The Louisiana Department of Natural Resources (LDNR) has proposed a rule that will significantly restrict the practice of venting and flaring at wellsites in an effort to address natural gas waste in Louisiana. The proposal comes in the wake of a recent analysis commissioned by the Environmental Defense Fund, which found that oil and gas operators in Louisiana wasted over $16 million worth of gas in 2019 through venting and flaring alone, among other findings.
The LDNR received over 140 public comments during the comment period, which comments consisted of technical feedback, concerns regarding the rule's language, and general support. The department then issued a Revised Notice of Intent outlining the revised proposal and the revisions made based on certain comments. Generally, the proposed rule expressly prohibits:
(1) the venting of natural gas except where routine flaring is not an economical or safe alternative; and
(2) the routine flaring of natural gas except where the Office of Conservation finds, upon written application, that such prohibition would result in an economic hardship on the operator of the well, lease or production facility. The rulemaking process is ongoing, but the earliest effective date of the rule is October 20, 2023.
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