Louisiana Administrative Code › Title 43 - NATURAL RESOURCES › Part XVII - Office of Conservation-Injection and Mining › Subpart 3 - Statewide Order No. 29-M › Chapter 3 - Hydrocarbon Storage Wells in Salt Dome Cavities › Section XVII-309 - Legal Permit Conditions

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  Signatories. All reports required by permit or regulation and other information
				  requested by the Office of Conservation shall be signed as in applications by a
				  person described in
				  §305.
				  D or
				  §305 E
B. Financial Responsibility
1. Closure and Post-Closure. The owner or
				  operator of a hydrocarbon storage well shall maintain financial responsibility
				  and the resources to close, plug and abandon and where necessary, conduct
				  post-closure care of the hydrocarbon storage well, cavern, and related
				  facilities as prescribed by the Office of Conservation. The related facilities
				  shall include all surface and subsurface constructions and equipment
				  exclusively associated with the operation of the hydrocarbon storage cavern
				  including but not limited to class II saltwater disposal wells and any
				  associated equipment or pipelines whether located inside or outside of the
				  permitted facility boundary. Evidence of financial responsibility shall be by
				  submission of a surety bond, a letter of credit, certificate of deposit, or
				  other instrument acceptable to the Office of Conservation. The amount of funds
				  available shall be no less than the amount identified in the cost estimate of
				  the closure plan of
				  §337.A and post-closure
				  plan of §337.B Any financial
				  instrument filed in satisfaction of these financial responsibility requirements
				  shall be issued by and drawn on a bank or other financial institution
				  authorized under state or federal law to operate in the state of Louisiana. In
				  the event that an operator has previously provided financial security pursuant
				  to LAC 43: XVII.309, such operator shall provide increased financial security
				  if required to remain in compliance with this Section, within 30 days after
				  notice from the commissioner.
2.
				  Renewal of Financial Responsibility. Any approved instrument of financial
				  responsibility coverage shall be renewable yearly. Financial security shall
				  remain in effect until release thereof is granted by the commissioner pursuant
				  to written request by the operator. Such release shall only be granted after
				  plugging and abandonment and associated site restoration is completed and
				  inspection thereof indicates compliance with applicable regulations or upon
				  transfer of such well approved by the commissioner.
3. Assistance to Residents. The operator
				  shall provide assistance to residents of areas deemed to be at immediate
				  potential risk in the event of a sinkhole developing or other incident that
				  leads to issuance of a mandatory or forced evacuation order pursuant to
				  R.S.
				  29:721 et seq., if the potential risk or
				  evacuation is associated with the operation of a hydrocarbon storage well or
				  cavern.
a. Unless an operator of a
				  hydrocarbon storage well or cavern submits a plan to provide evacuation
				  assistance, acceptable to the commissioner, within five days of the issuance of
				  a mandatory or forced evacuation order pursuant to
				  R.S.
				  29:721 et seq., associated with the operation
				  of a hydrocarbon storage well or cavern, the commissioner of conservation
				  shall:
i. call a public hearing as soon as
				  practicable to take testimony from any interested party including the authority
				  which issued the evacuation order and local governmental officials for the
				  affected area to establish assistance amounts for residents subject to the
				  evacuation order and identify the operator(s) responsible for providing
				  assistance, if any. As soon as practicable following the public hearing the
				  commissioner shall issue an order identifying any responsible operator(s) and
				  establishing evacuation assistance amounts. The assistance amounts shall remain
				  in effect until the evacuation order is lifted or until a subsequent order is
				  issued by the commissioner in accordance with Clause ii of this Subparagraph
				  below;
ii. upon request of an
				  interested party, call for a public hearing to take testimony from any
				  interested party in order to consider establishing or modifying evacuation
				  assistance amounts and/or consider a challenge to the finding of a responsible
				  operator(s). The public hearing shall be noticed and held in accordance with
				  R.S.
				  30:6. The order shall remain in effect until
				  the evacuation is lifted or the commissioners order is modified, supplemented,
				  or revoked and reissued, whichever occurs first.
b. Assistance to residents payments shall not
				  be construed as an admission of responsibility or liability for the emergency
				  or disaster.
4.
				  Reimbursement. The operator shall provide the following.
a. Reimbursement to the state or any
				  political subdivision of the state for reasonable and extraordinary costs
				  incurred in responding to or mitigating a disaster or emergency due to a
				  violation of this Chapter or any rule, regulation or order promulgated or
				  issued pursuant to this Chapter. Such costs shall be subject to approval by the
				  director of the Governors Office of Homeland Security and Emergency
				  Preparedness prior to being submitted to the permittee or operator for
				  reimbursement. Such payments shall not be construed as an admission of
				  responsibility or liability for the emergency or disaster.
i. The commissioner shall have authority to
				  ensure collection of reimbursement(s) due pursuant to R.S 30:4(M)6.b and this
				  Subparagraph.
ii. Upon petition by
				  the state or any political subdivision of the state that is eligible for
				  reimbursement under this Subparagraph, the commissioner shall issue an order to
				  the permittee or operator to make payment within 30 days for the itemized
				  costs.
iii. Failure to make the
				  required payment(s) shall be a violation of the permit and these
				  rules.
iv. Should any interested
				  party dispute the amount of reimbursement, they may call for a public hearing
				  to take testimony from all interested parties. The public hearing shall be
				  noticed and held in accordance with
				  R.S.
				  30:6.
b. Reimbursement to any person who owns
				  noncommercial residential immovable property located within an area under a
				  mandatory or forced evacuation order pursuant to
				  R.S.
				  29:721 et seq. for a period of more than 180
				  days, without interruption due to a violation of this Chapter, the permit or
				  any order issued pursuant to this Chapter. The offer for reimbursement shall be
				  calculated for the replacement value of the property based upon an appraisal by
				  a qualified professional appraiser. The replacement value of the property shall
				  be calculated based upon the estimated value of the property prior to the time
				  of the incident resulting in the declaration of the disaster or emergency. The
				  reimbursement shall be made to the property owner within 30 days after notice
				  by the property owner to the permittee or operator indicating acceptance of the
				  offer and showing proof of continuous ownership prior to and during the
				  evacuation lasting more than 180 days, provided that the offer for
				  reimbursement is accepted within 30 days of receipt, and the property owner
				  promptly transfers the immovable property free and clear of any liens,
				  mortgages, or other encumbrances to the permittee or operator. Such payments
				  shall not be construed as an admission of responsibility or
				  liability.