Program Authorization: La. Const.: Article IX, Sec.1; R.S. 36:351; 30:1
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 goal 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. 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
1. This program provides a system to protect the rights of all parties involved in the exploration and production of oil and gas resources which also minimizes the waste of these resources. To demonstrate the strength of this system, this program will ensure that, out of the hundreds of decisions made, no more than three legal challenges will be initiated against the system during FY 1998-99.
1 Includes cases before Administrative Law Judges and court cases.
2. This program will ensure that the net number of oil field pits out of compliance with state regulations for closure and liner requirements will not increase during FY 1998-99.
3. This program will restore 300 orphaned well sites (as identified in Act 404 of 1993) during FY 1998-99.
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
Means of Financing Substitution(s) - Replace Fees and Self-Generated revenues with Statutory Dedications for the implementation of ACT 826 that restructures the fee system and creates the Oil and Gas Regulatory Fund
The total means of financing for this program is recommended at 98.3% of the existing operating budget. It represents 99.3% of the total request ($10,181,100) for this program. The 1.7% decrease is due to the non-recurring of acquisitions and major repairs. This program does not have any positions that have been vacant for 1 year or more.
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
ACQUISITIONS AND MAJOR REPAIRS
Return to the main page | Previous document | Next document