The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Tyler S. McCloud.
DIGEST
SB 245 Engrossed 2022 Regular Session Allain
Present law creates the Louisiana Oilfield Site Restoration Law to provide for the proper and timely
cleanup, closure, and restoration of oilfield sites.
Present law creates the Oilfield Site Restoration Commission within the office of the secretary of the
Department of Natural Resources, with powers and duties for both the commission and the secretary,
and provides for powers and duties to the assistant secretary of the office of conservation, also
referred to as the commissioner of conservation.
Present law authorizes the assistant secretary to conduct site restoration on any site declared to be
an orphaned oilfield site and authorizes the secretary or assistant secretary to expend sums from the
Oilfield Site Restoration Fund and enter into contracts for the purpose of site restoration.
Proposed law authorizes the secretary to expend sums from the fund and enter contracts for the
purpose of orphaned oilfield site restoration. Proposed law authorizes the assistant secretary in
response to an emergency to conduct site restoration, expend sums from the fund, and enter into
contracts for the purpose of site restoration.
Present law authorizes the assistant secretary, upon a finding of economic justification and with the
concurrence of the commission, to authorize the closure and restoration of nonpriority orphaned
oilfield sites by lots which are subject to bidding in large packages. Present law limits this authority
that such action does not reduce the number of priority sites that can be properly closed and restored
in any fiscal year.
Proposed law moves the authority for the closure and restoration of nonpriority orphaned oilfield
sites from the assistant secretary to the secretary. Proposed law authorizes the secretary, upon a
finding of economic justification, to authorize the closure and restoration of nonpriority orphaned
oilfield sites that may be packaged together as projects.
Proposed law provides this authority is used to decrease in a cost effective manner the total number
of orphaned wells.
Proposed law authorizes, from administrative costs funding, the secretary to employ personnel
necessary for the administration of present law including the appointment of an executive director
who will be an unclassified employee.
Proposed law authorizes the commission to request from the executive director information
regarding their numerated powers. Proposed law also authorizes the commission to request the
secretary to review the appointment of the serving executive director upon a two-third vote. Present law grants the commission any function authorized by present law that is consistent with its
purpose. Proposed law limits functions to those not otherwise assigned to the secretary or the
assistant secretary.
Proposed law limits the cost of closing and restoring nonpriority orphaned oilfield sites to 20% of
the amount expended from the Fund in any fiscal year, unless otherwise approved by the
commission. Proposed law excludes from this limitation expenses the sum of $30 million from the
first federal funds received by the state for which oilfield site restoration or plugging orphan wells
is an allowable use, monies from federal appropriations or any federal grant program for the purpose
of restoring orphan oilfield sites, or emergency response costs.
Present law provides that costs to administer present law shall not exceed $950,000 each fiscal year.
Proposed law provides that monies collected from civil penalties or cost recovered from responsible
parties do not count towards this administrative expenditure limit.
Present law authorizes the fund to contribute the balance of the restoration costs for a site if the site-
specific trust account for a nonorphan site is depleted if the assistant secretary declares that oilfield
site to be an orphaned oilfield site. Proposed law retains present law except requires approval by the
commission.
Present law requires a contract for site assessment or site restoration to require a formal bid process.
Present law authorizes an exemption for these contracts from the provisions of the Public Bid Law
and the Louisiana Procurement Code if the assistant secretary promulgates rules for contacting
procedures. Further, the procedures must be in substantial compliance with the Public Bid Law and
shall require a formal bid process.
Present law authorizes the assistant secretary to employ an informal bidding procedure to respond
to an emergency in which bids are solicited from at least three bidders. Further, requires these
contracts be reviewed prior to execution by the assistant secretary and all informally bid contracts
be reviewed by the secretary. Proposed law retains present law.
Proposed law authorizes the secretary through a contract entered into under any competitive process
authorized by present law to expend any monies deposited pursuant to the sum of $30 million from
the first federal funds received by the state for which oilfield site restoration or plugging orphan
wells is an allowable use or monies from federal appropriations or any federal grant program for the
purpose of restoring orphan oilfield sites.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 30:83(F)(7), 86(E)(2), 89(C)(3), and 92(A) and (C); adds R.S. 30:83(F)(8), 84(A)(3)
and (8); repeals R.S. 30:85(B))
Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Natural Resources to the
original bill
1. Designates the appointed executive director as an unclassified employee.
2. Makes technical changes.