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HB 252

FUNDS/FUNDING: Dedicates severance tax revenue from oil and gas produced from certain stripper wells in the Caddo Pine Island Field to the Oilfield Site Restoration Fund and provides for the use of those monies (OR -$1,708,285 GF RV See Note)

2026 Regular Session Introduced by Danny McCormick

Louisiana redirects $1.7 million in annual oil and gas severance taxes from stripper wells to environmental cleanup fund, reducing general state revenue for site restoration.

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Bill Summary · HB 252

Legislative bill overview

HB 252 redirects severance tax revenue generated from low-producing ("stripper") oil and gas wells in Louisiana's Caddo Pine Island Field specifically to the Oilfield Site Restoration Fund rather than general state revenues. The bill reduces general fund revenue by approximately $1.7 million annually to fund environmental remediation and decommissioning of oilfield infrastructure.

Why is this important

This bill affects how Louisiana allocates limited oil and gas tax revenue between environmental cleanup obligations and general state operations. Stripper wells—which produce declining volumes—are economically marginal operations, and dedicating their tax revenue to site restoration addresses aging infrastructure that poses environmental and safety risks across Louisiana's oil and gas regions.

Potential points of contention

  • General fund impact: Reduces state general revenue by $1.7 million yearly, which could affect funding for education, healthcare, or other services during budget constraints
  • Selective dedication: Questions about why this specific field receives dedicated restoration funding when other stripper well fields may have similar environmental needs
  • Scope and effectiveness: Whether the dedicated revenue ($1.7M annually) is adequate for comprehensive site restoration in the Caddo Pine Island Field, or if this creates unfunded obligations

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

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