LOUISIANA'S DISCHARGE RULE OPPOSED

Independent producers in Louisiana vow to continue a battle against new zero discharge rules issued by their state's Department of Environmental Quality (DEQ). The rules, which went into effect this month, require phased elimination of unpermitted discharges into state waters by Jan. 1, 1995 (OGJ, Apr. 8, Newsletter). The ban covers waste water, waste oil, drilling fluids and cuttings, and stormwater runoff from oil and gas exploration and production sites.

April 15, 1991

2 min read

Independent producers in Louisiana vow to continue a battle against new zero discharge rules issued by their state's Department of Environmental Quality (DEQ).

The rules, which went into effect this month, require phased elimination of unpermitted discharges into state waters by Jan. 1, 1995 (OGJ, Apr. 8, Newsletter). The ban covers waste water, waste oil, drilling fluids and cuttings, and stormwater runoff from oil and gas exploration and production sites.

Members of the Louisiana Independent Producers and Royalty Owners Association (Laipro) are deciding whether to challenge the rules with a class action suit against the DEQ, lobby in the state legislature for a tax credit to offset the cost of compliance, or back a state legislature resolution rejecting the rule.

The association estimates compliance costs at about $1 billion, including at least $337 million to drill more than 2,000 disposal wells and $186 million/year to operate them.

Laipro members have been asked to complete a confidential survey that will more accurately reflect compliance costs.

Laipro also warns that production lost from wells rendered uneconomic by the zero discharge rule would cost state government more than $78 million/year in lost taxes and royalties.

And it charges the rules were approved without proof that contaminants in oil field wastes are being released in concentrations that harm the environment or human health and without consideration of its cost to the oil and gas industry.

Laipro claims DEQ and Louisiana Universities Marine Consortium studies show the effect of salinity is negligible in major segments of state estuaries, and discharges of produced water have no effect on marsh loss.