Oil & Gas

COMMISSIONER STARTS PROGRAM TO PURSUE ORPHANED OPERATORS

The state Office of Conservation has begun implementing stricter guidelines in pursuing operators of abandoned oil and gas wells and pits in the state. This month the Oilfield Site Restoration Commission voted to have Commissioner of Conservation Philip N. Asprodites recommend appropriate legal actions against operators of orphaned well sites in Louisiana.

According to Commissioner Asprodites, there is a real concern that some operators are walking away from their depleted wells and leaving the clean-up costs to the state. "We are taking steps to determine the viability of previous owners or operators of orphaned sites which have been closed by the Office of Conservation to determine if monies expended by the state can be recovered," Asprodites stated. The costs to plug a well and restore an orphaned site have ranged from $7,500 to $500,000.

The Oilfield Site Restoration Program started in 1993 by legislative Act 404 and funds to plug and close such sites are obtained from fees paid by operators on current production in the state. The Commissioner follows a formal procedure for orphaning a well and attempts to notify the last operator of the site.

Under the program, 346 potentially dangerous wells have been plugged and 77 pits closed at a cost that exceeds $12 million including site restoration and equipment removal.

Working with the Secretary of the Department of Natural Resources and the Commissioner, the Oilfield Site Restoration Commission passed a resolution on October 1, 1998 prevailing upon Conservation officials to pursue its rights against these derelict operators.

Editors: For more information on this program, please contact Commissioner Philip Asprodites at 225-342-5500.