SLS 20RS-196 ENGROSSED
2020 Regular Session
SENATE BILL NO. 447
BY SENATOR ALLAIN
CONSERVATION. Provides relative to plugging of orphaned wells and certain agreements
by the commissioner of conservation. (8/1/20)
1 AN ACT
2 To enact R.S. 30:4(T) and 83(F)(4), relative to the powers and duties of the commissioner
3 of conservation; to provide relative to orphaned wells and certain agreements; to
4 provide terms and conditions; to provide relative to plugging of wells; to provide
5 relative to the Oilfield Site Restoration Commission; and to provide for related
6 matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 30:4(T) and 83(F)(4) are hereby enacted to read as follows:
9 §4. Jurisdiction, duties, and powers of the assistant secretary; rules and regulations
10 * * *
11 T. In addition to the requirements set forth in Subsection R of this
12 Section, an organization seeking to enter into a cooperative endeavor agreement
13 with the assistant secretary to assist with plugging orphaned wells in order to
14 alleviate the burden on operators in meeting financial security requirements,
15 shall be chartered as a Louisiana trust company and comply with the Louisiana
16 Trust Company Law, Chapter 7-A of Title 6 of the Louisiana Revised Statutes
17 of 1950.
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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. 447
SLS 20RS-196 ENGROSSED
1 * * *
2 §83. Oilfield Site Restoration Commission; Department of Natural Resources
3 * * *
4 F. The powers of the commission shall be limited to the following:
5 * * *
6 (4) Approve a cooperative endeavor agreement between the
7 commissioner and an organization seeking to assist with plugging orphaned
8 wells in order to alleviate the burden on operators in meeting financial security
9 requirements.
10 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
SB 447 Engrossed 2020 Regular Session Allain
Present law requires the commissioner of conservation to make, after notice and public
hearings, any rules, regulations, and orders that are necessary to require reasonable bond
with security for the performance of the duty to plug each dry and abandoned well and the
closure and to perform the site cleanup. Present law authorizes the rules, regulations, and
orders to classify based on location of the well but require the following exceptions from the
reasonable bond and security requirement:
(1)Wells exempt prior to September 1, 2015, that remain with the operator of record as
of that date.
(2)Wells utilizing plugging credits.
(3)Wells exempt that meet the following criteria:
(a)Any well declared to be orphaned by the commissioner and subsequently
transferred to another operator.
(b)Any well to be drilled by an operator who has an agreement with the office
of conservation to plug a well that has been declared to be orphaned by the
commissioner and that orphaned well is similar to the proposed well in terms
of depth and location.
Proposed law requires that if the commissioner seeks to enter into a cooperative endeavor
agreement with an organization to assist with plugging orphaned wells and alleviating the
burden on operators in meeting financial security requirements, that organization be
chartered as a Louisiana trust company and comply with the Louisiana Trust Company Law.
Present law provides for the powers and duties of the Oilfield Site Restoration (OSR)
Commission.
Proposed law retains present law and adds the requirement that the OSR commission
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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. 447
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approve any cooperative endeavor agreement between the commissioner and an organization
seeking to assist with plugging orphaned wells in order to alleviate the burden on operators
in meeting financial security requirements.
Effective August 1, 2020.
(Adds R.S. 30:4(T) and 83(F)(4))
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.