A few oil and gas bills may surface during the Louisiana legislative session that starts one week from today, but the industry’s attention is likely to be on the state budget, one industry organization leader tells The Advertiser.
“The budget and only the budget” is where Louisiana Oil & Gas Association Vice President Gifford Briggs says industry representatives will be focused starting April 13, when the session opens in Baton Rouge.
That’s because the specter of a looming $1.6 billion budget deficit is overwhelming to lawmakers and to those who might be affected by the likely imposition of budget cuts. Briggs says industry eyes are on proposed cutbacks of $12 million to the Department of Natural Resources’ budget. DNR oversees many oil and gas regulations; the industry depends upon the department for the timely reviews of industry applications, clarifications of regulations and for timely issuance of permits.
“There is a lot of discussion around how (lawmakers) will raise revenue and make cuts,” Briggs says. “Generally speaking, the department functions well.”
But lack of funding could adversely affect DNR performance, and Briggs says the industry may be called upon to pay higher fees to offset the budget shortfall or suffer a decline in services.
“They have been making cuts like everyone else,” he says of DNR.
Briggs says he is not aware of legislation on environmental matters or on legacy lawsuits. State Sen. Robert Adley, R-Benton, who often handles oil and gas legislation in the upper chamber, says he has worked on two bills that may already be filed. One concerns cross-unit wells, the other, the natural gas inventory tax credit. Adley says the issues are not major at the moment, but adds they will be more important as wells go dry.
Read the full story. Also, be sure to check out the new Business Report cover package on the upcoming legislative session.
