Louisiana Oil and Gas Laws and Regulations - CAST

Louisiana Oil and Gas Laws and RegulationsLouisiana StatutesMinerals, Oil, and Gas and Environmental Quality, La. Rev. Stat. Ann. §§30-30:2588Title 30 of the Louisiana Revised Statutes handles a host of legal issues in the production of oiland gas within the state. It regulates some production issues such as the right to purchase gas;however the main focus of Title 30 is environmental quality. The statute addressesunderground injection, site cleanup, and establishes the Department of Conservation for thestate of Louisiana.Mineral Code, La. Rev. Stat. Ann. §§31-31:217The majority of the statutory authority dealing directly with the ownership and nature ofmineral rights, the creation of mineral royalty, mineral leases, and payment under the lease arefound with this title.Revenue and Taxation, La. Rev. Stat. Ann. §§47:631-47:648.21Louisiana, like numerous other states, imposes a tax whenever any nonrenewable resource isremoved from the land. This tax applies not only to oil and natural gas, but also to otherminerals that are mined or gatherer within the state. The Louisiana code establishes who owesthe tax, what incentives are available to various producers, collection of taxes, and penalties fordelinquent payment.Louisiana Administrative CodeDepartment of Natural ResourcesNatural Resources RegulationsTitle 43:I, III, V, VI, Natural Resources: Office of the Secretary, Office of Management andFinance, Office of Mineral Resources, La. Admin. Code tit. 43, Part I, §101 to Part VI, §707This section of the Louisiana code sets forth the general rules and regulations forholding hearings and judicial reviews brought under Title 43 of the Louisiana code. Italso handles issues such as oilfield site restoration, dry hole credits, and water resourcesmanagement.Title 43:IX, XI, XIII, Natural Resources: Office of Conservation-Natural Gas Policy Act, PipelineDivision, and Pipeline Safety, La. Admin. Code tit. 43, Part IX, §101 to Part XIII, §6545Applying to all oil and gas wells and pipelines within the state, this section of theLouisiana code implements the federal Natural Gas Policy Act and creates theregulations governing pipelines and pipeline safety.Title 43:XVII, Natural Resources: Office of Conservation-Injection and Mining, La. Admin. Codetit. 43, Part XVII, §§ 101-303The Office of Conservation regulates the disposal of salt water into underground wells,the use of water injection to enhance recovery in certain fields, and the storage of liquidand gaseous hydrocarbons. It works in conjunction with the Louisiana UndergroundInjection Code to ensure the quality of ground water within the state.Title 43:XIX, Natural Resources: Office of Conservation-General Operations, La. Admin. Code tit.43, Part XIX, §§ 101-4505One of the most important resources for oil and gas production in the state of Louisianais the Office of Conservation’s General Operations rules and regulations. The Office

creates and enforces many of the rules addressing numerous issues in the production ofoil and gas. The rules and regulations regarding pollution control, spacing of wells,storage of production waste, and the hearing procedures for adjudicating disputes thatarise are some of the primary issues regarding oil and gas production that this sectionaddresses.Department of Environmental QualityEnvironmental Regulatory CodeTitle 33:I, Environmental Quality: Office of the Secretary-Departmental AdministrativeProcedures, La. Admin. Code tit. 33, Part I, §§ 101-6925This section establishes the general rules and procedures for the operation of theLouisiana Department of Environmental Quality. It addresses notice requirements,procedural requirements for hearings, declaratory ruling procedures, and penalties foradministrative determinations. The regulations also address rulemaking requirements,permit requirements, permit application reviews, notification requirements, andemergency response regulations.Title 33:III, Environmental Quality: Air, La. Admin. Code tit. 33, Part III, §§ 101-5913The Air Quality program is administered under the Louisiana Department ofEnvironmental Quality with the purpose of maintaining the purity of the air resources ofthe state of Louisiana in a manner that is “consistent with the protection of the healthand physical property of the people.” This section contains the rules and regulations onthe Air Quality Control Programs, permits, emissions and emission standards.Title 33:V, Environmental Quality: Hazardous Waste and Hazardous Materials, La. Admin. Codetit. 33, Part V, §§ 101-5311This section of regulation is intended to prevent damage to property or to theenvironment by the improper management of hazardous waste and to establish theminimum standards for the handling of hazardous waste in the state of Louisiana.Title 33:VI, Environmental Quality: Inactive and Abandoned Hazardous Wastes and HazardousSubstance Site Remediation, La. Admin. Code tit. 33, Part VI, §§ 101-1119The regulation of abandoned and inactive hazardous waste and hazardous substancesites is covered within this section. Functioning similar to the federal ComprehensiveEnvironmental Response, Compensation, and Liability Act (CERCLA or “Superfund”), thischapter deals with the administrative process of identifying abandoned or inactive sites,determining the “potentially responsible parties,” site cleanup, settlements andnegotiations, and the cost recovery associated with the cleanup of these sites.Title 33:IX, Environmental Quality: Water Pollution Control, La. Admin. Code tit. 33, Part V, §§101-7399The Department of Environmental Quality is tasked with protecting the waters of thestate of Louisiana through establishing requirements for water quality, permitsenforcement, monitoring, surveillance, and spill control activities.Louisiana Department of RevenueSeverance Tax Regulations, La. Admin. Code tit. 61, Part I, §§ 2901-2903The regulations on the Louisiana Severance Tax establishes what minerals and whatevents trigger the tax as well as the rates of taxation and the definitions of various termsused by both the industry and the Louisiana Department of Revenue.Federal Statutes

Federal Water Pollution Control Act (a/k/a Clean Water Act), 33 U.S.C. §§ 1251-1387The Clean Water Act serves as the primary federal law regulating surface water pollution in theUnited States. The scope of this statute is extended to oceans, rivers, lakes, streams, wetlands,sloughs, and intermittent streams that have a “significant nexus” to “navigable waters”; whichhas been broadly interpreted by the courts. Waters that fall within this definition have qualitystandards assigned to them by the EPA and many individual states so that each body of water ofwater has a Total Maximum Daily Load (TMDL) of pollutants that the water can handle with nofurther degradation. The term "pollutant" is broadly defined and includes heat, waste, soil,rock, chemical materials, and biological materials. Once a TMDL has been adopted for a body ofwater, then permits will be issued either by the EPA, or by the states that are qualified under theEPA, to allow for the discharge of recognized pollutants. This permitting process is called theNational Pollutant Discharge Elimination System (NPDES) and it requires “point sources” ofpollution (oil and gas extraction is considered a point source) to acquire the permit and keeptheir discharge below the level required. Failure to comply with the Clean Water Act can lead tosignificant penalties of up to $25,000 dollars per day for a first violation and $50,000 per day forsubsequent violations along with imprisonment for up to fifteen years for knowinglyendangering people through the unlawful discharge of pollutants.Federal Air Pollution and Control Act (a/k/a Clean Air Act), 42 U.S.C. §§ 7401-7671qThe Clean Air Act seeks to protect human health and the environment from emissions thatpollute ambient, or outdoor, air. It requires the EPA to establish minimum national standards forair quality, and assigns primary responsibility to the states to assure compliance with thestandards. Areas not meeting the standards, referred to as nonattainment areas, are required toimplement specified air pollution control measures. The CAA establishes federal standards formobile sources of air pollution, for sources of 188 hazardous air pollutants, and for theemissions that cause acid rain. Further, it establishes a comprehensive permit system for allmajor sources of air pollution.Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601-9675Also known as “Superfund,” this is the federal statute that deals with discharges of hazardouswaste into the environment by "potentially responsible parties." Administered by the EPA, itprovides a Federal "superfund" to clean up uncontrolled or abandoned hazardous-waste sites aswell as accidents, spills, and other emergency releases of pollutants and contaminants into theenvironment. Potentially responsible parties who can be identified bear the burden of the cleanupcosts under joint and several liability. For abandoned sites, or those where responsibilitycannot be established, CERCLA created a fund to clean up abandoned hazardous waste sites.Safe Drinking Water Act, 42 U.S.C. §§ 300f - 300j-26This act was passed to ensure that the general public would have safe drinking water availableto them. The SDWA applies to every public water system in the United States, but does notapply to private water wells. The act sets “maximum contaminant levels” which must be metand maximum contaminant level goals” for all contaminants. To protect public drinking waterthe EPA was authorized to regulated underground injection wells through the UndergroundInjection Control Program, 40 C.F.R. §§ 144.1-144.89.Natural Gas Act, 15 U.S.C. §§ 717-717zThe Natural Gas Act regulates the transmission and selling of natural gas across state lines. Italso regulates the construction, extension or abandonment of facilities, record keepingrequirements, and sets the administrative process to handle violations and enforcement.Endangered Species Act, 16 U.S.C. §§ 1531-1544The Endangered Species Act (ESA) protects species identified as endangered or threatened withextinction and attempts to protect the habitat on which they depend. It is administered

primarily by the Fish and Wildlife Service and also by the National Marine Fisheries Service, forcertain marine creatures. Dwindling species are listed as either endangered or threatenedaccording to assessments of the risk of their extinction. An endangered species is defined as"any species which is in danger of extinction throughout all or a significant portion of itsrange...." A threatened species is as "any species which is likely to become an endangeredspecies within the foreseeable future throughout all or a significant portion of its range." TheSecretary of the Interior decides to list the species based on the "best available" scientific andcommercial information, after a series of procedural steps to ensure public participation. Oncea creature is listed as endangered or threatened, its "taking" is prohibited under 16 U.S.C. §1538. To "take," under the ESA, means "to harass, harm, pursue, hunt, shoot, wound, kill, trap,capture, or collect, or to attempt to engage in any such conduct." After a species is listed asthreatened or endangered, the Secretary of the Interior must also designate critical habitat,which is either where the species is found or, if it is not found there, where there are featuresessential to its conservation. Once the habitat is identified, special protections are put into placefor the area as well as the creature.Federal Regulations and OrdersU.S. Army Corps of Engineers Clean Water Act Regulations, 33 C.F.R. §§ 320; 323-338The U.S. Army Corps of Engineers shares authority under the Clean Water Act along with theEnvironmental Protection Agency. This section of regulations governs what responsibilities theCorps has along with the policies and procedures that they use.Department of the Interior Minerals Management, 43 C.F.R. §§ 3000-3873.3The United States Government is the largest landowner in the country and controls about 30%of the land. In Arkansas, the federal government has significant holdings in the western half ofthe state including some land in the Fayetteville Shale. The Department of the Interior managesthe mineral issues that arise throughout the country on federal land and these regulationsgovern how the federal government will deal with the various parties in the exploration, leasing,drilling, and recovery of minerals on federal lands.Environmental Protection AgencyOil and Gas Extraction Point Source Category, 40 C.F.R. §§ 435.10-435.70These EPA regulations and guidelines concerning the use of technology and technologicalrequirements were introduced to reduce the impact of oil and gas wells on the surroundingenvironment.Clean Air Act Regulations, 40 C.F.R. §§ 1-99The purpose of the Clean Air Act is to protect human health and the environment fromemissions that pollute ambient, or outdoor, air. The Clean Air Act establishes the authority ofthe EPA to create regulations and procedures to carry out this goal. These regulations work withand supplement the CAA by setting out exactly the procedures, thresholds, reportingrequirements, and minimum compliance standards for air quality.Water Programs Regulations, 40 C.F.R. §§ 100-149The Water Programs Regulations are administered EPA with the intended goal of protectingwater quality by regulating the discharge of pollutants, including oil and gas, establishingguidelines to test water quality, enforcing national drinking water regulations, administer theUnderground Injection Control (UIC) Program, and set state standards for their UIC programs.Superfund, Emergency Planning and Community Right-to-Know Programs Regulations,40 C.F.R. §§ 300-374

Drafted and enforced by the EPA, these regulations implement CERCLA (better known asSuperfund) which holds polluters (called “potentially responsible parties”) financiallyresponsible for polluted sites that they are responsible for. It also funds site cleanup forabandoned sites where either the polluter is unknown or if they are no longer in business.Underground Injection Control Program, 40 C.F.R. §§ 144.1-144.89State Underground Injection Control Program Requirements, 40 C.F.R. §§ 145.1-144.58Underground Injection Control Program: Criteria and Standards, 40 C.F.R. §§ 146.1-144.73State Underground Injection Control Programs, 40 C.F.R. §§ 147.1-144.3109Hazardous Waste Injection Restrictions, 40 C.F.R. §§ 148.1-144.24Congressional Research Service Reports?Other Government ResourcesLouisiana Department of Natural ResourcesOffice of Mineral ResourcesOrphan Wells by ParishGround Water Resources ProgramHaynesville Shale InformationWell Evaluation ChecklistWater Well Notification FormDepartment of Natural Resources: Louisiana Office of ConservationSONRIS – Database for Oil & Gas Drilling/Production InformationOffice of Conservation – Oilfield Site Restoration SectionCommercial E&P Waste Facility Permit ApplicationFormsOperator's Monthly Oil and Gas ReportTransporter's and Storer's Monthly ReportRefiner's Monthly ReportOperator's Monthly Gas Disposition ReportNatural Gas Transporter's Monthly ReportPart 1 Continuation Form (for R2, R3, R5T TAS Reports)Oil and Gas Import/Export SummaryGas Well Deliverability TestGas Well Deliverability Test (instructions)Oil Well Potential ReportOil Well Potential Report (instructions)Landowner Affidavit of No Objection for Passive Pit ClosurePerformance Bond (1 Well)Performance Bond (Multiple Wells)Irrevocable Letter of Credit (1 Well)Irrevocable Letter of Credit (Multiple Wells)Pledge of Certificate of Deposit (1 Well)Pledge of Certificate of Deposit (Multiple Wells)Blanket – 10 Wells

Blanket – 25 WellsMulti-Well - By FootageOilfield Site Restoration Contractors ApplicationOrganization Report TransportersOrganization Report OperatorsPlug and Abandon ReportOperators Certificate of Compliance and Authorization to Transport Oil From ProductionFacilitySeverance Tax Relief Program form for Inactive WellSeverance Tax Relief Program form for New Reservoir DiscoverySeverance Tax Relief Program form for Wells Deeper than 15,000 ft. T.V.D.Severance Tax Relief Program form for Wells Drilled with an 80 degree or greater holdfor 50 feet or moreSeverance Tax Relief Program form to apply 3D costs to a number of wellsOffice Policy Memos for the Severance Tax Relief Program (STRP)Site Specific Trust Account FormSite Specific Trust Account ReassessmentEnhanced Recovery Annual Data SheetEnhanced Recovery QuestionnaireSite Clearance VerificationE & P Waste Containment Structure NotificationExploration & Production Waste Unauthorized Discharge/Disposal NotificationOilfield Waste DispositionInactive Well ReportApparent DeviationPotential ReportClass-I Injection Well ApplicationClass - II Injection Well ApplicationClass-II EOR ApplicationClass-II Hydrocarbon Storage Well ApplicationClass-II Commercial Injection Well ApplicationClass-II Commercial Slurry Fracture Injection Well ApplicationClass III Brine Extraction Well ApplicationClass-II Well Integrity AffidavitClass-I Well Integrity AffidavitAnnular Saltwater Disposal Well ApplicationAnnual Disposal/Injection Well Monitoring ReportMechanical Integrity Noncommercial Class II Daily Monitor LogCommunity Saltwater Disposal System Initial NotificationApplication for Annular Disposal of Reserve Pit FluidsInjection Well Work PermitCom. Facility Monthly Report of Waste ReceiptsCommercial Class II Daily Monitor LogRequest to Transport E&P Waste to Commercial Facilities or Transfer StationsClass I Quarterly ReportClass V Well ApplicationWaste Refusal NotificationExploration and Production Waste Shipping Control Ticket

Authorization for After Hours Disposal of NOWWork permit to Plug & Abandon a Well utilized for NORM disposalApplication to Change Disposal/Injection ZoneClass III Quarterly Report (Form QR-3)Class III Daily Pressure Monitor Log (Form MIT-3)Injection Pressure & Rate Monitoring LogClass V Well History and Work Resume ReportE&P Waste Disposal in a Salt CavernRadioactive Tracer Guidelines and Procedures for Annular Disposal of Pit FluidsRadioactive Tracer Guidelines and Procedures for Annular Saltwater Disposal WellsRadioactive Tracer Guidelines and Procedures for Disposal Wells Completed with Tubingand PackerRadioactive Tracer Guidelines and Procedures for Packerless Disposal WellsTime Drive SupplementRadioactive Tracer Log SheetOrganizational ReportPlug and Abandon ReportWell History and Work Resume ReportAffidavit of Test of Casing in WellPublic Notice Requirements for Applications for Solution-Mined Salt Caverns,Hydrocarbon Storage in a Solution-Mined Salt Cavern, and Associated Saltwater DisposalWellsEstimated Economic Impact StatementPipelinesFailure Investigation ReportNotice of ConstructionOperator Qualification Inspection FormOperator Qualification ProtocolsOQ Protocol 9 Field Inspection FormPipe Data and Operating Stresses FormAnnual Report FormAnnual Report Form InstructionsIncident Report FormIncident Report Form InstructionsOQ Guide for Small Distribution SystemsAnnual Report FormAnnual Report InstructionsIncident Report FormIncident Report InstructionsAccident Report FormAccident Report Form InstructionsAnnual Report Form (federal form)Annual Report Form Instructions (federal form)Annual Report Form (state form)Integrity Management Inspection Form (small operators)PLS-OR-1 Organization ReportApplication for Abandonment of FacilitiesApplication for Abandonment of Services

Application for Approval to Interconnect PipelinesBrief of Contract for Intrastate Natural GasExpedited Notice - Contract for Intrastate Natural GasApplication for Construction, Acquisition or Replacement of FacilitiesLouisiana Department of Environmental QualityLouisiana Tax CommissionSeverance Tax Policy DocumentsBureau of Land ManagementForms and Orders for Onshore Oil and Gas Operations on Federal LandsOnshore Oil and Gas Geophysical Exploration Surface Management RequirementsIssuance of LeasesLeasing Under Special ActsLeasing TermsEnvironmental Protection Agency (EPA)Exemption of Oil and Gas Exploration and Production Wastes from Federal Hazardous WasteRegulations (2002)Emergency Management – Oil SpillsProfile of the Oil and Gas Extraction IndustryImpaired Waters and Total Maximum Daily Loads“Waters of the United States” under the CWAWetlandsDepartment of EnergyFederal Policy and Guidance DocumentsFish and Wildlife ServiceDigest of the Federal Water Pollution Control Act (Clean Water Act)Endangered Species ProgramListed SpeciesPermitsOther ResourcesClean Water Act Jurisdictional Handbook (Environmental Law Institute, 2007)Oil and Gas LeasesLouisiana Oil & Gas AssociationLouisiana Mid-Continent Oil and Gas AssociationLouisiana Severance Tax Overview