HLS 17RS-707 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 98
BY REPRESENTATIVE BISHOP
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
ENERGY/OIL & GAS: Repeals the provision tying the Oil Field Site Restoration Fund fee
to the payment of severance tax
1 AN ACT
2To repeal R.S. 30:87(D), relative to oilfield site restoration fees; to repeal the provision that
3 oilfield site restoration fees are proportional to severance tax collected on the
4 production of the well.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 30:87(D) is hereby repealed in its entirety.
7 Section 2. The provisions of this Act shall become effective on July 1, 2017.
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)]
HB 98 Original 2017 Regular Session Bishop
Abstract: Repeals the provision that oilfield site restoration fees are proportional to
severance tax collected on the production of the well.
Present law imposes a set fee on the production of oil, condensate, and gas that is in addition
to any severance taxes imposed on such production. The proceeds of the fee are to be used
for the oilfield site restoration program in the Dept. of Natural Resources. Present law
provides that the fee for oil and condensate is based on the price on July 1
st
of each year as
follows:
(1)If the price of oil and condensate is at or below $60/barrel, the fee is 1 and ½
cents/barrel.
(2) If the price of oil and condensate is between $60 and $90/barrel, the fee is 3
cents/barrel.
(3) If the price of oil and condensate is above $90/barrel, the fee is 4 and ½ cents/barrel.
Page 1 of 2 HLS 17RS-707 ORIGINAL
HB NO. 98
In addition, present law sets the fee for natural gas and casing head gas at 3/10ths of one
cent/thousand cubic feet.
Present law further provides that for reduced rate production wells such as stripper wells and
incapable wells, the oilfield site restoration fee is reduced by the same proportion as the
severance tax reduction provided by statute.
Present law provides that the fees are to be in proportion to the amount of severance tax
collected on the well.
Proposed law repeals this last provision.
Effective July 1, 2017.
(Repeals R.S. 30:87(D))
Page 2 of 2