Defines inactive well and provides for the powers and duties of the commissioner of conservation. (8/1/18)
Impact
The passage of SB 545 empowers the commissioner of conservation to adopt necessary rules and regulations concerning inactive wells, including establishing what constitutes 'future utility' of these wells. This is significant, as it seeks to manage inactive resources that might be repurposed or monitored for future use, potentially influencing the state's approach to oil and gas resource conservation. The proposed regulations may also ensure that the wells do not pose environmental threats while still keeping a handle on future energy resource development.
Summary
Senate Bill 545, introduced by Senator Allain during the 2018 Regular Session, aims to define and regulate 'inactive wells' in the state of Louisiana. Specifically, the bill stipulates that an inactive well is categorized as an unplugged well that has not reported any production, disposal, injection, or other permitted activities for over six months and is not part of an approved production program. This definition serves as a baseline for monitoring and managing Wells that are not actively contributing to the state’s resources.
Sentiment
The sentiment surrounding SB 545 appears to be cautiously optimistic among conservationists and industry stakeholders. Proponents express support for clear definitions and regulations that can help safeguard the environment while allowing for the potential future use of these inactive wells. However, there may also be concerns regarding the burden of new regulations on smaller operators within the oil and gas sector who might struggle with compliance.
Contention
One point of contention could center on how the definitions and regulations will be implemented, particularly whether they provide enough flexibility for companies dealing with a fluctuating market. Questions remain about the balance between conservation efforts and the economic realities of managing inactive wells, as stakeholders seek to understand the implications of 'future utility'. Some may argue that the bill could impose restrictions that hinder operational flexibility, while others insist it is a necessary step toward better resource management.
Establishes procedures for review of future utility of well sites that have been inactive for more than ten years. (8/1/18) (RE INCREASE SD EX See Note)
Relating to the responsibility of oil and gas well operators with regard to plugging inactive oil or gas wells and to ensuring the proper connection of electric lines.
Dedicates certain funds to oilfield site-specific trust accounts in order to provide for oilfield site restoration. (gov sig) (EN INCREASE OF RV See Note)