§ 30:91 — Orphaned oilfield sites

§91. Orphaned oilfield sites
A. A site may be declared to be an orphaned oilfield site by the secretary upon a
finding that:
(1) No responsible party can be located, or such party has failed or is financially
unable to undertake actions ordered by the secretary; and
(2) The oilfield site either:
(a) Was not closed or maintained in accordance with all statutory requirements and
the regulations adopted thereunder; or
(b) Constitutes or may constitute a danger or potential danger to the public health,
the environment, or an oil or gas strata.
B.(1) Prior to declaring a site to be an orphaned oilfield site, the secretary shall seek
to notify the last operator of record, at his last known address contained in the department
records, of the site that is to be declared orphaned and shall publish a notice in the Louisiana
Register that the oilfield site is to be declared orphaned. Additionally, the secretary shall seek
to notify the surface owner of the site, at the address provided by the operator pursuant to
R.S. 30:28(J), that the site is to be declared orphaned. Failure of the secretary to notify the
surface owner of the site shall not invalidate the decision to declare a site orphaned. If
resolution of a factual dispute is requested by any owner or operator, the secretary shall hold
a fact-finding hearing prior to declaring the site orphaned and the secretary shall make any
fact determination necessary to resolve the dispute.
(2)(a) In the event that a site is being declared orphaned, the secretary shall retain a
first lien and privilege upon such property superior to any existing mortgages, privileges, or
liens of any kind, type, or nature whatsoever. The secretary shall record a notice of such lien
with the clerk of court in the parish where the site is located. The secretary shall notify all
other lienholders of record who have acquired a privilege, lien, or mortgage upon the
property contained within a well site, in writing by registered mail, return receipt requested,
that he is declaring the site orphaned. If the salvage value of property at the site exceeds the
cost of plugging and abandoning the well site in accordance with this Part, any excess funds
shall be paid to other lienholders by rank. Any other excess funds from salvage shall be paid
into the fund.
(b) In the event that a lienholder for any reason does not exercise his privilege
against the property, he shall not lose his right to secure a money judgment against the owner
or operator by whom he is owed a debt; however, all liens and privileges which existed upon
the property shall be extinguished.
(c) In the event that a lienholder is not properly notified as provided in this
Paragraph, any claim by the holder or holders against the trust authority, Department of
Conservation and Energy, or the contractors for the value of the salvaged property shall be
limited to the actual cash value of the salvaged property at the time of salvage.
(3) Sale or removal of property from an oilfield site which has been declared
orphaned without the written consent of the secretary is prohibited. The secretary shall have
a claim against the person or persons who have sold or removed such property for the fair
market value of the property sold or removed, and the lien and privilege provided herein shall
follow such property into the hands of third persons whether such persons are in good or bad
faith.
(4) Conducting operations on an oilfield site which has been declared orphaned
without the written consent of the secretary is prohibited.
C. For purposes of this Part, the owner of the property upon which an orphaned
oilfield site is located shall not be responsible for site restoration unless the owner is also a
responsible party as defined herein.
D. In the event that the secretary declares an emergency as provided in R.S. 30:6.1,
the provisions regarding notice to the operator as provided therein shall be applicable to
declaring the site orphaned.

Legislative History

Acts 1993, No. 404, §2; Acts 1995, No. 297, §1, eff. July 1, 1995; Acts 1997, No. 994, §1; Acts 1999, No. 618, §1; Acts 2013, No. 220, §11, eff. June 11, 2013; Acts 2016, No. 342, §1; Acts 2023, No. 150, §5, eff. Jan. 10, 2024; Acts 2024, 3rd Ex. Sess., No. 16, §1, eff. July 1, 2025; Acts 2025, No. 458, §1, eff. Oct. 1, 2025.