HLS 21RS-207 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 246
BY REPRESENTATIVE COUSSAN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
SALT DOMES: Provides relative to the storage of hydrogen in underground reservoirs and
salt domes
1 AN ACT
2To amend and reenact R.S. 30:23(A), (B)(introductory paragraph), (1), (2), and (4), (C), and
3 (D)(1), relative to the underground storage of hydrogen in underground reservoirs
4 and salt domes; to include hydrogen as a substance that can be stored in underground
5 reservoirs and salt domes; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 30:23(A), (B)(introductory paragraph), (1), (2), and (4), (C), and
8(D)(1) are hereby amended and reenacted to read as follows:
9 ยง23. Underground storage of liquid or gaseous hydrocarbons or both or both, carbon
10 dioxide, or hydrogen
11 A. The underground storage of liquid or gaseous hydrocarbons, or carbon
12 dioxide, or hydrogen will permit the accumulation of large quantities of such liquid
13 or gaseous hydrocarbons or hydrogen for orderly withdrawal in times of greater
14 demand, it being deemed in the public interest to have a supply of such hydrocarbons
15 and hydrogen readily available for consumption. The underground storage of carbon
16 dioxide which provides more uniform withdrawal from various gas or oil fields is in
17 the public interest and for a public purpose.
18 B. Except as to liquid or gas storage, or carbon dioxide, or hydrogen projects
19 begun before the effective date of this Section, and prior to authorizing the use of any
20 salt dome cavity for the storage of liquid or gaseous hydrocarbons, or carbon
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1 dioxide, or hydrogen, the assistant secretary, after public hearing pursuant to the
2 provisions of R.S. 30:6, shall have found all of the following:
3 (1) That the area of the salt dome sought to be used for the injection, storage,
4 and withdrawal of liquid or gaseous hydrocarbons, or carbon dioxide, or hydrogen
5 is suitable and feasible for such use.
6 (2) That the use of the salt dome cavity for the storage of liquid or gaseous
7 hydrocarbons, or carbon dioxide, or hydrogen will not contaminate other formations
8 containing fresh water, oil, gas, or other commercial mineral deposits, except salt.
9 * * *
10 (4) That temporary loss of jobs caused by the storage of liquid or gaseous
11 hydrocarbons, or carbon dioxide, or hydrogen will be corrected by compensation,
12 finding of new employment, or other provisions made for displaced labor.
13 * * *
14 C. After having made the findings required in Subsection B of this Section,
15 the commissioner shall transmit a copy of the application, together with his findings,
16 to the natural resources committees of the Senate and House of Representatives.
17 These committees, meeting jointly, shall consider the facts surrounding the
18 application and the findings of the commissioner and may hold public hearings
19 thereon. Based upon its deliberations, the committees, acting jointly, may submit a
20 report and recommendations to the commissioner within fifteen days after receipt of
21 the application. After consideration of any recommendations so made, the
22 commissioner may issue all necessary orders providing that liquid or gaseous
23 hydrocarbons, or carbon dioxide, or hydrogen previously reduced to possession and
24 which are subsequently injected and stored in a salt dome cavity, shall at all times
25 be deemed the property of the injector, his successors, or assigns, subject to the
26 provisions of any contract between the owner or owners of the solid mineral or land
27 overlying the area affected as determined by the commissioner of conservation; and
28 providing further that in no event shall the owner of the surface of the lands or water
29 bottoms or of any mineral interest under or adjacent to which such salt dome cavity
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HB NO. 246
1 may lie, or any other person, be entitled to any right or claim in or to such liquid or
2 gaseous hydrocarbons, or carbon dioxide, or hydrogen stored therein, including the
3 right to produce, take, reduce to possession, waste, or otherwise interfere with or
4 exercise any control thereover. The commissioner shall issue necessary orders, rules,
5 and regulations for the protection from pollution of any salt dome cavity used for
6 storage of liquid or gaseous hydrocarbons, or carbon dioxide, or hydrogen, or any
7 adjacent strata or formation; and such rules and regulations as may be necessary
8 pertaining to surface storage facilities for the protection of the environment, drilling
9 into any salt dome for the creation of cavities, and equipping of same for the
10 injection, storage, and withdrawal of liquid or gaseous hydrocarbons, or carbon
11 dioxide, or hydrogen. Subject to the exception provided in Subsection B of this
12 Section, the commissioner shall not allow the use of any salt dome in the state of
13 Louisiana for the purposes mentioned herein until such time as he has prepared and
14 promulgated the regulations required herein according to the Louisiana
15 Administrative Procedure Act, R.S. 49:951 R.S. 49:950 et seq. In addition, the
16 commissioner shall issue necessary orders, rules, and regulations for the protection
17 of the rights of owners of parts of the salt dome which are adjacent to any part
18 thereof sought to be used for liquid or gaseous hydrocarbon hydrocarbons, or carbon
19 dioxide, or hydrogen storage.
20 D.(1) In furtherance of the development of comprehensive energy policy for
21 the state, the secretary of the Department of Natural Resources shall determine the
22 feasibility of initiating projects, by the state or by contract on behalf of the state, for
23 the storage of emergency supplies of state-owned oil and gas, or carbon dioxide, or
24 hydrogen. Such determination shall include consideration of the techniques, costs,
25 quantities of oil and gas, or carbon dioxide, or hydrogen available for such purpose
26 and priorities for allocation in time of emergency.
27 * * *
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HB NO. 246
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)]
HB 246 Engrossed 2021 Regular Session Coussan
Abstract: Adds hydrogen to the list of substances that can be stored in underground
reservoirs and salt domes.
Present law provides for the storage of natural gas, liquid hydrocarbons, and carbon dioxide
in underground reservoirs and salt domes. Proposed law retains present law but also
provides for the storage of hydrogen in such reservoirs and salt domes.
Present law provides that prior to using a salt dome as storage of liquid or gas hydrocarbons,
or carbon dioxide, the commissioner must have a hearing and find that such use is feasible;
that the storage will not contaminate other formations; the storage will not endanger lives
or property and is environmentally compatible with existing dome uses; and that temporary
loss of jobs caused by the storage will be corrected by compensation, new employment, or
other provisions.
Present law provides that such findings along with the application for such use of a salt dome
must be transmitted to the natural resources committees of the House and Senate, which may
meet jointly to make recommendations to the commissioner. Proposed law retains present
law and adds the storage of hydrogen.
Present law further provides that after receipt of such recommendations, if any, the
commissioner is authorized to issue orders to ensure that liquid or gaseous hydrocarbons or
carbon dioxide reduced to possession and then injected into a salt dome remains the property
of the injector, not the surface or mineral rights owner, and to issue orders to protect the
reservoir. Proposed law retains present law and adds hydrogen.
Present law requires the secretary of the Dept. of Natural Resources determine the feasibility
of projects for the emergency storage of state-owned oil and gas or carbon dioxide.
Proposed law retains present law and adds hydrogen.
(Amends R.S. 30:23(A), (B)(intro. para.), (1), (2), and (4), (C), and (D)(1))
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