HLS 243ES-59 ORIGINAL
2024 Third Extraordinary Session
HOUSE BILL NO. 23
BY REPRESENTATIVE GEYMANN AND SENATOR HENSGENS
MINERALS: Provides for the administration of the Oilfield Site Restoration Fund (Item
#16)
1 AN ACT
2To amend and reenact R.S. 30:81(B), 83(F)(2) and (6), 83.1(B)(3) through (5), 86(A)(2),
3 (E)(introductory paragraph), (1), and (6), and (H), and 87(A), (B), and (F)(1),
4 relative to oilfield site restoration; to provide for the use and administration of the
5 Oilfield Site Restoration Fund; to provide for the authority of the Oilfield Site
6 Restoration Commission; to authorize the Natural Resources Trust Authority to
7 direct activity of the commission with the oversight of the State Mineral and Energy
8 Board; to provide for the administration of federal funds for oilfield site restoration
9 and plugging of orphan wells; to provide for the authority to execute financial
10 agreements and instruments on behalf of the commission; to provide for the
11 calculation of oilfield site restoration fees; to increase oilfield site restoration fees;
12 to provide an effective date; and to provide for related matters.
13Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 30:81(B), 83(F)(2) and (6), 83.1(B)(3) through (5), 86(A)(2),
15(E)(introductory paragraph), (1), and (6), and (H), and 87(A), (B), and (F)(1) are hereby
16amended and reenacted to read as follows:
17 §81. Policy and purpose
18 * * *
19 B. It is in the public interest and within the police power of this state to
20 establish an oilfield site restoration commission and an oilfield site restoration fund
Page 1 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 243ES-59 ORIGINAL
HB NO. 23
1 to provide for the proper and timely cleanup, closure, and restoration of oilfield sites,
2 to be administered by the assistant secretary of the office of conservation within the
3 Department of Energy and Natural Resources.
4 * * *
5 §83. Oilfield Site Restoration Commission; Department of Energy and Natural
6 Resources
7 * * *
8 F. The powers of the commission shall be limited to the following:
9 * * *
10 (2) At the direction of the secretary or at the direction of the Natural
11 Resources Trust Authority acting under the oversight of the State Mineral and
12 Energy Board pursuant to R.S. 36:356.1, pledge the revenues available to fund
13 authorized purposes and to secure the issuance of bonds to fund such purposes
14 provided in R.S. 30:83.1, provided that annual debt service shall not be in excess of
15 fifty percent of the pledged revenues estimated to be received in the calendar year
16 the bonds are issued.
17 * * *
18 (6) Provide general administration and management of the Oilfield Site
19 Restoration Fund, funds collected from financial security instruments previously tied
20 to a specific well or wells that have since been plugged or are otherwise not tied to
21 a specific well or wells, and all site-specific trust accounts as directed by the Natural
22 Resources Trust Authority, acting under the oversight of the State Mineral and
23 Energy Board pursuant to R.S. 36:356.1. However, the commission shall have no
24 authority to expend, disburse, or invest monies in the fund.
25 * * *
26 §83.1. Authorization of bonds
27 * * *
28 B.
29 * * *
Page 2 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 243ES-59 ORIGINAL
HB NO. 23
1 (3) The secretary, or the undersecretary, and the Natural Resources Trust
2 Authority are is hereby authorized on behalf of the commission to execute loan,
3 reimbursement, investment, and bond purchase agreements, and all documents as
4 may be necessary or desirable to carry out the provisions of this Section and is are
5 further authorized to take any and all further actions and execute and deliver all other
6 documents as may be necessary in connection with the issuance of any bonds, notes,
7 certificates, reimbursement obligations, or other evidences of indebtedness referred
8 to in this Section. The provisions of R.S. 9:2347(J) shall not apply to bonds or any
9 contractual obligation, including the pledge of state funds, to be undertaken or
10 incurred in connection therewith.
11 (4) At the direction of the secretary or the State Mineral and Energy Board,
12 the commission is authorized to create funds or accounts for the deposit of the
13 revenues or the proceeds of the bonds, including funds described above or other
14 revenues and monies pledged in connection therewith or respect thereto.
15 (5) The department and, at the direction of the secretary or the Natural
16 Resources Trust Authority, the commission are authorized to enter into any and all
17 agreements or contracts, execute any and all instruments, and do and perform any
18 and all acts necessary, convenient, or desirable for the issuance of the bonds or to
19 carry out any power expressly given in this Section.
20 * * *
21 §86. Oilfield Site Restoration Fund
22 A.
23 * * *
24 (2) Out of the funds remaining in the Bond Security and Redemption Fund,
25 after a sufficient amount is allocated from that fund to pay all the obligations secured
26 by the full faith and credit of the state that become due and payable within each fiscal
27 year, the treasurer shall pay into the Oilfield Site Restoration Fund an amount equal
28 to the revenues generated from collection of the fees provided for in Subsection D
29 of this Section. The treasurer shall also transfer into the Oilfield Site Restoration
Page 3 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 243ES-59 ORIGINAL
HB NO. 23
1 Fund the amount of thirty million dollars in federal funding from the first federal
2 funds received by the state for which oilfield site restoration or plugging orphan
3 wells is an allowable use, as determined by the Joint Legislative Committee on the
4 Budget. Such funds shall constitute a special custodial trust fund which shall be
5 administered by the secretary, who Natural Resources Trust Authority, which shall
6 make disbursements from the fund solely in accordance with the purposes and uses
7 authorized by this Part.
8 * * *
9 E. Except as otherwise provided in this Section, the monies in the fund may
10 be disbursed and expended pursuant to the authority and direction of the secretary
11 or assistant secretary the Natural Resources Trust Authority for the following
12 purposes and uses:
13 (1) Any oilfield site assessment or restoration conducted by the Department
14 of Energy and Natural Resources pursuant to this Part, and the payment of the
15 principal, interest, and legal fees, credit enhancement fees, trustee fees, and other
16 related costs of issuance or ongoing expenses in connection with issuance of bonds
17 or other debt obligations on behalf of the commission, at the direction of the
18 secretary or the Natural Resources Trust Authority, pursuant to R.S. 30:83.1 for the
19 purpose of financing the costs of the oilfield site assessments and restorations.
20 * * *
21 (6) Upon approval of the commission Natural Resources Trust Authority, up
22 to five hundred thousand dollars per fiscal year for the office of conservation to act
23 alone, or in conjunction with the voluntarily participating parties, for the assessment
24 and restoration of commercial oilfield waste disposal facilities used for the storage,
25 treatment, or disposal of non-hazardous oilfield waste for a fee or other
26 consideration, which were abandoned, leaving no financially responsible owner,
27 operator, or bonding company, in accordance with the plan of closure as required in
28 the permit, or if the permit did not provide a plan of closure, a plan approved by the
Page 4 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 243ES-59 ORIGINAL
HB NO. 23
1 commission; however, a responsible person shall not be released from his duty or
2 liability, if any, imposed by this Section.
3 * * *
4 H. At the direction of the secretary or the Natural Resources Trust Authority,
5 federal monies dedicated pursuant to Paragraph (D)(9) or (10) of this Section shall
6 be placed into the department's federal funds account instead of the Oilfield Site
7 Restoration Fund, but such money shall otherwise be subject to the same
8 requirements applicable to money identified in Paragraph (D)(9) or (10) of this
9 Section.
10 §87. Oilfield site restoration fees
11 A. There is hereby imposed on crude petroleum produced from producing
12 wells in this state a fee on each barrel of oil and condensate payable upon the initial
13 disposition of each barrel of oil and condensate. The fee is in addition to any tax
14 imposed pursuant to Title 47 of the Louisiana Revised Statutes of 1950. The
15 provisions of Chapters 17 and 18 of Subtitle II of Title 47 of the Louisiana Revised
16 Statutes of 1950 shall apply to the administration, collection, and enforcement of the
17 fee imposed in this Section, and the penalties provided by that code shall apply to
18 any person who fails to pay or report the fee. Proceeds from the fee, including any
19 penalties collected in connection with the fee, shall be deposited into the Oilfield Site
20 Restoration Fund.
21 B. There is hereby imposed on gas produced from producing wells in this
22 state a fee in the amount of three-tenths of one cent two cents for each thousand
23 cubic feet. The fee is in addition to any tax imposed pursuant to Title 47 the
24 Louisiana Revised Statutes of 1950. The provisions of the Louisiana Tax Code shall
25 apply to the administration, collection, and enforcement of the fee, and the penalties
26 provided by that code shall apply to any person who fails to pay or report the fee.
27 Proceeds from the fee, including any penalties collected in connection with the fee,
28 shall be deposited into the Oilfield Site Restoration Fund.
29 * * *
Page 5 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 243ES-59 ORIGINAL
HB NO. 23
1 F. The site restoration fee shall be the following:
2 (1)(a) Full rate production, which shall include all production from oil or gas
3 wells except for production from reduced rate production wells as set forth in R.S.
4 47:633(7):. For crude oil and condensate, the fee shall be based on the oil price on
5 July first of each year for the ensuing twelve months based upon the average New
6 York Mercantile Exchange Price per barrel of crude oil per month on the close of
7 business on June thirtieth for the prior twelve months. The amount of the fee for a
8 well that produces crude oil and condensate shall be as follows:
9 (i) The fee shall be one and one-half two cents per barrel on crude oil and
10 condensate if the price of oil is at or below sixty dollars per barrel.
11 (ii) The fee shall be three four cents per barrel on crude oil and condensate
12 if the price of oil is above sixty dollars and at or below ninety dollars per barrel.
13 (iii) The fee shall be four and one-half six cents per barrel on crude oil and
14 condensate if the price of oil is above ninety dollars per barrel.
15 (b) For natural gas and casing head gas, the fee shall be three-tenths of one
16 cent two cents per thousand cubic feet.
17 * * *
18 Section 2. This Act shall become effective July 1, 2025.
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 23 Original 2024 Third Extraordinary Session Geymann
Abstract: Provides for the use and administration of the Oilfield Site Restoration Fund and
federal funds for oilfield site restoration and plugging of orphan wells by the Oilfield
Site Restoration Commission, the Natural Resources Trust Authority, the State
Mineral and Energy Board, and officers of the Dept. of Energy and Natural
Resources and increases oilfield site restoration fees.
Present law authorizes the assistant secretary for the office of conservation to administer the
oilfield site restoration fund. (R.S. 30:81(B))
Proposed law removes this authority and provides that the fund be administered by the Dept.
of Energy and Natural Resources. (R.S. 30:81(B))
Page 6 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 243ES-59 ORIGINAL
HB NO. 23
Present law authorizes the Oilfield Site Restoration Commission to pledge revenue at the
direction of the secretary. (R.S. 30:83(F))
Proposed law retains present law and also authorizes the Oilfield Site Restoration
Commission to pledge revenue at the direction of the Natural Resources Trust Authority,
acting with oversight from the State Mineral and Energy Board. (R.S. 30:83(F))
Present law authorizes the Oilfield Site Restoration Commission to administer and manage
the Oilfield Site Restoration Fund, security instruments, and site-specific trust accounts.
(R.S. 30:83(F))
Proposed law authorizes the Natural Resources Trust Authority, acting with oversight from
the State Mineral and Energy Board, to direct the commission's administration and
management of the Oilfield Site Restoration Fund, security instruments, and site-specific
trust accounts. (R.S. 30:83(F))
Present law authorizes the secretary or undersecretary to execute agreements and other
documents on behalf of the commission related to loan, reimbursement, investment, bond
purchases, notes, certificates, and other evidences of indebtedness. (R.S. 30:83.1(B)(3))
Proposed law retains present law and adds authority for the Natural Resources Trust
Authority to execute such agreements and related documents in addition to the secretary and
undersecretary. (R.S. 30:83.1(B)(3))
Present law authorizes the commission to create funds or accounts for the deposit of revenue
and bond proceeds at the direction of the secretary. (R.S. 30:83.1(B)(4))
Proposed law retains present law and also authorizes the Natural Resources Trust Authority
to direct the creation of funds and accounts by the commission. (R.S. 30:83.1(B)(4))
Present law authorizes the commission to enter into agreements and perform other necessary
acts for the issuance of bonds at the direction of the secretary. (R.S. 30:83.1(B)(5))
Proposed law retains present law and also authorizes the commission to enter into
agreements and perform other necessary acts for the issuance of bonds at the direction of the
Natural Resources Trust Authority. (R.S. 30:83.1(B)(5))
Present law establishes a special custodial trust fund within the Oilfield Site Restoration
Fund for the deposit of thirty million dollars in federal funding for oilfield site restoration
or plugging of orphan wells and authorizes the secretary to administer this fund. (R.S.
30:86(A)(2))
Proposed law retains the special custodial trust from present law, but gives authority over
its administration to the Natural Resources Trust Authority, rather than the secretary. (R.S.
30:86(A)(2))
Present law authorizes the secretary and the assistant secretary to direct the disbursement of
funds within the Oilfield Site Restoration Fund for specified purposes. (R.S. 30:86(E))
Proposed law also authorizes the Natural Resources Trust Authority to direct such
disbursements. (R.S. 30:86(E))
Present law authorizes the commission to approve the disbursement of up to $500,000 per
fiscal year for the office of conservation to use for the assessment and restoration of certain
commercial oilfield waste disposal facilities which were abandoned. (R.S. 30:86(E)(6))
Proposed law removes the commission's authority and authorizes the Natural Resources
Trust Authority instead to approve such disbursements. (R.S. 30:86(E)(6))
Page 7 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 243ES-59 ORIGINAL
HB NO. 23
Present law authorizes the secretary to direct that certain federal monies dedicated to oilfield
site restoration or plugging orphan wells be placed in the dept.'s federal funds account
instead of the Oilfield Site Restoration Fund. (R.S. 30:86(H))
Proposed law authorizes the Natural Resources Trust Authority, in addition to the secretary,
to direct such placement of federal funds. (R.S. 30:86(H))
Present law provides that oilfield site restoration fees are to be based on the oil price on July
1
st
each year for the ensuing twelve months based upon the average New York Mercantile
Exchange Price per barrel of crude oil per month on the close of business on June thirtieth
for the prior twelve months. (R.S. 30:87(F)(1)(a))
Proposed law removes reference to the average New York Mercantile Exchange Price per
barrel of oil over the specified time period and provides that the fee will be based on the
amounts provided by law. (R.S. 30:87(F)(1)(a))
Present law imposes the following oilfield site restoration fees:
(1)On natural gas and casing head gas from producing wells: 3/10 of 1 cent per
thousand cubic feet.
(2)On full rate production crude oil and condensate:
(a)1.5 cents per barrel if the price of oil is at or below $60 per barrel.
(b)3 cents per barrel if the price of oil is over $60 and at or below $90 per
barrel.
(c)4.5 cents per barrel if the price of oil is above $90 per barrel.
(R.S. 30:87(B) and (F)(1)(a)(i), (ii), and (iii) and (b))
Proposed law increases these fees to the following:
(1)On natural gas and casing head gas from producing wells: 2 cents per thousand cubic
feet.
(2)On full rate production crude oil and condensate:
(a)2 cents per barrel if the price of oil is at or below $60 per barrel.
(b)4 cents per barrel if the price of oil is over $60 and at or below $90 per
barrel.
(c)6 cents per barrel if the price of oil is above $90 per barrel.
(R.S. 30:87(B) and (F)(1)(a)(i), (ii), and (iii) and (b))
Effective July 1, 2025.
(Amends R.S. 30:81(B), 83(F)(2) and (6), 83.1(B)(3) through (5), 86(A)(2), (E)(intro. para.),
(1), and (6), and (H), and 87(A), (B), and (F)(1))
Page 8 of 8
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.