La. Admin. Code tit. 43 § I-2703

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-2703 - Orphaned Oilfield Sites

A. If a party has transferred an oilfield site after May 1, 1993, for which a site-specific trust account was established and the transferror has remained in compliance with this Part he shall not be liable for any site restoration for the non-orphaned or orphaned oilfield site.

B. If the assistant secretary has declared an oilfield site to be orphaned which was transferred prior to May 1, 1993, the secretary may expend monies from the fund to fully restore the site. Except for the responsible party, the secretary shall not be authorized to recover the restoration costs from parties which formerly operated or held working interest in the orphaned site unless the costs to fully restore the site exceed $200,000. Transfer of an oilfield site shall be deemed to have taken place prior to May 1, 1993, where a purchase and sale agreement has been executed prior to May 1, 1993, and closing takes place within 120 days of execution.

C. If the assistant secretary has declared an oilfield site to be orphaned which was transferred after May 1, 1993, for which no site-specific trust account was established no responsible party, prior operators, or working interest owners shall receive the exemptions provided for in this Part for the subject orphan site.

D. If the assistant secretary has declared an oilfield site to be orphaned which was transferred after May 1, 1993, for which a site specific trust account was established the site shall be restored in the following manner:

1. the secretary shall expend the site-specific trust account funds; and

2. the assistant secretary shall collect any deficiencies from the responsible party; and

3. the secretary shall expend a maximum of $200,000 from the general oilfield site restoration fund if there are remaining deficiencies; and

4. if there are still further deficiencies the secretary shall recover any remaining costs from any non-exempt prior operators and working interest owners in inverse chronological order from the date on which the oilfield site has been declared orphaned according to procedures established by the assistant secretary.

E. The state shall be exempt from the provisions of this Part.

F. The commission, the secretary, and the assistant secretary, and their agents, shall not be liable for any damages arising from an act or omission if the act or omission is part of a good faith effort to carry out the purpose of this Part.

La. Admin. Code tit. 43, § I-2703

Promulgated by Department of Natural Resources, Office of Conservation, LR 21:400 (April 1995), repromulgated LR 21:472 (May 1995).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:80 et seq.