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.
A Louisiana babysitter was arrested after a toddler fell into a pool and drowned after being left underwater for 20 minutes, according to authorities.
Joann Johnson, 37, was charged with one count of negligent homicide on Wednesday after the 3-year-old boy died in her in-home daycare in Prairieville on May 18, according to the Ascension Parish Sheriff’s Office.
Joann Johnson, 37, was arrested after a toddler fell into a pool at her in-home daycare and drowned after being left underwater for 20 minutes. Ascension Parish Sheriff’s Office
Two young children in Johnson’s care were playing in the backyard that afternoon, “without any safety wear,” when the 3-year-old fell into the pool and drowned, cops wrote in a statement.
The toddler was unconscious for a whopping 20 minutes before Johnson was seen on surveillance footage pulling him out of the water, police said.
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Emergency responders rushed to revive the boy with CPR, but he was ultimately pronounced dead at a local hospital.
Emergency responders rushed to revive the boy with CPR, but he was ultimately pronounced dead at a local hospital.
Police filed an arrest warrant for Johnson following an investigation. The babysitter turned herself in on Wednesday and was booked into the Ascension Parish Jail.
Drowning is the number one cause of death for children 1-4 years old in the US, according to the Centers for Disease Control and Prevention.
RUSTON, La. (KNOE) – Louisiana Tech University’s College of Education and Human Sciences announced it has established a new Center for Literacy and Learning designed to expand evidence-based reading support for children and professional development for educators across North Louisiana.
The university’s Department of Curriculum, Instruction, and Leadership said the launch of the Center for Literacy and Learning at Louisiana Tech, also known as L3, will provide diagnostic assessments, tutoring and workshop opportunities, combining academic research with hands-on clinical practice.
“As literacy rates and reading achievement continue to present challenges across Louisiana and the nation, the Center for Literacy and Learning is rooted in supporting evidence-based instruction, applied research, and community partnerships,” said Dr. Dustin Whitlock, interim department head of Curriculum, Instruction, and Leadership.
Officials said planning for the center began more than a decade ago as faculty sought to expand literacy services for local schools and the surrounding community, but the effort faced delays due to space and funding challenges.
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University leaders said momentum increased after faculty partnered with the Louisiana Department of Education and literacy experts nationwide to create a professional learning course for Louisiana K-3 educators. The course, “The Science and Art of Teaching Reading,” focuses on structured literacy practices aligned with Science of Reading research. Louisiana Tech said funding connected to the course and the state education department helped make the center possible.
Megan Hunt, a teacher at A.E. Phillips Laboratory School, was selected to lead the center. Whitlock said Hunt brings a strong background in foundational literacy instruction and is working toward becoming a certified UFLI coach.
“Mrs. Hunt’s skill and expertise allow her to support both students and educators through high-quality literacy instruction and professional learning,” Whitlock said.
Hunt said the center is aimed at building long-term support for literacy instruction through collaboration with districts, families and community partners.
“Literacy affects all aspects of life and is ultimately how people access opportunity and how communities grow stronger,” Hunt said. “When children become proficient readers, it represents more than just academic progress; it changes the trajectory of their lives.”
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Local school leaders also praised the partnership. Michelle Thrower, K-2 facilitator for Lincoln Parish Schools, said professional development and resources connected to Louisiana Tech have supported literacy growth in the district.
“Our collaboration with Louisiana Tech has been a cornerstone of our success in elevating literacy proficiency across Lincoln Parish Schools,” Thrower said, citing DIBELS growth tied to the UFLI Foundations curriculum in K-2.
Louisiana Tech said the center will operate through three main components:
The Literacy Clinic
The Literacy Institute
The Literacy Resource Center.
The center is expected to provide individualized assessments, targeted intervention services, literacy workshops and educator professional development.
Officials said the components will be developed in phases over the next few years.
For more information, Louisiana Tech said the public can contact Dr. Dustin Whitlock at whitlock@latech.edu.
The U.S. Department of Energy announced Tuesday that Louisiana was one of the few states chosen for a $134 million rare earth element initiative in a move that would give the U.S. more independence from China, Reuters reports.
ElementUSA has been awarded about $67 million for a rare earth refining facility projected to cost $850 million in St. John the Baptist Parish to ramp up its production of core material for military vehicles, naval ships and aircrafts.
Louisiana’s rare earth element initiatives are aimed at relocating the critical American minerals supply chain for electric vehicles, renewable energy and national defense. The minerals include bauxite residue, which is a waste product from aluminium production. The plant is expected to produce roughly 150-1,000 metric tons of rare earths annually.
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Oklahoma was also chosen to receive grant money for a refining facility in Tulsa.
