Provides for the operation of commercial saltwater disposal wells (OR +$330,397 SD EX See Note)

House Bill 706 enacts a new statute, Louisiana Revised Statutes 30:4.4, that establishes a regulatory framework governing maximum authorized surface injection pressure for commercial Class II saltwater disposal wells. The legislation creates a two-tiered pressure system: a default maximum authorized surface injection pressure calculated at ninety percent of the fracture gradient for the injection interval using either Eaton's fracture gradient chart or verified field data, and an enhanced pressure allowance for operators who demonstrate compliance with specified technical and geological criteria. Operators seeking an increased maximum authorized surface injection pressure above the default must submit an application to the Department of Conservation and Energy demonstrating that elevated pressure will not initiate or propagate fractures through the confining zone, provide professional engineer or geoscientist attestation of their data, confirm adequate confining formations between the injection interval and productive oil and gas wells within one mile, satisfy regulatory casing requirements, ensure proper sealing or abandonment of artificial penetrations, maintain monitoring wells at the base of underground sources of drinking water, and address seismic considerations through historical analysis or approved monitoring plans. Upon meeting these requirements, operators may receive authorization for injection pressure up to fifty hundredths of a pound per square inch per vertical foot, with a minimum floor of forty hundredths of a pound per square inch per vertical foot calculated from the surface to the top-most perforation.

The statute affects operators of commercial Class II injection wells, including both existing permit holders and applicants seeking new permits for saltwater disposal operations. The Department of Conservation and Energy gains explicit statutory authority to establish and enforce maximum injection pressure standards, with a mandatory sixty-day approval or denial timeline for pressure increase applications. Operators exceeding their permitted maximum authorized surface injection pressure or violating other conditions established under the statute become subject to enforcement penalties. Compliance requires operators to invest in technical studies, professional certifications, and monitoring infrastructure, potentially increasing operational costs but providing pathways to operational efficiency through higher permissible injection pressures when geological and engineering conditions support such operations.

The statute operates within the existing regulatory framework for Class II injection wells established under Louisiana oil and gas conservation law. Present law, codified in Louisiana Revised Statutes 30:4, grants the secretary of the Department of Conservation and Energy authority to regulate Class II injection wells for disposal of oil and gas exploration and production waste, and this new provision supplements that authority by establishing specific pressure standards consistent with federal regulations incorporated by reference. The legislation references Louisiana Administrative Code 43:XIX.415 for casing requirements and 43:XIX.501 for exploration and production waste definitions, integrating the new pressure standards with existing departmental regulations. Violations are enforced under the penalty provisions of Louisiana Revised Statutes 30:18, maintaining consistency with the established enforcement framework for conservation law violations.