SLS 19RS-339 ENGROSSED
2019 Regular Session
SENATE BILL NO. 180
BY SENATOR ALLAIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MINERALS. Provides relative to the recovery of certain monies expended from the Oilfield
Site Restoration Fund. (8/1/19)
1 AN ACT
2 To amend and reenact R.S. 30:86(E)(5) and the introductory paragraph of 93(A), to enact
3 R.S. 30:93(A)(4), and to repeal R.S. 30:86(E)(2), relative to the Oilfield Site
4 Restoration Fund; to provide for the purposes and uses of the fund; to provide for
5 recovery of site restoration costs; to require reimbursement for monies expended on
6 response costs for an emergency; to repeal the use by the Department of Natural
7 Resources for administration purposes of the oilfield site restoration fees; to provide
8 terms, conditions, and procedures; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 30:86(E)(5) and the introductory paragraph of 93(A) are hereby
11 amended and reenacted and R.S. 30:93(A)(4) is hereby enacted to read as follows:
12 §86. Oilfield Site Restoration Fund
13 * * *
14 E. The monies in the fund may be disbursed and expended pursuant to the
15 authority and direction of the secretary or assistant secretary for the following
16 purposes and uses:
17 * * *
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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. 180
SLS 19RS-339 ENGROSSED
1 (5) Any costs associated with response to any emergency as provided in R.S.
2 30:6.1. The department shall seek to recover from the responsible party any
3 monies disbursed and expended from the fund for any emergency as provided
4 in R.S. 30:6.1 within six months from disbursement. Any monies disbursed and
5 expended from the fund for any emergency as provided in R.S. 30:6.1 shall be
6 reimbursed to the fund by the department within one year from disbursement.
7 However, upon a two-thirds vote of the members of the commission, the
8 department shall not be required to reimburse the fund.
9 * * *
10 §93. Recovery of site restoration costs
11 A. If the assistant secretary undertakes restoration of an orphaned oilfield site
12 under this Part or responds to any emergency as provided in R.S. 30:6.1, the
13 secretary shall seek to recover all costs incurred by the secretary, assistant secretary,
14 penalties, and other relief from any party who has operated or held a working interest
15 in such site, or who is required by law, rules adopted by the department, or a valid
16 order of the assistant secretary to control, clean up, close, or restore the oilfield sites
17 or other facilities, structures, or pipelines under the commissioner's jurisdiction
18 pursuant to R.S. 30:1 et seq. in accordance with the following:
19 * * *
20 (4) For a response to any emergency as provided in R.S. 30:6.1, recovery
21 of costs shall be against the responsible party.
22 * * *
23 Section 2. R.S. 30:86(E)(2) is hereby repealed.
The original instrument was prepared by J. W. Wiley. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Martha Hess.
DIGEST
SB 180 Engrossed 2019 Regular Session Allain
Present law allows the monies in the Oilfield Site Restoration Fund (fund) to be disbursed
and expended pursuant to the authority and direction of the secretary or assistant secretary
of the Department of Natural Resources (DNR) for certain purposes and uses, including
costs associated with response to an emergency.
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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. 180
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Proposed law retains present law and requires the DNR to seek recovery from the
responsible party any monies disbursed and expended from the fund for an emergency
within six months from disbursement. Further requires the DNR to reimburse the fund any
monies disbursed and expended from the fund for an emergency within one year from
disbursement. Provides that upon a 2/3's vote of the members of the commission, DNR
shall not be required to reimburse the fund.
Present law allows the secretary of the DNR to recover certain costs incurred by the
secretary for the control, clean up, closure, or restoration of oilfield sites. Further provides
a procedure for the recovery of costs.
Proposed law retains present law and includes costs for responding to an emergency at an
oilfield site or other facility, structure, or pipeline under the jurisdiction of the commissioner
of conservation to the costs the secretary may recover from the responsible party. Proposed
law does not allow DNR to use monies in the fund for administration purposes.
Present law provides certain balance requirements in the fund. When the balance in the fund
equals or exceeds $14 million dollars, the oilfield site restoration fees on oil and gas will not
be collected or required to be paid by the responsible party. When the balance in the fund
has fallen below $10 million dollars, the fees will be collected or required to be paid by the
responsible party. Proposed law retains present law.
Effective August 1, 2019.
(Amends R.S. 30:86(E)(5) and 93(A)(intro para); adds R.S. 30:93(A)(4); repeals R.S.
30:86(E)(2))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill
1. Restores the balance requirements in the fund.
2. Repeals the authorization for DNR to use monies in the fund for
administration purposes.
3. Provides that monies disbursed for an emergency must be reimbursed to the
fund by DNR within one year from disbursement, unless the commission, by
2/3's vote, does not require DNR to reimburse the fund.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.