ORIGINAL SENATE
FILE NO. SF0020
ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
1
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.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1. W.S. 30-5-129 is created to read:
30-5-129. Oil and gas bonding; rules for operators;
requirements; reports; assessments.
(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 ORIGINAL SENATE
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ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
2
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; ORIGINAL SENATE
FILE NO. SF0020
ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
3 (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; ORIGINAL SENATE
FILE NO. SF0020
ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
4
(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; ORIGINAL SENATE
FILE NO. SF0020
ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
5(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; ORIGINAL SENATE
FILE NO. SF0020
ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
6 (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 ORIGINAL SENATE
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ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
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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 ORIGINAL SENATE
FILE NO. SF0020
ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
8
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.
Section 2. W.S. 30-5-116(b)(intro), 30-5-404(g) and
35-11-504(c)(iv) are amended to read:
30-5-116. Disposition of monies; permissible
expenditures; payment of expenses; charge assessed on value
of oil or gas produced. ORIGINAL SENATE
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ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
9(b) There is assessed on the fair cash market value
as provided by W.S. 39-14-203, of all oil and gas produced,
sold or transported from the premises in Wyoming a charge
not to exceed eight-tenths of one (1) mill ($.0008) on the
dollar. The commission shall by order fix the amount of the
charge in the first instance and may reduce or increase the
amount as the expenses chargeable may require. The amounts
fixed by the commission shall not exceed the limit
prescribed above. It is the duty of the commission to
collect all assessments. All monies collected shall be
remitted to the state treasurer for deposit in a separate
account and used exclusively to pay the costs and expenses
incurred in connection with the administration and
enforcement of W.S. 30-5-101 through 30-5-119
the 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 in the program established under W.S.
30-5-129. The persons owning a working interest, royalty
interest, payments out of production, or any other interest
in the oil and gas or in the proceeds thereof, subject to
the charge in this subsection are liable for the charge in
proportion to their ownership at the time of production.
The charge so assessed is payable monthly. The sum due is
payable to the commission, on or before the twenty-fifth of
the second month following the month in which the charge
accrued by the producer on behalf of himself and all other
interested persons. If there is a sale of oil or gas within
this state the charge is payable by the purchaser. Any
charge not paid within the time specified bears interest at
the rate of one percent (1%) per month from the date of
delinquency until paid. This charge together with the
interest is a lien upon the oil or gas against which it is
levied and assessed. The person paying the charge as ORIGINAL SENATE
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ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
10
provided is authorized and required to deduct from any
amounts due the persons owning an interest in the oil and
gas or in the proceeds at the time of production the
proportionate amount of the charge before making the
payment. Subsection (b) of this section shall apply to all
lands in the state of Wyoming, notwithstanding the
provisions of W.S. 30-5-118, however, there is exempted
from the charge as levied and assessed the following:
30-5-404. Surety bond or guaranty; approval;
objections; release of surety bond or guaranty.
(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) for
reclamation and compliance with rules and orders of the
commission.
35-11-504. Bonding for solid waste management
facilities.
(c) Rules and regulations of the council promulgated
to implement the bonding or financial assurance
requirements of this section shall exempt any solid waste
management facility:
(iv) Which is subject to bonding or financial
assurance requirements under W.S. 30-5-104(d)(i)(D),
30-5-129 or 30 U.S.C. 226(g) as amended as of January 1,
1989; or
Section 3. The Wyoming oil and gas conservation
commission shall promulgate all rules necessary to
implement this act. ORIGINAL SENATE
FILE NO. SF0020
ENROLLED ACT NO. 3, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 GENERAL SESSION
11Section 4.
(a) Except as provided in subsection (b) of this
section, this act is effective July 1, 2025.
(b) Sections 3 and 4 are effective immediately upon
completion of all acts necessary for a bill to become law
as provided by Article 4, Section 8 of the Wyoming
Constitution.
(END)
Speaker of the HousePresident of the SenateGovernorTIME APPROVED: _________DATE APPROVED: _________
I hereby certify that this act originated in the Senate.
Chief Clerk