Oil and gas enhanced recovery-microbial conversion.

WORKING DRAFT

ORIGINAL SENATE
FILE

NO.
0116

ENROLLED ACT NO. 34, SENATE

SIXTY-FIRST LEGISLATURE OF THE STATE OF
WYOMING
2011 GENERAL SESSION

AN ACT relating to
oil and gas;
providing for
the regulation of
well and reservoir injections to restore or enhance the microbial conversion of hydrocarbon substrates to methane gas; prescribing application requirements; providing for hearings
and orders by the commission
;
amending commission authority;
and providing for an effective date.

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

Section 1.

W.S. 30
‑
5
‑
128 is created to read:

30
‑
5
‑
128.

Unitization of areas to restore or enhance the microbial conversion of hydrocarbon substrates to methane gas; purposes; application; contents.

(a)

Any interested person may file an application with the commission requesting an order authorizing
well and reservoir injections to restore or enhance the microbial conversion of hydrocarbon substrates to methane gas
. The application may be on an individual lease or drilling and spacing unit basis or
,
at the applicant's election, on a unit basis

pursuant to W.S. 30
‑
5
‑
109
and
30
‑
5
‑
110
. If the application is on a unit basis
,
the applicant shall provide for the operation and organization of a unit or units of the optimal size and shape necessary to prevent waste and protect correlative rights and
shall provide
for the pooling of interests in a specific geologic formation in the proposed unit area for the purpose of conducting
the
injections. The application shall contain all of the elements set forth i
n W.S. 30
‑
5
‑
110(c) through (g).

The application shall demonstrate that the applicant has a legally binding commitment to plug and abandon all wells not later than sixty (60) days prior to their intersection with an active surface or conventional underground coal mine.
I
njections
authorized by this section shall
not
be deemed
in situ mining as defined in W.S. 35
‑
11
‑
103(f)(iv).

(b)

A
pplications
under this section
shall contain the following with respect to the proposed operating plan:

(i)

Evidence that
groundwater in the proposed formation intervals will not be adversely influenced by the injections and that the operations shall at all times be in compliance with
applicable
groundwater quality regulations
and underground injection control program requirements
.

An a
pplicant
shall

comply with this paragraph by:

(A)

Obtain
ing
from the commission, after
the commission has adopted
class II rules
implementing this section

and after providing notice of the application to all groundwater permit holders within one-half (1/2) mile of each injection well or the area of review, whichever is larger
, a class II well permit demonstrating that the groundwater will not be degraded and will be in compliance with the federal Safe Drinking Water Act, and that for each injection zone the underground ambient water quality class of use as defined by the department of environmental quality will not be violated by the injections; or

(B)

O
btaining a class V well permit from the
Wyoming
department of environmental quality.

(c)

Upon the filing of
an
application
under this section
, the commission shall promptly set the matter for hearing
. I
n addition to
any
notice required by law or commission rules,
the commission
shall
give notice of the hearing by certified mail to all persons owning or having an interest in coal or its production in the proposed application area. The notice shall be mailed at least thirty (30) days before the hearing, shall s
pecify the time
and place of hearing and shall
describ
e
briefly
the
purpose
of the hearing and the land affected
.

(d)

Following the
hearing
,
the commission shall enter an order setting forth findings and approving the application if the commission finds that the provisions of W.S. 30
‑
5
‑
109 or 30
‑
5
‑
110 have been met.

(e)

The commission, after consultation with the director of the department of environmental quality, shall adopt class II rules implementing this section.

Section 2.

W.S.
30
‑
5
‑
104(d) by creating a new paragraph (ix)
is

amended to read:

30
‑
5
‑
104.

Oil and gas conservation commission; powers and duties; investigations; rules and regulations.

(d)

The commission has authority:

(ix)

To issue orders pursuant to W.S. 30
‑
5
‑
110 allowing the unitization of oil and gas interests with
consenting
coal interests
that are
actually consumed as a direct result of well and reservoir injections to restore or enhance the microbial conversion of hydrocarbon substrates to methane gas.

Section
3
.

This act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

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