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Louisiana not keeping pace with new orphan oil and gas wells, audit finds • Louisiana Illuminator

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Louisiana not keeping pace with new orphan oil and gas wells, audit finds • Louisiana Illuminator


An unprecedented amount of resources are flowing into Louisiana to help address abandoned oil and gas wells that present environmental and safety risks throughout the state. But according to a state audit, the money is nowhere near enough to get ahead of the problem, which continues to grow despite progress made in recent years. 

State officials who oversee remediation of these orphan wells say a new entity under the Louisiana Department of Energy and Natural Resources (DENR) intends to better manage the problem — and find millions of dollars more to do so.       

A Legislative Auditor’s report made public Monday indicates 976 orphaned wells were plugged in fiscal years 2020 through 2023, based on numbers from the Oilfield Site Restoration Program and the Louisiana Oilfield Restoration Association. Over that same period, nearly 1,700 new orphaned wells were reported to the DENR’s Office of Conservation.

Furthermore, the number of inactive wells — those with a high risk of becoming orphaned — increased 21.7% from August 2019 to April of this year, reaching 21,629.

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The audit connected the inability of the Office of Conservation to expand its orphaned well capping program to a state law that limits its ability to collect enough funding. 

The audit report estimates it will take nearly $543 million to address the current number of orphan wells, but state law calls for oil and gas production fees to be suspended if the Oilfield site Restoration (OSR) Program fund exceeds $14 million. Additionally, the audit report notes the rate for gas production fees, which account for almost 80% of the program’s revenue, hasn’t been changed since 2004.

“The legislature may wish to consider removing the $14 million cap on the OSR Fund or increasing it based on the total estimated costs to plug orphaned wells, which would provide more adequate funding for addressing the growing orphaned well population,” the audit report said.

Another recommendation in the report suggests the Legislature consider increasing the production fee for gas wells or making the fee variable based on market prices, similar to the method the state uses to calculate oil production fees.

DENR Secretary Tyler Gray and Office of Conservation Commissioner Benjamin Bienvenu issued a joint response to the Legislative Auditor’s report. In response to multiple findings and suggestions, they referenced the Natural Resources Trust Authority, a subdivision of the department created through a legislative act earlier this year. It’s mission is to better manage the proper plugging and abandonment of oil and gas wells and to help other secure the funding needed for that work.

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An executive committee for the Trust Authority was appointed earlier this month, and the Department of Energy and Natural Resources is currently interviewing candidates for its executive director, according to DENR’s response to the audit report. State lawmakers will have to agree to fund the authority next year.  

In summary, the Trust Authority is expected to better track and manage inactive wells while collaborating with other fiscal authorities — including the state Bond Commission and Mineral and Energy Board — to obtain a reliable funding stream to cap orphan wells, Gray and Bienvenu wrote.

Second audit questions industry-backed insurance

In a separate report, the Legislative Auditor evaluated how well the Office of Conservation monitors an industry-driven effort to address orphan wells. The Louisiana Oilfield Restoration Association (LORA) was created in September 2019 to help drillers meet state financial security requirements — or, put another way, the insurance —  to plug wells if they are abandoned. LORA also collects fees from well operators to supplement the Oilfield Site Restoration Program.

Among the audit findings was that the Office of Conservation “does not conduct sufficient monitoring to ensure that LORA remains financially solvent …” LORA isn’t subject to federal or state regulations for financial institutions, so its operations and solvency aren’t tracked as closely as those of government-regulated banks.

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The Office of Conservation allowed LORA to increase the percentage of fees its collects for administrative purposes from 20% to 36% once it meets a minimum $5 million reserve balance. 

Because the state office doesn’t keep tabs on LORA’s administrative spending, officials don’t know if the for-profit association expenses are reasonable, auditors said.  

“As a result, LORA retained $1.1 million from June 2022 through December 2023 that could have been used to plug orphaned wells,” according to the report.   

Over the same period, auditors also noted LORA paid more than $4 million in management fees — or more than 30% of operator fees paid to the association — to Arkus, a Baton Rouge company that shares the same address and chief executive as LORA.

Exactly what those payments covered is unclear, auditors said. The Office of Conservation has never asked LORA for detailed information on what administrative duties it’s paying Arkrus to perform or the company’s profits and salaries, the report said. As a result, the state doesn’t know if the wage increases were merited for expanded individual job duties or working longer hours.

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In its response, the Department of Natural Resources and Office of Conservation agreed with auditors’ recommendations to better monitor LORA’s administrative spending.

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Louisiana

OSPD pays tribute to former officer, Deputy U.S. Marshal killed while serving warrant in Louisiana

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OSPD pays tribute to former officer, Deputy U.S. Marshal killed while serving warrant in Louisiana


OCEAN SPRINGS, Miss. (WLOX) — On Wednesday, the Ocean Springs Police Department (OSPD) recognized Deputy U.S. Marshal Drew Hanson after he was killed while serving a warrant in Louisiana this week. Hanson had previously worked for multiple Coast police departments.

Hanson was shot and killed Monday while serving a warrant for Clarence A. Frazier, Jr. in a neighborhood in Alexandria, Louisiana.

Hanson was killed while serving a warrant for Clarence A. Frazier, Jr., in a south Alexandria, Louisiana, neighborhood.

(Source: KALB via CNN)

Court documents said officers entered a home connected to Frazier and found him in a bedroom. Those documents said that Frazier fired at the officers and struck Hanson, who later died.

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Frazier was arrested after a standoff that lasted several hours, court documents said.

OSPD remembered Hanson in a Facebook post.

The post said Hanson began his career at the Gulfport Police Department in 2013 before he became an enforcement officer for the Mississippi Department of Transportation. In 2015, Hanson joined OSPD, where he served until the following year.

“The men and women of the Ocean Springs Police Department mourn the loss of one of our own. We are grateful for Drew’s service, proud to have been a part of his journey, and forever thankful for the sacrifice he made in service to our nation,” OSPD’s post said.

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Lafayette Renaissance edge rusher Ansinneo Charles commits to Louisiana

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Lafayette Renaissance edge rusher Ansinneo Charles commits to Louisiana


LAFAYETTE — One of Acadiana’s top defensive prospects is staying home.

Lafayette Renaissance edge rusher Ansinneo Charles announced his commitment to Louisiana on Thursday, giving the Ragin’ Cajuns another addition to their 2027 recruiting class.

The 6-foot-5, 220-pound defender chose Louisiana over offers from Louisiana Tech, Arkansas State and Mississippi State.

Charles said the decision came down to the relationships the Cajuns’ coaching staff built with him throughout the recruiting process.

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“Even before they offered me, they were talking about how I was going to be the first one they offer for the 2027 class, and they kept their word,” Charles said. “Ever since then, they’ve just been pushing me hard, staying in contact with me.”

Charles said his official visit to Lafayette solidified his decision.

“When I went up there for my official visit, it was like a family, a brotherhood,” he said. “Everything was good, and I loved and enjoyed the time.”

Charles’ commitment grows the Cajuns 2027 class to 16 players that include the following:

  • Shadow Creek tight end Bryce Coleman
  • Avoyelles defensive lineman Kobe Smith
  • Ferriday wide receiver Rob Taylor
  • West Brook quarterback Tam Anderson
  • Angleton OL Noah Ernst
  • Plaquemine WR John Walker
  • University Lab DL Maison Smith
  • St. Thomas More S Landen Ortte
  • Summer Creek DB Caleb White
  • Archbishop Rummel DB Gavin Cooper Jr
  • Wylie ATH Jabriran Blake
  • East View OL Adarius Hines
  • Crawford LB Camron Alakija
  • Elkins OLB Omosefe Ayemere
  • Vandebilt Catholic OL Philip Cenac
  • Lafayette Renaissance OLB Ansinneo Charles

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How vital is New Orleans to Louisiana’s economy? See the data after Landry’s ‘special’ comments.

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How vital is New Orleans to Louisiana’s economy? See the data after Landry’s ‘special’ comments.


A Louisiana governor cast aspersions about New Orleans’ significance to the state.

A new mayor challenged the take.

So what does New Orleans still mean to Louisiana’s economy in an era of fast-emerging data centers and other big industrial projects that are a long way from the city?

Quite a lot, according to data and economic analysts.

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The New Orleans area, which includes Orleans Parish and six surrounding parishes, accounted for 26.9% of the state’s gross domestic product in 2024, according to an analysis of the most recent federal data available by Greg Albrecht, who previously served as the Louisiana Legislative Fiscal Office’s chief economist.

The New Orleans region also has the largest workforce in the state, with 472,000 non-farm employees as of May 2026, out of roughly 2 million statewide.

And the area also brought in around $800 million in state sales tax in fiscal year 2025, more than 16% of the state’s total collections.

“New Orleans is still a vital part of the state,” said Jim Richardson, a retired LSU economics professor who for years served as the independent member of the state’s Revenue Estimating Conference, which determines how much money lawmakers have to spend each year. “You really don’t want to downplay New Orleans… You can build New Orleans up without giving up your data centers.”

Presented with the region’s economic contributions, Landry on Thursday said: “Of course New Orleans is important, just like every city, parish, and person in Louisiana.

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“But tough love means expecting the city to be fiscally responsible and solve its own problems… New Orleans matters, but I don’t think anyone believes it’s been run properly in decades.”

Shifting priorities

Moreno and Landry’s back-and-forth about New Orleans’ finances and relevance came after Moreno sought and then abandoned a request for state approval of a bond sale meant to resolve a fiscal crisis she inherited.

Moreno reminded Landry of the adage that has long been a nod to New Orleans’ economic contributions to Louisiana: “So goes New Orleans, so goes the state.” He later downplayed those contributions in remarks that have since gone viral.

In an interview on Tuesday, Moreno reiterated that “New Orleans is unlike any other city in Louisiana. We are the economic engine of this state, and when New Orleans grows stronger, Louisiana grows stronger. That’s why I’ll continue choosing partnership over conflict.”



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Gov. Jeff Landry pictured as New Orleans Mayor-elect Helena Moreno speaks during the Fiscal Review Committee meeting at the State Capitol on Wednesday, November 12, 2025.




The data backs up her point on the city’s economics. The seven-parish area including New Orleans accounted for the largest share of the state’s GDP in 2024, the most recent data available. Economists typically cite metro area statistics instead of parish-specific ones, because local economies function regionally and not according to political boundaries.

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The region was trailed by the 10-parish Baton Rouge metro area, which accounted for 22.4% of the state’s GDP.

The next highest sales tax collections in the state were also in the Baton Rouge metro area, which brought in $532 million in fiscal year 2025. The Baton Rouge area also has the next largest workforce, with 438,000 non-farm employees as of May, according to the Bureau of Labor Statistics.

While New Orleans “is still No. 1” in terms of employment, said retired LSU economist Loren Scott, its economy has struggled in recent years while other parts of the state have seen growth.

New Orleans-area employment remains far lower than before Hurricane Katrina. It also has not recovered to pre-pandemic levels, when there were nearly 500,000 workers in the region. Employment numbers have ticked consistently upward in the Baton Rouge area and in St. Tammany Parish, after a brief dip at the start of the pandemic.

Scott also noted that the New Orleans area remains a hotspot for major investment, with around $80 billion worth of projects either under construction or announced, according to his analysis. Much of that development is occurring outside of the levee system, like at Venture Global’s massive Liquified Natural Gas export terminal in Plaquemines Parish.

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But other areas are seeing heightened investment, Scott said. The Lake Charles area has more than $100 billion worth of projects under construction or announced, mostly in the liquified natural gas industry, and parts of northern Louisiana that have rarely seen large-scale investment are now bringing in billions from data center projects.

“You could make a case by looking at total employment numbers that New Orleans is still huge, but if you look at some of the other things… in terms of a driver and future driver of the economy, maybe it’s starting to come from other areas of the state,” Scott said.

State directs some projects elsewhere

That shift comes as the Landry administration has intentionally worked to draw economic development projects to rural parishes.

“This governor has said, ‘Okay, for Louisiana to expand and to be successful, we have got to move economic development projects out of New Orleans,’” said State Senate President Cameron Henry, R-Metairie, in a June interview.

“We can’t ignore New Orleans, but we’ve got to start in North Louisiana and capitalize on what they have up there, which is a lot of land and hardworking people.”

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Rural land also makes sense for companies like Meta. Data centers expand across the country in areas that can accommodate their massive land, water and power needs. The Meta project is one of several data centers in the works in the state.

In a statement on Thursday, Louisiana Economic Development spokesperson Emma Wagner said that the agency’s “focus is ensuring every part of the state, including New Orleans, has opportunities for growth and success.”

Economist Stephen Barnes, director of the Kathleen Blanco Public Policy Center at the University of Louisiana at Lafayette who also serves on the Louisiana Revenue Estimating conference, said that while data centers may bring short-term development wins, the 300-year-old New Orleans’ economic contributions to the state — spurred by a tourism-centered economy that benefits from the city’s unique culture and celebrations such as Mardi Gras, festivals, Super Bowl and Sugar Bowl, to name but a few — are far more consistent.

“$50 billion is a one-time investment that takes place over a period of several years,” said Barnes, referring to Meta’s potential investment in the Richland Parish data center. “The New Orleans economy is contributing many tens of billions of dollars every year, year after year.”

Staff writer Tyler Bridges contributed to this report.

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