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Local Regulation in Louisiana’s Haynesville Shale

Local Regulation in Louisiana’s Haynesville Shale. Jerry N. Jones 401 Edwards Street, Suite 1000 Shreveport, Louisiana 71101-5529 Tel.: (318) 227-1131 Direct: (318) 934-4002 Fax: (318) 227-1141 E-mail: jjones@bradleyfirm.com Website: http://www.bradleyfirm.com.

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Local Regulation in Louisiana’s Haynesville Shale

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  1. Local Regulation in Louisiana’s Haynesville Shale Jerry N. Jones 401 Edwards Street, Suite 1000 Shreveport, Louisiana 71101-5529 Tel.: (318) 227-1131 Direct: (318) 934-4002 Fax: (318) 227-1141 E-mail: jjones@bradleyfirm.com Website: http://www.bradleyfirm.com

  2. Haynesville Shale Jerry N. Jones

  3. October 2009: Louisiana Department of Natural resources announced that 10.4% of all oil and gas operations in the U.S. were in the Haynesville Shale • And 5% of the country’s activity was in DeSoto Parish alone Jerry N. Jones

  4. Heaviest Activity • DeSoto Parish • Red River Parish • Caddo Parish • Bossier Parish Jerry N. Jones

  5. Jerry N. Jones

  6. Jerry N. Jones

  7. Proximity of Haynesville Shale to Barnett Shale Jerry N. Jones

  8. Local regulation adopted in: • Bossier Parish • Caddo Parish • DeSoto Parish • Cities of Bossier City and Shreveport Jerry N. Jones

  9. Areas of Regulation • General drilling activities • Road use, repairs, and maintenance • Noise Jerry N. Jones

  10. State of Louisiana • La. R.S. 30:1, et seq.:  Establishes authority of the Louisiana Office of Conservation in the area of oil and gas operations.  • La. R.S. 30: 28(F):  "The issuance of the permit by the commissioner of conservation shall be sufficient authorization to the holder of the permit to enter upon the property covered by the permit and to drill in search of minerals thereon. No other agency or political subdivision of the state shall have the authority, andthey are expressly forbidden, to prohibit or in any way interfere with the drilling of a well or test well in search of minerals by the holder of such a permit." Jerry N. Jones

  11. State of Louisiana (cont’d) • LAC 43:XIX (commonly referred to "Rule 29-B"): definitive Louisiana Office of Conservation regulation regarding drilling, completion, work over, and safety in oil and gas operations in the state. • Statewide Order U-HS: definitive Louisiana Office of Conservation regulation regarding natural gas operations in urban areas within the Haynesville Shale. Jerry N. Jones

  12. Bossier Parish • Ordinance 4041 of 2005: Drainage impact reports • Ordinance 4240 (A) of 2008:  Ground water protection • Ordinance 4241 (A) of 2008:  Flood damage prevention • Ordinance 4287 of 2009:  Road and bridge use regulations • Ordinance 4311 of 2009:  Road and bridge use regulations • Ordinance 4329 of 2010:  Road and bridge use regulations • Ordinance 4372 of 2011:  Noise regulations Jerry N. Jones

  13. Caddo Parish • Ordinance 4916 of 2009:  Oil and gas well regulations • Ordinance 4967 of 2010:  Road and bridge use regulations • Ordinance 5072 of 2011:  Noise regulations Jerry N. Jones

  14. DeSoto Parish • Ordinance 7 of 1986:  Road and bridge use regulations • Ordinance 8 of 1986:  Road and bridge use regulations • Ordinance 15 of 2009:  Road and bridge use regulations Jerry N. Jones

  15. City of Bossier City • Ordinance 40 of 2009:  Oil and gas well regulations Jerry N. Jones

  16. City of Shreveport • Ordinance 66 of 2009:  Oil and gas well regulations • Ordinance 41 of 2011:  Noise regulations • Pipeline servitude (right-of-way) policy Jerry N. Jones

  17. Issues • Preemption by Louisiana Office of Conservation • Preemption by Federal Natural Gas Act and Pipeline Safety Act Jerry N. Jones

  18. State preemption of local regulation of oil and gas operations: • La. Const. art VI, Section 7 • Energy Mgmt. Corp. v. City of Shreveport, No. 05-30551, 397 F. 3d 297 (5th Cir. 1/13/05), on appeal after remand, 467 F. 3d 471 (5th Cir. 10/6/2006) Jerry N. Jones

  19. Natural Gas Act: 15 U.S.C. Section 717 et seq. Schneidewind v. ANR Pipeline Co. 485 U.S. 293 (1988) National Fuel Gas Supply Corp. v. Public Service Commission of New York 894 F. 2d 571 (2nd Cir. 1990) Northern Natural Gas Co. v. Iowa Utilities Board 377 F. 3d. 817 (8th Cir. 2004) Pipeline Safety Act: 49 U.S.C Section 20101 et seq. Olympic Pipe Line Co. v. City of Seattle 437 F. 3d 872 (9th Cir. 2006) Texas Midstream Gas Serv. V. City of Grand Prairie 608 F. 3d 200 (5th Cir. 2010) Federal preemption of localregulation of pipelines Jerry N. Jones

  20. Lessons learned: • Get involved as local regulation is being drafted and adopted. • Be prepared to educate local government and their lawyers about the industry and applicable state and federal law. • Be cooperative, not antagonistic. Jerry N. Jones

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