LOGA Industry Report - Fall 2008 - (Page 38)

New Rules for Louisiana Oilfield Announced Louisiana Commissioner of Conservation James H. Welsh issued, effective June 29, 2008, two Emergency Rules regarding drilling safety requirements for oil and gas wells located within the state. The temporary moratorium prohibiting drilling within a quarter of a mile of all Louisiana’s interstate highways is now lifted, he said, and the two emergency rules will be in effect for 120 days. In addition to the emergency rules, Welsh said, “This ofﬁce has taken the necessary steps to see that permanent drilling safety rules are adopted through the rule-making process under the provisions of the Louisiana Administrative Procedure Act.” The ﬁrst Emergency Rule, which applies to wells located anywhere within the state, requires the proper design, testing and use of blowout preventers and diverter systems on all wells drilled to reduce the potential for environmental damage and the risks to public safety and loss of commerce caused by wells out of control. Additionally, all operators are required to conduct weekly well control drills; document time; date and results of pressure and function tests; and ensure well control training plans are implemented. The second Emergency Rule applies (in addition to ﬁrst rule) to wells drilled within 1,000-feet of a Louisiana interstate highway and requires the operator to provide advance notiﬁcation to The new practices are the result of the combined work of many concerned and dedicated staff, business and industry representatives, and law enforcement. appropriate state and local authorities of such drilling activity, including all emergency responders. Operators are required to ﬁle a copy of the approved drilling permit along with a certiﬁed well location plat to such authorities. “Both Emergency Rules are being immediately implemented to ensure the best safety measures in the oilﬁeld, and I believe Louisiana’s regulations will be second to none. The new practices are the result of the combined work of many concerned and dedicated staff, business and industry representatives, and law enforcement,” Welsh said. The Department of Natural Resources’ Ofﬁce of Conservation and the Commissioner’s Ad Hoc Committee on Drilling Safety drafted these rules after undertaking a comprehensive review of the drilling safety and well location requirements of a number of oil and gas producing states, a review of the minimum distance requirements for drilling near roads in oil and gas producing states, and a review of the federal Minerals Management Service drilling safety rules applied to drilling operations in federal offshore waters. Last December, by request of former Governor Kathleen Blanco, the commissioner moved to review all current regulations and to look for ways to reduce the likelihood of blowout incidents near interstate highways. Since that time, several state lawmakers, including Senators Troy Hebert and Robert Marionneaux, Jr. and Representative Fred H. Mills, Jr., urged the conservation ofﬁce to move expeditiously to promulgate additional drilling safety regulations for wells drilled near the state’s interstate highways. Copies of the two Emergency Rules can be found on the DNR website, as well as the July 20, 2008, copy of the State Register, providing a complete description of the amendment to Statewide Order 29-B. ENGINE SERVICE, COMPRESSOR & LLC Compressor and Engine Service, LLC (“CESCO”) acquires and refurbishes used natural gas compressors and manufactures new compressor packages and components for service in oil and gas producing and processing facilities in Louisiana, Mississippi and Oklahoma. We congratulate LOGA on its winning record of supporting the independent energy industry in Louisiana. 1600 Old Brandon Road Flowood, MS 39232-3225 Phone 601-932-5209 or 932-5219 FAX 601-932-5269 SHORELINE ENERGY LLC 4023 Ambassador Caffery, Suite 320 Lafayette, LA 70503 MAIN 337 984 8345 | FAX 337 984 8935 www.shorelineenergy.net 391293_Tellus.indd 1 INDUSTRY REPORT | FALL 2008 | LOGA 38 7/16/08 1:41:33 PM 388447_Shoreline.indd 1 6/24/08 8:21:24 AM http://www.tellusoperating.com/ http://www.shorelineenergy.net

Table of Contents Feed for the Digital Edition of LOGA Industry Report - Fall 2008

LOGA Industry Report - Fall 2008 Contents Chairman's Corner President's Perspective Commissioner's Comments From the Pipeline... Supreme Court Upholds Act 312 LOGA Challenges Commission's Ad Valorem Tax Rules The Haynesville Shale - Waiting for the Gas to Come In 2008 Legislative Recap Gulf Coast Prospect Expo 2008 2nd Annual LAGCOE Open Golf Tournament Conservationist by Trade Katrina Relief Fund Update DNR Intent Natural Gas Production Surges: A Free Market At Work IPAA Washington Report Legal Updates New Members Index to Advertisers

LOGA Industry Report - Fall 2008

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