RDCSB447 341 2254
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
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.
Present law requires a cash bond, performance bond, or other surety in order to bid on a
contract for site assessment or restoration. Proposed law removes that requirement.
Present law requires contractors wishing to bid or work on oilfield site assessment or
restoration be licensed by the state licensing board for contractors . Proposed law exempts
from this requirement a person bidding or performing on a project paid for by monies from
the Oilfield Site Restoration Fund or the Coronavirus Aid, Relief, and Economic Security
(CARES) Act.
Effective August 1, 2020.
(Amends R.S. 30:92(C); Adds R.S. 30:4(T) and 83(F)(4) and R.S. 37:2157(A)(10))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Natural Resources and
Environment to the engrossed bill:
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1. Remove the requirement for a cash bond, performance bond, or other surety in
order to bid on a contract for site assessment or restoration.
2. Exempt from the requirement of licensing by the state licensing board for
contractors a person bidding or performing on a project paid for by monies from
the Oilfield Site Restoration Fund or the Coronavirus Aid, Relief, and Economic
Security (CARES) Act.
3. Make technical changes.
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