Seismic exploration.

WORKING DRAFT
2013
STATE OF
WYOMING
13LSO-0061

HOUSE BILL
NO.

HB0016

Seismic
exploration
.

Sponsored by:
Joint Judiciary Interim Committee

A BILL

for

AN ACT relating to oil and gas;
modifying surety provisions
for seismic activities
;
modifying
rule
requirements
;
conforming provisions;
and providing for an effective date.

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

Section 1.

W.S. 30
‑
5
‑
104
(
d
)(v)
(A)
and
30
‑
5
‑
40
4(b) and (c)

are
amended to read:

30
‑
5
‑
104.

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

(d)

The commission has authority:

(v)

To adopt rules and regulations to:

(A)

Regulate the plugging, sealing or capping of seismic shot holes, and to require, and fix the amount of, a surety bond or other guaranty to ensure compliance with regulations governing all geophysical operations

and to ensure compliance with W.S. 30
‑
5
‑
401 through 30
‑
5
‑
410
.
When
oil and gas operations as defined in W.S. 30
‑
5
‑
401(a
)(iv) involve seismic activities
, the rules shall require a surety or other guaranty which is sufficient to protect the interests of the surface owners affected

by the activities
and
which,
in all events
,
shall be

in an amount of not less than five thousand dollars ($5,000.00) for the first one thousand (1,000) acres or portion thereof
per surface owner
for which acces
s is sought for seismic activities
and not less than one thousand dollars ($1,000.00) for each additional one th
ousand (1,000) acres or portion
thereof
per surface owner
for which access is sought for seismic activit
ies
;

30
‑
5
‑
404.

Surety bond or guaranty; approval; objections; release of surety bond or guaranty.

(b)

The

surety bond or other guaranty shall be in an amount of not less than two thousand dollars ($2,000.00) per well site on the
land

unless t
he ope
rations involve
seismic activities
.
If the operations involve
seismic activities
, the

surety bond shall be
as provided i
n
W.S. 30
‑
5
‑
104(
d)(v)(A) and
shall only
be
accepted from and posted
by the oil and gas opera
tor who has a valid lease or
posted by a person who is
an agent of, under contract with, or
is
the assignee of the lessee of a valid lease.
No person shall be authorized to conduct operations involving seismic activities who is not an operator with a valid lease or
a person who is
an
agent
of, under contract with, or the assignee of the lessee of a valid lease.

At the request of the oil and gas operator, after attempted consultation with the surface owner the commission may establish a blanket bond or other guaranty in an amount covering oil and gas operations on the surface owner's land as identified by an oil and gas operator in the written notice required under W.S. 30
‑
5
‑
402(
e).
Neither
t
he minimum amount of
the
per well site

bond

or other guaranty specified
or referenced

in this subsection nor a blanket bond or other guaranty established by the commission is intended to establish any amount for reasonable and foreseeable damages.

(c)

Within seven (7) days following receipt of
a
per well site
surety

bond or other guaranty or the
establishment of a blanket bond or other guaranty

specified
or referenced in this
section
, the commission shall notify the surface owner of receipt of the
per well site

surety
bond or other guaranty or the establishment of a blanket bond or other guaranty based on the oil and gas operator's request and the written notice required under W.S. 30
‑
5
‑
402(
e). The commission's notice shall also include a description of the amount and the type of the bond or guaranty received or established and provide to the surface owner a copy of the statement required under W.S. 30
‑
5
‑
403(
a). If, at the expiration of thirty (30) days after receipt of the commission's notice by the surface owner, he makes no objection to the amount or the type of the surety bond or guaranty, the commission shall approve the surety bond or guaranty. If the surface owner objects in writing to the amount or the type of the surety bond or guaranty, the commission shall give immediate consideration to the surety bond or guaranty objected to and the accompanying papers filed by the oil and gas operator in support of the surety bond or guaranty amount and the type of surety bond or guaranty submitted or established, and the surface owner's objections, and the commission shall render a final decision as to the acceptability of the amount and type of the surety bond or guaranty and shall
notify the parties of the decision. Proof of any additional surety bond or guaranty required by the commission shall be filed with the commission within thirty (30) days of the commission's final decision. Any aggrieved party may appeal the final decision of the commission to the district court in accordance with the Wyoming Administrative Procedure Act.

Section 2.

Th
is act is effective July 1, 2013
.

(END)

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HB0016