Wednesday, January 25, 2012

 
Philip Wilson
EO Guatemala 
Philip is the Founder of Solucionweb.com, an international Web services company based in Guatemala. He also runs Ecofiltro, a water-filter
project for the needy, and Finca El Pintado, an organic coffee farm. Philip can be reached at pwilson@solucionweb.com.




A Lesson in Ethics by Phillip Wilson
When I buried my grandfather 15 years ago in Guatemala, I was amazed at the people in attendance. There were folks from all walks of life— from community leaders and powerful businessmen to the poorest among them: a shoe-shine boy and an old beggar. My grandfather had been a successful entrepreneur, but what brought people to the burial that day was his integrity. He always did the right thing, even when it did not seem to make a lot of business sense.
As an entrepreneur, I know that doing the right thing can be hard, especially when there is constant pressure to create profit and remain competitive. It is easy to fall into having a short-term vision predicated on shortcuts and sneaky routes to success. I’ve learned that the only way to avoid falling for these unethical choices is to be deliberate about instilling the virtues of honesty, humility and generosity into your company. Here is how I learned to lay a foundation of ethics in my business:
I’m Honest With Myself
I try to stay self aware and truthful about my limitations and strengths. As an entrepreneur, it is tempting to be all things to all people. But being humble about your weaknesses allows you to delegate and trust others. In the long term, I’ve discovered it helps your business grow, even when you’re not in the picture.
I Put People First
An employee must be treated with respect and fairness. Aside from paying well, putting people first means investing in their professional and personal growth, even when it does not have a direct effect on the bottom line. At my company, I provide free English classes to all of my employees, including those who will not interact with our English-speaking clients. I know that doing so will create life-changing opportunities for the staff, even if it is not with my company.
I Try To Be Humble
I try my best to accept errors with humility. This is particularly important with clients. Assuming responsibility and working to solve problems leads to trust and longlasting relationships. A few months ago, one of our sales representatives sold a large and complex project to an important client without properly pricing it. A contract was signed and although we knew we would lose money, we fulfilled our part of the bargain. When the client learned what we had done, they gratefully sent us other referrals.
I Stay Generous
Good business ethics also means understanding your role in the greater whole. At our company, we donate numerous Web sites a year to worthy causes. Doing so has not only given us respect from our clients and employees, but it has also attracted new business to the company.
Since the passing of my grandfather, I make it a point to remember that good ethics equals good business. Leading with a strong sense of values puts the present challenges into perspective and allows me to make better choices. A dollar spent on an employee or in the community has a multiplying effect that leads to sustainability in the business world. And in the end, my principles will long outlive my profits.

  I am so proud of my childhood friend Phillip Wilson.  WOW!!!!!

 

 

Ecofiltro named among world’s top 50 enterprises

| June 1, 2011 | 0 Comments
Ecofiltro, a Guatemalan company that produces an innovative, easy-to-use water purifier, has been named one the world’s Top 50 Small and Medium Enterprises by infoDev, an international association sponsored by the World Bank.
Based in La Antigua Guatemala, Ecofiltro, S.A., is a joint effort between Guatemalan scientist Fernando Mazariegos, who invented Ecofiltro in 1981, and entrepreneur Philip Wilson.
EcofiltroEcofiltro has distributed more than 80,000 units in the last five years, benefiting more than 500,000 Guatemalans, especially in rural areas, and has significantly contributed to health improvement and gastrointestinal illness prevention.
Ecofiltro has also helped reduce the number of trees previously cut and burned as firewood to boil water in rural communities. Various models are available, starting at Q300 depending on size.
In 2003 and 2004, the World Bank awarded Ecofiltro with the Marketplace Award for its sustainability.
Most recently, infoDev, with funding from the government of Finland, held a competition to identify the world’s Top 50 Small and Medium Enterprises with the goal of broadening their international commercial connections. It received 750 applications from 65 countries. Through Ecofiltro, Guatemala was the only Central American country that made the Top 50 list.
Winners were invited to participate in the 4th Global Forum on Innovation and Technology Entrepreneurship in Helsinki, Finland, May 30-June 3.
More info: www.ecofiltro.com or www.infodev.org, or email info@ecofiltro.com

Saturday, January 21, 2012

Here is an old article, but a good one regrading living in sea containers.  At BCI we are working with Global Disaster Housing of Covington Louisiana and Germ Free of Florida to design better job site living quarters and the best deployable laboratories for an assortment of purposes.


Want to Live in a ISBU Shipping Container Home?

by heather on February 16, 2009
Post Publication Addition: Since writing this article, I’ve learned an awful lot about ISBU homes. I’ve even teamed up with an expert on container homes, and together we’ve written a book. If you’re interested in living in an amazing container home yourself, my partner, Alex Klein, and I have written an introductory book on how to do it. Alex has built over 100 ISBU homes around the world, and even consults with Congress on using these containers for housing. The book is called Introduction to Container Homes and Buildings. Want to check it out? Head over here for more information.
If you’re a regular reader of The Greenest Dollar, then you probably already know that I’m enthralled with the idea of living in a micro home. For the uninitiated, a micro home is pretty much the backlash against the McMansion movement of the past twenty years.
The trend now is in the opposite direction. Hallelujah! We’re going Small. Green. Efficient.
That’s micro home living.
So, it is with the utmost excitement that I share this idea with you. And, the idea is constructing a home using old steel shipping containers.
Now, before you throw your mouse at the screen in disgust because those steel shipping containers are just too ugly to even think about being used as a house, just take a look for a moment at what’s possible and then we’ll talk…

Pretty amazing, right? All of those images are from ContainerCity.com, which is the website for Urban Space Management, a group of builders in London who are building entire communities, schools, and farmer’s markets using old freight containers.
These container homes funky, green, amazingly affordable, and comfortable. If you want to see more images (all of which will knock your socks off) they have a really amazing portfolio of past projects on their website. Again, which you can find here.




There’s also this really amazing clip from Modern Marvels that you can watch. It’s all about Container City, how the builders did it, and how much it costs to live there (you’ll be amazed at how cheap it is).
Can You REALLY Live In A Shipping Container?
Well, I’m new to this myself. When I originally discovered micro home living, I stumbled across a few people who had transformed shipping containers into homes, but I was so enthralled with the modernist designs of the pre-fab mini homes that I gave the freight homes a blind eye.
My mistake.
I stumbled across container homes again over the weekend, and this time it was a Eureka! moment. I mean, the idea of living in an recycled shipping container is just brilliant. It’s still a mini home because they’re not that big, and they’re way, WAY cheaper than the weeHouse or miniHome designs I was looking at (which were going to set me back at least $150,000, not including the land. Ouch!)
How much are shipping containers?
Well, after digging around online this weekend, it seems as if the average is $1,500 to $3,000 each. And, that’s for shipping crates that are 40 ft long x 8 ft wide x 8 ft tall.
Important Addition: After this article posted, a fellow blogger/builder by the name of Ronin wrote in about his experiences building shipping container homes. He offered up some fascinating tips on pricing these out, which you can see in the comments below the article.
Another amazing thing about these shipping crates is that they’re made to stack on top of each other. If you watched the YouTube video about Container City then you know that every container is made exactly the same, which means they can easily be stacked. This leads to some funky, Lego-like structures that are fun and very interesting to look at.
So How Green Are Shipping Containers?

Shipping containers can be made as green as you want them to be.
Andrew and I are so enthralled with this idea that I think we’re going to go this route instead of buying a micro home. Our idea is to buy three containers, two of which we’ll combine and renovate into a living space, and one which we’ll leave separate for a home office/exercise space.
My goal is to incorporate wind and hydro power into our design so that we can be off-grid wherever we end up plopping our crates down. We’ve already come up with a really cool design (opening up the roof to allow tons of natural light in, as well as cutting plenty of oval windows like they did with the Container City project, and building a wrap-around deck).
Time for research mode.
Aren’t Shipping Containers Cold and Uncomfortable?
Well, obviously I’ve never been in one. But all the images I’ve seen thus far say the exact opposite. These freight containers are not dark, cold hovels to keep the rain off your head, and you won’t feel like a hobo if you live in one. Once you do some renovations, they can be incredibly inviting, warm spaces that let in far more light than my current home does.
People have cut away entire walls, opened up the roof, and stacked two or three or four willy-nilly to create living spaces that are amazingly inspiring.
You can also buy shipping containers that are already insulated, although I don’t know at this point how well they’re insulated.
And like all mini-homes, they’re also very cost-effective to live in. How much money do you think it takes to heat a 300 square foot living space? What about to cool one in the summer?
Answer: not a lot. Especially if you incorporate a small wood-burning stove.
Photo from Treehugger.com
Photo from Treehugger.com
This young couple (pic on right) in New Zealand transformed a small shipping container into a paradise house. Think they pay a lot of utilities?
No way.
More Shipping Container Resources
So, is your heart pumping with excitement like mine was this weekend? If so, awesome. Here’s a list of more resources you can check out to get you moving…
  • RenaissanceRonin: Ronin’s blog is a must read if you want to learn more about living in a shipping container home. This post, here, would make a great start on his blog. And, he’s completely hilarious, so don’t miss it. Also, check out this post to help Ronin finish his shipping container home: “Interested In Shipping Containers? Then Help A Fellow Blogger”
  • Prefab Modern- This is a wonderful book all about Prefab Modern housing. It’s got tons of shipping container homes in there, and jaw dropping photographs. After reading this book, you’ll be on fire to live in one of these small homes. Highly recommend.
  • Treehugger.com: 12 Shipping Container House Ideas- Lots of nice design ideas and pictures for this article.
  • Container City- I know I’ve posted this link three times by now, but just in case you haven’t clicked on it yet…
  • FabPreFab.com’s Container Bay- This site has an almost inexhaustable list of shipping container projects all around the globe. The rest of their site is also highly useful if you’re interested in seeing more modern, pre-fab mini homes. Highly recommend it!
  • TruckertoTrucker.com- If you’re wanting to buy your own shipping crates, this trucking site has a really comprehensive list.
  • ContainersNow.com- Another site selling shipping containers. This one’s great because they list prices, which is helpful.
  • AccessContainer.com- This site has a ton of different types of shipping containers, and even a model that’s specially cut out to become a home (which would save money from hiring someone to do that). If you click on “Container”, the precut containers are the last link down the page, where it says “45′ Container Home”.
  • ZeroCabin.com- This site is amazing. Seriously. Go here now, and just scroll down. These shipping container homes will blow you away.
  • Hive Modular- This architect was recommended by Ronin, and his shipping crate designs are completely fabulous. Check out it.
More Micro Home Resources
If you’re new to micro home living, then you might want to investigate these resources…
Last Word…
I’m sure I’ll be posting more articles on this topic. ISBU homes are definitely taking off, so stay tuned!

Water Transportation Services, NEC market report | HighBeam Business: Arrive Prepared

Water Transportation Services, NEC market report HighBeam Business: Arrive Prepared

Friday, January 20, 2012



Clean Defense Summit
Greetings!

Top officials from the Defense Department, U.S. Air Force, U.S. Army, U.S. Navy, and local military bases throughout the United States are now confirmed! Click here to respond. Reserve your seat now!
We are pleased to invite you to participate in the CLEAN DEFENSE SUMMIT, scheduled for February 8, 2012 in Washington. More than 300 top business and government leaders are now expected!
The premier annual clean defense forum brings together all branches of the U.S. military to specifically focus on advancements in clean energy, alternative fuels, energy efficiency, and environmental technologies within the U.S. Department of Defense. The U.S. Navy, U.S. Air Force, U.S. Army, U.S. Marines, and local military bases are actively seeking clean defense solutions from industry, representing one of the most significant contracting opportunities of this decade.
The CLEAN DEFENSE SUMMIT will provide the latest details on multi-billion-dollar opportunities in clean defense from top Pentagon officials, local military base commanders, procurement and acquisitions officials, and other key decision-makers. The SUMMIT will feature a variety of settings to introduce you to key decision-makers. These include a Clean Defense Leadership Roundtable; a Clean Defense VIP Reception; a Clean Defense Exhibition; and multiple General Sessions.
General Sessions include top speakers providing the latest details on:
* The clean energy, alternative fuel, energy efficiency, and environmental technology programs of the U.S. Navy, U.S. Air Force, U.S. Army, and U.S. Marines
* The clean defense programs of individual military bases throughout the U.S.
* New clean defense RFPs from the Department of Defense
* Strategies for winning clean defense contracts with the Department of Defense
* New R&D programs for clean defense
* Interagency programs to support clean defense, including the U.S. Department of Energy, U.S. Department of Agriculture, and the Small Business Administration
* Leading clean technology solutions from top companies
The CLEAN DEFENSE SUMMIT is an extraordinary opportunity for you to be involved in one of the most important contracting opportunities of this decade. Participate in the SUMMIT, get the latest information, and meet key decision-makers.
Seating is limited. REGISTER NOW!
Please click the link below, view the invitation, and respond by clicking either the Yes or No button at the bottom of the invitation.

Thursday, January 19, 2012

Owner of Hotel Damaged by Methane Gas From Adjacent Landfill Not Entitled to Administrative Claim

There were a number of methane cases in 2011. This case involves a hotel that was constructed next to a landfill. When the methane gas collection failed during the bankruptcy proceeding of the landfill operator, explosive levels of methane gas reached the hotel. The hotel suffered such a severe decline in business that the owner filed for bankruptcy itself and ended up selling the hotel for 20% of its value due to the methane problems.

No Administrative Claim For Hotel Damaged By Methane from Bankrupt...

www.balanceconsultinginc.com

Balance Consulting Inc.
Mandeville, Louisiana
70471

Tuesday, January 17, 2012

Balance Consulting Inc. (BCI)  is please to announce that we are working with Germ Free to design , build and deploy remote environmental monitoring laboratories.  Based on our experience with designing and constructing permanent facilities for monitoring (particularly weather, water sources and waste water treatment systems, including storm water monitoring) we found a great fit in supporting the premiere company for building mobile, modular and deployable labs with a multitude of configurations and applications in almost any setting.  BCI is seeking vendors who can become preferred for these efforts.  We are always looking for new markets for these types of facilities.  Mobile and portable labs in the confines of sea containers and other configurations are becoming the solution for short term and long term lab activities.  More to come on this subject. 

BCI

Memo to Our Clients

Louisiana Environmental Law & Regulatory Update

May 29, 2011

Regular Session, 2011, House Bills 563 & 564 and Senate Bill 146



Note to the Reader: The following is a summary based on the synthesis of regulatory review both federal and state, published news articles, blogs, interviews and firsthand knowledge of the implications for both sides on the issue of “Legacy” or “Legacy Oil Field Sites” or formerly used exploration or production sites (E&P).  Feel free to comment as this subject is a moving target. We do our best to check facts and relish in updating the action on this subject.  In this memo we refer to the Louisiana Department of Natural Resources as the LDNR and this can be substituted for the Louisiana Legislatures reference to Office of Conservation or “OOC”.

This year in the regular session of Louisiana Legislature, three bills were set out, two in the House (HB 563 & 564) and one in the Senate (SB 146). The House Bills 563 & 564 were voted down (deferred) in committee in a 10-7 vote on May 18, 2011, thus killing the bills for this regular session.   The sister Bill 146 in the Senate is still alive as of this writing, but is probably dead for this session.

Proponents of these bills presented fairly bold language as compared to past attempts at regulating what the oil industry believes are frivolous claims that are impacting mainly smaller operators from speculation, exploration and production. HB 563[i] and SB 146 present “primary jurisdiction” for the LDNR that would cover any claims of environmental damages resulting from oil and gas exploration and production on Louisiana land based operations.  HB 564[ii] makes “specific performance” the “preferred remedy” for environmental claims under the Louisiana Oil Field Restoration Law.  It appears that these bills are attempting to eliminate stakeholders and landowners rights to file suit to recover damages for environmental impact claims by broadening the LDNRs power over these matters like a separate court,  specifically for the oil and gas operators that engage, or have engaged, in both exploration and production.  Opponents to the bills make many claims, but the most salient one is that the foundation and spirit of these bills are unconstitutional. This battle does not seem to have a sunset.  We believe it should be settled at the federal level by reassessing the applicability of the exemptions and exclusions that exist for this industry.  LDNR remained neutral throughout the hearings and this frustrated numerous representatives of both sides. The goal of the proponents was to give LDNR more power and thus reduce litigation time.  Opponents said it should do just the opposite. 

This recent effort injected some new language that warrants attention.  In particular, the proposal of authorizing the Louisiana Department of Natural Resources to have primary jurisdiction for ALL demands arising as a result of actual or potential impacts, damages, or injury to environmental media caused by impacts from oil field operators of exploration and production.  It also attempted to advance that all monies recovered would be placed in the Oil Site Restoration Fund[iii].  According to the Daily Comet, May 19, 2011[Jeremy Alford - Capitol Correspondent] paraphrasing…..“Members of the House Natural Resources Committee said they were concerned about passing a bill with enormous complexities, while state officials wavered on the question of whether the Louisiana Department of Natural Resources could take the specialized claims process from the courts”.

These bills bring up issues on constitutionality by granting the LDNR the authority to adjudicate claims as opposed to the courts.  Property rights could also be thwarted as opposed to increased protection with 312. Another major concern by the opposition is that this would apply retroactively to current claims pending in the courts.

The opponents to this bill say that there is inadequate funding for the expansion of the responsibilities of the LDNR, to include all the required testing, monitoring, and regulatory hearings that be expected to overwhelm the capabilities of the LDNR.  They also claim that there is no budget that can cover these additional functions that the bills present.  In essence, the LDNR would be promoting the oil and gas industry and also be the agency for cleanup. Opponents believe Act 312 keeps the LDNR in the loop to protect the stakeholders and the people of the state without shifting this new financial burden to the state.

The typical discovery process is also said to be negated by the LDNR if these bills come to fruition. This could prevent full disclosure from ever happening.  On non-oil field sites like a solid or hazardous waste site “deed recordations” are sometimes required, and certainly full disclosure must occur prior to a transaction of that property where the activity took place. Determination of who is liable typically happens before the LDNR gets involved under 312. 

The process that would result from these bills would also require that verification of every operator be conducted at a hearing to determine the PRPs for that specific claim.  It also seems that these bills would delay the cleanup and increase soft costs that have nothing to do with remediation. 

Proponents are saying that these bills will promote stability for operators going into new E&P projects.  The oil and gas industry claims that there has been too much uncertainty with potential liability to risk start up activities in Louisiana.

Proponents of these bills say that 312 and the possibility of false claims against current and past operators has decreased activity in this market, however, more independent operator permits have been issued in recent years.  Opponents say the bills also fail to provide any answers towards better accountability before any litigation issues arise. There should be more attention made to operator’s responsibility to notify LDNR and land owners prior to vacating sites.  The lack of communication with landowners creates a chiasm of distrust. 

Here is an excerpt from Capitol Correspondent Jeremy Alford published in the Daily Comet:   

David Russell, president of McGowan Working Partners, said he deserves protections, too:

“Obtaining proper insurance ... for oilfield operations is not difficult to get,” Russell said. “It’s impossible. After 15 years of providing coverage, my company’s provider declined pollution liability insurance coverage simply due to the legacy-lawsuit issues in the state. Developments like this are going to shut this industry down, as far as Louisiana is concerned.”

Regardless of Wednesday’s outcome, opponents and proponents both agreed the program has faults.

Of the 250 cases recognized by the state, only two have been cleaned up since the latest law went into effect five years ago and another 16 cases are working through the system, according to Natural Resources attorney Blake Canfield.

Back Story:

During the 2006 Louisiana Legislative Session, Act 312 was successfully enacted.  This was viewed by many as a sound compromise for Big Oil and landowners and their advocates. This was done to reform the procedure in litigation claiming environmental damages.  These claims are commonly known as “legacy litigation”.  BCI is keenly aware of our clients/stakeholders desire to monitor ongoing bills or policy changes at LDNR or LDEQ that can affect ongoing claims. Act 312 will continue to be challenged based on constitutionality.  District and appellate courts continue to address issues that should have been vetted by now as compared to other contaminated site litigation under CERCLA.  Example issues are: 1) When to defer to LDNR on actual remediation plan approvals (we believe is best suited for LDEQ), 2)How to apply provisions of the Act 312, 3) Who should decide who the PRPs (principle responsible parties) are, and a host of other issues key to navigating or fighting any claim in state court. 



This is a nationwide issue and originates back to the RCRA Oil Field Wastes Exemption and CERLCA Petroleum Exclusion [See excerpt from LDNR Website at the bottom of this memo on Exempt and Non-Exempt Wastes[iv]].  E&P wastes have remained exempt (meeting discreet definitions and proof of “mixed wastes”) from Subtitle C based on the notion that “special wastes” are lower in toxicity as compared to other materials generated upstream from E&P.  The reader should not confuse this with OPA 1990 or LDEQ/EPA UST provisions. The CERCLA Notification Form promulgated in 1981 contained instructions which clearly excluded E&P wastes from regulation as CERCLA hazardous substances.  Wastes not subject to notification under Section 103(c) of Superfund (solid wastes not presently regulated as “hazardous waste” under RCRA) are generally drilling fluids, produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal energy. Therefore, even the EPA notification form acknowledged the CERCLA E&P Exclusion. 



Both sides agree that the system needs serious improvement. Hundreds of sites remain to be cleaned up and there seems to be little serious talk or better ideas of actual streamlining the process.  If the system is streamlined for both sides and clean-up is routine, it will inevitably be more conducive for exploration and production to take place.  Restitution for restoration through the courts is incredibly slow and the cleanup is often delayed or marginalized.



[i] The following are the key points of each bill that originated from the House as it was presented in committee:
HB No. 563
Abstract: Provides that the jurisdiction of the office of conservation includes claims for certain environmental damages resulting from oil and gas activity and authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law.

Proposed law provides that the office of conservation shall have primary jurisdiction for all demands arising as a result of any actual or potential impact, damage, or injury to environmental media caused by contamination resulting from activities associated with oilfield sites or exploration and production sites.

Proposed law requires that all judicial demands which have been filed or amended as of July 1, 2011, and which the office has not approved a plan to evaluate or remediate the environmental damage be stayed and referred to the office for approval of a plan.

Present law provides for the proper and timely cleanup, closure, and restoration of orphaned oilfield sites and creates the Oilfield Site Restoration Fund (fund) for that purpose.

Proposed law provides that monies recovered from activities conducted pursuant to the La. Oilfield Site Restoration Law shall be placed in the fund.

Proposed law authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law.

[ii] HB No. 564
Abstract: Authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law and provides that specific performance is the preferred remedy in a case of failure to restore the property subject to a mineral lease or mineral servitude.

Present law provides for the proper and timely cleanup, closure, and restoration of orphaned oilfield sites and creates the Oilfield Site Restoration Fund (fund) for that purpose.

Proposed law provides that monies recovered from activities conducted pursuant to the La. Oilfield Site Restoration Law shall be placed in the fund.

Proposed law authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law.

Proposed law provides that specific performance is the preferred remedy in a case of failure to restore the property subject to a mineral lease or mineral servitude.

Proposed law requires notice be sent to the lessor or grantee and a reasonable opportunity to respond and perform.

[iii] LDNR WEBSITE
Background
The Louisiana Oilfield Site Restoration Program was created in 1993 within the Department of Natural Resources to address the growing problem of unrestored orphaned oilfield sites across the State.  Orphan wells are abandoned oil and gas wells for which no viable responsible party can be located, or such party has failed to maintain the wellsite in accordance with State rules and regulations.  The specific focus of the Oilfield Site Restoration Program is to properly plug and abandon orphan wells and to restore sites to approximate pre-wellsite conditions suitable for redevelopment.
Oilfield site restoration projects range in size and scope from the repair of small wellhead leaks and the removal of exploration and production related trash and debris to the plugging of wells and removal of associated facilities and structures.  Orphan wells are found throughout the State in all areas where there has been historic oil and gas activity.  These sites deteriorate over time due to neglect from the operator of record and therefore become susceptible to releasing oil, gas, and saltwater to the surrounding area.  The Program has addressed sites near schools and public buildings, in sensitive coastal wetland areas, and near residential areas.
Orphan wellsites are prioritized to direct available funding to those sites that pose the greatest threat to public safety and environment.  However, in order to also economically decrease the total number of orphaned wells in the State, lower priority sites located near a proposed project area are often included in the project scope of work to increase cost-effectiveness by lowering overall individual well plugging costs.  Project design and oversight is handled by in-house petroleum engineering staff while all other restoration-specific tasks are contracted to approved oilfield contractors.  Project bids are solicited in accordance with the State bid law and projects are awarded to the lowest qualified bidder.
Funding
Revenue for the Program is entirely generated from a fee on oil and gas production in the State of Louisiana which is paid quarterly by Louisiana oil and gas operators.  These flat-rate fees are deposited to the oilfield site restoration fund (Fund) which is dedicated by statute to fund the operation of the Program.  No tax-payer dollars are utilized.  The fee consists of one and one-half cents ($.015) for every barrel of oil and condensate produced, and three-tenths of one cent ($.003) for every thousand cubic feet of gas produced.  This currently equates to roughly $4 million dollars a year to be utilized by the Program for orphan oilfield site restoration projects.
Recovery of Restoration Costs
The operator of record for an orphan wellsite is in all cases the primary party required to restore an oilfield site once it becomes unusable.  This responsibility remains whether or not a site specific trust account has been established for this purpose.  Should a site be restored using monies from the Fund, and a site specific trust account has not been created for the site, former operators and their working interest owners may then also have some liability in addition to the responsible party for repayment of the monies spent from the Fund.
The process of recovery of site restoration costs of orphaned oilfield sites from the responsible party and others who may share in this liability is addressed in LSA-R.S. 30:93.  The Secretary of the Department of Natural Resources is empowered by law to recover all costs incurred by the Program resulting from orphan site restoration operations.  The procedures to be utilized in this matter are dependent on the specific cost of site restoration activity and whether or not a site specific trust account has been established for the site restored.  For a site without a site specific trust account, the Secretary is authorized to collect only from the responsible party (i.e. the last operator of record and his working interest owners) unless the cost of the site restoration exceeds $250,000.00, at which time all former operators and working interest owners become liable for the entire restoration cost in inverse chronological order.
Site Specific Trust Accounts
In accordance with the provisions of the Oilfield Site Restoration Law (LSA R.S. 30:80 et seq), when a transfer of ownership interest of an oilfield site occurs, either party of the transfer can elect to file an application to establish a site specific trust account (SSTA) to cover future site restoration costs.  To the extent permitted under the law, once established and fully funded, a SSTA will release from liability the Transferor and all prior responsible parties for site restoration costs for the transferred oilfield site.  Thereafter, the Transferee will be considered the responsible party for the purposes of site restoration.  For more information, please see the document entitled 'Establishing a Site Specific Trust Account (SSTA)' or contact Program staff.  The following forms related to SSTAs are also available:
·         FORM 9604 - Site Specific Trust Account
·         FORM 9604-1 - Site Specific Trust Account Reassessment (MS Word, PDF).
The Oilfield Site Restoration Commission
The Program is domiciled within the Engineering Division of the Office of Conservation of the Department of Natural Resources.  Program oversight is provided by an Oilfield Site Restoration Commission which consists of ten members.  The Secretary of the Department of Natural Resources serves as chairman of the Commission, while the Commissioner of the Office of Conservation serves as vice-chairman.  The remaining eight members of the Commission are appointed by the Governor from a list of nominees submitted by various industry and environmental groups.  The Commission meets quarterly in Baton Rouge.
 Oilfield Site Restoration Commission
 Scott A. Angelle, Chairman, Secretary of DNR
James H. Welsh, Vice-Chairman, Commissioner of Conservation
Paul Frey, Louisiana Land Association
Don Briggs, Louisiana Oil & Gas Association
Wilfred Fruge, Louisiana Oil & Gas Association
Karen Gautreaux, Nature Conservancy
Randy Lanctot, LWF, Sierra & Audubon Societies
James Maranto, At Large
Michael Lyons, Mid-Continent Oil & Gas Association
Troy Vickers, Mid-Continent Oil & Gas Association

[iv]LDNR WEBSITE
 *Source-EPA document EPA530-K-95-003, May 1995
In December, 1978, the Environmental Protection Agency (EPA) proposed hazardous waste management standards that included reduced requirements for several types of large volume wastes. Generally, EPA believed these large volume "special wastes" are lower in toxicity than other wastes being regulated as hazardous waste under RCRA. Subsequently, Congress exempted these wastes from the RCRA Subtitle C hazardous waste regulations pending a study and regulatory determination by EPA. In 1988, EPA issued a regulatory determination stating that control of exploration and production (E&P) wastes under RCRA Subtitle D was not warranted. Hence, E&P waste have remained exempt from Subtitle C regulations. This exemption, however, did not preclude these wastes from control under state regulations, under the less stringent RCRA Subtitle D solid waste regulations, or under other federal regulations. In addition, although they are relieved from regulation as hazardous wastes, the exemption does not mean these wastes could not present a hazard to human health and the environment if improperly managed. Statewide Order No 29-B provides guidelines for environmentally sound management of these exempt wastes.
In the 1988 regulatory determination, EPA published lists of wastes regarded as exempt and non-exempt. The lists were provided as examples of wastes regarded as exempt or non-exempt; the lists were not to be considered comprehensive. The E&P waste wastes listed in this brochure closely track the exempt listing of the 1988 regulatory determination. Examples of non-exempt wastes are as follows:
  1. Gas plant cooling tower cleaning wastes;
  2. Painting wastes and waste solvents;
  3. Refinery wastes;
  4. Used equipment lubricating oils;
  5. Waste compressor oil, filters, and blowdown;
  6. Used hydraulic fluids.

[1] The following are the key points of each bill that originated from the House as it was presented in committee:

HB No. 563

Abstract: Provides that the jurisdiction of the office of conservation includes claims for certain environmental damages resulting from oil and gas activity and authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law.



Proposed law provides that the office of conservation shall have primary jurisdiction for all demands arising as a result of any actual or potential impact, damage, or injury to environmental media caused by contamination resulting from activities associated with oilfield sites or exploration and production sites.



Proposed law requires that all judicial demands which have been filed or amended as of July 1, 2011, and which the office has not approved a plan to evaluate or remediate the environmental damage be stayed and referred to the office for approval of a plan.



Present law provides for the proper and timely cleanup, closure, and restoration of orphaned oilfield sites and creates the Oilfield Site Restoration Fund (fund) for that purpose.



Proposed law provides that monies recovered from activities conducted pursuant to the La. Oilfield Site Restoration Law shall be placed in the fund.



Proposed law authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law.



[1] HB No. 564

Abstract: Authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law and provides that specific performance is the preferred remedy in a case of failure to restore the property subject to a mineral lease or mineral servitude.



Present law provides for the proper and timely cleanup, closure, and restoration of orphaned oilfield sites and creates the Oilfield Site Restoration Fund (fund) for that purpose.



Proposed law provides that monies recovered from activities conducted pursuant to the La. Oilfield Site Restoration Law shall be placed in the fund.



Proposed law authorizes the secretary of the Dept. of Natural Resources to take legal action to meet the purpose of the La. Oilfield Site Restoration Law.



Proposed law provides that specific performance is the preferred remedy in a case of failure to restore the property subject to a mineral lease or mineral servitude.



Proposed law requires notice be sent to the lessor or grantee and a reasonable opportunity to respond and perform.



[1] LDNR WEBSITE

Background

The Louisiana Oilfield Site Restoration Program was created in 1993 within the Department of Natural Resources to address the growing problem of unrestored orphaned oilfield sites across the State.  Orphan wells are abandoned oil and gas wells for which no viable responsible party can be located, or such party has failed to maintain the wellsite in accordance with State rules and regulations.  The specific focus of the Oilfield Site Restoration Program is to properly plug and abandon orphan wells and to restore sites to approximate pre-wellsite conditions suitable for redevelopment.

Oilfield site restoration projects range in size and scope from the repair of small wellhead leaks and the removal of exploration and production related trash and debris to the plugging of wells and removal of associated facilities and structures.  Orphan wells are found throughout the State in all areas where there has been historic oil and gas activity.  These sites deteriorate over time due to neglect from the operator of record and therefore become susceptible to releasing oil, gas, and saltwater to the surrounding area.  The Program has addressed sites near schools and public buildings, in sensitive coastal wetland areas, and near residential areas.

Orphan wellsites are prioritized to direct available funding to those sites that pose the greatest threat to public safety and environment.  However, in order to also economically decrease the total number of orphaned wells in the State, lower priority sites located near a proposed project area are often included in the project scope of work to increase cost-effectiveness by lowering overall individual well plugging costs.  Project design and oversight is handled by in-house petroleum engineering staff while all other restoration-specific tasks are contracted to approved oilfield contractors.  Project bids are solicited in accordance with the State bid law and projects are awarded to the lowest qualified bidder.

Funding

Revenue for the Program is entirely generated from a fee on oil and gas production in the State of Louisiana which is paid quarterly by Louisiana oil and gas operators.  These flat-rate fees are deposited to the oilfield site restoration fund (Fund) which is dedicated by statute to fund the operation of the Program.  No tax-payer dollars are utilized.  The fee consists of one and one-half cents ($.015) for every barrel of oil and condensate produced, and three-tenths of one cent ($.003) for every thousand cubic feet of gas produced.  This currently equates to roughly $4 million dollars a year to be utilized by the Program for orphan oilfield site restoration projects.

Recovery of Restoration Costs

The operator of record for an orphan wellsite is in all cases the primary party required to restore an oilfield site once it becomes unusable.  This responsibility remains whether or not a site specific trust account has been established for this purpose.  Should a site be restored using monies from the Fund, and a site specific trust account has not been created for the site, former operators and their working interest owners may then also have some liability in addition to the responsible party for repayment of the monies spent from the Fund.

The process of recovery of site restoration costs of orphaned oilfield sites from the responsible party and others who may share in this liability is addressed in LSA-R.S. 30:93.  The Secretary of the Department of Natural Resources is empowered by law to recover all costs incurred by the Program resulting from orphan site restoration operations.  The procedures to be utilized in this matter are dependent on the specific cost of site restoration activity and whether or not a site specific trust account has been established for the site restored.  For a site without a site specific trust account, the Secretary is authorized to collect only from the responsible party (i.e. the last operator of record and his working interest owners) unless the cost of the site restoration exceeds $250,000.00, at which time all former operators and working interest owners become liable for the entire restoration cost in inverse chronological order.

Site Specific Trust Accounts

In accordance with the provisions of the Oilfield Site Restoration Law (LSA R.S. 30:80 et seq), when a transfer of ownership interest of an oilfield site occurs, either party of the transfer can elect to file an application to establish a site specific trust account (SSTA) to cover future site restoration costs.  To the extent permitted under the law, once established and fully funded, a SSTA will release from liability the Transferor and all prior responsible parties for site restoration costs for the transferred oilfield site.  Thereafter, the Transferee will be considered the responsible party for the purposes of site restoration.  For more information, please see the document entitled 'Establishing a Site Specific Trust Account (SSTA)' or contact Program staff.  The following forms related to SSTAs are also available:

·         FORM 9604 - Site Specific Trust Account


·         FORM 9604-1 - Site Specific Trust Account Reassessment (MS Word, PDF).

The Oilfield Site Restoration Commission

The Program is domiciled within the Engineering Division of the Office of Conservation of the Department of Natural Resources.  Program oversight is provided by an Oilfield Site Restoration Commission which consists of ten members.  The Secretary of the Department of Natural Resources serves as chairman of the Commission, while the Commissioner of the Office of Conservation serves as vice-chairman.  The remaining eight members of the Commission are appointed by the Governor from a list of nominees submitted by various industry and environmental groups.  The Commission meets quarterly in Baton Rouge.

 Oilfield Site Restoration Commission
 Scott A. Angelle, Chairman, Secretary of DNR

James H. Welsh, Vice-Chairman, Commissioner of Conservation

Paul Frey, Louisiana Land Association

Don Briggs, Louisiana Oil & Gas Association

Wilfred Fruge, Louisiana Oil & Gas Association

Karen Gautreaux, Nature Conservancy

Randy Lanctot, LWF, Sierra & Audubon Societies

James Maranto, At Large

Michael Lyons, Mid-Continent Oil & Gas Association

Troy Vickers, Mid-Continent Oil & Gas Association



[1]LDNR WEBSITE

 *Source-EPA document EPA530-K-95-003, May 1995

In December, 1978, the Environmental Protection Agency (EPA) proposed hazardous waste management standards that included reduced requirements for several types of large volume wastes. Generally, EPA believed these large volume "special wastes" are lower in toxicity than other wastes being regulated as hazardous waste under RCRA. Subsequently, Congress exempted these wastes from the RCRA Subtitle C hazardous waste regulations pending a study and regulatory determination by EPA. In 1988, EPA issued a regulatory determination stating that control of exploration and production (E&P) wastes under RCRA Subtitle D was not warranted. Hence, E&P waste have remained exempt from Subtitle C regulations. This exemption, however, did not preclude these wastes from control under state regulations, under the less stringent RCRA Subtitle D solid waste regulations, or under other federal regulations. In addition, although they are relieved from regulation as hazardous wastes, the exemption does not mean these wastes could not present a hazard to human health and the environment if improperly managed. Statewide Order No 29-B provides guidelines for environmentally sound management of these exempt wastes.

In the 1988 regulatory determination, EPA published lists of wastes regarded as exempt and non-exempt. The lists were provided as examples of wastes regarded as exempt or non-exempt; the lists were not to be considered comprehensive. The E&P waste wastes listed in this brochure closely track the exempt listing of the 1988 regulatory determination. Examples of non-exempt wastes are as follows:

  1. Gas plant cooling tower cleaning wastes;
  2. Painting wastes and waste solvents;
  3. Refinery wastes;
  4. Used equipment lubricating oils;
  5. Waste compressor oil, filters, and blowdown;
  6. Used hydraulic fluids.