Louisiana 2022 Regular Session

Louisiana Senate Bill SR161 Latest Draft

Bill / Enrolled Version

                            2022 Regular Session	ENROLLED
SENATE RESOLUTION NO. 161
BY SENATOR ALLAIN 
A RESOLUTION
To establish the Emerging Energy Codification Task Force to study and make
recommendations regarding the codification of laws relative to emerging energy
technologies.
WHEREAS, blessed with its abundance of oil and gas deposits, as Louisiana was
poised to boom at the dawn of the petrochemical age over one hundred years ago, it is also
well positioned to prosper from the expansion of energy sources beyond hydrocarbon based
energy towards emerging energy technologies, including solar, wind, hydropower, and
carbon dioxide capture and sequestration; and
WHEREAS, these technologies and similar emerging technologies will become
increasingly important to provide the energy resources needed for future generations and the
prosperity of our state and the nation; and
WHEREAS, Louisiana has developed a rich history and expertise in developing both
public and private lands for energy development, and has established laws, customs,
obligations, and covenants, both stated and implied, addressing the rights, responsibilities,
and obligations between landowners and energy developers; and
WHEREAS, these rights, responsibilities, and obligations are well known between
lessors, lessee's, other interested parties, the judiciary, and practicing attorneys, and are
found in the Louisiana Mineral Code; and
WHEREAS, while the right to explore and develop one's property for the production
of energy, whether it be oil and gas, solar, wind, or other source, belongs exclusively to the
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landowner, the landowner may convey, reserve, or lease this privilege; and
WHEREAS, in Louisiana it is well settled law that the conventional energy lease
arrangement between a landowner and a developer is in the nature of a cooperative venture
in which the lessor contributes the land and the lessee, the capital and expertise necessary
to develop the land for the mutual benefit of both parties; and
WHEREAS, the lessor-lessee relationship ensues from a reciprocal contract in which
the obligation of each party is the cause of the other, and includes covenants, both stated and
implied, including the lessee's obligation to protect the lessor's interest, the lessee's
obligation to act as a good administrator, or reasonably prudent operator having due regard
to the interest of both contracting parties; and
WHEREAS, for instance, the Louisiana Mineral Code addresses many issues
including the simultaneous use of the same property by different interest holders for different
purposes, ongoing liability and responsibility, assignability of ownership, prescription, and
others; and
WHEREAS, there is not a unified body of law like the Louisiana Mineral Code to
address and provide guidance for landowners, developers, attorneys, the judiciary, or state
and local governments related to the leasing, development, rights, responsibilities, and
obligations related to the development of new emerging energy technologies on public and
private land; and
WHEREAS, a comprehensive body of law brings clarity and certainty to those
entering this space and will foster growth in this highly competitive industry.
THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby establish the Emerging Energy Codification Task Force to study and make
recommendations regarding the codification of laws relative to emerging energy
technologies and related issues.
BE IT FURTHER RESOLVED that the Emerging Energy Codification Task Force
shall be comprised of the following members:
(1) One member appointed by the president of the Senate representing Louisiana
landowner interests.
(2) One member appointed by the Public Service Commission.
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(3) One member appointed by the chair of the Senate Committee on Natural
Resources representing an electric utility provider regulated by the Public Service
Commission.
(4) One member appointed by the chair of the Senate Committee on Commerce
representing a cooperative-owned electric utility provider regulated by the Public Service
Commission.
(5) The attorney general, or his designee.
(6) The secretary of the Department of Natural Resources, or his designee.
(7) One member appointed by the Louisiana State Law Institute.
(8) The director of the Louisiana Mineral Law Institute, or his designee.
(9) One member to be appointed jointly by the Louisiana Oil and Gas Association
and the Louisiana Mid-Continent Oil and Gas Association.
(10) Three members appointed by the secretary of the Department of Natural
Resources representing the emerging energy industry.
BE IT FURTHER RESOLVED that the members of this task force shall serve
without compensation, except per diem or expenses reimbursement to which they may be
individually entitled as members of the constituent organizations.
BE IT FURTHER RESOLVED that the member appointed by the president of the
Senate shall call the first meeting and preside as chair until the task force elects a chair and
vice chair at that meeting, and the task force shall follow applicable rules for committee
procedure found in the Louisiana Senate Rules of Order.
BE IT FURTHER RESOLVED that a majority of the total membership shall
constitute a quorum of the task force and any official action by the task force shall require
an affirmative vote of a majority of the quorum present and voting.
BE IT FURTHER RESOLVED that the task force shall meet as necessary and shall
be assisted by Senate staff and employees of the Department of Natural Resources.
BE IT FURTHER RESOLVED that the task force shall report an update on or before
February 10, 2023, on its findings and recommendations, submit a final report on or before
February 9, 2024, to the Senate Committee on Natural Resources and the Senate Committee
on Judiciary A, and upon submission of the final report, cease to exist.
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BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
executive secretary of the Public Service Commission, the attorney general, the director of
the Louisiana State Law Institute, the secretary of the Department of Natural Resources, the
director of the Louisiana Mineral Law Institute, the executive director of the Louisiana Oil
and Gas Association, and the executive director of the Louisiana Mid-Continent Oil and Gas
Association.
PRESIDENT OF THE SENATE
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