Benefits to LORA operators
Title 43.XIX.104 financial security requirements are fulfilled at a favorable rate, potentially affording operators significant savings and keeping small operators viable.
No collateral is generally required by LORA for financial security.
Fees collected by LORA remain in the Louisiana economy.
In a partnership with the Office of Conservation, a significant amount of the proceeds will be invested in reducing the number of orphan wells in Louisiana.
The Louisiana Oilfield Restoration Association, Inc. (also known as LORA or LORA Financial Security) provides Louisiana oil and gas well operators with the financial security required by the Louisiana Office of Conservation to operate wells in Louisiana.
LORA is a local Louisiana company founded to alleviate some of the difficulties expressed by oil and gas well operators in obtaining the financial security required by the Louisiana Office of Conservation (Louisiana Administrative Code 43.XIX.104) at an affordable rate. Additionally, LORA has partnered with the Office of Conservation in a program to use a portion of its proceeds to address the issue of orphan wells in Louisiana.
Partnership with the Office of Conservation
The Office of Conservation began its Oilfield Site Restoration (OSR) program in 1993 with approximately 1,900 orphan wells in Louisiana. Over the years, the number of orphan wells has continued to grow. Although 3,200 orphan wells have been properly plugged and abandoned by the OSR program, approximately 4,100 orphan wells remain on the OSR orphan well list.
LORA, in partnership with the Office of Conservation, will use a portion of its profits to plug and abandon orphan wells to assist the OSR program and ensure a safer, more environmentally friendly Louisiana for future generations.