SB 379

2026 Regular Session  ENROLLED
  ACT No. 762
 SENATE BILL NO. 379
 BY SENATOR HENSGENS
1AN ACT
2 To amend and reenact R.S. 30:3(7), 4(C)(14), (D)(1)(a) and (5), (G), and (I)(2), 5(C)(1), the
3introductory paragraph of (C)(2), and (6), and (D)(1), 5.1(A)(1) and (B)(1), 6.1(A)
4and (C), 12(A)(2), 21.1(A)(3) and (D)(5), 23(D)(2), 26, 29(A) and (I)(4), 73(1),
574(A)(3) and (B), 98.3(B), 101.2(A), 101.5(A), 127(A), 136.3(B)(1) and (C), 153(A),
6the introductory paragraph of 548, 917(F), 1110(A)(2) and (C)(1)(f) and (g), R.S.
736:356.1(D) and 358(B), (E)(2), and (G), and R.S. 49:214.35(B), (E), and (F) and to
8enact R.S. 30:12(A)(3), 84(A)(9) and (10), and 2050.22(C) and R.S. 49:214.35(G)
9and 978.1(A)(3), and to repeal R.S. 30:4(O)(3), 85, and 101.6, relative to the
10Department of Conservation and Energy; to provide for technical corrections to the
11structure and organization of the department; to provide for powers and duties of the
12secretary of the Department of Conservation and Energy; to provide for the office
13of state resources; to provide for leasing authority; to provide for the Mineral and
14Energy Operation Fund; to provide for instructions to the Louisiana Law Institute;
15to provide for definitions; to provide for judicial review of administrative decisions;
16to provide for investment of funds; to provide for an effective date; and to provide
17for related matters.
18 Be it enacted by the Legislature of Louisiana:
19Section 1. R.S. 30:3(7), 4(C)(14), (D)(1)(a) and (5), (G), and (I)(2), 5(C)(1), the
20 introductory paragraph of (C)(2), and (6), and (D)(1), 5.1(A)(1) and (B)(1), 6.1(A) and
21 (C),12(A)(2), 21.1(A)(3) and (D)(5), 23(D)(2), 26, 29(A) and (I)(4), 73(1), 74(A)(3) and (B),
22 98.3(B), 101.2(A), 101.5(A), 127(A), 136.3(B)(1) and (C), 153(A), the introductory
23 paragraph of 548, 917(F), 1110(A)(2) and (C)(1)(f) and (g) are hereby amended and
24 reenacted and R.S. 30:12(A)(3), 84(A)(9) and (10), and 2050.22(C) are hereby enacted to
25 read as follows:
26§3. Definitions
27Unless the context otherwise requires, the words defined in this Section have
  Page 1 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1the following meaning when found in this Subtitle:
2*       *       *
3(7) "Gas" means all natural gas, including casinghead gas, and all other
4hydrocarbons not defined as oil in Paragraph (7) (12) of this Section.
5*       *       *
6§4. Jurisdiction, duties, and powers of the secretary; rules and regulations
7*       *       *
8C. The secretary has authority to make, after notice and hearings as provided
9in this Chapter, any reasonable rules, regulations, and orders that are necessary from
10time to time in the proper administration and enforcement of this Chapter, including
11rules, regulations, or orders for the following purposes:
12*       *       *
13(14) To require interested persons to place uniform meters of a type approved
14by the secretary wherever the secretary designates on all pipelines, gathering
15systems, barge terminals, loading racks, refineries, or other places necessary or
16proper to prevent waste and the transportation of illegally produced oil or gas. These
17meters shall be under the supervision and control of the department of conservation.
18It shall be a violation of this Chapter, subject to the penalties provided in R.S. 30:18,
19for any person to refuse to attach or install a meter when ordered to do so by the
20secretary, or in any way to tamper with the meters so as to produce a false or
21inaccurate reading, or to have any device through which the oil or gas can be passed
22around the meter, unless expressly authorized by written permit of the secretary.
23*       *       *
24D. The secretary may make, after notice and public hearing as provided in
25this Chapter, any reasonable rules, regulations, and orders that are necessary:
26(1) To require that all pipelines, all wells, and all associated structures,
27including any fittings, tie-overs, appliances, and equipment, which are constructed
28on state water bottoms pursuant to the grant of a right-of-way by the secretary of the
29Department of Conservation and Energy or the issuance of a lease by the State
30Mineral and Energy Board shall conform to the following provisions:
  Page 2 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1(a) The owner or operator of a pipeline constructed on a right-of-way granted
2on state water bottoms shall be responsible for burying the line to a depth consistent
3with regulations promulgated by the office of conservation department and for
4maintaining it at said depth to the extent feasible and practical, as determined by the
5secretary, taking into account the changes wrought by natural forces.
6*       *       *
7(5) To provide that the office of conservation department shall conduct such
8inspections as the secretary may deem necessary or appropriate in carrying out the
9provisions of this Subsection.
10*       *       *
11G. The Department of Conservation and Energy, through the secretary, shall
12implement the provisions of Subsections D, E, and F of this Section as to interstate
13pipelines insofar as those requirements may be consistent with the regulations for
14interstate pipelines adopted by the United States Department of Transportation. In
15such event, the office department shall further implement the provisions of
16Subsections D, E, and F of this Section insofar as those requirements may be
17consistent with the regulations for interstate pipelines adopted by the United States
18Department of Energy.
19*       *       *
20I. The secretary shall make, after notice and public hearing as provided in this
21Chapter, any reasonable rules, regulations, and orders that are necessary to control
22the offsite disposal at commercial facilities of drilling mud, saltwater and other
23related nonhazardous wastes generated by the drilling and production of oil and gas
24wells. Such regulations shall contain provisions identifying the waste materials to be
25regulated. Such regulations shall at a minimum require:
26*       *       *
27(2) At least thirty days prior to filing such application with the office
28department, the applicant shall publish a notice of intent to file the application,
29which notice shall contain sufficient information to identify the applicant, the
30proposed site at which disposal operations will occur, the nature and content of the
  Page 3 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1waste streams to be disposed of, and the method of disposal to be used. Such notice
2shall be published on three separate days in the official journal of the parish in which
3the proposed facility will be located, and in the official journal of the state, not less
4than one quarter of a page in size and printed in boldface type.
5*       *       *
6§5. Permission to convert gas into carbon black; recycling gas; unit operations
7*       *       *
8C.(1) Without any way modifying the authority granted to the secretary in
9R.S. 30:9(B) to establish a drilling unit or units for a pool and in addition to the
10authority conferred in Subsection B of this Section:
11(a) The secretary of the office of conservation upon the application of any
12interested party, also is authorized and empowered to enter an order requiring the
13unit operation of any pool or a combination of two pools in the same field,
14productive of oil or gas, or both, in connection with the institution and operation of
15systems of pressure maintenance by the injection of gas, water, or any other
16extraneous substance, or in connection with any program of secondary or tertiary
17recovery; and
18(b) The secretary of the office of conservation is further authorized and
19empowered to require the unit operation of a single pool in any situation where the
20ultimate recovery can be increased and waste and the drilling of unnecessary wells
21can be prevented by such a unit operation.
22(2) In connection with such an order of unit operation, the secretary of the
23office of conservation shall have the right to unitize, pool, and consolidate all
24separately owned tracts and other property ownerships. Any order for such a unit
25operation shall be issued only after notice and hearing and shall be based on all of
26the following findings:
27*       *       *
28(6) No order of the secretary entered pursuant hereto shall have the effect of
29enlarging, displacing, varying, altering, or in anywise whatsoever modifying or
30changing contracts in existence on the effective date of this Act August 15, 1984,
  Page 4 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1concerning the unitization of any pool (reservoir) or pools (reservoirs) or field (as
2defined in the contract) for the production of oil, gas, brine, or any combination
3thereof.
4D.(1) In order to prevent waste and increase the ultimate recovery of oil or
5gas, or both, the secretary of the office of conservation, upon the application of any
6interested owner, and only after notice and a public hearing, is authorized to approve
7a cyclic injection project for the operation of a well by the method of enhanced
8recovery known as cyclic injection, without the formation of a unit under Subsection
9C of this Section or under any other provisions of this Chapter. No operator shall
10utilize cyclic injection without first securing the secretary's approval pursuant to this
11Subsection. For the purposes of this Subsection, "cyclic injection" is hereby defined
12as a single-well process in which a production well is injected with a substance for
13the purpose of enhanced recovery. After a shut-in period, the well is returned to
14production. This procedure may be performed repeatedly on one or more wells in a
15reservoir.
16*       *       *
17§5.1. Deep pool order; ultra deep structure units; application; procedure; allocation
18of costs; rules and regulations
19A. The following shall be applicable to deep pool units:
20(1) In order to prevent waste and to avoid the drilling of unnecessary wells,
21and to encourage the development of deep oil and gas pools in Louisiana, the
22secretary of conservation is authorized, as provided in this Subsection, to establish
23a single unit to be served by one or more wells for a deep pool and to adopt a
24development plan for such deep unit.
25*       *       *
26B. The following shall be applicable to ultra deep structure units:
27(1) In order to prevent waste and to avoid the drilling of unnecessary wells,
28and to encourage the development of ultra deep oil and gas structures in Louisiana,
29the secretary of conservation is authorized, as provided in this Subsection, to
30establish a single unit to be served by one or more wells for an ultra deep structure
  Page 5 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1and to adopt a plan of development for such ultra deep structure unit. For purposes
2of this statute Section, a "structure" is defined as a unique geologic feature that
3potentially traps hydrocarbons in one or more pools or zones.
4*       *       *
5§6.1. Declaration of emergency
6A. Notwithstanding any other provision of this Title, upon receipt of evidence
7that there is an incident occurring or threatening to occur imminently at an oilfield
8site or other facility, structure, or pipeline under the department's jurisdiction
9pursuant to R.S. 30:1 et seq., which is of such magnitude as to require immediate
10action to prevent substantial or irreparable damage to the environment or a serious
11threat to life or safety based on recognized criteria, standards or industry practices,
12the department secretary may declare in writing that an emergency exists.
13*       *       *
14C. When an emergency situation is declared, the department secretary is
15authorized to undertake the containment and abatement of the pollution source and
16pollutants and may retain personnel or contract for these purposes with persons who
17shall operate under his direction. All contracts let by the department secretary to
18respond to a declared emergency shall be exempt from the provisions of Chapter 10
19of Title 38 of the Louisiana Revised Statutes of 1950 and the Louisiana Procurement
20Code. However, the department secretary may employ an informal bidding
21procedure by which bids are solicited from at least three bidders and may order the
22operator of record or owner to undertake the containment, abatement, or cleanup of
23such pollution source and pollutants. Failure to comply with his order shall be a
24violation of this Title and shall be punishable as provided in this Title. The
25department shall submit an annual report to the House Committee on Natural
26Resources and Environment and Senate Committee on Natural Resources listing the
27number and type of emergencies declared within the previous year.
28*       *       *
29§12. Court review and injunction; venue; procedure; burden of proof
30A.  *       *       *
  Page 6 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1(2) Suit for review shall be instituted in the district court of the parish in
2which the principal office of the secretary is located and must be brought within sixty
3days of the administrative action that is the subject of the suit. In cases of judicial
4review of adjudication proceedings, the sixty days sixty-day period shall begin to
5run after mailing of notice of the final decision or order, or if a rehearing is requested
6within sixty days after the decision thereon. as follows:
7(a) If a rehearing is not requested, the sixty-day period shall begin to run
8after the final decision or order is posted on the official website for the
9department.
10(b) If a rehearing is requested, the sixty-day period shall begin to run
11after the decision regarding the rehearing is posted on the official website for
12the department.
13(3) A third person having an interest in the matter subject to review has
14the right to intervene as a party in an action under this Section when the
15intervention is unlikely to unduly broaden the issues or to unduly impede the
16resolution of the action. A "third person having an interest" with the right to
17intervene under this Section shall include but not be limited to any applicant,
18permittee, or party to the underlying administrative process, action, or
19proceeding that resulted in the issuance of the rule, regulation, order, or permit
20that is the subject of the suit for review. For avoidance of doubt, the provisions
21of this Paragraph shall be given prospective and retroactive application.
22*       *       *
23§21.1. Natural Resources Financial Security Fund
24A.  *       *       *
25(3) The funds received shall be placed in the Natural Resources Financial
26Security Fund in the custody of the state treasurer to be used only in accordance with
27this Part and shall not be placed in the general fund. The funds provided to the trust
28authority pursuant to this Section shall at all times be and remain the property of the
29trust authority. The monies in this fund shall be used solely as provided in this
30Section and only in the amount appropriated by the legislature. All unexpended and
  Page 7 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1unencumbered monies remaining in this fund at the end of the fiscal year shall
2remain in the fund. Except for the pledge of the revenues provided in R.S. 30:83.1,
3it is the intent of the legislature that this fund and its increments shall remain intact
4and inviolate. Monies in the fund shall be invested by the state treasurer in the same
5manner as monies in the state general fund. At the request of the Natural Resources
6Trust Authority, the state treasurer may invest monies in the fund, or any portion
7thereof, in accordance with the provisions of R.S. 33:2955, including the use of the
8Louisiana Asset Management Pool, a separate portfolio and any interest earned on
9such investments shall be credited to the fund.
10*       *       *
11D. Monies in the fund shall be used solely for the following purposes:
12*       *       *
13(5) Upon request by the Natural Resources Trust Authority and with the
14approval of the Mineral and Energy Board, the state treasurer is hereby authorized
15and directed to transfer from the Natural Resources Financial Security Fund to the
16Mineral and Energy Operations Operation Fund such amounts as are approved by
17the board and deemed necessary to implement any purpose for which monies in the
18Mineral and Operations Energy Operation Fund may be used, subject to the
19availability of funds and in accordance with applicable law.
20*       *       *
21§23. Underground storage of liquid or gaseous hydrocarbons or both, carbon
22dioxide, hydrogen, nitrogen, ammonia, compressed air, or noble
23gases not otherwise prohibited by law
24*       *       *
25D.(1)  *       *       *
26(2) Upon presentation of the findings and determination by the secretary to
27the committees on natural resources of the Senate and House of Representatives and
28approval by said committees of any such projects, the secretary shall authorize the
29secretary to initiate such procedures as the secretary deems necessary within the
30scope of his authority under Chapter 7 of this Title and the constraints of this Section
  Page 8 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1to accomplish the purposes hereof.
2*       *       *
3§26. Applications and notification of completeness
4A. Notwithstanding any other law to the contrary, the secretary of the
5Department of Conservation and Energy shall, after notification by the department
6to the applicant that the application is complete, grant or deny all applications for all
7permits, licenses, registrations, or compliance in this or any other Title within sixty
8days. The notification of completeness shall be issued within fourteen days,
9exclusive of holidays, by the department. If the application is not complete the
10department shall notify the applicant in writing of the deficiencies which cause the
11application not to be complete. If the secretary or the secretary does not grant the
12application, the secretary or the secretary shall provide written reasons for his
13decision to deny, and copies of the decision shall be provided to all parties. The
14secretary and the secretary may delegate the power to grant permits, licenses,
15registrations, variances, or compliance schedules to an assistant.
16B. If the secretary does not grant or deny the application within the time
17period provided for in this Section, the applicant may file a rule as provided for in
18R.S. 49:978.
19*       *       *
20§29. Remediation of oilfield sites and exploration and production sites
21A. The legislature hereby finds and declares that Article IX, Section 1 of the
22Constitution of Louisiana mandates that the natural resources and the environment
23of the state, including ground water, are to be protected, conserved, and replenished
24insofar as possible and consistent with the health, safety, and welfare of the people
25and further mandates that the legislature enact laws to implement this policy. It is the
26duty of the legislature to set forth procedures to ensure that damage to the
27environment is evaluated and if necessary remediated to a standard that protects the
28public interest. To this end, this Section provides the procedure for judicial
29resolution of claims for environmental damage to property arising from activities
30subject to the jurisdiction of the Department of Conservation and Energy, office of
  Page 9 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1conservation. The provisions of this Section shall be implemented upon receipt of
2timely notice as required by Paragraph (B)(1) of this Section. The provisions of this
3Section shall not be construed to impede or limit provisions under private contracts
4imposing remediation obligations in excess of the requirements of the department or
5limit the right of a party to a private contract to enforce any contract provision in a
6court of proper jurisdiction.
7*     *       *
8I. For the purposes of this Section, the following terms shall have the
9following meanings:
10*     *       *
11(4) "Most feasible plan" means the most reasonable plan which addresses
12environmental damage in conformity with the requirements of Article IX, Section
131 of the Constitution of Louisiana to protect the environment, public health, safety
14and welfare, and is in compliance with the specific relevant and applicable standards
15and regulations promulgated by a state agency in accordance with the Administrative
16Procedure Act in effect at the time the most feasible plan to evaluate or if necessary
17remediate environmental damage resulting from oilfield or exploration and
18production operations or waste is approved or structured.
19*     *       *
20§73. Definitions
21As used in this Part, the following terms shall have the meaning ascribed to
22them in this Section, unless the context or use clearly indicates otherwise:
23(1) "Commissioner" means the secretary of the Department of Conservation
24and Energy or his authorized representatives from the injection and mining division
25of that office.
26*     *       *
27§74. Abandoned oilfield waste sites; notification; clean up
28A.(1)  *     *       *
29(3)(a) Prior to any sheriff's sale or public auction of any property related to
30the operation of oil and gas wells, the person seeking such sale shall notify the
  Page 10 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1secretary of such sale not less than thirty days prior to such sale. Such sale shall not
2occur unless the secretary consents thereto in writing, and the sale shall include the
3wellbore unless specifically excluded from the sale. In the event the wellbore is not
4specifically excluded from the sale as provided herein, the sheriff or person seeking
5such a sale shall cause to be included in the notice of the sale and in the sale
6instrument a statement or notice that the purchaser shall be required to file the
7appropriate documents with the department to become operator of record of the
8subject well pursuant to the provisions of R.S. 30:204 30:28.
9(b) The secretary may, if he deems it appropriate to insure ensure the proper
10plugging and abandonment of the wells and closure of the associated oilfield pits,
11retain a first lien and privilege on such property, which lien and privilege shall
12follow such property into the hands of third persons whether such persons are in
13good or bad faith. The secretary shall record a notice of such lien with the clerk of
14court in the parish in which the property is located and in which the sale is to occur.
15The lien and privilege may be enforced against any person in possession of the
16property in the same manner as a lien provided under the Louisiana Oil Well Lien
17Act pursuant to R.S. 9:4861 et seq.
18*       *       *
19B. Any failure or refusal by an owner or operator or responsible person to
20undertake such action as ordered by the secretary to take samples, monitor, contain,
21or clean up an abandoned oilfield waste site shall be a violation of this Chapter, and
22the commission department, in order to prevent damage to public health, the
23environment, or an oil or gas strata, may immediately declare the site abandoned,
24notwithstanding the provisions of R.S. 30:75, and commence appropriate
25proceedings under this Chapter, including the recovery of penalties, revocation of
26any permit, closure of the site, or any combination thereof.
27*       *       *
28§84. Powers of the secretary
29A. The powers of the secretary shall include without limitation the power to
30do the following:
  Page 11 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1*        *       *
2§85(A)(3)(9) The secretary shall perform all regulatory functions imposed
3by this Part.
4§85(A)(4)(10) Modify funding requirements of site-specific trust accounts
5either upon recommendation of the trust authority, the secretary, or upon his own
6determination, based upon changes in operation, site conditions, or trust account
7status.
8*        *       *
9§98.3. Powers of the Department of Conservation and Energy
10*        *       *
11B. If the office department finds that compliance with all the requirements
12of this Part would result in undue hardship, an exemption from any one or more of
13such requirements may be granted by the office to the extent necessary to ameliorate
14such undue hardship and to the extent such exemption can be granted without
15impairing the intent and purpose of this Part.
16*        *       *
17§101.2. Policy and purpose
18A. The legislature finds and declares that it is in the public interest and within
19the police power of this state to establish a fishermen's gear compensation and
20underwater obstruction removal program and a fishermen's gear compensation and
21underwater obstruction removal dedicated fund account to provide for the proper and
22timely identification, inventory, and removal of underwater obstructions that are a
23hazard to navigation and commercial fishing in the state, and to compensate
24commercial fishermen for damage to their fishing gear from the underwater
25obstructions. The program and fund account shall be administered, for purposes of
26fishermen's gear compensation, by the secretary of the office of coastal management
27and, for purposes of underwater obstruction, by the secretary of the Department of
28Conservation and Energy.
29*        *       *
30§101.5. Powers of the secretary
  Page 12 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1A. The powers of the secretary shall include without limitation the power to
2do the following:
3(1) Administer general oversight of expenditures or commitments to make
4expenditures from the dedicated fund account for the identification, inventory, and
5removal of underwater obstructions as he deems necessary and appropriate.
6(2) Maintain all supervisory and fiscal responsibility imposed under the
7provisions of this Part.
8(3) Perform such other specific functions as may be enumerated or
9envisioned by the provisions of this Part.
10§101.6(A)(1)(4) Negotiate and execute contracts, upon such terms as he may
11agree upon for underwater obstruction identification, inventory, and removal, and
12other services necessary to meet the purpose of this Part.
13§101.6(A)(2)(5) Publish an annual list of underwater obstruction sites, to
14include an inventory of the type, size and depth of the obstruction, and any other
15relevant information which would aid navigation and commercial fishing in the
16vicinity of the obstruction.
17§101.6(A)(3)(6) Prepare, evaluate, and approve an annual priority list for
18underwater obstruction removal.
19§101.6(A)(4)(7) Prepare, evaluate, and approve a list of contractors
20acceptable to conduct obstruction removal.
21§101.6(A)(5)(8) Administer and manage the Fishermen's Gear Compensation
22and Underwater Obstruction Removal Program for identification, inventory, and
23removal of underwater obstructions in the navigable coastal waters of the state.
24§101.6(A)(6)(9) Administer and manage the Fishermen's Gear Compensation
25and Underwater Obstruction Removal Dedicated Fund Account.
26§101.6(A)(8)(10) Maintain a file on the location of known underwater
27obstructions.
28§101.6(A)(9)(11) Administer the payment of appropriate compensation for
29commercial fishermen whose fishing gear is damaged by underwater obstructions in
30the Louisiana territorial waters that overlie state-owned waterbottoms that are
  Page 13 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1contained within the coastal zone boundaries as defined in R.S. 49:214.24.
2*       *       *
3§127. Opening bids; minimum royalties; terms of lease; deposit; security
4A.(1) Only those bidders who are registered prospective leaseholders with the
5office of mineral state resources, or those who register within two business days
6after the lease sale at which the bid is opened and prior to the conditional issuance
7of the lease, shall be allowed to obtain a mineral lease from the state of Louisiana.
8Any bidder who is not properly registered with the office of mineral state resources
9at the time bids are opened, but whose bid is otherwise acceptable, shall have until
10the end of the second business day following the date on which the bid was
11conditionally accepted by the State Mineral and Energy Board to become properly
12registered with the office of mineral state resources. If the bidder remains
13unregistered by the close of business of the second business day following the day
14the mineral lease sale at which the bid was conditionally accepted, the conditionally
15accepted bid shall be deemed rejected. The provisions of this Subsection shall also
16apply in cases where there is no more than one bid made by unregistered prospective
17leaseholders. Bids may be for the whole or any particularly described portion of land
18advertised. At the time and place mentioned in the advertisement for the
19consideration of bids, they shall be publicly opened. Bids received by the mineral
20board shall be opened at any state-owned buildings situated in the city in which the
21capitol is located. The mineral board has authority to accept the bid most
22advantageous to the state and may lease upon whatever terms it considers proper.
23However, the minimum royalties to be stipulated in any mineral lease, other than a
24mineral lease executed by or on behalf of a school board, shall be:
25(1)(a) One-eighth of all oil and gas produced and saved.
26(2)(b) One-eighth of the value per long ton of sulphur produced and saved
27which shall yield not less than two dollars per long ton.
28(3)(c) One-eighth of the value per ton for all potash produced and saved,
29which shall yield not less than ten cents per ton.
30(4)(d) Five percent of all lignite produced and saved.
  Page 14 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1(5)(e) Five percent of the value per ton on a dry salt basis for all salt produced
2and saved, which shall yield not less than ten cents per ton.
3(6)(f) One-eighth of all other minerals produced and saved.
4(2) Notwithstanding provisions of Paragraph (1) of this Subsection to the
5contrary, the State Mineral and Energy Board may authorize minimum
6royalties of less than one-eighth but greater than one-sixteenth upon a finding
7that market conditions, commodity prices, or other economic factors warrant
8royalty reduction.
9*        *       *
10§136.3. Mineral and Energy Operation Fund
11*        *       *
12B. Out of the funds remaining in the Bond Security and Redemption Fund,
13after a sufficient amount is allocated from that fund to pay all obligations secured by
14the full faith and credit of the state which become due and payable within any fiscal
15year as required by Article VII, Section 9(B) of the Constitution of Louisiana, the
16treasurer in each fiscal year shall pay into the fund revenues and amounts from the
17following sources:
18(1) The amount received by the state through the office of state resources
19from royalty field audit collections and nonjudicial settlements, including but not
20limited to settlements of disputes of royalty audit findings, title disputes, and acreage
21conflicts, and court-awarded judgments and settlements.
22*        *       *
23C. Monies in the fund shall be invested by the state treasurer in the same
24manner as monies in the state general fund. At the request of the Natural Resources
25Trust Authority, the state treasurer may invest monies in the fund, or any portion
26thereof, in accordance with the provisions of R.S. 33:2955, including the use of the
27Louisiana Asset Management Pool. Interest a separate portfolio and any interest
28earned on investment of monies in the fund shall be credited to the fund.
29*        *       *
30§153. Agencies may lease or administer through State Mineral and Energy Board
  Page 15 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1A. Any agency may by resolution direct the State Mineral and Energy Board
2to lease or otherwise contract for the exploration, development, or use of its land for
3the development and production of minerals, oil, gas, or alternative energy
4sources and for the purposes set forth in R.S. 30:148.2. The bonus money, if any,
5received pursuant to any such contract shall be transmitted by the State Mineral and
6Energy Board to the agency. After the execution of the original contract, all rights
7and authority in connection therewith shall be vested in the agency to the same extent
8as if the agency had itself administered and executed the contract.
9*       *       *
10§548. Exercise of powers
11The secretary of conservation shall exercise his powers so as to provide,
12under the priorities hereinafter set forth, to the maximum extent practicable, for:
13*       *       *
14§917. Inspections and monitoring
15*       *       *
16F. After the state has assumed exclusive jurisdiction of surface coal mining
17operations as provided in Section 503 of P.L. 95-87, and as long as the state retains
18such jurisdiction, then no employee of the department performing any function or
19duty under this Chapter shall have a direct or indirect financial interest in any surface
20coal mining operation. Whoever knowingly violates the provisions of this Subsection
21shall, upon conviction, be punished by a fine of not more than two-thousand five
22hundred dollars, or by imprisonment of not more than one year, or by both. The
23secretary shall by regulation establish methods by which the provisions of this
24Subsection will be monitored and enforced by the secretary, including appropriate
25provisions for the filing by such employees in the review of statements and
26supplements thereto concerning any financial interest which may be effected by this
27Subsection. This Subsection shall not be given effect (1) if the Secretary of the
28Interior does not require the inclusion of similar provisions in state laws as a
29condition for approval by the Secretary of the Interior of state programs of regulation
30of surface coal mining and reclamation operations pursuant to Section 503 of P.L.
  Page 16 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
195-87 or (2) if any such requirement of the Secretary of the Interior is declared
2invalid by final decree of a court of competent jurisdiction: Provided, that if similar
3provisions are required by the Secretary of the Interior to be included in state laws,
4the Secretary of Natural Resources and the secretary and the Secretary of the
5Interior may commence and prosecute an action in the appropriate federal court to
6have the regulation requiring inclusion declared invalid.
7*       *       *
8§1110. Carbon Dioxide Geologic Storage Trust Fund
9A.  *       *       *
10(2) After compliance with the requirements of Article VII, Section 9(B) of
11the Constitution of Louisiana relative to the Bond Security and Redemption Fund,
12and after a sufficient amount is allocated from that fund to pay all of the obligations
13secured by the full faith and credit of the state which become due and payable within
14any fiscal year, the treasurer shall pay into the fund, an amount equal to the monies
15received by the state treasury pursuant to this Chapter. The monies in this fund shall
16be used solely as provided in this Section and only in the amount appropriated by the
17legislature. All unexpended and unencumbered monies remaining in this fund at the
18end of the fiscal year shall remain in the fund. The monies in the fund shall be
19invested by the state treasurer in the same manner as monies in the state general fund
20and all returns of such investment shall be deposited to the fund. At the request of
21the Natural Resources Trust Authority, the state treasurer may invest monies in the
22fund, or any portion thereof, in accordance with the provisions of R.S. 33:2955,
23including the use of the Louisiana Asset Management Pool, in a separate portfolio
24and any interest earned on such investments shall be credited to the fund. The funds
25received shall be placed in the special trust fund in the custody of the state treasurer
26to be used only in accordance with this Chapter and shall not be placed in the general
27fund. The funds provided to the secretary pursuant to this Section shall at all times
28be and remain the property of the secretary. The funds shall be used only for the
29purposes set forth in this Chapter and for no other governmental purposes, nor shall
30any branch of government be allowed to borrow any portion of the funds. It is the
  Page 17 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1intent of the legislature that this fund and its increments shall remain intact and
2inviolate.
3*        *      *
4C. The secretary is hereby authorized to levy on each storage facility the
5following fees or costs for the purpose of funding the fund:
6(1) A fee payable to the department, in a form and schedule prescribed by the
7department, for each ton of carbon dioxide injected for storage into that storage
8facility. This fee is to be determined based upon the following formula:
9*        *      *
10(f) Once five million dollars has been contributed to the fund for a storage
11facility, the fee assessments to that storage facility under this Section shall cease
12until such time as funds begin to be expended for that storage facility. The secretary
13of the Department of Conservation and Energy shall certify to the secretary in
14writing the date on which the balance in the fund for a storage facility equals or
15exceeds five million dollars. The fund fees shall not be collected or required to be
16paid on or after the first day of the second month following the certification, except
17that the secretary shall resume collecting the fees on receipt of a certification from
18the secretary of the Department of Conservation and Energy that, based on the
19expenditures or commitments to expend monies, the fund has fallen below four
20million dollars for that storage facility.
21(g) Notwithstanding the total number of storage facilities owned or operated
22by a storage operator, once ten million dollars has been contributed to the fund by
23a storage operator, the fee assessment to that storage operator under this Section shall
24cease until such time as funds begin to be expended for any storage facility owned
25or operated by that storage operator. The secretary of the Department of
26Conservation and Energy shall certify to the secretary in writing the date on which
27the balance in the fund for a storage operator equals or exceeds ten million dollars.
28The fund fees shall not be collected or required to be paid on or after the first day of
29the second month following the certification, except that the secretary shall resume
30collecting the fees upon receipt of a certification from the secretary of the
  Page 18 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1Department of Conservation and Energy that, based on the expenditures or
2commitments to expend monies, the fund has fallen below eight million dollars for
3that storage operator.
4*      *       *
5§2050.22. Judicial review; appeal; stays; intervention
6*      *       *
7C. A third person having an interest in the matter subject to review has
8the right to intervene as a party in an action commenced pursuant to R.S.
930:2050.21 when the intervention is unlikely to unduly broaden the issues or to
10unduly impede the resolution of the action. A "third person having an interest"
11with the right to intervene under this Section shall include but not be limited to
12any applicant, permittee, or party to the underlying administrative process,
13action, or proceeding that resulted in the issuance of a final permit action, final
14enforcement action, or a declaratory ruling that is the subject of the petition for
15review. For avoidance of doubt, the provisions of this Subsection shall be given
16prospective and retroactive application.
17Section 2. R.S. 36:356.1(D), 358(B), (E)(2), and (G) are hereby amended and
18 reenacted to read as follows:
19§356.1. Louisiana Natural Resources Trust Authority; establishment; powers
20*      *       *
21D. The authority may request that the state treasurer invest funds, or any
22portion thereof, under the control of the authority in accordance with the provisions
23of R.S. 33:2955, including the use of the Louisiana Asset Management Pool in a
24separate portfolio and any interest earned on investment of monies in the fund
25shall be credited to the fund.
26*      *       *
27§358. Offices; purposes and functions
28*      *       *
29B. The office of the executive office of the secretary shall be responsible for
30assisting the secretary in the exercise of the functions and duties established in law
  Page 19 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1of the secretary. Among the divisions included within the executive office of the
2secretary shall be the office of the natural resources commission to be headed by the
3deputy secretary and the office of legal services to be headed by an attorney
4designated by the secretary.
5*      *       *
6E. The office of state resources shall:
7*      *       *
8(2) Work in cooperation with the Center for Energy Studies Institute to
9maintain current surface and subsurface geological surveys of the state, or otherwise
10at the discretion of the secretary or his designee; conduct geological mapping;
11prepare geological hazards assessments and resource inventories; and conduct
12process investigations and related studies.
13*      *       *
14G. The office of energy shall organize, plan, supervise, direct, administer,
15execute, and be responsible for the functions and programs relating to the
16deployment and operation of alternative energy infrastructure in this state in a
17manner that results in affordable and reliable energy. The office of energy shall also
18work in cooperation with the Center for Energy Studies Institute to create and carry
19out a central, comprehensive, and unified energy data and information program
20which will collect, evaluate, assemble, analyze, and disseminate data and information
21which is relevant to energy resource reserves, energy production, demand, and
22technology, and related economic and statistical information, or which is relevant to
23the adequacy of energy resources to meet demands in the near and longer term future
24of the state. The office of energy shall work to provide the department and the
25Natural Resources Commission with technical assistance and expertise in matters
26related to energy and natural resources and shall also work to identify policy options
27relative to energy related matters upon request. Finally, the office of energy shall
28coordinate with academic and research institutions who possess specialized expertise
29in areas related to energy and natural resources on behalf of the department.
30*      *       *
  Page 20 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1Section 3. R.S. 49:214.35(B), (E), and (F) are hereby amended and reenacted and
2 R.S. 49:214.35(G) and 978.1(A)(3) are enacted to read as follows:
3§214.35. Reconsiderations, judicial review
4*       *       *
5B. A decision or determination shall be subject to reconsideration by the
6secretary if a petition for reconsideration is filed in writing with the secretary within
7ten days following public notice of a posting of the final coastal use permit or, local
8program approval decision, or determination made under R.S. 49:214.34 on the
9official website for the Department of Conservation and Energy or receipt of
10written notice of a determination made under R.S. 49:214.30(C)(1) or R.S.
1149:214.34. The grounds for reconsideration shall be either that one of the following:
12(1) The decision or determination is clearly contrary to the law or the
13evidence before the secretary;.
14(2) The petitioner has discovered, since the decision or determination,
15evidence important to the issues which he could not, with due diligence, have
16presented to the secretary prior to the decision;.
17(3) There is a showing that issues not previously considered, through no fault
18of the petitioner, ought to be examined in order to properly dispose of the matter; or.
19(4) There exist other good grounds for further consideration of the issues and
20the evidence in the public interest.
21*       *       *
22E. Proceedings for review may be instituted by filing a petition in the district
23court of the parish in which the proposed use is to be situated within thirty days after
24mailing of notice of the final decision by the secretary or, if a reconsideration is
25requested, within thirty days after the decision thereon. the following time periods:
26(1) If a petition for reconsideration is not filed, the proceeding for review
27shall be instituted within thirty days after the final decision by the secretary
28under this Subpart is posted on the official website for the Department of
29Conservation and Energy.
30(2) If a petition for reconsideration is filed, the proceeding for review
  Page 21 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1shall be instituted within thirty days after the decision regarding the
2reconsideration is posted on the official website for the Department of
3Conservation and Energy.
4F. A third person having an interest in the matter subject to review has
5the right to intervene as a party in an action for judicial review under this
6Section when the intervention is unlikely to unduly broaden the issues or to
7unduly impede the resolution of the action. A "third person having an interest"
8with the right to intervene under this Section shall include but not be limited to
9any applicant, permittee, or party to the underlying administrative process,
10action, or proceeding that resulted in the issuance of the rule, regulation,
11permit, decision, or determination that is the subject of the suit for review. For
12avoidance of doubt, the provisions of this Subsection shall be given prospective
13and retroactive application.
14G. Judicial review shall otherwise be pursuant to the Louisiana
15Administrative Procedure Act, provided that all such cases shall be tried with
16preference and priority. Trial de novo shall be held upon request of any party.
17*      *       *
18§978.1. Judicial review of adjudication
19A.  *      *       *
20(3) A third person having an interest in the matter subject to review has
21the right to intervene as a party in an action under this Section when the
22intervention is unlikely to unduly broaden the issues or to unduly impede the
23resolution of the action. A "third person having an interest" with the right to
24intervene under this Section shall include but not be limited to any applicant,
25permittee, or party to the underlying administrative process, action, or
26proceeding that resulted in the issuance of the decision or order that is the
27subject of the suit for review. For avoidance of doubt, the provisions of this
28Paragraph shall be given prospective and retroactive application.
29*      *       *
30Section 4. R.S. 30:4(O)(3), 85, and 101.6 are hereby repealed.
  Page 22 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SB NO. 379  ENROLLED
1Section 5. The Louisiana State Law Institute is hereby directed to change all
2 references to the commissioner of conservation whose duties and powers were transferred
3 to the secretary of the Department of Conservation and Energy pursuant to Act No. 458 of
4 the 2025 Regular Session from "commissioner of conservation" to "secretary of the
5 Department of Conservation and Energy" and "commissioner" to "secretary" throughout the
6 Louisiana Revised Statutes of 1950.
7Section 6. The Louisiana State Law Institute is hereby directed to change all
8 references to the "office of mineral resources" to "office of state resources" throughout the
9 Louisiana Revised Statutes of 1950 except in the provisions of R.S. 30:124.1.
10Section 7. This Act shall become effective upon signature by the governor or, if not
11 signed by the governor, upon expiration of the time for bills to become law without signature
12 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
13 vetoed by the governor and subsequently approved by the legislature, this Act shall become
14 effective on the day following such approval.
  PRESIDENT OF THE SENATE
  SPEAKER OF THE HOUSE OF REPRESENTATIVES
  GOVERNOR OF THE STATE OF LOUISIANA
 APPROVED:
  Page 23 of 23
  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.