SF0020

Establishes bonding options and bonding pools for oil and gas operators in Wyoming, requiring the Oil and Gas Conservation Commission to promulgate rules and create a voluntary bonding pool program.

• Requires the commission to promulgate rules establishing additional bonding options for operators beyond those currently specified, including a voluntary bonding pool program. (W.S. 30-5-129(a)(i), W.S. 30-5-104(d)(i)(D))
• Sets eligibility requirements for bonding pool participation: operators must be in good standing with the commission before and during participation, and the commission may remove operators who fall out of compliance. (W.S. 30-5-129(a)(ii))
• Authorizes the commission to contract with a third party to establish a bonding pool funded by operator assessments or available conservation funds to provide financial assurance for well plugging, reclamation, bond forfeitures, and related obligations. (W.S. 30-5-129(a)(iii))
• Allows the commission to directly establish and manage a bonding pool as a secondary level of financial assurance if contracting with a third party is impossible, impractical, or not feasible. (W.S. 30-5-129(a)(iv))
• Permits the commission to assess participating operators based on the fair cash market value of oil and gas produced: zero mills per dollar from July 1, 2025 through June 30, 2030, and up to 0.0005 mills per dollar beginning July 1, 2030. Collected funds must be separately accounted for and used only for bonding pool expenses. (W.S. 30-5-129(a)(v))
• Authorizes the commission to use unexpended and unobligated funds from the conservation fund account if bonding pool assessments are insufficient to meet obligations. (W.S. 30-5-129(a)(vi), W.S. 30-5-116(b))
• Allows the commission to enter into agreements with federal agencies for plugging and reclamation of wells on federal land without forfeiture of federal bonds, and permits transfer of financial assurance between operators when necessary for participation eligibility. (W.S. 30-5-129(a)(viii), W.S. 30-5-129(a)(ix))
• Enables the commission to establish a process allowing operators in good standing to reduce surety bond or guaranty requirements if a risk analysis confirms the reduction does not increase default risk or impair the bonding pool's financial condition.