Wyoming 2025 Regular Session

Wyoming Senate Bill SF0020 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ORIGINAL SENATE
2		-	FILE NO. SF0020
3		-	ENROLLED ACT NO. 3, SENATE
4		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
5		-	2025 GENERAL SESSION
6		-	1
7		-	AN ACT relating to oil and gas; requiring the oil and gas
8		-	conservation commission to promulgate rules to provide
9		-	bonding options for oil and gas operators as specified;
10		-	specifying bonding requirements; requiring reports;
11		-	specifying uses of the conservation fund; authorizing the
12		-	imposition of fees; making conforming amendments; and
13		-	providing for effective dates.
14		-	Be It Enacted by the Legislature of the State of Wyoming:
15		-	Section 1. W.S. 30-5-129 is created to read:
16		-	30-5-129. Oil and gas bonding; rules for operators;
17		-	requirements; reports; assessments.
18		-	(a) The commission shall promulgate rules to
19		-	establish bonding options in addition to those specified in
20		-	W.S. 30-5-104(d)(i)(D) for operators requiring bonds for
21		-	producing oil or gas in Wyoming. The program required under
22		-	this subsection shall be in accordance with all of the
23		-	following:
24		-	(i) The commission shall promulgate all rules
25		-	necessary to implement the program, including rules to
26		-	provide for operators who produce oil or gas in Wyoming to
27		-	voluntarily participate in a bonding pool established under
28		-	this subsection;
29		-	(ii) Operators participating in a bonding pool
30		-	established under this subsection shall be in good standing
31		-	with the commission before participating and shall remain
32		-	in good standing with the commission during participation,
33		-	including compliance with all bonding requirements required
34		-	under this act and the commission's rules. The commission
35		-	may establish a process by which the commission may remove ORIGINAL SENATE
36		-	FILE NO. SF0020
37		-	ENROLLED ACT NO. 3, SENATE
38		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
39		-	2025 GENERAL SESSION
	1	+	2025
	2	+	STATE OF WYOMING
	3	+	25LSO-0092
	4	+	ENGROSSED
	5	+	1SF0020
	6	+	SENATE FILE NO. SF0020
	7	+	Oil and gas bonding-options and bonding pools.
	8	+	Sponsored by: Joint Minerals, Business & Economic
	9	+	Development Interim Committee
	10	+	A BILL
	11	+	for
	12	+	1 AN ACT relating to oil and gas; requiring the oil and gas
	13	+	2 conservation commission to promulgate rules to provide
	14	+	3 bonding options for oil and gas operators as specified;
	15	+	4 specifying bonding requirements; requiring reports;
	16	+	5 specifying uses of the conservation fund; authorizing the
	17	+	6 imposition of fees; making conforming amendments; and
	18	+	7 providing for effective dates.
	19	+	8
	20	+	9
	21	+	10
	22	+	11. W.S. 30-5-129 is created to read:
	23	+	12
	24	+	13
	25	+	14
	26	+	15 2025STATE OF WYOMING25LSO-0092
	27	+	ENGROSSED
	28	+	2SF00201 (a) The commission shall promulgate rules to
	29	+	2 establish bonding options in addition to those specified in
	30	+	3 W.S. 30-5-104(d)(i)(D) for operators requiring bonds for
	31	+	4 producing oil or gas in Wyoming. The program required under
	32	+	5 this subsection shall be in accordance with all of the
	33	+	6 following:
	34	+	7
	35	+	8 (i) The commission shall promulgate all rules
	36	+	9 necessary to implement the program, including rules to
	37	+	10 provide for operators who produce oil or gas in Wyoming to
	38	+	11 voluntarily participate in a bonding pool established under
	39	+	12 this subsection;
	40	+	13
	41	+	14 (ii) Operators participating in a bonding pool
	42	+	15 established under this subsection shall be in good standing
	43	+	16 with the commission before participating and shall remain
	44	+	17 in good standing with the commission during participation,
	45	+	18 including compliance with all bonding requirements required
	46	+	19 under this act and the commission's rules. The commission
	47	+	20 may establish a process by which the commission may remove
	48	+	21 an operator from participating in a bonding pool if the
	49	+	22 operator is no longer in good standing with the commission;
	50	+	23 2025STATE OF WYOMING25LSO-0092
	51	+	ENGROSSED
	52	+	3SF00201 (iii) Subject to paragraph (iv) of this
	53	+	2 subsection, the commission shall contract with a person to
	54	+	3 establish a bonding pool to serve as financial assurance
	55	+	4 for the plugging of dry or abandoned wells, for reclamation
	56	+	5 requirements, for the forfeiture of any applicable bond and
	57	+	6 for any other requirements associated with the operator's
	58	+	7 applicable bonds. The bonding pool shall:
	59	+	8
	60	+	9 (A) Be established with funds assessed
	61	+	10 under paragraph (v) of this subsection or available under
	62	+	11 paragraph (vi) of this subsection, including any unexpended
	63	+	12 and unobligated funds available in the account established
	64	+	13 under W.S. 30-5-116(b). Except as otherwise provided in
	65	+	14 this paragraph, no other funds shall be used for the
	66	+	15 bonding pool without further legislative authorization;
	67	+	16
	68	+	17 (B) Be authorized to accept additional
	69	+	18 funds from other sources authorized by law.
	70	+	19
	71	+	20 (iv) If the commission determines that
	72	+	21 contracting with a person to establish a bonding pool under
	73	+	22 paragraph (iii) of this section is impossible, impractical
	74	+	23 or not feasible, the commission may establish a bonding 2025STATE OF WYOMING25LSO-0092
	75	+	ENGROSSED
	76	+	4SF0020
	77	+	1 pool to serve as a secondary level of financial assurance
	78	+	2 for the plugging of dry or abandoned wells, for reclamation
	79	+	3 requirements, for the forfeiture of any applicable bond and
	80	+	4 for any other requirements associated with the operator's
	81	+	5 applicable bonds. The bonding pool established under this
	82	+	6 paragraph shall:
	83	+	7
	84	+	8 (A) Be managed by the commission;
	85	+	9
	86	+	10 (B) Require operators to:
	87	+	11
	88	+	12 (I) Be in compliance with all bonding
	89	+	13 requirements required under this act and the commission's
	90	+	14 rules before authorizing operators to participate in the
	91	+	15 bonding pool;
	92	+	16
	93	+	17 (II) Maintain compliance with all
	94	+	18 bonding requirements required under this act and the
	95	+	19 commission's rules during the operator's participation in
	96	+	20 the bonding pool.
	97	+	21
	98	+	22 (C) Be funded by contributions from each
	99	+	23 operator participating in the bonding pool in accordance 2025STATE OF WYOMING25LSO-0092
	100	+	ENGROSSED
	101	+	5SF0020
	102	+	1 with paragraph (v) of this subsection and provide that the
	103	+	2 commission may use funds available in accordance with
	104	+	3 paragraph (vi) of this subsection.
	105	+	4
	106	+	5 (v) The commission may impose an assessment on
	107	+	6 each participating operator on the fair cash market value,
	108	+	7 as provided in W.S. 39-14-203, of all oil and gas produced,
	109	+	8 sold or transported from the operator's wells in Wyoming
	110	+	9 that are covered under this subsection in accordance with
	111	+	10 this paragraph. Beginning on July 1, 2025 through June 30,
	112	+	11 2030, the assessment shall be zero (0) mills on the dollar.
	113	+	12 Beginning July 1, 2030, the commission may impose an
	114	+	13 assessment under this paragraph in an amount not to exceed
	115	+	14 five-tenths of one (1) mill ($0.0005) on the dollar. All
	116	+	15 funds collected under this paragraph shall be deposited in
	117	+	16 the separate account established under W.S. 30-5-116(b).
	118	+	17 For purposes of accounting and investing, funds collected
	119	+	18 under this paragraph shall be accounted for separately.
	120	+	19 Funds collected under this paragraph shall be expended only
	121	+	20 on the bonding pool established under paragraph (iii) or
	122	+	21 (iv) of this subsection;
	123	+	22 2025STATE OF WYOMING25LSO-0092
	124	+	ENGROSSED
	125	+	6SF00201 (vi) If funds collected under paragraph (v) of
	126	+	2 this subsection are insufficient to satisfy the obligations
	127	+	3 of the bonding pool established under paragraph (iii) or
	128	+	4 (iv) of this subsection, the commission may expend any
	129	+	5 unexpended and unobligated funds available in the account
	130	+	6 established under W.S. 30-5-116(b);
	131	+	7
	132	+	8 (vii) Funds expended under this subsection shall
	133	+	9 only be expended on expenses associated with the plugging
	134	+	10 of dry or abandoned wells, reclamation requirements, the
	135	+	11 forfeiture of any applicable bond and any other
	136	+	12 requirements associated with the operator's applicable
	137	+	13 bonds for operators participating in the bonding program
	138	+	14 under this subsection;
	139	+	15
	140	+	16 (viii) The commission may enter into agreements
	141	+	17 with the United States or any federal agency to provide for
	142	+	18 the plugging of dry or abandoned wells, for reclamation
	143	+	19 requirements and for any other requirements associated with
	144	+	20 the operator's applicable bonds for any operator
	145	+	21 participating in the bonding pool established in this
	146	+	22 subsection whose wells are located on federal land, without
	147	+	23 the forfeiture of the operator's federal bond; 2025STATE OF WYOMING25LSO-0092
	148	+	ENGROSSED
	149	+	7SF00201
	150	+	2 (ix) The commission may provide for the transfer
	151	+	3 of an operator's financial assurance provided under this
	152	+	4 section to another operator, if the transfer is necessary
	153	+	5 to ensure that the receiving operator may participate in
	154	+	6 the bonding options established under this section. No
	155	+	7 transfer shall occur until the commission has completed a
	156	+	8 bonding review of the operator to whom the financial
	157	+	9 assurance is transferred;
	158	+	10
	159	+	11 (x) The commission may establish a process by
	160	+	12 which an operator in good standing with the commission and
	161	+	13 that participates in the bonding pool established under
	162	+	14 this subsection may reduce requirements associated with the
	163	+	15 furnishing of a surety bond or other guaranty in accordance
	164	+	16 with this act. Nothing under this paragraph shall be
	165	+	17 construed to relieve an operator of the requirement to pay
	166	+	18 any assessment imposed under paragraph (v) of this
	167	+	19 subsection. Before the commission reduces bonding
	168	+	20 requirements under this paragraph, the commission shall
	169	+	21 complete a risk analysis to ensure that the reduction does
	170	+	22 not:
	171	+	23 2025STATE OF WYOMING25LSO-0092
	172	+	ENGROSSED
	173	+	8SF00201 (A) Increase the risk that an operator will
	174	+	2 be unable to satisfy all plugging and repairing
	175	+	3 requirements for the operator's wells; and
	176	+	4
	177	+	5 (B) Impair the financial condition of the
	178	+	6 bonding pool established under this section or impair the
	179	+	7 ability to address the plugging and repairing of dry or
	180	+	8 abandoned wells in accordance with this act or to address
	181	+	9 the forfeiture of any applicable bonds.
	182	+	10
	183	+	11 (xi) Not later than October 1, 2025 and each
	184	+	12 October 1 thereafter, the commission shall report to the
	185	+	13 joint minerals, business and economic development interim
	186	+	14 committee and the joint appropriations committee on the
	187	+	15 bonding program created under this subsection. The report
	188	+	16 shall include, at a minimum:
	189	+	17
	190	+	18 (A) The number of operators participating
	191	+	19 in the program, including any operators added to or removed
	192	+	20 from the program;
	193	+	21
	194	+	22 (B) The amount of funds collected under
	195	+	23 paragraph (v) of this subsection; 2025STATE OF WYOMING25LSO-0092
	196	+	ENGROSSED
	197	+	9SF00201
	198	+	2 (C) The amount and source of funds expended
	199	+	3 for the program under this subsection;
	200	+	4
	201	+	5 (D) The number and type of bonds supported
	202	+	6 by the program established under this subsection and the
	203	+	7 total amount of all bonds supported by the program.
	204	+	8
	205	+	9 (b) The commission shall establish a financial
	206	+	10 assurance to be available in the event that an operator's
	207	+	11 surety bond or other guaranty and the bonding pool
	208	+	12 established under this section are insufficient to address
	209	+	13 any expenses for the plugging of dry or abandoned wells,
	210	+	14 for reclamation requirements, for the forfeiture of any
	211	+	15 applicable bond and for any other requirements associated
	212	+	16 with the operator's applicable bonds for operators
	213	+	17 participating under this section. In establishing the
	214	+	18 financial assurance, the commission:
	215	+	19
	216	+	20 (i) May expend any unexpended and unobligated
	217	+	21 funds available in the account established under W.S.
	218	+	22 30-5-116(b) to provide the financial assurance, subject to
	219	+	23 paragraph (vi) of this subsection; 2025STATE OF WYOMING25LSO-0092
	220	+	ENGROSSED
	221	+	10SF00201
	222	+	2 (ii) Shall ensure that the financial assurance,
	223	+	3 when combined with operator surety bonds or other
	224	+	4 guaranties and the bonding pool established under paragraph
	225	+	5 (a)(iii) or (iv) of this section, satisfies all bonding
	226	+	6 requirements for oil or gas operations;
	227	+	7
	228	+	8 (iii) May contract with any third party to
	229	+	9 provide for the financial assurance under this subsection.
	230	+	10 As part of any contract under this paragraph, the
	231	+	11 commission may expend any unexpended and unobligated funds
	232	+	12 available in the account established under W.S.
	233	+	13 30-5-116(b), subject to paragraph (vi) of this subsection;
	234	+	14
	235	+	15 (iv) May contract with a company that is
	236	+	16 certified under the United States department of treasury,
	237	+	17 bureau of the fiscal service as an approved surety bond
	238	+	18 company to ensure that the financial assurance established
	239	+	19 under this subsection satisfies federal bonding
	240	+	20 requirements;
	241	+	21 2025STATE OF WYOMING25LSO-0092
	242	+	ENGROSSED
	243	+	11SF00201 (v) May enter into any agreement with the United
	244	+	2 States or any federal agency to ensure that the financial
	245	+	3 assurance satisfies federal bonding requirements;
	246	+	4
	247	+	5 (vi) Shall not expend any funds under this
	248	+	6 subsection unless the operator's surety bond or other
	249	+	7 guaranty and funds from any bonding pool established under
	250	+	8 paragraph (a)(iii) or (iv) of this section are insufficient
	251	+	9 to address all expenses for the plugging of dry or
	252	+	10 abandoned wells, for reclamation requirements, for the
	253	+	11 forfeiture of any applicable bond and for any other
	254	+	12 requirements associated with the operator's applicable
	255	+	13 bonds;
	256	+	14
	257	+	15 (vii) Shall, not later than ten (10) days after
	258	+	16 expending funds available under this subsection, report to
	259	+	17 the joint minerals, business and economic development
	260	+	18 interim committee and the joint appropriations committee on
	261	+	19 the expenditure.
	262	+	20
	263	+	21 (c) The commission may enter into agreements with the
	264	+	22 United States or any federal agency to provide for the
	265	+	23 plugging of dry or abandoned wells, for reclamation 2025STATE OF WYOMING25LSO-0092
	266	+	ENGROSSED
	267	+	12SF0020
	268	+	1 requirements and for any other requirements associated with
	269	+	2 the operator's applicable bonds for any operator
	270	+	3 participating in the bonding options provided in this
	271	+	4 section that are located on federal land, without the
	272	+	5 forfeiture of the operator's federal bond. In executing any
	273	+	6 agreement entered into under this subsection, the
	274	+	7 commission may expend:
	275	+	8
	276	+	9 (i) The operator's surety bond or other
	277	+	10 guaranty;
	278	+	11
	279	+	12 (ii) If the operator's surety bond or other
	280	+	13 guaranty is insufficient, unexpended, unobligated funds
	281	+	14 from the bonding pool established under paragraph (a)(iii)
	282	+	15 or (iv) of this section.
	283	+	16
	284	+	17 (d) Unless specifically authorized in this section,
	285	+	18 nothing in this section shall be construed to abrogate an
	286	+	19 operator's responsibility to:
	287	+	20
	288	+	21 (i) Furnish a surety bond or other guaranty in
	289	+	22 accordance with W.S. 30-5-104(d)(i)(D) and the rules of the
	290	+	23 commission; 2025STATE OF WYOMING25LSO-0092
	291	+	ENGROSSED
	292	+	13SF00201
	293	+	2 (ii) Complete any plugging, repairing or
	294	+	3 reclamation of wells in accordance with this act and the
	295	+	4 rules of the commission.
	296	+	5
	297	+	6W.S. 30-5-116(b)(intro), 30-5-404(g) and
	298	+	7 35-11-504(c)(iv) are amended to read:
	299	+	8
	300	+	9
	301	+	10
	302	+	11
	303	+	12
	304	+	13 (b) There is assessed on the fair cash market value
	305	+	14 as provided by W.S. 39-14-203, of all oil and gas produced,
	306	+	15 sold or transported from the premises in Wyoming a charge
	307	+	16 not to exceed eight-tenths of one (1) mill ($.0008) on the
	308	+	17 dollar. The commission shall by order fix the amount of the
	309	+	18 charge in the first instance and may reduce or increase the
	310	+	19 amount as the expenses chargeable may require. The amounts
	311	+	20 fixed by the commission shall not exceed the limit
	312	+	21 prescribed above. It is the duty of the commission to
	313	+	22 collect all assessments. All monies collected shall be
	314	+	23 remitted to the state treasurer for deposit in a separate 2025STATE OF WYOMING25LSO-0092
	315	+	ENGROSSED
	316	+	14SF0020
	317	+	1 account and used exclusively to pay the costs and expenses
	318	+	2 incurred in connection with the administration and
	319	+	3 enforcement of W.S. 30-5-101 through 30-5-119
	320	+	4
	321	+	5
	322	+	6
	323	+	7
	324	+	8
	325	+	9. The persons owning a working interest, royalty
	326	+	10 interest, payments out of production, or any other interest
	327	+	11 in the oil and gas or in the proceeds thereof, subject to
	328	+	12 the charge in this subsection are liable for the charge in
	329	+	13 proportion to their ownership at the time of production.
	330	+	14 The charge so assessed is payable monthly. The sum due is
	331	+	15 payable to the commission, on or before the twenty-fifth of
	332	+	16 the second month following the month in which the charge
	333	+	17 accrued by the producer on behalf of himself and all other
	334	+	18 interested persons. If there is a sale of oil or gas within
	335	+	19 this state the charge is payable by the purchaser. Any
	336	+	20 charge not paid within the time specified bears interest at
	337	+	21 the rate of one percent (1%) per month from the date of
	338	+	22 delinquency until paid. This charge together with the
	339	+	23 interest is a lien upon the oil or gas against which it is 2025STATE OF WYOMING25LSO-0092
	340	+	ENGROSSED
	341	+	15SF0020
	342	+	1 levied and assessed. The person paying the charge as
	343	+	2 provided is authorized and required to deduct from any
	344	+	3 amounts due the persons owning an interest in the oil and
	345	+	4 gas or in the proceeds at the time of production the
	346	+	5 proportionate amount of the charge before making the
	347	+	6 payment. Subsection (b) of this section shall apply to all
	348	+	7 lands in the state of Wyoming, notwithstanding the
	349	+	8 provisions of W.S. 30-5-118, however, there is exempted
	350	+	9 from the charge as levied and assessed the following:
	351	+	10
	352	+	11
	353	+	12
	354	+	13
	355	+	14 (g) Any surety bond or guaranty executed under this
	356	+	15 section shall be in addition to the surety bond or guaranty
	357	+	16 required under W.S. 30-5-104(d)(i)(D) for
	358	+	17 reclamation and compliance with rules and orders of the
	359	+	18 commission.
	360	+	19
	361	+	20
	362	+	21
	363	+	22 2025STATE OF WYOMING25LSO-0092
	364	+	ENGROSSED
	365	+	16SF00201 (c) Rules and regulations of the council promulgated
	366	+	2 to implement the bonding or financial assurance
	367	+	3 requirements of this section shall exempt any solid waste
	368	+	4 management facility:
	369	+	5
	370	+	6 (iv) Which is subject to bonding or financial
	371	+	7 assurance requirements under W.S. 30-5-104(d)(i)(D),
	372	+	8 or 30 U.S.C. 226(g) as amended as of January 1,
	373	+	9 1989; or
	374	+	10
	375	+	11. The Wyoming oil and gas conservation
	376	+	12 commission shall promulgate all rules necessary to
	377	+	13 implement this act.
	378	+	14 2025STATE OF WYOMING25LSO-0092
	379	+	ENGROSSED
	380	+	17SF00201.
40	381		2
41		-	an operator from participating in a bonding pool if the
42		-	operator is no longer in good standing with the commission;
43		-	(iii) Subject to paragraph (iv) of this
44		-	subsection, the commission shall contract with a person to
45		-	establish a bonding pool to serve as financial assurance
46		-	for the plugging of dry or abandoned wells, for reclamation
47		-	requirements, for the forfeiture of any applicable bond and
48		-	for any other requirements associated with the operator's
49		-	applicable bonds. The bonding pool shall:
50		-	(A) Be established with funds assessed
51		-	under paragraph (v) of this subsection or available under
52		-	paragraph (vi) of this subsection, including any unexpended
53		-	and unobligated funds available in the account established
54		-	under W.S. 30-5-116(b). Except as otherwise provided in
55		-	this paragraph, no other funds shall be used for the
56		-	bonding pool without further legislative authorization;
57		-	(B) Be authorized to accept additional
58		-	funds from other sources authorized by law.
59		-	(iv) If the commission determines that
60		-	contracting with a person to establish a bonding pool under
61		-	paragraph (iii) of this section is impossible, impractical
62		-	or not feasible, the commission may establish a bonding
63		-	pool to serve as a secondary level of financial assurance
64		-	for the plugging of dry or abandoned wells, for reclamation
65		-	requirements, for the forfeiture of any applicable bond and
66		-	for any other requirements associated with the operator's
67		-	applicable bonds. The bonding pool established under this
68		-	paragraph shall:
69		-	(A) Be managed by the commission; ORIGINAL SENATE
70		-	FILE NO. SF0020
71		-	ENROLLED ACT NO. 3, SENATE
72		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
73		-	2025 GENERAL SESSION
74		-	3 (B) Require operators to:
75		-	(I) Be in compliance with all bonding
76		-	requirements required under this act and the commission's
77		-	rules before authorizing operators to participate in the
78		-	bonding pool;
79		-	(II) Maintain compliance with all
80		-	bonding requirements required under this act and the
81		-	commission's rules during the operator's participation in
82		-	the bonding pool.
83		-	(C) Be funded by contributions from each
84		-	operator participating in the bonding pool in accordance
85		-	with paragraph (v) of this subsection and provide that the
86		-	commission may use funds available in accordance with
87		-	paragraph (vi) of this subsection.
88		-	(v) The commission may impose an assessment on
89		-	each participating operator on the fair cash market value,
90		-	as provided in W.S. 39-14-203, of all oil and gas produced,
91		-	sold or transported from the operator's wells in Wyoming
92		-	that are covered under this subsection in accordance with
93		-	this paragraph. Beginning on July 1, 2025 through June 30,
94		-	2030, the assessment shall be zero (0) mills on the dollar.
95		-	Beginning July 1, 2030, the commission may impose an
96		-	assessment under this paragraph in an amount not to exceed
97		-	five-tenths of one (1) mill ($0.0005) on the dollar. All
98		-	funds collected under this paragraph shall be deposited in
99		-	the separate account established under W.S. 30-5-116(b).
100		-	For purposes of accounting and investing, funds collected
101		-	under this paragraph shall be accounted for separately.
102		-	Funds collected under this paragraph shall be expended only
103		-	on the bonding pool established under paragraph (iii) or
104		-	(iv) of this subsection; ORIGINAL SENATE
105		-	FILE NO. SF0020
106		-	ENROLLED ACT NO. 3, SENATE
107		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
108		-	2025 GENERAL SESSION
109		-	4
110		-	(vi) If funds collected under paragraph (v) of
111		-	this subsection are insufficient to satisfy the obligations
112		-	of the bonding pool established under paragraph (iii) or
113		-	(iv) of this subsection, the commission may expend any
114		-	unexpended and unobligated funds available in the account
115		-	established under W.S. 30-5-116(b);
116		-	(vii) Funds expended under this subsection shall
117		-	only be expended on expenses associated with the plugging
118		-	of dry or abandoned wells, reclamation requirements, the
119		-	forfeiture of any applicable bond and any other
120		-	requirements associated with the operator's applicable
121		-	bonds for operators participating in the bonding program
122		-	under this subsection;
123		-	(viii) The commission may enter into agreements
124		-	with the United States or any federal agency to provide for
125		-	the plugging of dry or abandoned wells, for reclamation
126		-	requirements and for any other requirements associated with
127		-	the operator's applicable bonds for any operator
128		-	participating in the bonding pool established in this
129		-	subsection whose wells are located on federal land, without
130		-	the forfeiture of the operator's federal bond;
131		-	(ix) The commission may provide for the transfer
132		-	of an operator's financial assurance provided under this
133		-	section to another operator, if the transfer is necessary
134		-	to ensure that the receiving operator may participate in
135		-	the bonding options established under this section. No
136		-	transfer shall occur until the commission has completed a
137		-	bonding review of the operator to whom the financial
138		-	assurance is transferred; ORIGINAL SENATE
139		-	FILE NO. SF0020
140		-	ENROLLED ACT NO. 3, SENATE
141		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
142		-	2025 GENERAL SESSION
143		-	5(x) The commission may establish a process by
144		-	which an operator in good standing with the commission and
145		-	that participates in the bonding pool established under
146		-	this subsection may reduce requirements associated with the
147		-	furnishing of a surety bond or other guaranty in accordance
148		-	with this act. Nothing under this paragraph shall be
149		-	construed to relieve an operator of the requirement to pay
150		-	any assessment imposed under paragraph (v) of this
151		-	subsection. Before the commission reduces bonding
152		-	requirements under this paragraph, the commission shall
153		-	complete a risk analysis to ensure that the reduction does
154		-	not:
155		-	(A) Increase the risk that an operator will
156		-	be unable to satisfy all plugging and repairing
157		-	requirements for the operator's wells; and
158		-	(B) Impair the financial condition of the
159		-	bonding pool established under this section or impair the
160		-	ability to address the plugging and repairing of dry or
161		-	abandoned wells in accordance with this act or to address
162		-	the forfeiture of any applicable bonds.
163		-	(xi) Not later than October 1, 2025 and each
164		-	October 1 thereafter, the commission shall report to the
165		-	joint minerals, business and economic development interim
166		-	committee and the joint appropriations committee on the
167		-	bonding program created under this subsection. The report
168		-	shall include, at a minimum:
169		-	(A) The number of operators participating
170		-	in the program, including any operators added to or removed
171		-	from the program; ORIGINAL SENATE
172		-	FILE NO. SF0020
173		-	ENROLLED ACT NO. 3, SENATE
174		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
175		-	2025 GENERAL SESSION
176		-	6 (B) The amount of funds collected under
177		-	paragraph (v) of this subsection;
178		-	(C) The amount and source of funds expended
179		-	for the program under this subsection;
180		-	(D) The number and type of bonds supported
181		-	by the program established under this subsection and the
182		-	total amount of all bonds supported by the program.
183		-	(b) The commission shall establish a financial
184		-	assurance to be available in the event that an operator's
185		-	surety bond or other guaranty and the bonding pool
186		-	established under this section are insufficient to address
187		-	any expenses for the plugging of dry or abandoned wells,
188		-	for reclamation requirements, for the forfeiture of any
189		-	applicable bond and for any other requirements associated
190		-	with the operator's applicable bonds for operators
191		-	participating under this section. In establishing the
192		-	financial assurance, the commission:
193		-	(i) May expend any unexpended and unobligated
194		-	funds available in the account established under W.S.
195		-	30-5-116(b) to provide the financial assurance, subject to
196		-	paragraph (vi) of this subsection;
197		-	(ii) Shall ensure that the financial assurance,
198		-	when combined with operator surety bonds or other
199		-	guaranties and the bonding pool established under paragraph
200		-	(a)(iii) or (iv) of this section, satisfies all bonding
201		-	requirements for oil or gas operations;
202		-	(iii) May contract with any third party to
203		-	provide for the financial assurance under this subsection.
204		-	As part of any contract under this paragraph, the ORIGINAL SENATE
205		-	FILE NO. SF0020
206		-	ENROLLED ACT NO. 3, SENATE
207		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
208		-	2025 GENERAL SESSION
209		-	7
210		-	commission may expend any unexpended and unobligated funds
211		-	available in the account established under W.S.
212		-	30-5-116(b), subject to paragraph (vi) of this subsection;
213		-	(iv) May contract with a company that is
214		-	certified under the United States department of treasury,
215		-	bureau of the fiscal service as an approved surety bond
216		-	company to ensure that the financial assurance established
217		-	under this subsection satisfies federal bonding
218		-	requirements;
219		-	(v) May enter into any agreement with the United
220		-	States or any federal agency to ensure that the financial
221		-	assurance satisfies federal bonding requirements;
222		-	(vi) Shall not expend any funds under this
223		-	subsection unless the operator's surety bond or other
224		-	guaranty and funds from any bonding pool established under
225		-	paragraph (a)(iii) or (iv) of this section are insufficient
226		-	to address all expenses for the plugging of dry or
227		-	abandoned wells, for reclamation requirements, for the
228		-	forfeiture of any applicable bond and for any other
229		-	requirements associated with the operator's applicable
230		-	bonds;
231		-	(vii) Shall, not later than ten (10) days after
232		-	expending funds available under this subsection, report to
233		-	the joint minerals, business and economic development
234		-	interim committee and the joint appropriations committee on
235		-	the expenditure.
236		-	(c) The commission may enter into agreements with the
237		-	United States or any federal agency to provide for the
238		-	plugging of dry or abandoned wells, for reclamation
239		-	requirements and for any other requirements associated with ORIGINAL SENATE
240		-	FILE NO. SF0020
241		-	ENROLLED ACT NO. 3, SENATE
242		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
243		-	2025 GENERAL SESSION
244		-	8
245		-	the operator's applicable bonds for any operator
246		-	participating in the bonding options provided in this
247		-	section that are located on federal land, without the
248		-	forfeiture of the operator's federal bond. In executing any
249		-	agreement entered into under this subsection, the
250		-	commission may expend:
251		-	(i) The operator's surety bond or other
252		-	guaranty;
253		-	(ii) If the operator's surety bond or other
254		-	guaranty is insufficient, unexpended, unobligated funds
255		-	from the bonding pool established under paragraph (a)(iii)
256		-	or (iv) of this section.
257		-	(d) Unless specifically authorized in this section,
258		-	nothing in this section shall be construed to abrogate an
259		-	operator's responsibility to:
260		-	(i) Furnish a surety bond or other guaranty in
261		-	accordance with W.S. 30-5-104(d)(i)(D) and the rules of the
262		-	commission;
263		-	(ii) Complete any plugging, repairing or
264		-	reclamation of wells in accordance with this act and the
265		-	rules of the commission.
266		-	Section 2. W.S. 30-5-116(b)(intro), 30-5-404(g) and
267		-	35-11-504(c)(iv) are amended to read:
268		-	30-5-116. Disposition of monies; permissible
269		-	expenditures; payment of expenses; charge assessed on value
270		-	of oil or gas produced. ORIGINAL SENATE
271		-	FILE NO. SF0020
272		-	ENROLLED ACT NO. 3, SENATE
273		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
274		-	2025 GENERAL SESSION
275		-	9(b) There is assessed on the fair cash market value
276		-	as provided by W.S. 39-14-203, of all oil and gas produced,
277		-	sold or transported from the premises in Wyoming a charge
278		-	not to exceed eight-tenths of one (1) mill ($.0008) on the
279		-	dollar. The commission shall by order fix the amount of the
280		-	charge in the first instance and may reduce or increase the
281		-	amount as the expenses chargeable may require. The amounts
282		-	fixed by the commission shall not exceed the limit
283		-	prescribed above. It is the duty of the commission to
284		-	collect all assessments. All monies collected shall be
285		-	remitted to the state treasurer for deposit in a separate
286		-	account and used exclusively to pay the costs and expenses
287		-	incurred in connection with the administration and
288		-	enforcement of W.S. 30-5-101 through 30-5-119
289		-	the expenses for the plugging of dry or abandoned wells,
290		-	for reclamation requirements, for the forfeiture of any
291		-	applicable bond and for any other requirements associated
292		-	with the operator's applicable bonds for operators
293		-	participating in the program established under W.S.
294		-	30-5-129. The persons owning a working interest, royalty
295		-	interest, payments out of production, or any other interest
296		-	in the oil and gas or in the proceeds thereof, subject to
297		-	the charge in this subsection are liable for the charge in
298		-	proportion to their ownership at the time of production.
299		-	The charge so assessed is payable monthly. The sum due is
300		-	payable to the commission, on or before the twenty-fifth of
301		-	the second month following the month in which the charge
302		-	accrued by the producer on behalf of himself and all other
303		-	interested persons. If there is a sale of oil or gas within
304		-	this state the charge is payable by the purchaser. Any
305		-	charge not paid within the time specified bears interest at
306		-	the rate of one percent (1%) per month from the date of
307		-	delinquency until paid. This charge together with the
308		-	interest is a lien upon the oil or gas against which it is
309		-	levied and assessed. The person paying the charge as ORIGINAL SENATE
310		-	FILE NO. SF0020
311		-	ENROLLED ACT NO. 3, SENATE
312		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
313		-	2025 GENERAL SESSION
	382	+	3 (a) Except as provided in subsection (b) of this
	383	+	4 section, this act is effective July 1, 2025.
	384	+	5
	385	+	6 (b) Sections 3 and 4 are effective immediately upon
	386	+	7 completion of all acts necessary for a bill to become law
	387	+	8 as provided by Article 4, Section 8 of the Wyoming
	388	+	9 Constitution.
314	389		10
315		-	provided is authorized and required to deduct from any
316		-	amounts due the persons owning an interest in the oil and
317		-	gas or in the proceeds at the time of production the
318		-	proportionate amount of the charge before making the
319		-	payment. Subsection (b) of this section shall apply to all
320		-	lands in the state of Wyoming, notwithstanding the
321		-	provisions of W.S. 30-5-118, however, there is exempted
322		-	from the charge as levied and assessed the following:
323		-	30-5-404. Surety bond or guaranty; approval;
324		-	objections; release of surety bond or guaranty.
325		-	(g) Any surety bond or guaranty executed under this
326		-	section shall be in addition to the surety bond or guaranty
327		-	required under W.S. 30-5-104(d)(i)(D) for
328		-	reclamation and compliance with rules and orders of the
329		-	commission.
330		-	35-11-504. Bonding for solid waste management
331		-	facilities.
332		-	(c) Rules and regulations of the council promulgated
333		-	to implement the bonding or financial assurance
334		-	requirements of this section shall exempt any solid waste
335		-	management facility:
336		-	(iv) Which is subject to bonding or financial
337		-	assurance requirements under W.S. 30-5-104(d)(i)(D),
338		-	30-5-129 or 30 U.S.C. 226(g) as amended as of January 1,
339		-	1989; or
340		-	Section 3. The Wyoming oil and gas conservation
341		-	commission shall promulgate all rules necessary to
342		-	implement this act. ORIGINAL SENATE
343		-	FILE NO. SF0020
344		-	ENROLLED ACT NO. 3, SENATE
345		-	SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
346		-	2025 GENERAL SESSION
347		-	11Section 4.
348		-	(a) Except as provided in subsection (b) of this
349		-	section, this act is effective July 1, 2025.
350		-	(b) Sections 3 and 4 are effective immediately upon
351		-	completion of all acts necessary for a bill to become law
352		-	as provided by Article 4, Section 8 of the Wyoming
353		-	Constitution.
354		-	(END)
355		-	Speaker of the HousePresident of the SenateGovernorTIME APPROVED: _________DATE APPROVED: _________
356		-	I hereby certify that this act originated in the Senate.
357		-	Chief Clerk
	390	+	11 (END)