WyomingSF 202025 General SessionSenate

AN ACT relating to oil and gas; requiring the oil and gas conservation commission to promulgate rules to provide bonding options for oil and gas operators as specified; specifying bonding requirements; requiring reports; specifying uses of the conservation fund; authorizing the imposition of fees; making conforming amendments; and providing for effective dates.

Sponsored By: null Minerals

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 2 costs, 0 mixed.

Backup cleanup funding for oil operators

Beginning July 1, 2025, the law adds backup financial support for participating operators' plugging, land cleanup, and related bond obligations. This backstop is available only when an operator's bond or guarantee and the pool cannot cover the costs. The commission can use unspent, uncommitted conservation-account money or contract with outside providers, including approved surety companies. It must report backstop spending to the legislative minerals and appropriations committees within 10 days. The law also expands conservation-account uses for participating operators' cleanup, bond forfeitures, and related obligations. The existing production charge remains capped at 0.8 mill per dollar, or 0.08%, separate from the pool assessment. That charge is payable monthly, is a legal claim against produced oil and gas, and may be deducted from interest-holder payments.

Less duplicate bonding for waste facilities

Beginning July 1, 2025, eligible solid waste facilities are exempt from separate solid waste facility bonding. Facilities qualify when covered by the specified Wyoming oil and gas bonding or financial-assurance requirements, including the new program. The exemption also references federal bonding law as of January 1, 1989.

New bonding options for oil operators

Beginning July 1, 2025, Wyoming's oil and gas commission must establish a voluntary bonding pool for well cleanup and bond obligations. Operators must stay in good standing and meet bonding rules; the commission can remove operators who no longer qualify. Operators keep primary responsibility for bonds, plugging, repairs, and land cleanup. The commission can run the pool itself only when using an outside provider is impossible, impractical, or not feasible. Bond reductions require a documented risk review showing no material threat to compliance or the pool. Transfers require a bonding review of the receiving operator. Federal agreements can use federal bonds or pool money for cleanup without forfeiting an operator's federal bond. Annual reports must list participants, collections, spending, and supported bonds, starting October 1, 2025, and each October 1 afterward. Rulemaking directions took effect immediately upon enactment.

Possible pool fees for oil operators

Participating operators pay no bonding-pool assessment from July 1, 2025, through June 30, 2030. Beginning July 1, 2030, the commission may charge up to 0.5 mill per dollar, or 0.05%. The charge uses the fair cash market value of covered oil and gas produced, sold, or transported from Wyoming wells. Collections must go into a separate account, with separate accounting and investment. Spending is limited to pool purposes and participating operators' obligations.

Separate bonds still required for operators

Beginning July 1, 2025, the law clarifies that bonds or guarantees under Wyoming's oil and gas payment law are additional. They do not replace the specified bonds for land cleanup and compliance with commission rules and orders. Operators covered by these requirements must maintain both forms of financial assurance. The law does not state bond amounts.

Sponsors & Cosponsors

Sponsor

  • null Minerals

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 104 • No: 1

House vote • 2/18/2025

H 3rd Reading:Passed 61-0-1-0-0

Yes: 61 • No: 0

House vote • 2/12/2025

H09 - Minerals:Recommend Do Pass 8-0-1-0-0

Yes: 8 • No: 0

Senate vote • 1/27/2025

S 3rd Reading:Passed 30-1-0-0-0

Yes: 30 • No: 1

Senate vote • 1/22/2025

S09 - Minerals:Recommend Amend and Do Pass 5-0-0-0-0

Yes: 5 • No: 0

Actions Timeline

  1. Assigned Chapter Number 30

    2/24/2025
  2. Governor Signed SEA No. 0003

    2/24/2025Governor
  3. H Speaker Signed SEA No. 0003

    2/18/2025House
  4. S President Signed SEA No. 0003

    2/18/2025Senate
  5. Assigned Number SEA No. 0003

    2/18/2025
  6. H 3rd Reading:Passed 61-0-1-0-0

    2/18/2025House
  7. H 2nd Reading:Passed

    2/14/2025House
  8. H COW:Passed

    2/13/2025House
  9. H Placed on General File

    2/12/2025House
  10. H09 - Minerals:Recommend Do Pass 8-0-1-0-0

    2/12/2025House
  11. H Introduced and Referred to H09 - Minerals

    2/10/2025House
  12. H Received for Introduction

    1/28/2025House
  13. S 3rd Reading:Passed 30-1-0-0-0

    1/27/2025Senate
  14. S 2nd Reading:Passed

    1/24/2025Senate
  15. S COW:Passed

    1/23/2025Senate
  16. S Placed on General File

    1/22/2025Senate
  17. S09 - Minerals:Recommend Amend and Do Pass 5-0-0-0-0

    1/22/2025Senate
  18. S Introduced and Referred to S09 - Minerals

    1/14/2025Senate
  19. S Received for Introduction

    12/19/2024Senate
  20. Bill Number Assigned

    12/4/2024

Bill Text

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