sites that have been inactive for more than ten years. (8/1/18) (RE INCREASE SD EX See Note)
Dedicates certain funds to oilfield site-specific trust accounts in order to provide for oilfield site restoration. (gov sig) (EN INCREASE OF RV See Note)
Relating to the responsibility of oil and gas well operators with regard to plugging inactive oil or gas wells and to ensuring the proper connection of electric lines.
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
Authorizes the commissioner of conservation of the Louisiana Department of Natural Resources to enforce the La. Underground Utilities and Facilities Damage Prevention (OneCall) law as it applies to pipelines (EN INCREASE SD EX See Note)