During the 2024 Regular Session of the Louisiana Legislature, the Louisiana Natural Resources Trust Authority was created to address a longstanding problem involving abandoned or orphan wells. This Trust Authority will allow the State of Louisiana to revamp its approach to orphan well management and finance, with goals of responsible development and cost savings across the industry.[1]
The Louisiana Department of Energy and Natural Resources (“DENR”), led by Secretary Tyler Gray and assistant secretary and former Kean Miller attorney, Andrew Young, will take charge of this project. DENR has previously identified as many as 4,600 orphaned or abandoned wells in Louisiana which are characterized as having no responsive owner.[2]
Act No. 727 allows DENR the financial flexibility develop a more robust system of plugging abandoned wells, protecting the environment, preventing serious safety hazards, and allowing operators to do business more easily in Louisiana going forward.[3] This is a win-win for the environment, the people of Louisiana, and our great oil and gas industry.
[1] advocate-la.newsmemory.com/?publink=43fa68ee2_134d3d4
Program targets orphan wells – The Advocate (newsmemory.com)