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HR 310

ENERGY/OIL & GAS WELLS: Urges and requests the Department of Conservation and Energy to study the state's liability for oil and gas well decommissioning across the value chain

2026 Regular Session Introduced by Jacob Braud

Study and quantify Louisiana’s future decommissioning liabilities for orphan, inactive, and low-production wells, plus funding options to reduce taxpayer risk, in a report due Marc

Taken by the Clerk of the House and presented to the Secretary of State in accordance with the Rules of the House.
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Bill Summary · HR 310

Summary of HR 310 (2026 Regular Session, Louisiana)

Purpose and intent

  • This House Resolution urges and requests the Louisiana Department of Conservation and Energy (likely the Department of Conservation) to study the state's liability for decommissioning oil and gas wells across the value chain.
  • The study should evaluate funding options and methods to reduce the risk to taxpayers from decommissioning costs.
  • A written report of the department’s findings is due to the House Committee on Natural Resources and Environment by March 1, 2027.

Key provisions and requested study topics

The resolution specifies the following elements for the department to analyze and report on:

  1. Total decommissioning costs for:

    • Currently orphaned wells and related facilities (including plugging and abandonment, site remediation/restoration, and platform decommissioning where applicable).

  2. Cost breakdowns:

    • Costs attributable to onshore vs. offshore orphan wells.
    • Costs broken down by enforcement district.

  3. Costs for inactive/low-production wells:

    • Total decommissioning costs for wells with a responsible party that are currently inactive or producing less than 1 barrel of oil equivalent (BOE) per day, including plugging/abandonment, site remediation/restoration, and offshore platform decommissioning where relevant.
    • Costs broken down by onshore vs. offshore and by enforcement district.

  4. Costs recoverable from responsible parties:

    • The portion of decommissioning costs the department can reasonably expect the responsible parties to cover.
    • The portion of remaining costs where the department could seek compensation from prior operators (i.e., those above the $250,000 per-site threshold).

  5. Funding sources:

    • Available funding sources to meet the state’s expected liability for orphan wells and costs not expected to be covered by responsible parties for inactive wells and wells producing under 1 BOE per day.

  6. Risk mitigation for taxpayers:

    • Measures the department has taken or could take to mitigate taxpayer risk related to decommissioning costs.

  7. Policy/causal considerations:

    • Reasons for the addition of more than 1,000 wells to the orphan well list in 2025, with emphasis on the second half of 2025.

  8. Other relevant information:

    • Any additional data the department deems relevant to the state’s liability for orphan and at-risk wells.

Affected entities and stakeholders

  • Louisiana Department of Conservation (and Energy) – the agency directed to conduct the study and prepare the report.
  • Louisiana taxpayers – potential beneficiaries of risk mitigation efforts and clarity on funding responsibilities.
  • Current and former oil and gas operators – potential financial responsibility or liability considerations, including ability to cover decommissioning costs or be pursued for costs beyond certain thresholds.
  • House of Representatives (Natural Resources and Environment Committee) – recipient of the final report.

Procedural and timeline aspects

  • The department is tasked with producing a written report detailing findings and recommendations.
  • Deadline for the report: March 1, 2027.
  • The resolution was introduced during the 2026 Regular Session and was read by title with a 2nd reading/consideration step pending (Lies over under the rules at the time of action noted).

Background context referenced in the resolution

  • The state’s OSR (Oilfield Site Restoration) program seeks to address orphan wells, but funding limitations hinder expansion.
  • The number of orphan wells is high (approximately 6,500 as cited) with estimated decommissioning costs exceeding $500 million, and coastal/wetland-to-water conversions increasing costs (offshore/underwater wells are more expensive to plug).
  • There is ongoing concern about aging wells, inactive wells at risk of becoming orphaned, and wells with marginal production becoming public burdens.
  • The resolution notes that the department can currently seek restoration costs from prior operators only if costs exceed $250,000 per site, highlighting potential gaps in recoveries.

Bottom line

HR 310 seeks a formal, data-driven assessment of Louisiana’s future decommissioning liabilities for orphan, inactive, and low-production wells, viable funding options, and strategies to reduce taxpayer exposure, with a comprehensive report due by March 1, 2027.

Compiled from official sources — confirm details with the bill’s official record.

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