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La. Department of Conservation and Energy 'surprised' by auditor's findings
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BATON ROUGE - The Louisiana Legislator's Office surprised officials at the state Department of Conservation and Energy with a report Monday alleging that a former assistant commissioner may have broken state law when handling an agreement between a state agency and a group brought in to plug orphaned or abandoned oil wells.
The 72-page document details the lengths people and groups with the Louisiana Oilfield Restoration Association, or "LORA," allegedly went to make a personal profit, potentially breaking state law.
"Right now, it's allegations, but [the Department of Conservation and Energy] is just surprised by the lack of oversight that allowed that to even be possible," Patrick Courreges, Press Secretary for the Department of Conservation and Energy, said.
Courreges said the department initially asked for the audit in 2023, when Commissioner Monique Edwards questioned the existence and purpose of LORA.
"As soon as [Edwards] came in, and saw what had been set up with that, she thought that it didn't make sense, didn't work, she questioned why it existed," Courreges said.
In Monday's audit, investigators allege attorney supervisor Johnny Adams used his position to influence the cooperation agreement with LORA in 2019. The report says the five people who own LORA — Van Mayhall III, Jacob Dickinson, Chad Lott Sr., Phillip Marchiafava and Andrew Berthelot — also own a management group called Arkus. LORA hired Arkus in 2019.
Mayhall served as the president of LORA while it operated. In May 2025, the Office of Conservation and Energy stopped recognizing LORA as a financial institution.
In an e-mail to WBRZ, Mayhall said LORA was specifically created to plug orphan oil and wells through private dollars, saying the group plugged more than 120 wells during its operation.
"LORA operated in full compliance with the applicable laws, regulations, and its contractual obligations. LORA voluntarily cooperated with the Louisiana Legislative Auditor’s investigation as a gesture of good faith and transparency even though, as a private company that never received or utilized any state or public funds, it was under no obligation to do so," Mayhall stated in part.
The audit claims LORA loaned more than $2,000,000 to Arkus and another consulting organization to make below-market-rate loans to Adams, two of his family members and three owners of LORA, potentially violating state law. As previously reported in 2024, Adams received a $780,000 loan which allegedly was used to pay for a home with his spouse EBR Metro Council Member Laurie Adams. The audit shares the loan came from Chromos Wealth Solutions, a stake of that company belongs to the owners of LORA.
The report also noted another company named Willow Lake Well Services, also owned by Arkus, hired two of Adams' children, which the auditor says may have broken state law as well.
The audit adds LORA increased financial security fees — money given by oil and gas well operators to ensure wells are plugged at the end of its use — from 20-percent to 36-percent, going over the amount detailed in the initial cooperative agreement. The audit said LORA collected more than $1,800,000 in excess in fees and then turned around to use that money to increase salaries at Arkus. Additionally, the Office of Conservation, renamed in 2025 from Department of Energy and Natural Resources, gave LORA control of millions of dollars, per the audit, that was meant to plug site-specific oil wells. The audit claims the work never happened.
"I can speak for the leadership and say we have no plans to enter an agreement of this kind ever again," Courreges said.
After reading the audit, Adams' attorney Steven Moore released his own response which is included in the document. Moore said the report excluded evidence and created an "inaccurate narrative." Moore also said his client did not influence the state's selection of LORA for the oil well work.
Mayhall's statement to WBRZ also claimed information provided by LORA did not make it into the investigative report.
"The LLA Report left out key facts LORA provided - including the contractual language that shows LORA acted at the request of the state, in accordance with its agreement and continually went above and beyond to provide transparency," Mayhall's statement continued. "LORA is proud of the work it accomplished and the positive impact it had on its clients and the people of this State."
In 2025, the Attorney General's Office filed a civil suit against LORA and other entities over the organizations' accounting, and said it will be looking at the case to see if criminal charges are possible.
"We previously filed a civil action against a lengthy group of actors arising from activities related to LORA to preserve funds that were at risk. We will be further reviewing the case for criminal charges that may be appropriate as well. Because this is a matter under investigation we have no further comment," Attorney General Liz Murrill shared in a statement.
WBRZ also reached out to Adams' attorney and is waiting to hear back.
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