Senate Bill 2528

AN ACT TO REENACT SECTIONS 51-3-101 THROUGH 51-3-105, MISSISSIPPI CODE OF 1972, WHICH CREATE THE MISSISSIPPI WATER RESOURCES COUNCIL AND PRESCRIBE ITS DUTIES; TO AMEND SECTION 51-3-106, MISSISSIPPI CODE OF 1972, TO EXTEND THE REPEALER ON THE MISSISSIPPI WATER RESOURCES COUNCIL; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 51-3-101, Mississippi Code of 1972, is reenacted as follows:

51-3-101. There is created the Mississippi Water Resources Advisory Council, hereinafter referred to as "council," for the purpose of making recommendations to the Governor and the Legislature on management of the state's water and water-related land resources.

SECTION 2. Section 53-3-103, Mississippi Code of 1972, is reenacted as follows:

53-3-103. The State Oil and Gas Board may issue an order requiring such unit operation, if it finds that:

(a) Unit operation of the field or of any pool or pools, or of any portion or portions or combinations thereof within the field, is reasonably necessary in order to effectively carry on secondary recovery, pressure maintenance, repressuring operations, cycling operations, water flooding operations, or any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil or gas or both, from the unit so formed, or to prevent waste as defined in Section 53-1-3; and

(b) One or more method of unitized operation as applied to such common source of supply or portion thereof is feasible and will prevent waste or will with reasonable probability result in the recovery of substantially more oil or gas, or both, from the unit so formed than would otherwise be recovered; and

(c) The plan of unitization and the agreements effectuating same are fair and reasonable under all of the circumstances and protect the rights of all interested parties; and

(d) The correlative rights of interested parties will be protected; and

(e) The estimated additional cost incident to conducting such operation will not exceed the value of the estimated additional recovery of oil and gas and such cost of unit operation shall not be borne by the royalty owners.

The operators of such unit shall have drilled a sufficient number of wells to a sufficient depth and at such locations as may be necessary for the board to approve the boundaries of the unit and determine that the field, pool or pools have been reasonably developed according to a spacing pattern approved by the board. No field unitization shall be approved by the board until each drilling unit of the field has been drilled; however, the board is hereby authorized to waive the requirement that each and every drilling unit be drilled upon a finding of fact that it is not economically feasible for a specific drilling unit to be drilled.

SECTION 3. Section 51-3-105, Mississippi Code of 1972, is reenacted as follows:

51-3-105. (1) The council shall meet at least semiannually for the purpose of reviewing the implementation of the state water management plan and shall:

(a) Recommend any amendments necessary to update the plan; or

(b) Recommend that no amendments are necessary and the reasons supporting the determination.

The review shall be conducted as the council determines appropriate, and shall include the participation of the Department of Environmental Quality; Department of Wildlife, Fisheries and Parks; Mississippi Development Authority; Department of Marine Resources; Department of Agriculture and Commerce; Soil and Water Conservation Commission; the State Department of Health; and the Forestry Commission. Any joint water management district or other regional organization that provides the duties of a joint water management district shall be notified and may participate in this review. Any interested person may, upon written application to the council, seek an amendment to the state water management plan. The first review of the state water management plan shall be completed by January 1, 1999.

(2) (a) Before January 1 of each year, the council shall submit to the Governor, the Commission on Environmental Quality, the Senate Environmental Protection, Conservation and Water Resources Committee and the House Conservation and Water Resources Committee, a report on the status of the state's water resources. (b) The report may contain recommendations regarding the functions and programs of each of the agencies with water-related programs, including, but not limited to:

(i) Operations of each of these programs;

(ii) Duplications or omissions in the programs and/or missions of the agencies;

(iii) Changes in the organizational concepts, institutions, laws and management resources necessary to properly regulate and manage the state's water resources;

(iv) Methods to better coordinate activities of the various local, state and federal agencies;

(v) Activities that do not conform with the state water management plan;

(vi) Methods or ways to increase the efficiency of the state's management of its water resources; and

(vii) Other actions that should be considered to ensure the continued availability and quality of abundant surface water and groundwater necessary for the future growth and environmental enhancement of the state.

SECTION 4. Section 51-3-106, Mississippi Code of 1972, is amended as follows:

51-3-106. Sections 51-3-1 through 51-3-105 shall stand repealed after July 1, 2009.

SECTION 5. This act shall take effect and be in force from and after its passage.