Jean-Paul Coussan | X
Jean-Paul Coussan | X
During his time in the Louisiana House of Representatives, State Sen. Jean-Paul Coussan (R-Lafayette), now a candidate for the Louisiana Public Service Commission (LPSC) sponsored a key bill to incentivize smaller oil companies to take over abandoned oil wells, and when finished with them, properly plug them to provide an environmental benefit to the community.
In April 2021, HB 662, a bill exempting oil production from certain abandoned wells from the severance tax, was introduced into the Louisiana State House. Coussan was the primary author of the bill. On May 11, 2021, HB 662 passed the House with unanimous support.
As the Louisiana Illuminator reported, at the time of the bill's passage there were more than 4000 oil wells in the state that were designated as “orphaned or abandoned.” Wells typically are abandoned when a small oil company purchases a previously drilled well from a larger company and “goes bankrupt without properly plugging and abandoning that well.”
When wells are improperly abandoned, the liability falls to the state, but according to a 2014 Louisiana Legislative Auditor report, the state program to clean up these wells lacked funding. They wrote that Coussan’s bill “would incentivise new oil producers to come in and take over the liability of the well by eliminating the severance tax on oil production.” Companies would be exempt from the tax, typically 12.5%, for two years, or until the production surpasses the cost of operating the well.
In addition to the economic benefit for the energy industry, Coussan contended that the bill would also provide an environmental benefit as it would provide an incentive for smaller companies to take over smaller wells and ultimately plug them properly when finished.
Coussan will face Julie Quinn, a lawyer and former State Senator, and Democrat Nick Laborde, a human resources consultant, for the District 2 seat on the Louisiana Public Service Commission during the November general election. If no candidate reaches the 50 percent threshold, the top two vote receivers will advance to a runoff.
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