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Committee endorses fee increase, governance shift to tackle orphan oil and gas wells
Summary
The House Natural Resources Committee reported House Bill 23 favorably with amendments after hearing the Department of Energy and Natural Resources present a plan to raise OSR fees, place funds under the Natural Resources Trust Authority, and pursue bonding to plug roughly 4,600 orphan wells estimated at $542 million in liability.
Chairman Guymon on behalf of the House Natural Resources Committee on Dec. 5 took up House Bill 23, a departmental bill that would change how Louisiana manages and funds plugging and abandonment of orphan oil and gas wells.
Deputy Secretary Dustin Davidson, Department of Energy and Natural Resources, told the committee the bill "provides for the administration of the Oilfield Site Restoration Fund" and would allow the state to "raise fees for the oil site restoration, and ensure that we have the money on hand to plug and abandon those orphan wells." He said the bill moves fund administration into the Natural Resources Trust Authority with oversight from the State Mineral and Energy Board.
Department leaders framed the change as part of a broader departmental reorganization directed by the governor and cited Act 727’s creation of the Natural Resources Trust Authority. Secretary…
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