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 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))