House Bill No. by Representative McCormick introduces a new well plugging credit aimed at reducing the financial burden of inactive well assessments for operators in Louisiana. The bill enacts provisions under R.S. 30:4(C)(1)(a)(vi) and 21(D), allowing operators to receive a credit for plugging wells that are ten years old or older. The credit is calculated at $4.50 per foot of the well plugged and can be applied on a dollar-for-dollar basis against the operator's inactive well assessment obligations. To qualify for the credit, operators must ensure that the plugged wells and abandoned sites are restored in compliance with departmental rules and pass a final inspection.

Additionally, the bill grants the secretary the authority to establish rules and regulations necessary for the administration and enforcement of these provisions. Operators seeking the credit must apply to the department using a prescribed form. This initiative aims to incentivize the plugging of older, inactive wells, thereby promoting environmental safety and regulatory compliance within the oil and gas industry.