The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Alan Miller.
DIGEST
SB 377 Engrossed 2018 Regular Session Allain
Proposed law provides definitions.
Proposed law provides that if an inactive well has been designated as being inactive with future
utility by the operator for a period of 10 years or more and that well is neither scheduled to be
plugged and abandoned on a plan approved by the commissioner nor covered under an approved
production plan, then the owner may request in writing that the office of conservation determine
whether the inactive well has future utility.
Proposed law provides the following procedure to determine whether the inactive well should be
plugged:
(1)Within 30 days of receipt of such a request, the commissioner notifies the operator of the
request.
(2)The operator submits to the office a written justification including any evidence he deems
necessary to prove that the well has future utility within 90 days of receipt of the notice from
the office.
(3)The office reviews the operator's written justification and determines whether the inactive
well in question has future utility.
(4)The operator submits a plan to the office to plug the well within 90 days after a final
determination by the office that the well has no future utility has been made.
(5)The commissioner may approve the plan of plugging and abandonment submitted by the
operator that shall include any revisions the commissioner deems necessary.
(6)The operator plugs the well in accordance with and within the time frame set forth in the plan
of plugging and abandonment approved by the commissioner.
(7)The operator or the owner may appeal the office's determination to the division of
administrative law.
Proposed law provides that if the office is unable to carry out any of the responsibilities set proposed
law within 90 days of a request or submission due to lack of sufficient personnel or funding, then
the commissioner may delay such responsibilities and notify the operator and owner of such a delay
and provide an estimate of when the office plans to carry out its responsibility. Proposed law provides that after notification that the commissioner has delayed the determination,
and the owner insists on an expedited determination, the owner may donate an amount determined
by the commissioner to be placed in the Oil and Gas Regulatory Fund to defray the costs of an
expedited determination. Proposed law requires the office to follow the procedure set forth in present
law to expedite the determination.
Proposed law requires the commissioner to adopt rules and regulations in accordance with the APA
to implement the provisions of proposed law, including but not limited to defining the term "future
utility" and establishing the factors to be considered when making the determination of future utility.
Proposed law requires the monies credited to the Oil and Gas Regulatory Fund generated from
donations and any annual assessment paid by an operator who chooses not to plug a well classified
as inactive to be used to monitor and determine future utility of inactive wells.
Effective August 1, 2018.
(Amends R.S. 30:21(B)(2)(a) and (b); adds R.S. 30:9.3)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to the
original bill
1. Defines the term "inactive well".
2. Changes appeals of a determination from district court to division of administrative
law.
3. Adds provision that if after notification that the commissioner has delayed the
determination, and the owner insists on an expedited determination, the owner may
donate an amount determined by the commissioner to be placed in the Oil and Gas
Regulatory Fund to defray the costs of an expedited determination.
4. Requires the commissioner to adopt rules and regulations in accordance with the
APA.
5. Requires the monies credited to the Oil and Gas Regulatory Fund generated from
donations and any annual assessment paid by an operator who chooses not to plug a
well classified as inactive to be used to monitor and determine future utility of
inactive wells.