§87. Oilfield site restoration fees

            NOTE: Subsections A and B eff. until July 1, 2025. See Acts 2024, 3rd Ex. Sess., No. 16.

            A. There is hereby imposed on crude petroleum produced from producing wells in this state a fee on each barrel of oil and condensate payable upon the initial disposition of each barrel of oil and condensate. The fee is in addition to any tax imposed pursuant to Title 47 of the Louisiana Revised Statutes of 1950. The provisions of Chapters 17 and 18 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 shall apply to the administration, collection, and enforcement of the fee imposed in this Section, and the penalties provided by that code shall apply to any person who fails to pay or report the fee. Proceeds from the fee, including any penalties collected in connection with the fee, shall be deposited into the Oilfield Site Restoration Fund.

            B. There is hereby imposed on gas produced from producing wells in this state a fee in the amount of three-tenths of one cent for each thousand cubic feet. The fee is in addition to any tax imposed pursuant to Title 47 of the Louisiana Revised Statutes of 1950. The provisions of the Louisiana Tax Code shall apply to the administration, collection, and enforcement of the fee, and the penalties provided by that code shall apply to any person who fails to pay or report the fee. Proceeds from the fee, including any penalties collected in connection with the fee, shall be deposited into the Oilfield Site Restoration Fund.

            NOTE: Subsections A and B as amended by Acts 2024, 3rd Ex. Sess., No. 16, eff. July 1, 2025.

            A. There is hereby imposed on crude petroleum produced from producing wells in this state a fee on each barrel of oil and condensate as provided in this Section. The fee is in addition to any tax imposed pursuant to Title 47 of the Louisiana Revised Statutes of 1950. The provisions of Chapters 17 and 18 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 shall apply to the administration, collection, and enforcement of the fee imposed in this Section, and the penalties provided by that code shall apply to any person who fails to pay or report the fee. Proceeds from the fee, including any penalties collected in connection with the fee, shall be deposited into the Oilfield Site Restoration Fund.            B. There is hereby imposed on gas produced from producing wells in this state a fee for each thousand cubic feet as provided in this Section. The fee is in addition to any tax imposed pursuant to Title 47 of the Louisiana Revised Statutes of 1950. The provisions of R.S. 47:1 et seq. shall apply to the administration, collection, and enforcement of the fee, and the penalties provided by that Title shall apply to any person who fails to pay or report the fee. Proceeds from the fee, including any penalties collected in connection with the fee, shall be deposited into the Oilfield Site Restoration Fund.

            C. Repealed by Acts 1997, No. 994, §2.

            D. Repealed by Acts 2017, No. 411, §2, eff. July 1, 2017.

            E. The fees provided for in Subsections A and B of this Section shall be borne by the responsible parties and not by the royalty and overriding royalty owner.

            F. The site restoration fee shall be the following:

            NOTE: Paragraph (F)(1) eff. until July 1, 2025. See Acts 2024, 3rd Ex. Sess., No. 16.

            (1)(a) Full rate production, which shall include all production from oil or gas wells except for production from reduced rate production wells as set forth in R.S. 47:633(7): For crude oil and condensate, the fee shall be based on the oil price on July first of each year for the ensuing twelve months based upon the average New York Mercantile Exchange Price per barrel of crude oil per month on the close of business on June thirtieth for the prior twelve months. The amount of the fee for a well that produces crude oil and condensate shall be as follows:

            (i) The fee shall be one and one-half cents per barrel on crude oil and condensate if the price of oil is at or below sixty dollars per barrel.

            (ii) The fee shall be three cents per barrel on crude oil and condensate if the price of oil is above sixty dollars and at or below ninety dollars per barrel.

            (iii) The fee shall be four and one-half cents per barrel on crude oil and condensate if the price of oil is above ninety dollars per barrel.

            (b) For natural gas and casing head gas, the fee shall be three-tenths of one cent per thousand cubic feet.

            NOTE: Paragraph (F)(1) as amended by Acts 2024, 3rd Ex. Sess., No. 16, eff. July 1, 2025.

            (1) Full rate production shall include all production from oil or gas wells except for production from reduced rate production wells as set forth in R.S. 47:633(7).

            (a) The amount of the fee for a well that produces crude oil and condensate shall be as follows:

            (i) The fee shall be two cents per barrel on crude oil and condensate if the price of oil is at or below sixty dollars per barrel.

            (ii) The fee shall be four cents per barrel on crude oil and condensate if the price of oil is above sixty dollars and at or below ninety dollars per barrel.

            (iii) The fee shall be six cents per barrel on crude oil and condensate if the price of oil is above ninety dollars per barrel.

            (b) For natural gas and casing head gas, the fee shall be as follows:

            (i) The fee shall be three-tenths of one cent per thousand cubic feet if the price of gas is at or below two dollars and fifty cents per thousand cubic feet.

            (ii) The fee shall be four-tenths of one cent per thousand cubic feet if the price of gas is above two dollars and fifty cents and at or below four dollars and fifty cents per thousand cubic feet.

            (iii) The fee shall be five-tenths of one cent per thousand cubic feet if the price of gas is above four dollars and fifty cents per thousand cubic feet.

            (2) Reduced rate production such as stripper wells and incapable wells. The site restoration fee for each respective category of oil or gas hereunder shall be in the same proportion to the respective full rate production fees as the reduced rate severance tax to the full rate severance tax for each respective category.

            G. Repealed by Acts 2004, No. 412, §2, eff. July 1, 2004.

            Acts 1993, No. 404, §2; Acts 1997, No. 994, §§1, 2; Acts 2004, No. 412, §§1, 2, eff. July 1, 2004; Acts 2016, No. 666, §1, eff. June 17, 2016; Acts 2017, No. 411, §§1, 2, eff. July 1, 2017; Acts 2018, No. 84, §1, eff. July 1, 2018; Acts 2024, 3rd Ex. Sess., No. 16, §1, eff. July 1, 2025.

NOTE: Provisions of Subsection A are applicable beginning July 1, 2017, with additional requirements contained in Section 2 of Act 84 of the 2018 R.S. for submission of information to the Dept. of Revenue.