Office of Conservation

New Rules for the Louisiana Oilfield Announced

Monday, June 30, 2008

Louisiana Commissioner of Conservation James H. Welsh has issued effective June 29, 2008, two Emergency Rules regarding drilling safety requirements for oil and gas wells located within the state. The temporary moratorium prohibiting drilling within a quarter of a mile of all Louisiana’s interstate highways is now lifted, he said, and the two emergency rules will be in effect for 120 days.

The first Emergency Rule, which applies to wells located anywhere within the state, requires the proper design, testing and use of blowout preventers and diverter systems on all wells drilled to reduce the potential for environmental damage and the risks to public safety and loss of commerce caused by wells out of control. Additionally, all operators are required to conduct weekly well control drills, document time, date and results of pressure and function tests, and ensure well control training plans are implemented.

The second Emergency Rule applies, in addition to first rule, to wells drilled within 1,000-feet of a Louisiana interstate highway, requires the operator to provide advance notification to appropriate state and local authorities of such drilling activity, including all emergency responders. Operators are required to file a copy of the approved drilling permit along with a certified well location plat to such authorities.

“Both Emergency Rules are being immediately implemented to ensure the best safety measures in the oilfield and I believe Louisiana’s regulations will be second to none. The new practices are the result of the combined work of many concerned and dedicated staff, business and industry representatives, and law enforcement,” Welsh said.

The Department of Natural Resources’ Office of Conservation and the Commissioner’s Ad Hoc Committee on Drilling Safety drafted these rules after undertaking a comprehensive review of the drilling safety and well location requirements of a number of oil and gas producing states, a review of the minimum distance requirements for drilling near roads in oil and gas producing states, and a review of the federal Minerals Management Service drilling safety rules applied to drilling operations in federal offshore waters.

Last December, by request of former Governor Kathleen Blanco, the Commissioner moved to review all current regulations and to look for ways to reduce the likelihood of blowout incidents near interstate highways. Since that time, several state lawmakers including Senators Troy Hebert and Robert Marionneaux, Jr., and Representative Fred H. Mills, Jr. urged the Conservation office to move expeditiously to promulgate additional drilling safety regulations for wells drilled near the state’s interstate highways.

Copies of the two Emergency Rules can be found on the DNR website, as well as the July 20, 2008 copy of the State Register, providing a complete description of the amendment to Statewide Order 29-B.

In addition to the emergency rules, Welsh said, “This office has taken the necessary steps to see that permanent drilling safety rules are adopted through the rule-making process under the provisions of the Louisiana Administrative Procedure Act.”

The Notices of Intent for the proposed permanent regulations are available in the July 20, 2008 edition of the State Register and are available for inspection at the following DNR office locations from 8 a.m. until 4:30 p.m.: 617 N. Third Street, Ninth Floor, Baton Rouge, LA 70802; Brandywine III, Suite 220, 825 Kaliste Saloom Road, Lafayette, LA 70508; State Office Building, Suite 668, 1525 Fairfield Avenue, Shreveport, LA 71101; 122 St. John Street, Room 228, Monroe, LA 71201.

A public hearing will be held on August 26, 2008 at 9:00 a.m. in the LaSalle Building, LaBelle Hearing Room, 617 N. Third Street, Baton Rouge, LA 70802 to consider these permanent amendments to Statewide Order 29-B.  Interested persons are invited to attend and submit oral comments on the proposed amendments. If accommodations are required under the Americans With Disabilities Act, please advise the Office of Conservation, Engineering Division at P.O. Box 94275, Baton Rouge, LA 70804-9275 in writing within ten (10) working days of the hearing date.  Two hours of free parking are allowed in the Welcome Center parking garage with a validated parking ticket.

All interested persons are invited to submit written comments on the proposed regulations. Persons commenting should reference “Proposed Amendment of LAC 43:XIX.103” or “Proposed Amendment of LAC 43:XIX.111” as appropriate. Such comments must be received no later than Monday, August 11, 2008, at 4:30 p.m., and should be sent to Mr. Chris Sandoz, Office of Conservation, Engineering Division, P. O. Box 94275, Baton Rouge, LA 70804-9275; hand delivered to 617 North Third Street, 9th Floor, Baton Rouge, LA 70802; by email to chris.sandoz@la.gov; or by fax to (225) 342-2584.

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