SLS 19RS-339 REENGROSSED
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)(2) and (5) and the introductory paragraph of R.S.
3 30:93(A), and to enact R.S. 30:93(A)(4), relative to the Oilfield Site Restoration
4 Fund; to provide for the purposes and uses of the fund; to provide for recovery of site
5 restoration costs; to require approval of the Oilfield Site Restoration Commission for
6 expenditure of certain monies; to provide terms, conditions, and procedures; and to
7 provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 30:86(E)(2) and (5) and the introductory paragraph of R.S. 30:93(A)
10 are hereby amended and reenacted and R.S. 30:93(A)(4) is hereby enacted to read as
11 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 REENGROSSED
1 (2) The Upon approval of the commission, the administration of this Part
2 by the Department of Natural Resources department in an amount not to exceed
3 nine hundred fifty thousand dollars each fiscal year.
4 * * *
5 (5) Any Upon approval of the commission, any costs associated with
6 response to any emergency as provided in R.S. 30:6.1.
7 * * *
8 §93. Recovery of site restoration costs; emergency costs
9 A. If the assistant secretary undertakes restoration of an orphaned oilfield site
10 under this Part or responds to any emergency as provided in R.S. 30:6.1, the
11 secretary shall seek to recover all costs incurred by the secretary, assistant secretary,
12 penalties, and other relief from any party who has operated or held a working interest
13 in such site, or who is required by law, rules adopted by the department, or a valid
14 order of the assistant secretary to control, clean up, close, or restore the oilfield sites
15 or other facilities, structures, or pipelines under the commissioner's jurisdiction
16 pursuant to R.S. 30:1 et seq. in accordance with the following:
17 * * *
18 (4) For a response to any emergency as provided in R.S. 30:6.1, recovery
19 of costs shall be against the responsible party. The department shall seek
20 recovery from the responsible party within six months from the initial
21 disbursement of any monies in the fund.
22 * * *
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 Reengrossed 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.
Proposed law retains present law and requires approval by the Oilfield Site Restoration
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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 REENGROSSED
Commission for such costs including costs associated with response to any emergency.
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 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.
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)(2) and (5) and 93(A)(intro para); adds R.S. 30:93(A)(4))
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.
Senate Floor Amendments to engrossed bill
1. Restores the administration $950,000, but adds approval by the Oilfield Site
Restoration Commission.
2. Adds approval by the Oilfield Site Restoration Commission for costs
associated with response to an emergency.
3. Deletes proposed law concerning reimbursement by DNR for monies
expended for an emergency and deletes proposed law concerning 2/3 vote of
commission to not require reimbursement by the department.
4. 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.
5. Makes technical corrections.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.