HLS 17RS-707 ENGROSSED
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 amend and reenact R.S. 30:87(A), (B), and (F) and to repeal R.S. 30:87(D), relative to
3 oilfield site restoration fees; to provide relative to the applicability of the fees; to
4 remove certain references; to repeal the provision that oilfield site restoration fees
5 are proportional to severance tax collected on the production of the well; and to
6 provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 30:87(A), (B), and (F) are hereby amended and reenacted to read as
9follows:
10 §87. Oilfield site restoration fees
11 A. There is hereby imposed on crude petroleum produced from producing
12 wells in this state a fee on each barrel of oil and condensate. "Oil" and "condensate"
13 shall mean the same such oil and condensate as is taxable under the provisions of
14 Part I of Chapter 6 of Subtitle II of Title 47 of the Louisiana Revised Statutes of
15 1950. The fee is in addition to any tax imposed pursuant to the Louisiana Revised
16 Statutes of 1950, Title 47. The provisions of Chapters 17 and 18 of Subtitle II of
17 Title 47 of the Louisiana Revised Statutes of 1950 shall apply to the administration,
18 collection, and enforcement of the fee imposed herein, and the penalties provided by
19 that code shall apply to any person who fails to pay or report the fee. Collection of
20 the fee shall be suspended in the manner provided by R.S. 30:86(C). Proceeds from
21 the fee, including any penalties collected in connection with the fee, shall be
22 deposited into the Oilfield Site Restoration Fund.
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HB NO. 98
1 B. There is hereby imposed on gas produced from producing wells in this
2 state a fee in the amount of three-tenths of one cent for each thousand cubic feet.
3 "Gas" shall mean the same such gas as is taxable under the provisions of Part I of
4 Chapter 6 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950. The
5 fee is in addition to any tax imposed pursuant to the Louisiana Revised Statutes of
6 1950, Title 47. The provisions of the Louisiana Tax Code shall apply to the
7 administration, collection, and enforcement of the fee, and the penalties provided by
8 that code shall apply to any person who fails to pay or report the fee. Collection of
9 the fee shall be suspended in the manner provided by R.S. 30:86(C). Proceeds from
10 the fee, including any penalties collected in connection with the fee, shall be
11 deposited into the Oilfield Site Restoration Fund.
12 * * *
13 F. The site restoration fee shall be the following:
14 (1)(a) Full rate production, which shall include all production from oil or gas
15 wells except for production from reduced rate production wells as set forth in R.S.
16 47:633(7): For crude oil and condensate, the fee shall be based on the oil price on
17 July first of each year for the ensuing twelve months based upon the average New
18 York Mercantile Exchange Price per barrel of crude oil per month on the close of
19 business on June thirtieth for the prior twelve months. The amount of the fee for a
20 well that produces crude oil and condensate shall be as follows:
21 * * *
22 Section 2. R.S. 30:87(D) is hereby repealed in its entirety.
23 Section 3. 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 Engrossed 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
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HB NO. 98
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 1st 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.
In addition, present law sets the fee for natural gas and casing head gas at 3/10ths of one
cent/thousand cubic feet.
Proposed law removes certain citations to other laws without repealing those provisions.
Proposed law also specifies that the full production rate fee is assessed for all production
from oil and gas wells except for production from those that are identified as reduced rate
production wells.
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 provision.
Effective July 1, 2017.
(Amends R.S. 30:87(A), (B), and (F); Repeals R.S. 30:87(D))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Natural Resources and
Environment to the original bill:
1. Remove certain citations to other laws without repealing those provisions.
2. Specify that the full production rate fee is assessed on all production from oil and
gas wells except for production from those that are identified as reduced rate
production wells.
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