§ 30-5-404 — Surety bond or guaranty; approval; objections; release of surety bond or guaranty

Wyoming § 30-5-404

• Jurisdiction: Wyoming
• Title 30: Mines and Minerals
• Ch. 5: OIL AND GAS
• Art. 4: ENTRY TO CONDUCT OIL AND GAS OPERATIONS

Text

(a) The surety bond or other guaranty required under W.S.
30-5-402(c)(iv) shall be executed by the oil and gas operator,
or a bonding company acceptable to the commission. Other forms
of guaranty acceptable by the commission under article 1 of this
chapter may be submitted by the oil and gas operator in lieu of
a surety bond.
(b) The surety bond or other guaranty shall be in an
amount of not less than ten thousand dollars ($10,000.00) per
well site on the land unless the operations involve seismic
activities. If the operations involve seismic activities, the
surety bond shall be as provided in W.S. 30-5-104(d)(v)(A). As
used in this subsection, seismic activities do not include waves
or vibrations originating outside the property in question. At
the request of the oil and gas operator, after attempted
consultation with the surface owner the commission may establish
a blanket bond or other guaranty in an amount covering oil and
gas operations on the surface owner's land as identified by an
oil and gas operator in the written notice required under W.S.
30-5-402(e), provided the blanket bond shall be in an amount not
less than ten thousand dollars ($10,000.00) per well site on the
surface owner's land. Neither the minimum amount of the bond or
other guaranty specified or referenced in this subsection nor a
blanket bond or other guaranty established by the commission is
intended to establish any amount for reasonable and foreseeable
damages. A permit to conduct geophysical/seismic operations
issued under the authority of W.S. 30-5-104 shall include a
statement that it shall not constitute authorization or
permission to trespass on the surface estate. The commission
shall not accept a surety bond for seismic activities for land
which the oil and gas operator or seismic activity operator has
no right to enter. The operator shall provide evidence of the
right to enter derived from one (1) or more mineral interest
owners.
(c) Within seven (7) days following receipt of a surety
bond or other guaranty or the establishment of a blanket bond or
other guaranty specified or referenced in this section, the
commission shall notify the surface owner of receipt of the
surety bond or other guaranty or the establishment of a blanket
bond or other guaranty based on the oil and gas operator's
request and the written notice required under W.S. 30-5-402(e).
The commission's notice shall also include a description of the
amount and the type of the bond or guaranty received or
established and provide to the surface owner a copy of the
statement required under W.S. 30-5-403(a). If, at the expiration
of thirty (30) days after receipt of the commission's notice by
the surface owner, he makes no objection to the amount or the
type of the surety bond or guaranty, the commission shall
approve the surety bond or guaranty. If the surface owner
objects in writing to the amount or the type of the surety bond
or guaranty, the commission shall give immediate consideration
to the surety bond or guaranty objected to and the accompanying
papers filed by the oil and gas operator in support of the
surety bond or guaranty amount and the type of surety bond or
guaranty submitted or established, and the surface owner's
objections, and the commission shall render a final decision as
to the acceptability of the amount and type of the surety bond
or guaranty and shall notify the parties of the decision. Proof
of any additional surety bond or guaranty required by the
commission shall be filed with the commission within thirty (30)
days of the commission's final decision. Any aggrieved party
may appeal the final decision of the commission to the district
court in accordance with the Wyoming Administrative Procedure
Act.
(d) Upon receipt or establishment of an acceptable surety
bond or other guaranty by the commission as specified in
subsection (b) of this section, and receipt of all required
regulatory approvals to secure a drilling permit, the oil and
gas operator shall be permitted entry upon the land to conduct
oil and gas operations in accordance with terms of any existing
contractual or legal right.
(e) Any surety bond, other guaranty or blanket bond, as
applicable, for surface damages to particular lands will be
released by the commission after:
(i) Compensation for damages has occurred;
(ii) Agreement for release by all parties;
(iii) Final resolution of the judicial appeal process
for any action for damages and all damages have been paid; or
(iv) The oil and gas operator certifies in a sworn
statement that the surface owner has failed to give the written
notice required under W.S. 30-5-406(a) or has failed to bring an
action for damages within the required time period.
(f) Prior to the release of any applicable bond or other
guaranty, the commission shall make a reasonable effort to
contact the surface owner and confirm that compensation has been
received, an agreement entered into or that the surface owner
has failed to give written notice required or failed to bring a
timely action for damages. The commission may, in its sole
discretion, release any surety bond, other guaranty or blanket
bond related to particular lands if the oil and gas operator
shows just cause for the release.
(g) Any surety bond or guaranty executed under this
section shall be in addition to the surety bond or guaranty
required under W.S. 30-5-104(d)(i)(D) and 30-5-129 for
reclamation and compliance with rules and orders of the
commission.