Industrial and energy development protection.

WORKING DRAFT
2011
STATE OF
WYOMING
11LSO-0179

HOUSE BILL
NO.
HB0051

I
ndustrial
and energy
development protection.

Sponsored by:
Representative(s) Wallis

A BILL

for

AN ACT relating to
industrial and energy
development; imposing restrictions on the filing of civil actions as specified;
requiring a surety
bond
of the party filing a court action as specified; providing for distribution of the surety bond proceeds as specified;
imposing restrictions on
administrative appeals as specified;
prov
iding damages as specified
;
providing
definitions
;
specifying

applicability
;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 30
‑
1
‑
134 is created to read:

30
‑
1
‑
134.

Administrative appeal; civil remedy.

(a)

The right to appeal
any
grant, denial, suspension, revocation
, violation
or

renewal of any permit, license, certi
fication or variance authorized, issued or required under this title to any administrative body wholly under the control of the state of Wyoming shall be restricted to
aggrieved
parties as defined in sub
section (f
) of this section.

(b)

If the plaintiff in a court
action contesting the grant, denial, suspension, revocation
, violation
or renewal of any permit, license, certification or variance authorized or required by this act is not
an aggrieved party

as defined in subsection (f
) of this section
, the court shall require a surety bond of the party filing the action. The surety bond shall be forfeited to the defendant if the court enters a final order against the plaintiff. The bonding requirements of this subsection do not apply to an indigent person. The s
urety bond shall be set in
an amount
approximating
twenty percent (20%) of:

(i)

The estimated co
st of developing the
interest
subject to the permit, license, certification or variance
; and

(ii)

The estimated gross income that would be lost to
the permittee if the action were
to delay implementation of the permit for one (1) year from the date the action was filed.

(c
)

If a bond requir
ed under subsection (b
) of this section is not filed with the clerk of the court within thirty (30) days of filing the complaint, the action shall be dismissed.

(d)

The court shall determine the amount of the b
ond required under subsection (b
) of this section
based on
:

(i)

T
he affidavit of the permittee or a representative of the permittee stating the expected cost of the project authorized by the permit and the expected gross income the permittee would realize in the first full year of production if the action was not filed
;
and

(ii)

Any other relevant material or testimony presented to the court.

(e
)

The court, in issuing a final order in any action brought pursuant to this section, may award costs of litigation, including attorney and expert witness fees,
whenever the court determines such an award is appropriate
. A plaintiff's total damages recovered under this subsection shall be reduced by the amount of any recovery under subsection (
b
) of this section.

(f
)

As used in this section
and throughout this title unless otherwise specified
, "a
ggrieved party" means the permittee, the
oil and gas
commission,
the department of environmental quality,
the owner or producer or any person having a legal interest in the
subject of the permit
at issue or a private land owner who may be adversely affected by the permit.

Section 2
.

W.S.
30
‑
5
‑
101(a)
(x) and
by creating a new paragraph (xi),
30
‑
5
‑
111(h),
30
‑
5
‑
113 by creating new subsections
(g
)
through (k
)
,
35
‑
11
‑
103(a)(vii)
and

35
‑
11
‑
904

by creating

new subsection
s
(h)

through
(
k
)

are amended to read:

30-5-101.

Definitions.

(a)

As used in this act unless the context otherwise requires:

(x)

The term "surety bond or other guaranty" means a surety bond, a first priority security interest in a deposit of the proceeds of a collected cashier's check, a first priority security interest in a certificate of deposit or an irrevocable letter of credit, all in an amount and including other terms, conditions and requirements determined by the commission
.

or the court
;

(xi)

"Aggrieved party" means the permittee, the commission, the owner or producer or any person having a lega
l interest in the oil or gas
at issue or a private land owner who may be adversely affected by the permit.

30-5-111.

Rules of practice and procedure; hearings; emergency orders; notice; public inspection.

(h)

The commission may act upon its own motion, or upon the petition of any
interested person

aggrieved party
. On the filing of a petition for a hearing concerning any matter within the jurisdiction of the commission, it shall promptly fix a date for a hearing thereon and shall cause notice of the hearing to be given. The hearing shall be held without undue delay after the filing of the petition. The commission shall enter its order within thirty (30) days after the hearing. Any
person affected by any order of the commission

aggrieved party
shall have the right at any time to apply to the commission to repeal, amend, modify, or supplement
the same

its order
.

30
‑
5
‑
113.

Time within which suit to be brought by person adversely affected; appeals; procedure
.

(
g)

The court, in issuing a
final order in any action brought pursuant to this section, may award costs of litigation, including attorney and expe
rt witness fees, to any party whenever
the court determines that
such an award is appropriate.
A plaintiff's total damages recovered under this subsection shall be reduced by the amount of any recovery under subsection (h) of this section.

(h)

If the plaintiff in an action contesting
the grant, denial, suspension, revocation
, violation
or renewal of any permit, license, certification or variance authorized or required by this act
is not
an aggrieved party as that term is defined
in
W.S. 30
‑
5
‑
101(a)(xi)
, the court shall require a surety bond of the party filing the action.
The surety bond shall be forfeited to the defendant if the court enters a final order against the plaintiff.

The bonding requirements of this subsection
do not apply to an indigent person.

The surety bond shall be se
t in an
amount
approximating
twenty percent (20%) of:

(i)

The estimated cost of developing the oil or gas interest; and

(ii)

The estimated
gross
income that would be lost to
the permittee if the action were
to delay implementation of the permit for one (1) year f
rom the date the action
was filed.

(j)

If a bo
nd required under subsection (h) of this section
is not filed with the clerk of the court within
thirty (
30
)
days of filing the complaint, the action shall be dismissed.

(k)

The court shall determine the amount of the bond required under subsection (h)
of this section
based on
:

(i)

T
he affidavit of the permittee or a representative of the permittee stating the expected cost of the project authorized
by the permit and the expected gross
income the permittee would realize
in the first full year of production
if the act
ion was not filed;
and

(ii)

Any other relevant material or te
stimony presented to the court.

35
‑
11
‑
103.

Definitions.

(a)

For the purpose of this act, unless the context otherwise requires:

(vii)

"Aggrieved party" means any person named or admitted as a party or properly seeking or entitled as of right to be admitted as a party to any proceeding under this act because of damages that person may sustain or be claiming because of his unique position in any proceeding held under this act
. For purposes
of contesting
the grant, denial, suspension, revocation
, violation
or renewal of any permit, license, certification or variance authorized or required by this act
to
the council under W.S.
35
‑
11
‑
112(a)(iv) or
35
‑
11
‑
701(c), an "aggriev
ed party" shall be limited to the
permittee, the department, any person having a lega
l interest in the subject of the permit, license, certification, or variance
at issue or a private land owner who may be adversely affected by the permit
,

license, certification or variance
;

35
‑
11
‑
904.

Civil or criminal remedy.

(h
)

If the plaintiff in the action is a party that is not the permittee, the department, any person having a lega
l interest in the
subject of
the permit, license,
certification, or variance
at issue or a private land owner who may be adversely affected by the permit, the court
shall require a surety bond of the party filing the action
.
The surety bond shall be forfeited to the defendant if the court enters a final order against the plaintiff. The bonding requirements of this subsection
do not apply to an indigent person.
The
surety bond shall be set
in
an amount
approximating
twenty percent (20%) of
:

(i)

T
he estimated cost of dev
e
loping the

interest subject to
the

permit,

license, certification or variance
;

and

(ii)

The estimated
gross income that would be lost
to
the permittee if the action were
to
delay imple
men
tation of the permit,
license, certification or variance

for
one (1) year f
rom the date the action
was filed.

(j
)

If a bond required under subsection (h) is

n
ot filed
with the
clerk of the
court within
thirty (
30
)
days of filing the complaint, the action shall be dismissed.

(k)

The court shall determine the amount of the bond
required under subsection (h)
of this section
based on
:

(i)

T
he affidavit of the permittee or a representative of the permittee
stating the expected cost of the project authorized by the permit
,
license, certification or variance
a
nd the expected
gross
income the permittee would realize
if the action was not filed
;
and

(ii)

Any other relevant material or te
stimony presented to the court.

Section
3
.

This act is applicable to all actions initially commenced on or after July 1, 2011.

Section
4
.

This act is effective July 1, 2011.

(END)

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HB0051