House Bill No. 637, introduced by Representative Jacob Landry, amends the existing law regarding oilfield site restoration fees by establishing specific reduced fee rates for various categories of oil and gas wells. The bill repeals the previous calculation method for these fees, which was based on the proportion of severance tax rates. Instead, it sets forth new fee structures: for oil produced from certified incapable oil wells, the fee will be 50% of the full rate; for oil from stripper wells, it will be 25%; for gas from low pressure oil wells, it will be 40%; and for gas from incapable gas wells, it will be 17.5% of the full rate production fees.

The changes will take effect on July 1, 2026, and aim to provide a clearer and more equitable framework for calculating oilfield site restoration fees for reduced rate production wells. This legislative adjustment is intended to support the oil and gas industry while ensuring that site restoration obligations are met in a financially manageable way for operators of these lower-producing wells.

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