• Save
SPE Evangeline 10.9.12
Upcoming SlideShare
Loading in...5
×
 

SPE Evangeline 10.9.12

on

  • 314 views

 

Statistics

Views

Total Views
314
Views on SlideShare
314
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Apple Keynote

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n

SPE Evangeline 10.9.12 SPE Evangeline 10.9.12 Presentation Transcript

  • 2012 Legislative SessionLegacy Seminar & Legislative Recap Lafayette October 9th, 2012 Gifford Briggs
  • Legacy LawsuitsHB 618 by Rep. Neil Abramson SB 555 by Sen. Robert Adley
  • Exactly what is a Legacy Lawsuit... View slide
  • and still some claim this isn’t about trial lawyers hitting it rich View slide
  • Legacy Facts• DNR report given to House and Senate Natural Resource Committees • 271 Legacy Lawsuits Filed • 61 have data submitted to DNR as required by the ACT • 2 have been identified to have long term risk • 64 Notices of Settlement • 35 required no further action • 3 have been remediated • 26 various stages of assessment, evaluation and remediation
  • Legacy Legislation• Over 20 bills were pre-filed• Industry coalition (LOGA, LABI, LMOGA)• Industry wanted 3 things 1. Ability to admit responsibility for regulatory damages 2. Have a pre-trial public hearing at DNR 3. Have the plan developed be admissible in trial• Final compromise accomplished all three goals that industry laid out
  • Good Bills Bad Bills• HB 454 - Abramson - Bi-furcation • HB 235 - Harrison - Indemnification• HB 458 - Abramson - Notice • HB 388 - Johnson - Indemnification• HB 460 - Abramson - CCP • HB 482 - Montoucet - Discovery• HB 500 - Tim Burns - Notice • HB 642 - Montoucet - RS 30:29• HB 618 - Abramson - Admission • HB 863 - Montoucet - Original Condition• HB 654 - Dove - Remediation • HB 920 - Johnson - Punitive• HB 655 - Dove - Secretary Damages• HB 678 - Jim Morris - RS 30:29 • HB 1180 - Harrison - RS 30:29• HB 897 - Harrison - Secretary • SB - 240 - Murray - Indemnification•SB 443 - Morrell - Admission • SB 528 - Long - RS 30:29•SB 480 - Cortez - Notice • SB 731 - Allain - RS 30:29• SB 555 - Adley - RS 30:29
  • Legacy LegislationHB 618 - Abramson• Allows parties to limit admission• Allows pre-trial public hearing at DNR following anadmission• Parties pre-pay DNR for hearing costs• Allows for a party to request Environmental ManagementOrder from the Court
  • Legacy LegislationSB 555 - Adley• Allows parties to subpoena Department officials involved in development of the plan• Allows a party to request preliminary hearing requiring plaintiff to provide someevidentiary proof of contamination• Allows for Notice of Intent to Investigate to suspend prescription for one year• Prohibits Ex-Parte communication during the Departments development of the plan• Allows for the Secretaries of DNR and DEQ and the Commissioner of Agriculture toreview and comment on any plan with an exception to 29B standards• Any party admitting responsibility cannot enforce any indemnity agreements relative topunitive damages
  • 2012 Legislative Issues• Legacy Lawsuits • Oysters• Non-consent & Risk Charge • Motor Truck Carrier Indemnity• Ultra Deep Units • Transportation• Landowner/Leasing • Licensing• Hydraulic Fracturing • Mineral Lease Offers• Water • Alternative Fuels• Coastal Issues
  • Non-Consent Risk Charge SB 505 by Sen. Robert Adley
  • Non-Consent Risk Charge SB 505 - Sen. Robert Adley• Current Situation • Risk Charge is 200% on Unit Well • No-Risk Charge on additional wells in a unit (debated by some) • Non-Consenting party has contractual obligation to pay royalty, not the operator (Recent Case Law)
  • Non-Consent Risk Charge SB 505 - Sen. Robert Adley• 2011 Legislative Session • Bill was introduced by Senator Buddy Shaw to address who pays royalty when a party goes non-consent • LOGA opposed bill in committee as it was presented • LOGA made a commitment to the Senate Natural Resource Committee that we would work on a solution, and bring that solution back to the legislature
  • Non-Consent Risk Charge SB 505 - Sen. Robert Adley• Starting in August a team began meeting to consider revisions to section 30:10• Focus was first to ensure that royalties get paid• Secondly, to address the question of risk charge on additional wells in a unit
  • Non-Consent Risk Charge SB 505 - Sen. Robert Adley• Legislation that was approved by the committee accomplished both of the goals• Legislation was presented to Senator Adley for consideration• All parties and Senator Adley ultimately agreed to a compromise
  • Non-Consent Risk Charge SB 505 - Sen. Robert Adley• Legislation as considered by the committee • Operator will pay to the non-consenting party an amount on behalf of the royalty owners • Amount determined as follows • All original royalty owed to mineral owner will be paid • Overrides are limited by the average total burdens of the operator • Operator is not liable for non-payment to royalty owners by the non-consenting party • Risk charge is 100% for additional wells drilled in a unit
  • Non-Consent Risk Charge SB 505 - Sen. Robert Adley• The language in SB 505 was added as an amendment to HB 504 in the Senate Natural Resource Committee• This was done with the full support of both authors• HB 504 passed the Senate with the Non-Consent amendment
  • Ultra-DeepHB 504 by Rep. Gordon Dove
  • Ultra Deep HB 504 by Rep. Dove• Current statutes exist to incentivize deep drilling• Adds an additional process for creating a units at depths in excess of 22,000 Feet• Allows large units to be formed based on geologic structures• Commissioner may define unit based on data submitted to the Office of Conservation• Data submitted to the OOC for the formation of the unit will be public information• Unit may be formed prior to the drilling of a unit well
  • Landowner/Leasing Bills• Subsequent Purchaser Doctrine• Landowner Protection Act• Landowner Notice Requirement• Mineral Lease Offers
  • Subsequent Purchaser Doctrine HB 862 - Rep. Lambert • Overturns Eagle Pipe decision • This bill allows a current owner to sue an oil and gas company environmental damage that already existed on the property when they bought it. • Applies retroactive and prospective overturning 2 Supreme Court decisions
  • Landowner Protection Act HB 853 - Rep. Montoucet• “Should be called the Louisiana Oilfield Job Killing Act”• Surface Rights • right to 1/8th royalty or $250,000 bond • notification - including seismic data• This bill is a deprivation of Mineral Owners rights
  • Landowner Protection Act, II HB 1037 - Rep. Montoucet• Requires operators to bring the property to original condition with in 90 days from the time operations cease• Requires operators to give onerous notifications to the landowner which include copies of the proposed cleanup plan, the mineral code, a proposed surface use and compensation agreement to the landowner and many other previsions.• The bill also requires an operator to enter into a surface use and compensation agreement or provide excessive bonds
  • Landowner Notice SB 525 - Senator Allain• 30 days notice to a Landowner affected by drilling operation• Does not apply to any landowner that has a contractual relationship of any kind with the operator• Commissioner to promulgate rules• Was a reasonable alternative to HB 853• LOGA supported this legislation
  • Mineral Lease Offer SB 530 - Senator Peacock• Refers to unsolicited offers only• Requires specific information in the offer• Discourages payments with the offer• Does not apply to actual lease• Addressing in the 2013 Legislative Session
  • Hydraulic Fracturing HB 957 Rep. Edwards• Directs the Commissioner to promulgate rules regarding the disclosure of HF fluids• Most is already in place as a rule• Require reporting of non-MSDS chemicals• Changes trade secret protection to higher standard
  • Water Bills• ACT 955 Renewal• Natural Gas Storage• Ground Water Resource Commission
  • Natural Gas Storage SB 532 - Sen. Fred Mills• Prohibits the creation of a natural gas storage cavern that uses 2 million+ gallons/day of water• AGL Resource project that has been in the works for years• Lake Peigneur
  • Act 955 Renewal HB 532 by Rep. Morris• ACT 955 • Allows businesses to enter into CEAs with the state in order to gain access to the running waters of the state • Expires in June of 2012 • Response to AGs opinions in 1st Qtr 2010 • Agriculture and Aquaculture exempted themselves from requirement to purchase water in 2010 • Only a 2 year extension
  • Groundwater Resources Commission• Draft Statewide Groundwater Management Plan• Originally intended to be focused on groundwater• Includes surface water• Concerns because of singling out industry and• Haynesville Shale water use• “Innovative Funding Mechanisms”• Legislation to follow
  • CNGHB 1213 by Rep. Stephen Ortego SB 139 by Sen. Gerald Long
  • CNG HB 1213 Rep. Stephen Ortego• Amends law requiring the state to purchase alternative fuel vehicles• Flex fuel currently satisfies the state requirement• Removed flex fuel qualification as an alternative fuel• Must be dedicated or bi fuel and use either natural gas, LPG or non-ethanol based advanced bio-fuel
  • CNG SB 139 by Sen. Gerald Long• Amends insurance law to allow a company- owned leasing program to utilize captive insurance for natural gas vehicles• Would cover personal use of the vehicles• Covers both Dual-Fuel and Dedicated• LNG, CNG or Combination
  • EPA New RuleHydraulic Fracturing Reporting • Company name and contact • Reporting begins October 15 • r6wellcompletion@epa.gov • Well location information - site name, API #, longitude and latitude • Estimated date of the well completion
  • Resourceswww.loga.lafacebook.com/LouisianaOilGasAssociation@LaOilGasAssocOil & Gas News and Events on your iOS devicevideos.loga.la