This bill amends R.S. 30:87(F)(2) to establish specific site restoration fees for reduced rate production wells, including stripper wells and incapable wells. The previous language, which stated that the site restoration fee would be in proportion to full rate production fees, has been deleted. Instead, the bill introduces a structured fee schedule for different categories of reduced rate production. For instance, oil produced from certified incapable oil wells will incur a fee of fifty percent of the standard fee, while oil from stripper wells will incur a fee of twenty-five percent. Additionally, gas produced from low pressure oil wells will be charged forty percent of the standard fee, and gas from incapable gas wells will be charged seventeen and one-half percent.

The effective date for this legislation is set for July 1, 2026. The changes aim to provide clarity and fairness in the calculation of site restoration fees for various types of reduced rate production wells, ensuring that the fees are appropriately scaled based on the production capabilities of the wells.

Statutes affected:
HB637 Original: 30:87(F)(2)
HB637 Engrossed: 30:87(F)(2)
HB637 Enrolled: 30:87(F)(2)
HB637 Act 662: 30:87(F)(2)