SLS 24RS-1132 ORIGINAL 2024 Regular Session SENATE BILL NO. 459 BY SENATOR SEABAUGH MINERALS. Provides relative to remediation of oilfield sites and exploration. (8/1/24) 1 AN ACT 2 To amend and reenact R.S. 30:29(C)(1), (3)(a), (5), and (6), (D)(2), (3), (E)(1), (H)(1), (I)(2) 3 and (4), (M)(1)(c) and 29.1 and to repeal R.S. 30:29(M)(1)(d), relative to the 4 evaluation or remediation of oilfield sites and exploration and production sites; to 5 provide for responsibility for environmental damage; to provide for regulatory 6 standards; to provide for exceptions; to provide for remediation plans; to provide for 7 appeals; to provide for payments; to provide for attorney fees; to provide for judicial 8 remedies; to provide for definitions; to provide for damages; to provide for 9 notification; to provide for environmental testing; and to provide for related matters. 10 Be it enacted by the Legislature of Louisiana: 11 Section 1. R.S. 30:29(C)(1), (3)(a), (5), and (6), (D)(2), (3), (E)(1), (H)(1), (I)(2) and 12 (4), (M)(1)(c) and 29.1 are hereby amended and reenacted to read as follows: 13 §29. Remediation of oilfield sites and exploration and production sites 14 * * * 15 C.(1) If at any time during the proceeding a party admits liability 16 responsibility for environmental damage or the finder of fact determines that 17 environmental damage exists and determines the party or parties who caused the Page 1 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL 1 damage or who are otherwise legally responsible therefor, the court shall order the 2 party or parties who admit responsibility or whom the court finds legally responsible 3 for the damage to develop a plan or submittal for the evaluation or remediation to 4 applicable regulatory standards of the contamination that resulted in the 5 environmental damage. The court shall order that the plan be developed and 6 submitted to the department and the court within a time that the court determines is 7 reasonable and shall allow the plaintiff or any other party at least thirty days from the 8 date each plan or submittal was made to the department and the court to review the 9 plan or submittal and provide to the department and the court a plan, comment, or 10 input in response thereto. The department shall consider any plan, comment, or 11 response provided timely by any party. The department shall submit to the court a 12 schedule of estimated costs for review of the plans or submittals of the parties by the 13 department and the court shall require the party admitting responsibility or the party 14 found legally responsible by the court to deposit in the registry of the court sufficient 15 funds to pay the cost of the department's review of the plans or submittals. Any plan 16 or submittal shall include an estimation of cost to implement the plan. 17 * * * 18 (3)(a) The department shall use and apply the applicable regulatory standards 19 including but not limited to the Risk Evaluation and Corrective Action Plan, 20 known as RECAP, as well as any other exceptions to Statewide Order 29-B, in 21 approving or structuring a plan that the department determines to be the most 22 feasible plan to evaluate or remediate the environmental damage. In any action 23 governed by the provisions of this statute, the department shall not require 24 landowner consent to apply exceptions, including RECAP, to the application of 25 Statewide Order 29-B. 26 * * * 27 (5) The court shall adopt the plan approved by the department as the most 28 feasible plan, unless a party proves by a preponderance of the clear and convincing 29 evidence that the plan approved by the department is arbitrary or capricious Page 2 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL 1 and another plan that was timely provided to the department pursuant to 2 Subsection C of this Section is a more feasible plan to adequately protect the 3 environment and the public health, safety, and welfare. The court shall enter a 4 judgment adopting a the most feasible plan with written reasons assigned. Upon 5 adoption of a the most feasbile plan, the court shall order the party or parties 6 admitting responsibility or the party or parties found legally responsible by the court 7 to fund the implementation of the most feasible plan. The trial shall be stayed 8 from the filing of a limited admission until the court adopts the most feasible 9 plan. 10 (6)(a) Any judgment adopting a most feasible plan of evaluation or 11 remediation pursuant to this Section and ordering the party or parties admitting 12 responsibility or the party or parties found legally responsible by the court to deposit 13 funds for the implementation thereof into the registry of the court pursuant to this 14 Section shall be considered a final judgment pursuant to the Code of Civil Procedure 15 Article 2081 et seq., for purposes of appeal. 16 (b) Any appeal under this Section of a judgment adopting the most feasible 17 plan shall be a de novo review taken to the Court of Appeal for the First Circuit 18 and shall be heard with preference and on an expedited basis. 19 (c) The appellate court may affirm the trial court's adoption of the most 20 feasible a plan or may adopt a most feasible plan in conformity with this Section and 21 shall issue written reasons for its decision. 22 D.(1) * * * 23 (2) The court may allow any funds to be paid into the registry of the court to 24 be paid in increments as necessary to fund the evaluation or remediation and 25 implementation of any the most feasible plan or submittal adopted by the court. In 26 any instance in which the court allows the funds to be paid in increments, whether 27 or not an appeal is taken, the court shall require the posting of a bond for the 28 implementation of the most feasible plan in such amount as provided by and in 29 accordance with the procedures set forth for the posting of suspensive appeal bonds. Page 3 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL 1 Any such bond shall be valid through completion of the remediation. In lieu of 2 paying funds into the registry of the court, the responsible party may at its 3 option pay directly the cost of implementing the most feasible plan and post a 4 bond in an amount equal to the total cost of the most feasible plan as provided 5 by and in accordance with the procedures set forth for the posting of suspensive 6 appeal bonds. 7 (3) The court shall issue such orders as may be necessary to ensure that any 8 such funds are actually expended in a manner consistent with the adopted and final 9 most feasible plan for the evaluation or remediation of the environmental damage 10 for which the award or payment is made. 11 * * * 12 E.(1) In any civil action in which a party is responsible for damages or 13 payments for the evaluation or remediation of environmental damage, a party 14 providing evidence, in whole or in part, upon which the judgment is based shall be 15 entitled to recover from the party or parties admitting responsibility or the party or 16 parties found legally responsible by the court, in addition to any other amounts to 17 which the party may be entitled, all costs and reasonable attorney fees incurred 18 in the trial court and the department that were attributable to producing that 19 portion of the evidence that directly relates to the establishment of environmental 20 damage, including, but not limited to, expert witness fees, environmental evaluation, 21 investigation, and testing, and the cost of developing a plan of evaluation or 22 remediation, and reasonable attorney fees incurred in the trial court and the 23 department. Upon adoption of the most feasible plan by the trial court, a party 24 admitting responsibility, or a party found to be legally responsible for 25 environmental damage shall not be responsible for any further attorney fees or 26 costs, including but not limited to expert witness fees, environmental evaluation, 27 monitoring, investigation, and testing. Upon a finding by the court that a 28 defendant did not cause or is otherwise not legally responsible for the alleged 29 environmental damage, that defendant shall be entitled to recover from the Page 4 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL 1 plaintiff reasonable attorney fees and all costs including expert witness fees, 2 environmental evaluation, monitoring, investigation, and testing. 3 * * * 4 H.(1) This Section shall not preclude an owner of land from pursuing a 5 judicial remedy or receiving a judicial award for private claims suffered as a result 6 of environmental damage, except as otherwise provided in this Section. Any award 7 granted in connection with the judgment for additional remediation in excess of the 8 requirements of the feasible plan adopted by the court required by an express 9 contractual provision or for nonremediation damages is not required to be paid 10 into the registry of the court. Any award granted in connection with the judgment 11 for damages awarded to fund the most feasible plan shall be paid into the 12 registry of the court. 13 * * * 14 I. For the purposes of this Section, the following terms shall have the 15 following meanings: 16 * * * 17 (2) "Environmental damage" shall mean any actual or potential impact, 18 damage, or injury to environmental media caused by contamination resulting from 19 activities associated with oilfield sites or exploration and production sites. 20 Environmental media shall include but not be limited to soil, surface water, ground 21 water, or sediment. 22 * * * 23 (4) "Most Feasible Plan" means the most reasonable plan which addresses 24 environmental damage in conformity with the requirements of Article IX, Section 25 1 of the Constitution of Louisiana to protect the environment, public health, safety 26 and welfare, and is in compliance with the specific relevant and applicable standards 27 and regulations promulgated by a state agency in accordance with the Administrative 28 Procedure Act in effect at the time of clean up to remediate contamination to 29 evaluate or, if necessary, remediate, environmental damage resulting from Page 5 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL 1 oilfield or exploration and production operations or waste. 2 * * * 3 M.(1) In an action governed by the provisions of this Section, damages may 4 be awarded only for the following: 5 * * * 6 (c) The cost of evaluating, correcting or repairing environmental damage 7 upon a showing that such damage was caused by unreasonable or excessive 8 operations based on rules, regulations, lease terms and implied lease obligations 9 arising by operation of law, or standards applicable at the time of the activity 10 complained of, provided that such damage is not duplicative of damages awarded 11 under Subparagraphs (a) or (b) of this Paragraph. 12 (d) The cost of nonremediation damages limited to the nonimpacted 13 market value of the property impacted by the environmental damage. 14 * * * 15 §29.1. Landowner notification of environmental testing 16 If the owner or operator of any oilfield site or exploration and production 17 (E&P) site covered by the provisions of R.S. 30:29 performs any environmental 18 testing on land owned by another person, results of such environmental testing shall 19 be provided to the owner or owners of the land within ten thirty days from receipt 20 of such results by the owner or operator, regardless of whether or not if no suit has 21 been filed by the owner or owners of the land. The operator or owner or owners of 22 land or anyone acting on their behalf who perform any environmental testing on land 23 that is an oilfield or exploration and production (E&P) site shall provide the results 24 of such testing to the department within ten thirty days of receipt. 25 Section 2. R.S. 30:29(M)(1)(d) is hereby repealed. The original instrument and the following digest, which constitutes no part of the legislative instrument, was prepared by Jacob K. Wilson. DIGEST SB 459 Original 2024 Regular Session Seabaugh Present law provides for the procedure for judicial resolution of claims for environmental Page 6 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL damage to property arising from activities subject to the jurisdiction of the Dept. of Energy and Natural Resources. Present law provides that if at any time during the proceeding a party admits liability for environmental damage or it is determined that a party is responsible the court shall order the responsible party to develop a plan for evaluation or remediation in accordance with applicable regulatory standards. Proposed law changes admission of liability to admission of responsibility but otherwise retains present law. Present law provides that the department shall use and apply the applicable regulatory standards in approving or structuring a plan that the department determines to be the most feasible plan to evaluate or remediate the environmental damage. Proposed law specifies that applicable regulatory standards include but are not limited to the Risk Evaluation and Corrective Action Plan (RECAP) as well as any other exceptions to Statewide Order 29-B. Proposed law further provides that in any action governed by the provisions of present law the department shall not require landowner consent to apply exceptions, including RECAP, to the application of Statewide Order 29-B. Present law requires the court to adopt the plan approved by the department, unless a party proves by a preponderance of the evidence that another plan is a more feasible plan to adequately protect the environment and the public health, safety, and welfare. Proposed law requires the court to adopt the plan approved by the department as the most feasible plan unless proven that the plan is arbitrary or capricious by clear and convincing evidence and that another plan was timely provided to the department. Proposed law requires the court to enter a judgment adopting the most feasible plan with written reasons assigned and for the trial to be stayed from the filing of a limited admission until the adoption of the most feasible plan. Present law provides that any appeal conducted under present law is a de novo review and heard with preference on an expedited basis. Proposed law requires that any appeal of a judgment adopting the most feasible plan be taken to the Court of Appeal for the First Circuit and heard with preference on an expedited basis. Present law provides that the court may allow any funds to be paid into the registry of the court to be paid in increments as necessary to fund the evaluation or remediation and implementation of any plan or submittal adopted by the court and that in any instance in which the court allows the funds to be paid in increments, whether or not an appeal is taken, the court shall require the posting of a bond in accordance with the procedures set forth for the posting of suspensive appeal bonds. Further provides any such bond be valid through completion of the remediation. Proposed law retains present law and further provides the responsible party may, at its option, pay directly the cost of implementing the most feasible plan and post a bond in an amount equal to the total cost of the most feasible plan as provided by and in accordance with the procedures set forth for the posting of suspensive appeal bonds in lieu of paying funds into the registry of the court. Present law provides that a party providing evidence upon which the judgment is based in any civil action in which a party is responsible for damages or payments for the evaluation Page 7 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL or remediation of environmental damage is entitled to recover all costs attributable to producing the portion of evidence directly related to the establishment of environmental damage from the liable party. Proposed law retains present law and further provides the party providing evidence is also entitled to recover reasonable attorney fees incurred in trial court. Proposed law further provides that upon adoption of the most feasible plan by the trial court, a party admitting responsibility, or a party found to be legally responsible for environmental damage shall not be responsible for any further attorney fees or costs, including but not limited to expert witness fees, environmental evaluation, monitoring, investigation, and testing. Proposed law further provides that upon finding by the court that a defendant did not cause or is otherwise not legally responsible for the alleged environmental damage, that defendant shall be entitled to recover from the plaintiff reasonable attorney fees and all costs including expert witness fees, environmental evaluation, monitoring, investigation, and testing. Present law provides that any award granted in connection with the judgment for additional remediation in excess of the requirements of the feasible plan adopted by the court is not required to be paid into the registry of the court. Proposed law provides that any award granted in connection with the judgment for additional remediation required by an express contractual provision or for nonremediation damages is not required to be paid into the registry of the court. Proposed law further requires that any award granted in connection with the judgment for damages awarded to fund the most feasible plan be paid into the registry of the court. Present law defines "Environmental damage" as any impact, damage, or injury to soil, water, or sediment caused by contamination from activities associated with oilfield sites or exploration and production sites. Proposed law retains present law but removes the requirement that damage or injury be caused by contamination. Present law defines "Feasible Plan" as the most reasonable plan which addresses environmental damage in conformity with the requirements of present law to protect the environment, public health, safety, and welfare, and is in compliance with the specific relevant and applicable standards and regulations promulgated by a state agency in accordance with the Administrative Procedure Act in effect at the time of clean up to remediate contamination resulting from oilfield or exploration and production operations or waste. Proposed law defines "Most Feasible Plan" as the most reasonable plan which addresses environmental damage in conformity with the requirements of Article IX, Section 1 of the Constitution of Louisiana to protect the environment, public health, safety, and welfare, and is in compliance with the specific relevant and applicable standards and regulations promulgated by a state agency in accordance with the Administrative Procedure Act in effect at the time to evaluate or, if necessary, remediate, environmental damage resulting from oilfield or exploration and production operations or waste. Present law provides that damages may be awarded for the cost of evaluating, correcting or repairing environmental damage upon a showing that such damage was caused by unreasonable or excessive operations based on rules, regulations, lease terms and implied lease obligations arising by operation of law, or standards applicable at the time of the activity complained of, provided that such damage is not duplicative of damages awarded for the cost of funding the feasible plan adopted by the court or the cost of additional remediation only if required by an express contractual provision. Page 8 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 459 SLS 24RS-1132 ORIGINAL Proposed law repeals present law. Present law provides that damages may be awarded for the cost of nonremediation damages. Proposed law provides that damages may be awarded for the cost of nonremediation damages limited to the nonimpacted market value of the property impacted by the environmental damage. Present law requires that if the owner or operator of any oilfield site or exploration and production (E&P) site covered by the provisions of present law performs any environmental testing on land owned by another person, results of the environmental testing be provided to the owner or owners of the land within ten days from receipt of the results by the owner or operator, regardless of whether or not suit has been filed by the owner or owners of the land. Proposed law requires that if the owner or operator of any oilfield site or exploration and production (E&P) site covered by the provisions of present law performs any environmental testing on land owned by another person, results of such environmental testing be provided to the owner or owners of the land within 30 days from receipt of such results by the owner or operator if no suit has been filed by the owner or owners of the land. Present law further requires that the operator or owner or owners of land or anyone acting on their behalf who perform any environmental testing on land that is an oilfield or exploration and production (E&P) site provide the results of such testing to the department within ten days of receipt. Proposed law requires that the operator or owner or owners of land or anyone acting on their behalf who perform any environmental testing on land that is an oilfield or exploration and production (E&P) site provide the results of such testing to the department within 30 days of receipt. Effective August 1, 2024. (Amends R.S. 30:29(C)(1), (3)(a), (5), and (6), (D)(2), (3), (E)(1), (H)(1), (I)(2) and (4), (M)(1)(c) and 29.1; repeals R.S. 30:29(M)(1)(d)) Page 9 of 9 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.