Vote Smart's Synopsis:

Vote to adopt a conference report vote and pass a bill that establishes new requirements companies must follow in order to receive a carbon dioxide well permit.

Highlights:

• Requires companies to submit a notice to the governing authority of the parish if they intend to construct and drill an oil well or carbon capture facility or project (Sec. 1). 

• Specifies that any revenue collected due to contractual obligations for oil well construction and operation by the office of mineral resources shall be remitted to the state treasury (Sec. 1).

• Specifies that 30% of the revenue given to the treasury shall be used for mineral and energy operation funds (Sec. 1).

• Specifies that 30% of the revenue received will be given to the parish or parishes where the project is located (Sec. 1). 

• Specifies that the rest of the revenue remitted to the treasury shall be given to the state general fund (Sec. 1). 

• Specifies that nothing in this section shall impact prior relationships or contracts related to the collection of funds (Sec. 1). 

• Specifies that notifications of construction must be made to the parish president, police jury president, or mayor-president, depending on the form of parish government, and a public hearing conducted by a hearing officer appointed by the assistant secretary for the office of mineral resources must be conducted to satisfy notice requirements (Sec. 1). 

• Authorizes the revenue collected by the Office of Mineral Resources from contractual obligation from the building of a carbon capture facility beneath state owned land or water bottoms will be deposited into the treasury (Sec. 1). 

• Specifies that 30% shall go to the Mineral and Energy Operation Fund (Sec. 1). 

• Specifies that 30% shall go to the parishes (Sec. 1). 

• Specifies that the remaining revenue shall be deposited into the state general fund (Sec. 1). 

• Requires the applicant for a permit to drill a well to supply and environmental impact analysis to the parish (Sec. 1). 

• Specifies that the following questions must be answered by the environmental analysis in order to receive a permit to drill and construct (Sec. 1): 

•  Has real and adverse environmental damage been avoided; 

• Has a cost-benefit analysis of the project ensured that the social and economic benefits outweigh the costs;

• Are there alternative activities which would offer more environmental protection while keeping non-environmental benefits; 

• Are there alternative sites for construction that would offer more protection to the environment; 

• Are there mitigating measures that would provide more protection for the environment in the construction of the well.

• Requires the owner and operator of the well to send a report concerning the following items to the commissioner (Sec 1). 

• Any changes to the carbon dioxide stream; 

• Monthly average for injection pressure;

• Monthly volume and mass for carbon dioxide stream; 

• Additional information at request.

• Requires the owner and operator of a well to submit the following information less than 24 hours after the occurrence of the following (Sec. 1).   

• Evidence that the carbon dioxide stream may endanger and underground source of drinking water; 

• Evidence that there is non-compliance with permit condition; 

• Failure to maintain mechanical integrity. 

• Requires the commissioner to send a certificate of completion of injection operations after no earlier than 50 years of operation if following conditions are met (Sec. 1): 

• The facility does not endanger underground drinking water reserves;

• The facility has followed all previous regulation regarding the post-injection monitoring;

• The facility is closed and has followed all closure procedures; 

• Specifies that the the release from duties shall not apply if there is non-compliance with the above regulations 

• Specifies that the commissioner will be the one to determine if the owner and operator has done a deficient job (Sec.1). 

• Specifies that the commissioner will carry out his duty and make sure that construction complies with Safe Drinking Water Act (Sec. 1). 

• Specifies that once $10 million dollars has been deposited to the fund by the owner and operator the fee assessment shall cease for the owner and operator (Sec. 1).

• Specifies that the fund shall be not used for any additional purposes unless approved by the state legislature (Sec. 1). 

• Authorizes parties to record geologic storage agreement (Sec. 1). 

• Specifies that parties seeking a geographical and geological survey must give parish’s notice in advance prior to the survey being conducted (Sec. 1).

Full Bill Text