Temporary Drilling Moratorium Lifted
Per updated news release dated July 30, 2008, the temporary moratorium prohibiting drilling within a quarter of a mile of all Louisiana’s interstate highways has now been lifted after being issued by Louisiana Commissioner of Conservation, James H. Welsh, effective June 29, 2008.

Emergency Rules In Effect For 120 Days
The two Emergency Rules, both also effective on June 29, 2008, regarding drilling safety requirements for oil and gas wells located within the state will remain in effect for a period of not less than 120 days from that date.

Emergency Rule LAC 43.XIX.103
The first Emergency Rule, which applies to wells located anywhere within the state, requires the proper design, testing and use of blowout preventers and diverter systems on all wells drilled to reduce the potential for environmental damage and the risks to public safety and loss of commerce caused by wells out of control. Additionally, all operators are required to conduct weekly well control drills, document time, date and results of pressure and function tests, and ensure well control training plans are implemented.

• Diverter System Requirements – Required when drilling surface hole in areas where drilling hazards are known or anticipated to exist.
• Blowout Preventer Requirements – The operator shall design, install, use, maintain and test the BOP system to ensure well control during drilling, workover, and all other appropriate operations. The operator shall install surface BOP stack before drilling below surface casing which should consist of an annular preventer and the appropriate number and proper size of ram-type preventers.

Emergency Rule LAC 43.XIX.111
The second Emergency Rule applies, in addition to first rule, to wells that are drilled within 1,000-feet of a Louisiana interstate highway and requires the operator to provide advance notification to appropriate state and local authorities of such drilling activity, including all emergency responders. Operators are required to file a copy of the approved drilling permit along with a certified well location plat to such authorities.

Notices Of Intent, Public Hearing & Comment Period
In addition to the emergency rules, permanent drilling safety rules will be proposed prior to adoption under the provisions of the Louisiana Administrative Procedures Act. The Notices of Intent for the proposed permanent regulations are available in the July 20, 2008 edition of the State Register and are available for inspection at selected DNR office locations.

A public hearing will be held on August 26, 2008 at 9:00 a.m. in the LaSalle Building, LaBelle Hearing Room, 617 N. Third Street, Baton Rouge, LA 70802 to consider these permanent amendments to Statewide Order 29-B. Interested persons are invited to attend and submit oral comments on the proposed amendments.

In addition, for a full version of these rules, please visit the following link:
http://dnr.louisiana.gov/sec/execdiv/pubinfo/newsr/2008/0630con-new-rules.ssi

Please advise if we can answer any questions regarding these emergency rules.

Contacts:
Pamela Grantham, Vice President – State Services
pamela.grantham@jccteam.com
(281) 578-3388

Cassandra DeLarios, Regulatory Manager – LA State Services
cassandra.delarios@jccteam.com
(281) 578-3388