Plain English Breakdown
Checked against official source text during the last sync.
Oilfield Site Restoration Fees Act
This act sets specific fees for oil and gas produced from reduced rate production wells, including stripper and incapable wells.
What This Bill Does
- Changes the way site restoration fees are calculated for oil and gas produced from reduced rate production wells like stripper or incapable wells.
- Sets a fifty percent fee for oil produced from certified incapable oil wells compared to the full rate fee.
- Establishes a twenty-five percent fee for oil from stripper oil wells relative to the full rate fee.
- Imposes a forty percent fee on gas from low pressure oil wells in relation to the full rate fee.
- Creates a seventeen and one-half percent fee for gas production from incapable gas wells.
Who It Names or Affects
- Oil and gas companies operating in Louisiana, especially those with reduced rate production wells like stripper or incapable wells.
Terms To Know
- Stripper oil well
- An oil well that produces a small amount of oil compared to other wells.
- Incapable well
- A well that is no longer able to produce at its original capacity due to technical or geological issues.
Limits and Unknowns
- The bill does not specify the full rate production fees, only how reduced rate fees are calculated in relation to them.
- It's unclear what specific actions will be taken with the collected fees.