SSHB23 3209 219
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 23 2024 Third Extraordinary Session Geymann
MINERALS: Provides for the administration of the Oilfield Site Restoration Fund (Item
#16)
Synopsis of Senate Amendments
1.Makes technical changes.
2.Repeals cap on the Oilfield Site Restoration Fund.
Digest of Bill as Finally Passed by Senate
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))
Present law provides definitions to be used throughout the Oilfield Site Restoration Law,
including a definition for "commission". (R.S. 30:82)
Proposed law removes the definition for "commission" and adds a definition for "trust
authority". (R.S. 30:82)
Present law creates the Oilfield Site Restoration Commission and provides for the
commission's powers and functions, including management and use of the Oilfield Site
Restoration Fund, federal funds for site restoration and orphan wells, and site-specific trust
accounts; oversight of restoration priorities, assessments, and approved contractors; pledging
monies in the fund, the authorization of bonds, and the execution of security related
instruments and agreements; disbursement of money from the fund for specified purposes;
and annual reporting to the legislature. (R.S. 30:83, 83.1, 86, 88, 88.1, 88.2, 89, 90, 95)
Proposed law repeals the Oilfield Site Restoration Commission. (R.S. 30:83, 83.1, 86, 88,
88.1, 88.2, 89, 90, 95)
Present law establishes the Natural Resources Trust Authority within the dept, in the office
of the undersecretary and under the State Mineral and Energy Board. (R.S. 36:356.1)
Proposed law transfers the powers and functions of the commission to the Natural Resources
Trust Authority, acting under the direction of the State Mineral and Energy Board and the
secretary of the dept. and replaces all instances of "commission" in the Oilfield Site
Restoration Law with "trust authority". (R.S. 30:83, 83.1, 86, 88, 88.1, 88.2, 89, 90, 95)
Present law establishes the powers of the secretary and assistant secretary of conservation
regarding oilfield site restoration. (R.S. 30:84, 85)
Proposed law retains present law and only changes references to the "commission" to the
"trust authority". (R.S. 30:84, 85)
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))
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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 places a cap on the Oilfield Site Restoration Fund at $14 million. Present law
further provides for certification by the state treasurer when the fund reaches that amount,
the suspension of oilfield site restoration fee collection, and establishes which monies in the
fund are counted towards this cap. (R.S. 30:86(C))
Proposed law repeals present law. (R.S. 30:86(C))
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
1st 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 12 months. (R.S. 30:87(F)(1)(a))
Proposed law removes reference to the average New York Mercantile Exchange. (R.S.
30:87(F)(1)(a))
Present law imposes the following oilfield site restoration fees for full rate production:
(1)On 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.
(2)On natural gas and casing head gas: 3/10 of 1 cent per thousand cubic feet.
(R.S. 30:87(B) and (F)(1))
Proposed law increases these fees to the following:
(1)On 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.
(2)On natural gas and casing head gas:
(a)3/10 of 1 cent per thousand cubic feet if the price of gas is at or below $2.50.
(b)4/10 of 1 cent per thousand cubic feet if the price of gas is $2.51 to $4.50.
(c)5/10 of 1 cent per thousand cubic feet if the price of gas is $4.51 or more.
(R.S. 30:87(B) and (F)(1))
Present law provides for orphan well lienholder claims against the commission, dept., office
of conservation, and contractors for the value of salvaged equipment. (R.S. 30:91)
Proposed law retains present law, but substitutes the trust authority for the commission as
one of the entities within the dept. that a claim can be made against. (R.S. 30:91)
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Directs the La. State Law Institute to alphabetize and renumber the definitions contained in
R.S. 30:82.
Effective July 1, 2025.
(Amends R.S. 30:83(Section heading), (A), and (B), 83.1(A)(1) and (2), (B), and (C),
84(A)(7), 85(A)(4), 86(A)(2), (B), (E)(intro. para.), (1), (2), and (5) - (7), (G), and (H),
87(A), (B), and (F)(1), 88(B) and (C), 88.1(C) and (D), 88.2(C), 89(C)(3), 90(Section
heading), (A) - (C), and (E)(intro. para.) and (5), 91(B)(2)(c), and 95; Adds R.S. 30:82(16);
repeals R.S. 30:82(3), 83(C) - (I), and 86(C))
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