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DENR Provides Guidance to Operators on Financial Security

Contact: Patrick Courreges, 225-342-0510

BATON ROUGE — The Department of Energy and Natural Resources (DENR) is committed to ensuring a transparent and stable framework for financial security in Louisiana and to helping operators who had previously arranged for financial security with the Louisiana Oilfield Restoration Association (LORA).

Following internal investigations and DENR’s request for external review by the state Legislative Auditor, DENR dissolved its association with LORA earlier in 2025. Even though DENR no longer recognizes LORA as an acceptable provider of financial security, operators that previously had financial security through LORA must still comply with financial security requirements as established in state law.

Operators have two options to satisfy their obligations:

• 1.) Natural Resources Trust Authority (NRTA): The NRTA provides a regulated, state-managed financial security option under the oversight of the State Mineral and Energy Board as interim option for operators previously covered by LORA.
  • This program is designed to ensure stability for operators in the near term until they can transition to private financial security options.
• 2.) Private Financial Institution or Insurer: Operators may continue to obtain financial assurance directly from private banks, sureties, or insurers that meet the Office of Conservation’s requirements.

Important: If operators choose not to participate in the NRTA, they must contact the Office of Conservation directly to demonstrate satisfactory financial security arrangements through an approved private provider.

This process ensures that all operators remain in compliance with Louisiana law and that the State’s resources — and taxpayers — are protected.

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