RÉSUMÉ DIGEST
ACT 242 (SB 447) 2020 Regular Session Allain
Prior law required 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. Prior law authorized the rules, regulations, and orders to
classify based on location of the well but required 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 new well in terms of
depth and location.
New 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 which include in the
cooperative endeavor agreement a provision that allows full access to their operations and
financial records for the purpose of any audit conducted by the legislative auditor.
Prior law provided for the powers and duties of the Oilfield Site Restoration (OSR)
Commission.
New law retains prior 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.
Prior law required a cash bond, performance bond, or other surety in order to bid on a
contract for site assessment or restoration. New law removes that requirement.
Prior law required contractors wishing to bid or work on oilfield site assessment or
restoration be licensed by the state licensing board for contractors. New 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))