§ 30-5-129 — Oil and gas bonding; rules for operators; requirements; reports; assessments

Wyoming § 30-5-129

• Jurisdiction: Wyoming
• Title 30: Mines and Minerals
• Ch. 5: OIL AND GAS
• Art. 1: IN GENERAL

Text

(a) The commission shall promulgate rules to establish
bonding options in addition to those specified in W.S. 30-5-
104(d)(i)(D) for operators requiring bonds for producing oil or
gas in Wyoming. The program required under this subsection shall
be in accordance with all of the following:
(i) The commission shall promulgate all rules
necessary to implement the program, including rules to provide
for operators who produce oil or gas in Wyoming to voluntarily
participate in a bonding pool established under this subsection;
(ii) Operators participating in a bonding pool
established under this subsection shall be in good standing with
the commission before participating and shall remain in good
standing with the commission during participation, including
compliance with all bonding requirements required under this act
and the commission's rules. The commission may establish a
process by which the commission may remove an operator from
participating in a bonding pool if the operator is no longer in
good standing with the commission;
(iii) Subject to paragraph (iv) of this subsection,
the commission shall contract with a person to establish a
bonding pool to serve as financial assurance for the plugging of
dry or abandoned wells, for reclamation requirements, for the
forfeiture of any applicable bond and for any other requirements
associated with the operator's applicable bonds. The bonding
pool shall:
(A) Be established with funds assessed under
paragraph (v) of this subsection or available under paragraph
(vi) of this subsection, including any unexpended and
unobligated funds available in the account established under
W.S. 30-5-116(b). Except as otherwise provided in this
paragraph, no other funds shall be used for the bonding pool
without further legislative authorization;
(B) Be authorized to accept additional funds
from other sources authorized by law.
(iv) If the commission determines that contracting
with a person to establish a bonding pool under paragraph (iii)
of this section is impossible, impractical or not feasible, the
commission may establish a bonding pool to serve as a secondary
level of financial assurance for the plugging of dry or
abandoned wells, for reclamation requirements, for the
forfeiture of any applicable bond and for any other requirements
associated with the operator's applicable bonds. The bonding
pool established under this paragraph shall:
(A) Be managed by the commission;
(B) Require operators to:
(I) Be in compliance with all bonding
requirements required under this act and the commission's rules
before authorizing operators to participate in the bonding pool;
(II) Maintain compliance with all bonding
requirements required under this act and the commission's rules
during the operator's participation in the bonding pool.
(C) Be funded by contributions from each
operator participating in the bonding pool in accordance with
paragraph (v) of this subsection and provide that the commission
may use funds available in accordance with paragraph (vi) of
this subsection.
(v) The commission may impose an assessment on each
participating operator on the fair cash market value, as
provided in W.S. 39-14-203, of all oil and gas produced, sold or
transported from the operator's wells in Wyoming that are
covered under this subsection in accordance with this paragraph.
Beginning on July 1, 2025 through June 30, 2030, the assessment
shall be zero (0) mills on the dollar. Beginning July 1, 2030,
the commission may impose an assessment under this paragraph in
an amount not to exceed five-tenths of one (1) mill ($0.0005) on
the dollar. All funds collected under this paragraph shall be
deposited in the separate account established under W.S. 30-5-
116(b). For purposes of accounting and investing, funds
collected under this paragraph shall be accounted for
separately. Funds collected under this paragraph shall be
expended only on the bonding pool established under paragraph
(iii) or (iv) of this subsection;
(vi) If funds collected under paragraph (v) of this
subsection are insufficient to satisfy the obligations of the
bonding pool established under paragraph (iii) or (iv) of this
subsection, the commission may expend any unexpended and
unobligated funds available in the account established under
W.S. 30-5-116(b);
(vii) Funds expended under this subsection shall only
be expended on expenses associated with the plugging of dry or
abandoned wells, reclamation requirements, the forfeiture of any
applicable bond and any other requirements associated with the
operator's applicable bonds for operators participating in the
bonding program under this subsection;
(viii) The commission may enter into agreements with
the United States or any federal agency to provide for the
plugging of dry or abandoned wells, for reclamation requirements
and for any other requirements associated with the operator's
applicable bonds for any operator participating in the bonding
pool established in this subsection whose wells are located on
federal land, without the forfeiture of the operator's federal
bond;
(ix) The commission may provide for the transfer of
an operator's financial assurance provided under this section to
another operator, if the transfer is necessary to ensure that
the receiving operator may participate in the bonding options
established under this section. No transfer shall occur until
the commission has completed a bonding review of the operator to
whom the financial assurance is transferred;
(x) The commission may establish a process by which
an operator in good standing with the commission and that
participates in the bonding pool established under this
subsection may reduce requirements associated with the
furnishing of a surety bond or other guaranty in accordance with
this act. Nothing under this paragraph shall be construed to
relieve an operator of the requirement to pay any assessment
imposed under paragraph (v) of this subsection. Before the
commission reduces bonding requirements under this paragraph,
the commission shall complete a risk analysis to ensure that the
reduction does not:
(A) Increase the risk that an operator will be
unable to satisfy all plugging and repairing requirements for
the operator's wells; and
(B) Impair the financial condition of the
bonding pool established under this section or impair the
ability to address the plugging and repairing of dry or
abandoned wells in accordance with this act or to address the
forfeiture of any applicable bonds.
(xi) Not later than October 1, 2025 and each October
1 thereafter, the commission shall report to the joint minerals,
business and economic development interim committee and the
joint appropriations committee on the bonding program created
under this subsection. The report shall include, at a minimum:
(A) The number of operators participating in the
program, including any operators added to or removed from the
program;
(B) The amount of funds collected under
paragraph (v) of this subsection;
(C) The amount and source of funds expended for
the program under this subsection;
(D) The number and type of bonds supported by
the program established under this subsection and the total
amount of all bonds supported by the program.
(b) The commission shall establish a financial assurance
to be available in the event that an operator's surety bond or
other guaranty and the bonding pool established under this
section are insufficient to address any expenses for the
plugging of dry or abandoned wells, for reclamation
requirements, for the forfeiture of any applicable bond and for
any other requirements associated with the operator's applicable
bonds for operators participating under this section. In
establishing the financial assurance, the commission:
(i) May expend any unexpended and unobligated funds
available in the account established under W.S. 30-5-116(b) to
provide the financial assurance, subject to paragraph (vi) of
this subsection;
(ii) Shall ensure that the financial assurance, when
combined with operator surety bonds or other guaranties and the
bonding pool established under paragraph (a)(iii) or (iv) of
this section, satisfies all bonding requirements for oil or gas
operations;
(iii) May contract with any third party to provide
for the financial assurance under this subsection. As part of
any contract under this paragraph, the commission may expend any
unexpended and unobligated funds available in the account
established under W.S. 30-5-116(b), subject to paragraph (vi) of
this subsection;
(iv) May contract with a company that is certified
under the United States department of treasury, bureau of the
fiscal service as an approved surety bond company to ensure that
the financial assurance established under this subsection
satisfies federal bonding requirements;
(v) May enter into any agreement with the United
States or any federal agency to ensure that the financial
assurance satisfies federal bonding requirements;
(vi) Shall not expend any funds under this subsection
unless the operator's surety bond or other guaranty and funds
from any bonding pool established under paragraph (a)(iii) or
(iv) of this section are insufficient to address all expenses
for the plugging of dry or abandoned wells, for reclamation
requirements, for the forfeiture of any applicable bond and for
any other requirements associated with the operator's applicable
bonds;
(vii) Shall, not later than ten (10) days after
expending funds available under this subsection, report to the
joint minerals, business and economic development interim
committee and the joint appropriations committee on the
expenditure.
(c) The commission may enter into agreements with the
United States or any federal agency to provide for the plugging
of dry or abandoned wells, for reclamation requirements and for
any other requirements associated with the operator's applicable
bonds for any operator participating in the bonding options
provided in this section that are located on federal land,
without the forfeiture of the operator's federal bond. In
executing any agreement entered into under this subsection, the
commission may expend:
(i) The operator's surety bond or other guaranty;
(ii) If the operator's surety bond or other guaranty
is insufficient, unexpended, unobligated funds from the bonding
pool established under paragraph (a)(iii) or (iv) of this
section.
(d) Unless specifically authorized in this section,
nothing in this section shall be construed to abrogate an
operator's responsibility to:
(i) Furnish a surety bond or other guaranty in
accordance with W.S. 30-5-104(d)(i)(D) and the rules of the
commission;
(ii) Complete any plugging, repairing or reclamation
of wells in accordance with this act and the rules of the
commission.