§ 30:93 — Recovery of site restoration costs; emergency costs

Louisiana § 30:93

• Jurisdiction: Louisiana
• Title 30: Mortgages and Privileges

Text

§93. Recovery of site restoration costs; emergency costs
A. If the department undertakes restoration of an orphaned oilfield site under this
Part or responds to any emergency as provided in R.S. 30:6.1, the secretary shall seek to
recover all costs incurred by the secretary, penalties, and other relief from any party who has
operated or held a working interest in such site, or who is required by law, rules adopted by
the department, or a valid order of the department to control, clean up, close, or restore the
oilfield sites or other facilities, structures, or pipelines under the secretary's jurisdiction
pursuant to R.S. 30:1 et seq. in accordance with the following:
(1) All oilfield sites for which there is no site-specific trust fund shall be restored
with monies provided by the fund. Except for the responsible party, the secretary shall not
be authorized to recover restoration costs from parties which formerly operated or held a
working interest in an orphaned oilfield site unless restoration costs for a particular orphaned
oilfield site including support facilities exceed two hundred fifty thousand dollars. Recovery
of costs under this Paragraph shall be from the parties in inverse chronological order from
the date on which the oilfield site was declared orphaned.
(2) For each oilfield site which becomes orphaned and for which a site-specific trust
fund has been created and is fully funded under the provisions of R.S. 30:88(F), recovery of
costs shall be against only the responsible party, and the site shall be restored in the
following manner:
(a) Using funds in the site-specific trust fund established for the specific site.
(b) Using funds collected from any responsible party in such site where the
site-specific trust fund is insufficient.
(c) If funds collected under Subparagraphs (a) and (b) of this Paragraph are
insufficient to fully restore said orphaned oilfield site, the fund shall provide funds necessary
to make up any deficiency.
(3) If the oilfield site does not meet the provisions of R.S. 30:88(F) and restoration
costs exceed two hundred fifty thousand dollars, recovery of costs shall be from the parties
in inverse chronological order from the date on which the oilfield site has been declared
orphaned, except that a party shall be exempt from liability for restoration of an orphaned
oilfield site as provided for in this Part in which said party had an operating or working
interest if, and only if, the party complies with all of the following:
(a) The party makes full and reasonable timely contribution to the Oilfield Site
Restoration Fund.
(b) The party creates a site-specific trust account for the restoration of the oilfield site
and is in compliance with the terms and conditions of the site-specific trust account.
(c) The party makes full disclosure in compliance with R.S. 30:88(G) in the transfer
of an oilfield site.
(d) The party complies in full with any penalty assessment which has become final
under this Part for any violation under this Part.
(e) The party is not determined to be an individual, partnership, corporation, or other
entity which is an operator or working interest owner in an oilfield site determined to be
orphaned.
(f) The party is not determined to be a partnership, corporation, or other entity for
which a general partner, an owner of more than twenty-five percent ownership interest, or
a trustee has held a position of ownership or control in another partnership, corporation, or
other entity which is an operator or working interest owner in an oilfield site determined to
be orphaned.
(g) The party complies with all reviews of site-specific trust accounts as set forth in
this Part, including additional contributions thereto if deemed necessary.
(4) For a response to any emergency as provided in R.S. 30:6.1, recovery of costs
shall be against the responsible party.
B. The secretary may file suit in a court of competent jurisdiction in East Baton
Rouge Parish to recover these costs. The secretary may settle or resolve any suits, disputes,
or claims for any penalty under the provisions of this Part. Costs recovered under this
Subsection shall be deposited into the Oilfield Site Restoration Fund.
C. The secretary may enter into a site restoration contribution agreement prior to
undertaking restoration of an orphaned oilfield site under this Part. In such agreement the
secretary shall accept and agree to specific levels of monetary or other contribution towards
the cost of restoring an orphaned oilfield site by a party or parties who have operated or held
a working interest in such orphaned oilfield site. Upon entering into a site restoration
contribution agreement and following final payment by a party to the department of the
contribution amount agreed to therein, the party shall be deemed to have met their
obligations under this Part and the secretary shall have no right to recover costs incurred by
the secretary, penalties, or other relief as contemplated in this Section. Any party who has
operated or held a working interest in an orphaned oilfield site covered by a site restoration
contribution agreement but has either failed to enter into such agreement or failed to pay the
department the agreed upon amount shall be liable for cost recovery pursuant to this Section.
The secretary shall have no right of action to seek recovery of the costs contributed to
restoration of an orphaned oilfield site by another party pursuant to a site restoration
contribution agreement. Site restoration contribution agreements may include provisions
resolving regulatory compliance and compliance with obligations set forth in a state lease,
operating agreement, right of way, servitude or other contract associated with the orphaned
oilfield site at issue.

Legislative History

Acts 1993, No. 404, §2; Acts 1995, No. 297, §1, eff. July 1, 1995; Acts 1997, No. 994, §§1, 2; Acts 2004, No. 225, §1; Acts 2019, No. 193, §1; Acts 2025, No. 458, §1, eff. Oct. 1, 2025.