Oilfield Site Restoration Program FAQs

The Louisiana Oilfield Site Restoration Program was created in 1993 within what is now the Department of Conservation and Energy to address the growing problem of unrestored orphaned oilfield sites across the State. The specific focus of the Program is to properly plug and abandon orphaned wells and restore the sites to approximate pre-wellsite conditions suitable for redevelopment.

Revenue for the Oilfield Site Restoration Program is generated from fees on oil and gas production and long-term shut-in wells in the State of Louisiana, which are paid by Louisiana oil and gas operators. No general fund tax dollars are used.

The term "orphaned" refers to the current status of a particular site and indicates that the operator of record is no longer a viable responsible party. Following a specific notification procedure, sites are declared officially orphaned after being published in the State Register on the twentieth of each month.

A list of recently orphaned wells can be obtained by clicking here.
A list of all orphaned wells in the state can be obtained by accessing the OSR homepage and selecting the first link, "Orphan Site List."

No, the State does not assume ownership of orphaned wells and wellsites. Ownership of property can be determined through research of courthouse records. The operator of record remains the responsible party for an orphaned site, by statute. The orphaning of a site means that the operator of record is either unresponsive or financially unable to address or maintain the site. Orphan status does not relieve liability nor does it affect ownership.

The owner of the property on which an orphaned site is located is not responsible for site restoration UNLESS the land owner is also a responsible party as defined by LSA RS 30:82 (9):
"Responsible party means the operator of record according to the office of conservation records, who last operated the property on which the oilfield site is located at the time the site is about to be abandoned, ceases operation, or becomes an unusable oilfield site, and that operator's partners and working interest owners of that oilfield site. A working interest owner is the owner of a mineral right who is under an obligation to share in the costs of drilling or producing a well on the oilfield site."

A landowner or developer may elect to restore an orphaned wellsite at their own expense without becoming the operator of record by entering into a Cooperative Agreement with C&E. The OSR Program will not reimburse incurred costs and must be indemnified against claims arising from the work. Landowners or developers must still obtain work permits from the District Office or the Injection Division for any well work.  Please contact OSR staff for additional details. The Cooperative Agreement form can be dowloaded here.

Yes, an operator may test or evaluate an orphan well without becoming the operator of record by entering into a Cooperative Agreement with C&E. The OSR Program will not reimburse incurred costs and must be indemnified against claims arising from the work. Operators must also obtain all necessary work permits; secure all surface access and/or mineral rights necessary for the proposed scope of work; agree to share any information obtained from the well; and leave the well in the same or better condition after completing work.  Please contact OSR staff for additional details.  The Cooperative Agreement form can be dowloaded here.

Yes, any operator may plug and abandon an orphan well without becoming the operator of record by entering into a Cooperative Agreement with C&E. The OSR Program will not reimburse incurred costs and must be indemnified against claims arising from the work. Operators must also obtain all necessary work permits and secure all surface access rights needed for the work.  Please contact OSR staff for additional details. The Cooperative Agreement form can be dowloaded here.

Submit FORM MD 10-R-A-1 (single well) or FORM MD 10-R-AO (multiple wells), an Affidavit of Lease, along with any applicable financial security that may be required. C&E has a 'take one, take all' policy regarding the operatorship acquisition of orphan wellsites. If an operator is seeking to become operator of record of a particular orphan well on a lease, they must become the operator of record for EVERY orphaned well located on that lease. For more information, please contact OSR staff.

Projects are awarded through a competitive sealed bid process stipulated within the rules of the State Bid Law and Title 30. When an orphan wellsite is slated to be restored by the Program, a scope of work is developed (referred to as a 'bid proposal') and sent to approved Oilfield Site Restoration Program contractors. Sealed bids that are received from contractors are then opened at a designated time and place and are evaluated by Program staff to ensure that submittals meet all of the technical requirements of the bid proposal. The bid is then awarded to the lowest qualified bidder.

New contractors should complete the OSR New Contractor Application, then log in to the OSR Contractor Program to upload the application.

Applications are reviewed by OSR staff for completeness. Contractors are eligible to bid on projects once approved.

Only those contractors on the list of contractors approved by OSR as of the first public notice of a bid solicitation are eligible to participate in the bid solicitation process. (Reference: Louisiana Oilfield Site Restoration Law, R.S. 30:80 et seq., ACT 404 of 1993). Pre-registration and completion of a Mandatory site visit are typically required to be eligible to submit a bid.

Since inception, the program has restored an average of 125 sites per year

See the document entitled 'Establishing a Site Specific Trust Account (SSTA)'. See also FORM 9604 - Site Specific Trust Account (MS Word, PDF) and FORM 9604-1 - Site Specific Trust Account Reassessment (MS Word).

The basis for SSTA minimums has been updated per the August 2021 memorandum from Commissioner Ieyoub. Acceptable funding mechanisms are provided in the June 2023 memorandum from Commissioner Edwards. The Qualified Cost spreadsheet can be found here, and a user guide is here and embedded within the spreadsheet.