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Regular Session, 2011

HOUSE BILL NO. 563

BY REPRESENTATIVES CORTEZ, CHAMPAGNE, KATZ, AND SEABAUGH AND

SENATOR KOSTELKA

Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.

MINERALS: Provides for surface and subsurface restoration

1 AN ACT

2 To enact R.S. 30:4(L), 84(A)(3), and 86(D)(7), relative to the remediation of oilfield sites;

3 to provide for the jurisdiction of the office of conservation; to provide for certain

4 judicial demands; to provide for the authority of the secretary; to provide for funding

5 of the Oilfield Site Restoration Fund; and to provide for related matters.

6 Be it enacted by the Legislature of Louisiana:

7 Section 1. R.S. 30:4(L), 84(A)(3), and 86(D)(7) and (E)(7) are hereby enacted to

8 read as follows:

9 §4. Jurisdiction, duties, and powers of the assistant secretary; rules and regulations

10 * * *

11 L. The office of conservation through the commissioner shall have primary

12 jurisdiction to review and approve all plans for the evaluation or remediation of any actual or

13.potential impact, damage, or injury to environmental media regulated by the office of

14.conservation caused by contamination resulting from activities associated with oilfield sites

15.or exploration and production sites. All judicial demands which have been filed or amended

16.as of July 1,2011, and which the office has not approved a plan to evaluate or remediate the

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17.environmental damage shall be stayed and referred to the office for approval of a plan under

applicable state remediation standards. The stay shall remain in effect until all administrative

remedies have been exhausted and the delays for judicial and appellate review of the

adjudication proceedings before the Office of Conservation have elapsed pursuant to R.S. 30:12.

18 * * *

1 §84. Powers of the secretary

2 A. The powers of the secretary shall include without limitation the power to

3 do the following:

4***

5 (3) Take any legal action necessary to meet the purposes of this Part.

6***

7 §86. Oilfield Site Restoration Fund

8***

9 D. The following monies shall be placed into the Oilfield Site Restoration

10 Fund:

11 * * *

12 (7) Any monies recovered from activities conducted pursuant to this Part.

13 * * *

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Section 2. R.S. 31:134.1 is hereby enacted to read as follows:

§134.1. Restoration of property; notice

In the case of a claim for surface or subsurface restoration under a mineral lease or

mineral servitude, the remedy shall be specific performance, subject to written notice to

the lessee, the operator, the operator's partners or working interest owners and a

reasonable opportunity to respond and perform. Specific performance shall be defined

as the implementation of the plan to evaluate or remediate the environmental damage

approved by the Office pursuant to R.S. 30:4(L). The provisions of this Section shall

not preclude a judgment ordering damages for or implementation of additional

remediation in excess of the requirements of the plan approved by the Office pursuant

to R.S. 30:4(L) as may be required in accordance with the terms of an express

contractual provision.

DIGEST

The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]

Cortez HB No. 563

Abstract: Provides that the jurisdiction of the office of conservation includes claims for
certain environmental damages resulting from oil and gas activity and authorizes the
secretary of the Dept. of Natural Resources to take legal action to meet the purpose
of the La. Oilfield Site Restoration Law.

Proposed law provides that the office of conservation shall have primary jurisdiction for all
demands arising as a result of any actual or potential impact, damage, or injury to
environmental media caused by contamination resulting from activities associated with
oilfield sites or exploration and production sites.

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Proposed law requires that all judicial demands which have been filed or amended as of July
1, 2011, and which the office has not approved a plan to evaluate or remediate the
environmental damage be stayed and referred to the office for approval of a plan.
Present law provides for the proper and timely cleanup, closure, and restoration of orphaned
oilfield sites and creates the Oilfield Site Restoration Fund (fund) for that purpose.

Proposed law provides that monies recovered from activities conducted pursuant to the La.
Oilfield Site Restoration Law shall be placed in the fund.

Proposed law authorizes the secretary of the Dept. of Natural Resources to take legal action
to meet the purpose of the La. Oilfield Site Restoration Law.

(Adds R.S. 30:4(L), 84(A)(3) and 86(D)(7))

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