SLS 16RS-660 ENGROSSED
2016 Regular Session
SENATE BILL NO. 425
BY SENATOR ALLAIN
CONSERVATION. Dedicates the annual assessment on an operator who chooses not to
plug an inactive well. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 30:21(B)(2)(a) and to enact R.S. 30:86(D)(7), relative to the
3 commissioner of conservation; to provide for the Oil and Gas Regulatory Fund; to
4 provide for the Oilfield Site Restoration Fund; to provide for contributions to such
5 funds from fees collected from an operator who chooses not to plug a well classified
6 as inactive; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 30:21(B)(2)(a) is hereby amended and reenacted and R.S.
9 30:86(D)(7) is hereby enacted to read as follows:
10 §21. Fees and charges of the commissioner of conservation; revisions; exceptions;
11 collections; Oil and Gas Regulatory Fund; creation; amounts;
12 requirements
13 * * *
14 B. * * *
15 (2)(a) There is hereby established a special fund in the state treasury to be
16 known as the Oil and Gas Regulatory Fund, hereafter referred to as the "fund". After
17 deposit in the Bond Security and Redemption Fund and after a sufficient amount is
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 425
SLS 16RS-660 ENGROSSED
1 allocated from that fund to pay all the obligations secured by the full faith and credit
2 of the state that become due and payable within each fiscal year, the treasurer shall
3 pay into the fund an amount equal to the monies generated from collection of the
4 fees provided for in this Title or Title 47 of the Louisiana Revised Statutes of 1950,
5 the rules and regulations promulgated thereunder, any fines and civil penalties or any
6 other provision of law relative to fees, fines, or civil penalties attributable to the
7 office of conservation, and fifty percent of any annual assessment paid by an
8 operator who chooses not to plug a well classified as inactive with the remainder
9 being deposited into the Oilfield Site Restoration Fund.
10 * * *
11 §86. Oilfield Site Restoration Fund
12 * * *
13 D. The following monies shall be placed into the Oilfield Site Restoration
14 Fund:
15 * * *
16 (7) Fifty percent of any annual assessment paid by an operator who
17 chooses not to plug a well classified as inactive with the remainder being
18 deposited into the Oil and Gas Regulatory Fund.
19 * * *
20 Section 2. This Act shall become effective upon signature by the governor or, if not
21 signed by the governor, upon expiration of the time for bills to become law without signature
22 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
23 vetoed by the governor and subsequently approved by the legislature, this Act shall become
24 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
SB 425 Engrossed 2016 Regular Session Allain
Present law establishes the Oil and Gas Regulatory Fund within the state treasury, with
monies credited to the fund to be appropriated by the legislature and dedicated solely to the
use of the office of conservation for the regulation of the oil and gas industry and other
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 425
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industries under its jurisdiction.
Proposed law retains present law and dedicates 50% of any annual assessment paid by an
operator who chooses not to plug a well classified as inactive into the Oil and Gas
Regulatory Fund with the remainder being deposited into the Oilfield Site Restoration Fund.
Present law establishes the Oilfield Site Restoration Fund within the state treasury and may
only be used for special purposes as provided by present law.
Proposed law retains present law and dedicates 50% of any annual assessment paid by an
operator who chooses not to plug a well classified as inactive into the Oilfield Site
Restoration Fund with the remainder being deposited into the Oil and Gas Regulatory Fund.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 30:21(B)(2)(a); adds R.S. 30:86(D)(7))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.