Committee advances substitute for SB193 to reorganize Natural Resources and tighten oversight of oil‑site funds

The Senate Committee on Natural Resources voted to adopt technical and substantive amendments and to report Senate Bill 193 by Chairman Henskins as substituted. Secretary Tyler Gray of the Department of Energy and Natural Resources told the committee the draft is "the culmination of the past 18 months of work" and said it aims to modernize agency structure, increase transparency and make the agency "solutions oriented."

Secretary Gray and department counsel outlined three core aims of the substitute: (1) update organizational names and titles across statute (changing some assistant secretaries and undersecretaries to director roles), (2) streamline and reduce the number of appointees (from nine to three in some offices), and (3) strengthen internal financial controls and oversight for funds tied to oil‑field site restoration and other mineral‑energy activities. Blake Canfield, the department's executive counsel, described technical drafting fixes and said some changes responded to requests from the Division of Administration (DOA).

Committee clerk Mr. Wilson read a set of technical amendments (No. 1434) that the committee adopted without objection; the committee also adopted substantive Amendment No. 1244 after departmental staff described its changes. That substantive amendment revised definitions (including "expedited permit processing" and "employee"), repealed a now‑sunsetted Cross‑Unit Lateral Well Study Commission, and added provisions requiring that monies in the Natural Resources Financial Security Fund be invested in the same manner as the general fund as provided in statute 33.2955. The amendment also directs, with Mineral and Energy Board approval, that monies may be transferred between the Natural Resources Financial Security Fund and the Mineral and Energy Operations Fund under the oil‑site restoration law, and it changed a prior $950,000 expenditure cap to the department's federally approved indirect cost rate or, if none exists, to 15% of direct costs.

The department said the Natural Resources Trust Authority will manage a newly described financial‑security component intended to help the state address orphaned wells and other legacy liabilities. Secretary Gray explained the goal is to "move up" state involvement so the liability of plugging abandoned wells does not fall entirely on the state at the end of a well's life cycle. Deputy Secretary Dustin Davidson said the bill also establishes a Natural Resources Commission to meet quarterly so agencies can coordinate on resource quality and quantity and on federal rulemaking.

Public testimony was mixed on parts of the substitute: several supporters — including representatives from TSC Energy and Enbridge, and encouragement from the Lieutenant Governor's office — filed cards in support or for information. Kathy Waskin of the Louisiana Environmental Action Network testified in opposition to aspects of the substitute that would move the Capital Area Groundwater Commission and SPARTA under the Department of Energy and Natural Resources (DENR), saying the commission has built a role since 2011 in monitoring the Southern Hills aquifer and that the legislative auditor had previously recommended stronger verification of pumping beyond self‑reporting. Waskin asked that stakeholders from the Capital Area Groundwater Commission remain actively engaged in drafting implementation details.

After discussion and staff responses, the committee adopted the amendments and reported SB193 by substitute with no recorded objection; the measure will advance to the Senate for further consideration.