LAFAYETTE, La. — Gov. Jeff Landry signed a sweeping package of energy legislation Tuesday aimed at reducing energy costs, strengthening landowner rights, and encouraging new oil and gas production across Louisiana.
At a ceremony held earlier in the day at the Moncla Facility in Lafayette, Landry praised the bills as a turning point for the state’s energy sector, calling it “a major step forward” for Louisiana’s economy and natural resource management.
“I want this energy industry to go back to the days when it was thriving—when there were high wages and excitement to be a part of it,” Landry said. “This bill aligns with Trump’s America First agenda and prepares Louisiana to embrace a strong, independent energy industry.”
Key Legislation Signed:
SB 244, authored by Sen. Bob Hensgens, reorganizes the Department of Energy and Natural Resources to increase efficiency, transparency, and responsiveness—particularly in addressing decades of legacy oilfield lawsuits. It also limits expropriation for carbon capture pipelines, protects landowners, and creates the state’s first Natural Resources Commission to guide long-term resource planning.
The bill also transfers oversight of the Capital Area Groundwater Conservation District to the Department of Conservation and Energy, empowering the state to create a comprehensive water resource management plan.
HB 692, by Rep. Jacob Landry, directs energy regulators to prioritize reliable, affordable, in-state power sources—primarily natural gas and nuclear—aimed at improving electric grid resilience and reducing dependence on out-of-state renewable mandates.
HB 600, sponsored by Rep. Brett Geymann, lowers the severance tax rate on oil produced from newly completed wells starting July 1, 2025. It also creates reduced rates for limited-production wells—marking the first major overhaul of the state’s oil severance tax structure in nearly a century.
Royalty Executive Order – In addition to the new laws, Landry signed an executive order directing the Louisiana Mineral Board to draft a plan to reduce royalty rates. The move is intended to spark coastal drilling activity and unlock more of the state’s natural resources.
Mike Moncla, president of the Louisiana Oil & Gas Association (LOGA), called the changes “huge news” for the state. “We’re excited for a fresh start,” Moncla said. “Lowering severance tax—when we were the highest in the country for decades—is a big deal for attracting new drilling opportunities.”
