Local Regulation in Louisianas Haynesville Shale Jerry N. Jones 401 Edwards Street, Suite 1000 Shreveport, Louisiana 71101-5529 Shreveport, Louisiana 71101-5529.

Local Regulation in Local Regulation in Louisiana’s Haynesville Louisiana’s Haynesville

ShaleShale

Jerry N. JonesJerry N. Jones401 Edwards Street, Suite 1000401 Edwards Street, Suite 1000

Shreveport, Louisiana 71101-5529Shreveport, Louisiana 71101-5529 Tel.: (318) 227-1131Tel.: (318) 227-1131

Direct: (318) 934-4002 Direct: (318) 934-4002 Fax: (318) 227-1141Fax: (318) 227-1141

E-mail: [email protected]: [email protected] Website: Website: http://www.bradleyfirm.com

Haynesville ShaleHaynesville Shale

Jerry N. Jones

October 2009: Louisiana Department of October 2009: Louisiana Department of Natural resources announced that 10.4% Natural resources announced that 10.4% of all oil and gas operations in the U.S. of all oil and gas operations in the U.S. were in the Haynesville Shalewere in the Haynesville Shale

And 5% of the country’s activity was in And 5% of the country’s activity was in DeSoto Parish aloneDeSoto Parish alone

Jerry N. Jones

Heaviest ActivityHeaviest Activity

DeSoto ParishDeSoto Parish

Red River ParishRed River Parish

Caddo ParishCaddo Parish

Bossier ParishBossier Parish

Jerry N. Jones

Jerry N. Jones

Jerry N. Jones

Jerry N. Jones

Proximity of Haynesville Shale to Proximity of Haynesville Shale to Barnett ShaleBarnett Shale

Local regulationLocal regulationadopted in:adopted in:

Bossier ParishBossier Parish

Caddo ParishCaddo Parish

DeSoto ParishDeSoto Parish

Cities of Bossier City Cities of Bossier City and Shreveportand Shreveport

Jerry N. Jones

Areas of RegulationAreas of Regulation

General drilling activitiesGeneral drilling activities

Road use, repairs, and maintenanceRoad use, repairs, and maintenance

NoiseNoise

Jerry N. Jones

State of LouisianaState of LouisianaLa. R.S. 30:1, La. R.S. 30:1, et seq.:  et seq.:  Establishes authority of the Establishes authority of the Louisiana Office of Conservation in the area of oil and Louisiana Office of Conservation in the area of oil and gas operations. gas operations. 

  La. R.S. 30: 28(F):  "The issuance of the permit by the La. R.S. 30: 28(F):  "The issuance of the permit by the commissioner of conservation shall be sufficient commissioner of conservation shall be sufficient authorization to the holder of the permit to enter upon the authorization to the holder of the permit to enter upon the property covered by the permit and to drill in search of property covered by the permit and to drill in search of minerals thereon. minerals thereon. No other agency or political No other agency or political subdivision of the state shall have the authority, subdivision of the state shall have the authority, andand they are expressly forbidden,they are expressly forbidden, to prohibit or in any way to prohibit or in any way interfere with the drilling of a well or test well in search of interfere with the drilling of a well or test well in search of minerals by the holder of such a permit."minerals by the holder of such a permit."

Jerry N. Jones

State of Louisiana (cont’d)State of Louisiana (cont’d)LAC 43:XIX (commonly referred to "Rule 29-B"): LAC 43:XIX (commonly referred to "Rule 29-B"): definitive Louisiana Office of Conservation definitive Louisiana Office of Conservation regulation regarding drilling, completion, work regulation regarding drilling, completion, work over, and safety in oil and gas operations in the over, and safety in oil and gas operations in the state.state.

  Statewide Order U-HS: definitive Louisiana Statewide Order U-HS: definitive Louisiana Office of Conservation regulation regarding Office of Conservation regulation regarding natural gas operations in urban areas within the natural gas operations in urban areas within the Haynesville Shale.Haynesville Shale.

Jerry N. Jones

Bossier ParishBossier Parish

Ordinance 4041 of 2005: Drainage impact reportsOrdinance 4041 of 2005: Drainage impact reports

Ordinance 4240 (A) of 2008:  Ground water protectionOrdinance 4240 (A) of 2008:  Ground water protection

Ordinance 4241 (A) of 2008:  Flood damage preventionOrdinance 4241 (A) of 2008:  Flood damage prevention

Ordinance 4287 of 2009:  Road and bridge use regulationsOrdinance 4287 of 2009:  Road and bridge use regulations

Ordinance 4311 of 2009:  Road and bridge use regulationsOrdinance 4311 of 2009:  Road and bridge use regulations

Ordinance 4329 of 2010:  Road and bridge use regulationsOrdinance 4329 of 2010:  Road and bridge use regulations

Ordinance 4372 of 2011:  Noise regulationsOrdinance 4372 of 2011:  Noise regulations

Jerry N. Jones

Caddo ParishCaddo Parish

Ordinance 4916 of 2009:  Oil and gas well Ordinance 4916 of 2009:  Oil and gas well regulationsregulations

Ordinance 4967 of 2010:  Road and bridge Ordinance 4967 of 2010:  Road and bridge use regulationsuse regulations

Ordinance 5072 of 2011:  Noise Ordinance 5072 of 2011:  Noise regulationsregulations

Jerry N. Jones

DeSoto ParishDeSoto Parish

Ordinance 7 of 1986:  Road and bridge Ordinance 7 of 1986:  Road and bridge use regulationsuse regulations

Ordinance 8 of 1986:  Road and bridge Ordinance 8 of 1986:  Road and bridge use regulationsuse regulations

Ordinance 15 of 2009:  Road and bridge Ordinance 15 of 2009:  Road and bridge use regulationsuse regulations

Jerry N. Jones

City of Bossier CityCity of Bossier City

Ordinance 40 of 2009:  Oil and gas well Ordinance 40 of 2009:  Oil and gas well regulationsregulations

Jerry N. Jones

City of Shreveport City of Shreveport

Ordinance 66 of 2009:  Oil and gas well Ordinance 66 of 2009:  Oil and gas well regulationsregulations

Ordinance 41 of 2011:  Noise regulationsOrdinance 41 of 2011:  Noise regulations

Pipeline servitude (right-of-way) policyPipeline servitude (right-of-way) policy

Jerry N. Jones

IssuesIssues

Preemption by Louisiana Office of Preemption by Louisiana Office of ConservationConservation

Preemption by Federal Natural Gas Act Preemption by Federal Natural Gas Act and Pipeline Safety Actand Pipeline Safety Act

Jerry N. Jones

State preemption of local regulation of oilState preemption of local regulation of oil

and gas operations:and gas operations:

La. Const. art VI, Section 7La. Const. art VI, Section 7

Energy Mgmt. Corp. v. City of ShreveportEnergy Mgmt. Corp. v. City of Shreveport, , No. 05-30551, 397 F. 3d 297 (5No. 05-30551, 397 F. 3d 297 (5thth Cir. Cir. 1/13/05), on appeal after remand, 467 F. 1/13/05), on appeal after remand, 467 F. 3d 471 (53d 471 (5thth Cir. 10/6/2006) Cir. 10/6/2006)

Jerry N. Jones

Federal preemption of localFederal preemption of localregulation of pipelinesregulation of pipelines

Natural Gas Act: 15 U.S.C.Natural Gas Act: 15 U.S.C.Section 717 et seq.Section 717 et seq.

Schneidewind v. ANR Pipeline Schneidewind v. ANR Pipeline Co.Co. 485 U.S. 293 (1988) 485 U.S. 293 (1988)

National Fuel Gas Supply National Fuel Gas Supply Corp. v. Public Service Corp. v. Public Service Commission of New YorkCommission of New York 894 894 F. 2d 571 (2F. 2d 571 (2ndnd Cir. 1990) Cir. 1990)

Northern Natural Gas Co. v. Northern Natural Gas Co. v. Iowa Utilities BoardIowa Utilities Board 377 F. 3d. 377 F. 3d. 817 (8817 (8thth Cir. 2004) Cir. 2004)

Pipeline Safety Act: 49 U.S.CPipeline Safety Act: 49 U.S.CSection 20101 et seq.Section 20101 et seq.

Olympic Pipe Line Co. v. City Olympic Pipe Line Co. v. City of Seattleof Seattle 437 F. 3d 872 (9 437 F. 3d 872 (9thth Cir. 2006)Cir. 2006)

Texas Midstream Gas Serv. V. Texas Midstream Gas Serv. V. City of Grand PrairieCity of Grand Prairie 608 F. 3d 608 F. 3d 200 (5200 (5thth Cir. 2010) Cir. 2010)

Jerry N. Jones

Lessons learned:Lessons learned:

Get involved as local regulation is being Get involved as local regulation is being drafted and adopted.drafted and adopted.

Be prepared to educate local government Be prepared to educate local government and their lawyers about the industry and and their lawyers about the industry and applicable state and federal law.applicable state and federal law.

Be cooperative, not antagonistic.Be cooperative, not antagonistic.

Jerry N. Jones