§ 30:88.2 — Orphan well rework program

Louisiana § 30:88.2

• Jurisdiction: Louisiana
• Title 30: Mortgages and Privileges

Text

§88.2. Orphan well rework program
A. Orphan wells. (1) For purposes of this Section, an orphan well shall mean an oil
well that is designated as part of an orphaned oilfield site and that has had no reported
production for a period of greater than twelve months immediately prior to the production
of oil to which this Section applies.
(2) The monies paid to the state treasury in accordance with R.S. 47:633(7)(c)(iv)(cc)
derived from oil produced from an orphaned well as defined in this Section shall be credited
to the associated site-specific trust account.
B. New production. In the event of new production from a formerly orphaned well
meeting the requirements of Paragraph (A)(1) of this Section, a site-specific trust account
shall be established to separately account for each such site for the purpose of providing a
source of funds for future site restoration of that oilfield site when restoration of the oilfield
site is required. The site-specific trust account shall remain in effect until completion of site
restoration of the associated oilfield site.
C. Trust account monitoring. The secretary shall monitor each trust account to assure
that it is being properly funded. The funds in each trust account shall remain the property of
the trust authority. If the site-specific trust account is not funded through the payment of
amounts equal to the severance tax that would otherwise be due the state for a period of
greater than six months from the date of first production following designation of the well
as part of an orphaned oilfield site, the secretary shall require financial security in accordance
with this Subtitle and the rules and regulations adopted pursuant to this Subtitle including
the exceptions provided in R.S. 30:4(R).
D. Transfers of oilfield sites. When transfers of oilfield sites occur subsequent to the
formation of site-specific trust accounts pursuant to this Section but before the end of the
oilfield site's economic life, the balance of any site-specific trust account at the time of
transfer shall remain associated with the oilfield site.
E. Unusable oilfield sites. For unusable oilfield sites, after site restoration has been
completed and approved by the secretary, funds from a site-specific trust account shall be
disbursed as follows:
(1) If the site restoration has been completed by the operator of record on file with
the secretary, the balance of the funds existing in the site-specific trust account shall be
remitted to that operator of record.
(2) If the site restoration has been completed using monies from the Oilfield Site
Restoration Fund and monies from the site-specific trust account, any balance in the
site-specific trust account shall be transferred into the Oilfield Site Restoration Fund for use
on any oilfield site in accordance with this Chapter.
(3) The site-specific trust account shall thereafter be closed.
F. Rules, regulations, and orders. The secretary shall promulgate, after notice and
public hearings as provided in this Chapter, any reasonable rules, regulations, and orders that
are necessary to implement this Section.

Legislative History

Acts 2021, No. 391, §1, eff. June 16, 2021; Acts 2024, 3rd Ex. Sess., No. 16, §1, eff. July 1, 2025; Acts 2025, No. 458, §1, eff. Oct. 1, 2025.