Return to the main page | Previous document | Next document


Program A: Oil and Gas Regulatory

Program Authorization: La. Const.: Article IX, Sec.1; R.S. 36:351; 30:1

PROGRAM DESCRIPTION

Mineral property rights are important to the economy of Louisiana. A system of regulations is required to ensure that the rights of all parties in the exploration and production of oil and gas can be respected. To this end, this program pursues its mission of regulating the exploration and production of oil and gas under the guidance of and in support of the Commissioner of Conservation. This effort requires extensive geological and engineering study of requests for new wells, unitization requests and other activities related to mineral exploration and production as well as the maintenance of a depository of records. The mission of this program is to protect the correlative rights of all parties involved in the exploration and production of oil and gas resources while minimizing the waste of these mineral resources and of capital investments to acquire them. The goal of this program is to serve the citizens of Louisiana by managing and preserving non-recurring natural resources in the state. This program contains three activities: Oil and Gas Regulation, Remote Site Services, and Plug and Abandoned. The one activity of this program is: Oil and Gas Regulatory.

OBJECTIVES AND PERFORMANCE INDICATORS

Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).

 

 

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded with General Fund Direct, Interagency Transfers, Fees and Self-generated Revenues and Statutory Dedications.  The Interagency Transfers are from the Oil Spill Contingency Fund (Act 7 of the First Extraordinary Session of 1991) for abatement of certain unauthorized discharges or the threat of discharges in cases in which the commissioner certifies that a viable responsible party cannot be located. Fees and Self-generated Revenues are derived from application fees, regulatory fees and the sale of publications. The Statutory Dedications are derived from: (1) the Oil Spill Contingency Fund for continuation of an inventory of all well facilities, sump pits, and reservoirs in the state and for planning and assistance in the development of an oil spill emergency plan; (2) the Oil and Gas Regulatory Fund (Act 826 of 1997) is for the deposit of the collection of Capable Oil and Capable Gas Production, Class I and Class II Injection Wells fees. (Per R.S. 39:32B. (8), see table below for a listing of expenditures out of each statutory dedicated fund.)

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$1,598,543

$8,022,703

132

 

ACT 19 FISCAL YEAR 1998 -1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$1,598,543

$8,022,703

132

 

EXISTING OPERATING BUDGET November 20, 1998

 

 

 

 

 

$38,340

$147,463

0

 

Annualization of FY 1998 -1999 Classified State Employees Merit Increase

$19,377

$74,526

0

 

Classified State Employees Merit Increases for FY 1999-2000

($90,912)

($149,539)

0

 

Risk Management Adjustment

$0

$283,266

0

 

Acquisitions and Major Repairs

$6,535

$6,535

0

 

Maintenance of State-owned Buildings

$64,779

$249,150

0

Salary Base Adjustment

($24,171)

($92,966)

0

 

Attrition Adjustment

$0

$40,000

0

 

Workload IAT to the Office of the Secretary for legal counsel

$0

$10,000

0

 

Workload Additional rental space in the Shreveport District Office

$0

($200,000)

0

 

Other Adjustments Reduction of indirect cost to the Office of the Secretary

$0

$41,000

0

 

Other Adjustments Membership fee for the Office of Conservation to be a member of the International Oil and Gas Compact Commission (IOGCC)

$0

$53,000

0

 

New and Expanded Adjustments Fund for a contract to provide DNR with eleven software modules for the mapping of oil and gas wells/pits on the current GIS computer system

$0

$221,265

0

New and Expanded Adjustments Archive historical records of the Regulatory Section

$0

$122,065

0

New and Expanded Adjustments Audit reports in the Production Audit Section

 

 

 

 

 

$1,612,491

   $8,828,468

132

 

TOTAL RECOMMENDED

 

 

 

 

 

$13,948

$805,765

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 110.0% of the existing operating budget. It represents 95.1% of the total request ($9,286,747) for this program. The 10.0% increase is due to funding provided for acquisitions and major repairs, Salary Base Adjustment and archiving historical records. This program does not have any positions that have been vacant for one (1) year or more.

PROFESSIONAL SERVICES

$40,000

 

To provide eleven software modules for the mapping of oil and gas pits on the current GIS system

     

$40,000

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$49,989

 

Contracts for plugging abandoned wells when the landowner is unknown and the well poses a possible health hazard

$18,000

 

Insurance recovery for equipment damaged by water

$2,000,000

 

Interagency Transfer for the abatement of certain unauthorized discharges or the threat of discharges in cases in which the Commissioner certifies that a viable responsible party cannot be immediately located and provided that such funds shall only be used in the amounts for the specific purpose authorized by the Governor's Oil Spill Coordinator in accordance with procedures provided by the Oil Spill Coordinator

 

 

 

$2,067,989

 

TOTAL OTHER CHARGES

 

 

 

 

 

Interagency Transfers:

$150,156

 

DNR - Office of the Secretary for support of data processing and legal sections

$1,235

 

Division of Administration - State Register for publishing rules, etc.

$115,294

 

Division of Administration - Rent in State-Owned buildings (Lafayette District and Shreveport District Offices)

$44,532

 

Division of Administration - Maintenance on State-owned buildings (Monroe and Shreveport District Offices)

$40,000

 

DNR - Office of the Secretary for Public Outreach Position

 

 

 

$351,217

 

TOTAL INTERAGENCY TRANSFERS

ACQUISITIONS AND MAJOR REPAIRS

$103,187

 

Additional equipment to locate and access orphaned oilfield sites

$13,000

 

1 Color plotter and 1 Network scanner to bring plots and maps into electronic format

$22,065

 

New and Expanded - Funds for computers and office equipment for four (4) Mineral production Analysts

$180,079

 

Replacement of equipment and furnishings for district offices

     

$318,331

 

TOTAL ACQUISITIONS AND MAJOR REPAIRS


Return to the main page | Previous document | Next document