RÉSUMÉ DIGEST
ACT 126 (SB 285) 2024 Regular Session Cathey
Existing law provides for jurisdiction over the natural resources of the state and provides for
definitions.
New law retains existing law and provides that ownership of brine produced during oil and
gas operations lies with the person who has the right to drill and produce from a pool.
New law provides that a field or pool may contain brine. Provides that a producer may be the
owner of a brine well. Provides that a product may be any commodity made from brine and
may include lithium carbonate and lithium hydroxide and any commodity or product made
from brine or its component parts. Provides that waste is an action that may result in reducing
the quantity of brine recoverable from a pool.
New law provides that brine is subterranean salt water and its constituent parts, minerals,
elements, compounds, or substances. Provides that brine does not include salt water
produced in oil or gas production and not saved or sold for extraction of minerals. Further
provides that drinking water and solution mining sources are excluded.
New law provides that brine production operations include exploration, extraction, and
reinjection through wells.
New law provides that a multiple mineral development area is designated for efficient
development of various concurrent mineral operations. Provides that the commissioner of
conservation has authority to designate such an area and to adjudicate conflicts where there
is potential injury to deposits or development, or there are concurrent operations by multiple
owners affecting the same property.
Existing law provides that the office of conservation has authority to regulate brine
production operations and may establish drilling or pooling units upon certain findings,
including that the order will increase or insure recovery of oil or gas. Provides that no order
can enlarge or change existing contracts for production of oil or gas. Provides for owner
approval of unit operation orders.
New law retains existing law and adds brine to pooling and unitization orders. Further
provides that three quarters of ownership as to a particular interest is required for approval
of a unit operation order, and approval is evidenced by written contract filed with the office
of conservation on or before the hearing date.
Existing law excludes certain existing oil and gas wells from unitization for waste reduction.
New law retains existing law and adds brine wells to potential exclusions.
Existing law defines just and equitable share of recoverable oil or gas and provides that each
producer gets an opportunity to use that share of production.
New law retains existing law and adds production of brine to the just and equitable share.
Existing law provides that pooling orders account for the just and equitable share of oil or
gas production for each owner and that the commissioner may limit production of oil and gas
among fields or pools.
New law retains existing law and adds production of brine.
Existing law provides that where a unit includes lands to which an operator or producer has
no mineral interest, the operator or producer must provide production reports for oil and gas.
Provides for penalties for failure to report.
New law retains existing law and adds production of brine to reporting requirements.
Existing law provides substances to which the Mineral Code applies. New law retains existing law and adds brine to applicability.
Effective August 1, 2024.
(Amends R.S. 30:3(2), (10), (11), (12), (16)(a), 5(C)(2) and (6), 9(B) and (D), 10(A)(1)(a),
11, 103.1(A)(intro para), 103.1(A)(2)(a), and (C), and 103.2 and R.S. 31:4; adds R.S. 30:2.1,
3(18), (19), and (20) and 4(C)(18), (19), and (20))