Louisiana Conservation Leniencies During the COVID-19 and the 2020 Historic Market Low Crisis

Louisiana Conservation Leniencies During the COVID-19 and the 2020 Historic Market Low Crisis

To All Louisiana Oil and Gas Operators:
 
The Office of Conservation readily recognizes and shares the concerns of and for the industry, particularly those operators whose financial safety margin has been long eroded by suppressed market prices. It is because of these concerns that Conservation is taking the steps it can, within the law, in an attempt to ease the burden on operators while maintaining its duty as a regulator to ensure responsible operations. In that light, Conservation has already begun to grant leniencies and extensions to operators on a case by case basis as requested. Attached (click link below) please find a copy of a letter from the Commissioner of Conservation, Richard P. Leyoub, in response to concerns regarding Conservation’s enforcement activities during this time of crisis.

View PDF online for more information:

www.planoweb.org/pdf/2020_03_25_Response_to_LOGA_request_RPI.pdf

Conservation would also point out that the voluntary LORA financial security program implemented last year may provide a method of freeing up operating capital currently tied up as collateral for financial security for operators in that situation. For more information on this issue, visit www.lora-inc.com
 
Conservation appreciates the efforts you are making and will continue to support the industry, including making every effort to keep operators operating. Be Safe!
 
John W. Adams, Attorney
LDNR / Office of Conservation
P.O. Box 94275
Baton Rouge, LA  70804-9275
Phone: (225) 342-7889