Lawley notes important work in oil, gas and coal industries

In addition to a lot of work as a member of the education committee, Rep. Martha Lawley (R-Worland) was proud of the work of the Minerals Committee, specifically regarding oil and gas bonding.

Senate File 20/Senate Enrolled Act 0003 requires the Wyoming Oil and Gas Conservation Commission to promulgate rules to establish a bonding pool program for oil and gas operators in Wyoming, per the Legislative Service Office.

The LSO summary notes that the bonding pool would serve as a financial assurance for the plugging of dry or abandoned wells, any reclamation requirements, the forfeiture of any applicable bond (including federal bonds), and any other associated bonding requirements.

Lawley said she was in the working group on this bill during the interim. “We were solving the problem of the quadrupling of oil and gas bonding requirements on federal land,” she said.

The bonding program idea came from discussions during the interim.

“We are the cusp of entering a real new age, and in the bonding area for oil and gas that is happening,” Lawley said. She noted that have received calls from other states and from Canada asking how they put the legislation together.

What they did was give the Oil and Gas Conservation Commission, which already handles all the bonding of wells on state lands, more authority.

Per the LSO summary, under the bill “the Commission is required to contract with a third party to establish and operate the bonding pool. If doing so is impracticable, then the Commission can establish and run the bonding pool. The Commission may enter into agreements with relevant federal agencies to plug wells in lieu of an operator forfeiting a bond. The act also requires the Commission to establish a subsequent financial assurance to be available if the bonding pool is insufficient to satisfy bonding and reclamation requirements.”

“I was honored to be on the work group,” she said.

The second Minerals bill she felt was a priority and has also been signed by the governor was HB75/Enrolled Act 11, Coal Severance Tax Rate, which reduces the tax rate for surface coal from 6.5% to 6%. Lawley noted 6% is the same as the rate for oil and gas.

Lawley will continue to work with Minerals and Education in the interim and was named at the end of the session to be on the Select Water Committee, which she had requested.

“[Water] is a huge issue for the Big Horn Basin … So I’m looking forward to serving on Select Water, and I got a lot of learning to do, but I’m very grateful to have the opportunity to be on Select Water in the next two years.