LouisianaSB 2442025 Regular SessionSenateWALLET

NATURAL RESOURCES DEPT: Provides for the Dept. of Energy and Natural Resources. (8/1/25) (EN SEE FISC NOTE GF EX)

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Bill Overview

Analyzed Economic Effects

39 provisions identified: 16 benefits, 5 costs, 18 mixed.

Oyster leaseholders gain damage recovery rights

The Oyster Lease Acquisition and Compensation Program must provide a way for oyster leaseholders to recover actual damages. The damage must affect their oyster beds or grounds and result from oil and gas activities. The provision states no payment formula or cap.

Landowner damages and legal costs change

Beginning August 1, 2025, meeting regulatory standards satisfies cleanup responsibility unless an express contract requires original-condition restoration or another standard. Covered lawsuits allow economic-loss damages proven more likely than not; other damages outside cleanup are capped at three times the property’s undamaged market value. Parties whose evidence supports the judgment can recover related expert, investigation, testing, plan-development, and attorney costs from responsible parties. Responsible parties owe no further attorney fees or costs after the court adopts the cleanup plan. A defendant found not responsible can recover reasonable attorney fees and specified costs from the plaintiff.

Farms avoid water-management rules and fees

Agricultural and horticultural water uses are exempt from oversight, requirements, and fees under this water-management law. Covered uses include irrigation, livestock watering, and other customary farm or horticultural uses. Participation in programs under this law is voluntary and free for these users.

Carbon storage applications get online notices

Beginning August 1, 2025, the Department must post notice of each Class VI permit application on its website. It must also post notices for Class V applications related to geologic carbon storage projects. The notices give the public access to information about these applications.

Department disputes gain voluntary resolution option

Parties in disputes within the Department’s authority can request a voluntary resolution process. All parties must submit written requests and sign an agreement; the secretary can deny the request. The secretary must appoint a hearing master agreed to by the parties. The hearing master can award legally allowed remedies, including money damages, orders to stop conduct, or orders to fulfill obligations. A party can request review within 30 days of the decision.

Landowners get carbon storage permit notices

Beginning August 1, 2025, carbon storage applications are complete only after a reasonable search and good-faith certified-mail notice effort. Notices go to covered surface owners, mineral-rights holders, lessees, and oil-and-gas operators. Class VI storage notices cover the surface and underground extent of the application’s review area. Related Class V test-well notices cover locations within 500 feet of the proposed well. Applicants can use parish assessor rolls to identify current surface owners.

State water planning protects public supplies

The Department of Conservation and Energy can create a statewide program for water protection, conservation, replenishment, management, and data collection. Planning must consider users’ needs, science, economics, and long-term water and ecological health. Department rules and permit decisions must not harm the quality or availability of water needed by public water systems. The Department alone enforces this water-management law, but it can coordinate with federal, state, and local agencies.

Carbon pipelines gain an approval pathway

A carbon dioxide transporter qualifies as a common carrier when its pipeline is reasonably likely to serve the public by carrying carbon dioxide for storage for at least one third party. The secretary can grant a certificate to build, maintain, and operate a carbon dioxide pipeline after a public hearing. The secretary must find that the project serves the present or future public interest. Applicants must be current or intended common carriers, or need compulsory land acquisition solely because absentee owners cannot be found after reasonable efforts.

Carbon storage fund can earn interest

At the Natural Resources Trust Authority’s request, the treasurer can invest some or all of the Carbon Dioxide Geologic Storage Trust Fund. Investments follow state investment rules and can include the Louisiana Asset Management Pool. Earned interest goes back into the fund.

Louisiana research institutions gain certification pathway

Beginning August 1, 2025, the secretary must create a certification process for Louisiana academic and research institutions. Institutions must have specialized expertise related to the Department’s mission. The Department can make agreements with certified institutions about ownership of intellectual property developed through or connected to the program. The law specifies no funding amount.

Oilfield cleanup gains credits and settlements

Beginning August 1, 2025, the secretary can allow transferable plugging credits instead of bonds for orphaned sites or sites inactive at least five years. Rules must define how credits are earned, and the secretary must approve earning, using, banking, or selling them. Before restoring an orphaned site, the secretary can accept agreed contributions from former operators or working-interest holders. After final agreed payment, a party meets its obligations under this restoration law, and the secretary cannot pursue costs, penalties, or other relief from it. Agreements can also resolve specified regulatory or contract duties; parties that do not sign or pay remain liable for cost recovery.

Resource settlements fund state mineral operations

Beginning August 1, 2025, settlement and court-award receipts through the office of state resources go into the Mineral and Energy Operation Fund. This replaces a specified $1.6 million amount and an extra $900,000 allocation for fiscal years 2021–2022 through 2024–2025. The law does not state the total receipts available under the new rule.

Restoration contractors gain more bidding options

Beginning August 1, 2025, the secretary can use any competitive process authorized by Title 38 or Title 39 for restoration-fund contracts. Contractors selected through construction-management-at-risk do not need to appear on a preapproved site-assessment and restoration list. That exemption applies to projects using Oilfield Site Restoration Fund money, federal money, or both.

State expands energy leasing and contracts

Beginning August 1, 2025, state land and water-bottom agreements can cover storage and other energy uses alongside mineral production. The office of state resources administers those agreements and state payments, while the State Mineral and Energy Board also administers state water interests. Agencies can direct the board by resolution to arrange exploration, development, or land-use contracts. Board management of agency contracts requires board consent and a cooperative agreement. The board can also enter state-resource operating agreements and adopt rules to carry them out.

Terminal operators gain pipeline rule exclusions

Covered petroleum pipeline property includes property necessary or integral to a common carrier’s transportation business. Property belonging to an entity that is not otherwise a common carrier is excluded. Listed equipment designed and used only for terminal services is also excluded from the specified pipeline definition and Public Service Commission rules. Examples include terminal pipes, tanks, meters, and truck-unloading facilities.

Well drillers get new licensing administrator

The Louisiana State Licensing Board for Contractors takes over covered water-well and other drilling license applications and renewals. It also approves continuing education. Existing licenses stay valid until expiration unless revoked.

Innovative energy projects gain financing options

Beginning August 1, 2025, the Natural Resources Trust Authority can issue bonds or provide financing for qualifying energy projects. Eligible facilities demonstrate advances in energy-resource methods, procedures, or prototype uses. The Authority can also act as a State Energy Financing Institution and support programs available through the U.S. Department of Energy Loan Programs Office. The law sets no specific financing amount.

New well owners lose information appeals

Beginning August 1, 2025, new-well owners lose the commission appeal for requests seeking more registration information. They no longer have that route to a decision within 45 days on whether a request is reasonable. The secretary keeps an additional 30 days to review the registration after receiving the requested information.

Public records gain another access exception

The law adds R.S. 30:124.1 to Louisiana’s recognized public-records exceptions and limits. Records covered by that provision can be withheld or subject to restricted access. The supplied text does not identify which records it covers.

Cleanup fund loses required federal transfer

Beginning August 1, 2025, the state no longer must transfer $30 million from its first qualifying federal funds into the Oilfield Site Restoration Fund. The former rule covered federal money that allowed oilfield restoration or orphan-well plugging. Federal money can still support restoration, but this law no longer reserves that $30 million transfer.

Producers face revised oilfield cleanup fees

Beginning August 1, 2025, restoration fees are due when Louisiana crude oil or condensate is first sold or otherwise disposed of. Oil rates for the next 12 months use the prior 12 months’ average NYMEX oil price as of June 30. Gas rates use Henry Hub monthly averages for January through December available as of April 1. Wells receiving reduced production rates under R.S. 47:633(7) are excluded from full-rate production. The supplied provisions do not state fee amounts or a complete rate formula.

Well operators face possible production reporting

Beginning August 1, 2025, the secretary can require production reports for individual oil, gas, and condensate wells. Operators must submit those reports if the secretary adopts the requirement. The law does not state reporting costs.

Abandoned water-bottom facilities face discretionary inspections

Beginning August 1, 2025, inspections are no longer automatic for abandoned facilities on leased state water bottoms or rights-of-way. The secretary can require an inspection in the public interest, with owners or operators responsible when one is required. The secretary can also decide that removal is needed without first holding a public hearing. Removal must be necessary for environmental reasons or to prevent undue interference with other uses of state waters or water bottoms.

Cleanup lawsuits get deadlines and review

Beginning August 1, 2025, responsible parties have 180 days after the later of their first admission or court finding to submit a cleanup plan. Other parties get 30 days to submit an alternative or comments; courts can extend either deadline for good cause. The department considers applicable standards, including RECAP, and consults landowners about exceptions without requiring their consent. Courts adopt the department-approved most feasible plan unless clear and convincing evidence shows a timely alternative is more feasible. The trial remains paused until the court adopts a plan.

Cleanup payments gain a bonded option

Beginning August 1, 2025, responsible parties can pay court-adopted cleanup costs directly instead of depositing money with the court. They must post a bond equal to the plan’s total cost. Direct-paying parties must send quarterly cost summaries until cleanup is complete or the court ends reporting. Installment payments remain available with a bond.

Louisiana centralizes water planning and control

Louisiana takes exclusive control of water resource management, overriding local rules but preserving general zoning, facility-siting authority, and soil-and-water district powers. The department and Natural Resources Commission must create, carry out, and update a statewide water plan with public and stakeholder input. The plan covers water demand, conservation, infrastructure, environmental impacts, and sustainable use. After consulting the commission, the secretary can set rules to designate regional districts and delegate water-management duties. The Capital Area Groundwater Conservation District moves into the department; the law removes its board’s statutory creation and separate political-subdivision designation.

Oilfield emergencies trigger rapid cleanup duties

The department can declare oilfield emergencies in writing and contain hazards at sites under its authority. Emergencies must threaten substantial or irreparable environmental damage, life, or safety and require immediate action. Operators must begin cleanup within 24 hours after notice. The department starts emergency procedures if it cannot reach the operator within 24 hours or cleanup does not start within 24 hours after notice.

Oilfield lawsuits face new coverage rules

The August 1, 2025 amendments extend the state cleanup process to environmental claims based partly or wholly on R.S. 30:16 or R.S. 30:26. Covered oilfield claims include actual or potential contamination damage to soil, surface water, groundwater, and sediment. Notice requirements and rules pausing cases still apply. For activity before Section 2 takes effect, lawsuits filed before September 1, 2027, remain outside the amended rules. The amended rules cover lawsuits filed on or after that date about older activity, and lawsuits about activity after Section 2 takes effect.

Special area rules become optional

The secretary can adopt rules for identifying, designating, and using special areas, including use guidelines or priorities. Adopting these rules is now optional rather than required. Any adopted rules must follow notice and a public hearing.

Water users face inspections with hardship relief

Department inspectors can enter premises to inspect covered water wells or surface water withdrawals. They must show valid department identification and enter at reasonable times under reasonable conditions. The office can exempt people or organizations from covered water requirements when compliance causes undue hardship. Relief must go no further than needed and cannot undermine the law’s purpose.

Cleanup fund adds operator payment options

Beginning August 1, 2025, the Natural Resources Trust Authority administers a new Natural Resources Financial Security Fund. Participating operators can use alternative financial-security arrangements involving cash payments or fees; the fund also accepts public money, grants, donations, and earnings. Legislative appropriations control spending for restoration, underfunded obligations, administration, investments, and authorized fund transfers. Restoration-fund reimbursements require certification that plugging or cleanup occurred; operations-fund transfers require an Authority request and Mineral and Energy Board approval. By July 1, 2026, covered Oilfield Site Restoration Fund cash deposits must move into the new fund. Restoration fees collected under R.S. 30:87 and interest on those fees stay excluded from that transfer.

Faster permit reviews carry added fees

Beginning August 1, 2025, applicants can request faster processing of department permits, licenses, registrations, plans, and other listed approvals. Applicants pay for each overtime hour or partial hour, plus an administrative charge of up to 20%, with a $500 minimum. The overtime rate cannot exceed 1.5 times a civil-service employee’s hourly wage, including benefits. The secretary can deny or revoke requests with written reasons; reconsideration is available for up to 10 calendar days. Rules must set procedures, timelines, website notices, and documentation; the review clock starts only upon approval and ends when the decision is sent or ready. Applicants get at least three days’ notice before requested public records are released, and judicial review goes to the First Circuit.

Oilfield cleanup funding and overhead change

Beginning August 1, 2025, site restoration contribution agreements add money to the Oilfield Site Restoration Fund. Spending under those agreements requires Natural Resources Trust Authority approval and must follow the agreement. At the secretary’s or authority’s direction, federal orphan-site money goes into the department’s federal funds account. Except for federally allowed administration, that money must fund orphan-site assessment and cleanup, including well plugging. The restoration fund’s $950,000 yearly administrative cap is replaced by the department’s federally approved indirect cost rate, or 15% of direct costs if none exists; spending requires authority approval.

Pipeline coverage expands while notices shrink

Beginning August 1, 2025, state-water-bottom rules cover all pipelines built under a right-of-way or lease. Previously excluded field transmission, flow, and gathering lines now fall under applicable burial, abandonment, and permit rules. The secretary can adopt related rules and orders but is no longer required to do so. Pipeline owners also lose the specified duty to notify the Office of Conservation about abandonment or six months of nonuse.

Pipeline oversight expands but inspections ease

Beginning August 1, 2025, the intrastate pipeline definition expands to Louisiana pipelines that are or may be exempt from federal energy regulation. The law also replaces required yearly depth-of-cover inspections with inspections and reports required at the secretary’s discretion. Rules can allow exceptions where inspection is extraordinarily burdensome or impractical. The Department secretary takes over existing hazardous-liquid pipeline oversight, and the Department receives related fees and penalties. That authority transfer leaves existing safety requirements and fee limits unchanged.

Resource bids gain temporary confidentiality protections

Beginning August 1, 2025, state resource offices can withhold qualifying information in bids to explore, develop, or use public property. Release must be reasonably likely both to reveal technical, operational, or financial details and to give a competitor an advantage. After competitive review ends and the board makes its final decision, the information becomes subject to disclosure. Other public-records exemptions or regulations can still prevent release.

Resource fees get dedicated fund rules

Beginning August 1, 2025, specified state resource fees go into the Mineral and Energy Operation Fund. Money collected for the Capital Area Groundwater Conservation District also goes into that fund and must be tracked separately. District money can support only groundwater administration, regulation, enforcement, oversight, and related work within the district. These provisions do not set fee amounts or change who owes the resource fees.

Secretary oversees oilfield pooling and units

The department secretary takes over specified oil-and-gas powers previously held by the commissioner. These include setting drilling units, ordering pooling in specified cases, and overseeing offshore unitization agreements. The secretary can issue subpoenas and must file and record orders creating drilling or production units.

Restoration borrowing gains exemptions from oversight

Beginning August 1, 2025, qualifying public trusts and corporations can issue revenue bonds for the Louisiana Local Government Environmental Facilities and Community Development Authority. Authorized financing bonds and related contracts are exempt from review rules in R.S. 9:2347(J) and R.S. 39:112(G). That exemption includes contracts pledging state funds. Debt issued under R.S. 30:83.1 and related provisions, including refinancing debt, also does not count toward Louisiana’s net state tax-supported debt limit.

Sponsors & Cosponsors

Sponsor

Bob Hensgens
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 118 • No: 29

House vote • 6/8/2025

Read third time by title, amended, roll called on final passage, yeas 77, nays 19. Finally passed, ordered to the Senate.

Yes: 77 • No: 19

House vote • 6/3/2025

Reported with amendments

Yes: 13 • No: 2

Senate vote • 5/19/2025

Senate floor amendments read and adopted. Read by title and passed by a vote of 28 yeas and 8 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.

Yes: 28 • No: 8

Actions Timeline

Signed by the Governor. Becomes Act No. 458.
6/24/2025Senate
Effective date: See Act.
6/24/2025Senate
Enrolled. Signed by the President of the Senate.
6/12/2025Senate
Signed by the Speaker of the House.
6/12/2025House
Sent to the Governor by the Secretary of the Senate on 6/13/2025.
6/12/2025Senate
Called from the Calendar.
6/11/2025Senate
Read by title and returned to the Calendar, subject to call.
6/10/2025Senate
Scheduled for floor debate on 06/08/2025.
6/8/2025House
Rules suspended, called out of its regular order.
6/8/2025House
Read third time by title, amended, roll called on final passage, yeas 77, nays 19. Finally passed, ordered to the Senate.
6/8/2025House
Received from the House with amendments.
6/8/2025Senate
Read by title, rules suspended, passed to 3rd reading.
6/4/2025House
Reported with amendments (13-2). To be recommitted to the Committee on Appropriations.
6/3/2025House
Read by title, under the rules, referred to the Committee on Natural Resources and Environment.
5/21/2025House
Received in the House from the Senate, read by title, lies over under the rules.
5/20/2025House
Senate floor amendments read and adopted. Read by title and passed by a vote of 28 yeas and 8 nays; ordered reengrossed and sent to the House. Motion to reconsider tabled.
5/19/2025Senate
Read by title. Ordered engrossed and passed to third reading and final passage.
5/14/2025Senate
Substitute for Senate Bill No. 193. Read by title and placed on the Calendar for a second reading.
5/13/2025Senate

Bill Text

Enacted
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Engrossed
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Enrolled
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Introduced
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Reengrossed
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