Where the money went
An orphan well cleanup effort became a case study in weak oversight.
Companies affiliated with Louisiana’s orphan well pilot program received about 93% of the program’s investment earnings and interest income, according to a state audit, leaving the nonprofit overseeing the effort with little financial return despite assuming the investment risk.
The audit also examined a $780,000 below-market loan used by former state conservation official Johnny Adams and his wife, Metro Council member Laurie Adams, to purchase a home in Baton Rouge.
Auditors also identified insider loans, potential conflicts of interest and administrative fees that allegedly exceeded contractual limits. The Department of Conservation and Energy terminated the agreement in May, recovered a $5 million reserve and is suing former participants, including Adams.
The bottom line: A program created to plug abandoned wells instead exposed major gaps in oversight.
