New fines aim to stem the tide of ‘orphan’ oil and gas wells in Louisiana


Louisiana has increased fines for inactive oil and gas wells in an effort to reduce the number of wells that are eventually abandoned and made the responsibility of the state, reports

In late October, the state Department of Natural Resources finalized new rules that would charge well owners $125 to $500 per year for wells that have been inactive for five to 10 years, and up to $750 per year for wells that haven’t been used for more than a decade. The size of the fine depends on a well’s depth. Deeper wells are more costly for the state to plug and maintain.

DNR had been charging a flat annual fee of $250 per inactive wellhead regardless of well depth. Read more.