Seismic exploration-3.

WORKING DRAFT

ORIGINAL SENATE
FILE

NO.
0136

ENROLLED ACT NO. 78, SENATE

SIXTY-SECOND LEGISLATURE OF THE STATE OF WYOMING
2013 GENERAL SESSION

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
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104(d)(v)(A) and 30
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404(b) and (c) are amended to read:

30
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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
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401 through 30
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410. When oil and gas operations as defined in W.S. 30
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401(a)(iv) involve seismic activities, the rules shall require a surety or other guaranty which is sufficient to protect
and for the purpose of addressing
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
. For the purpose of assuring compliance with this minimum bonding requirement, the commission may pool parcels of land of different surface owners where no single parcel exceeds forty (40) acres
;

30
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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 operations involve seismic activities
.
If the operations involve seismic activities, the surety bond shall be as provided in W.S. 30
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104(d)(v)(A)
.

As used in this subsection, seismic activities do not include waves or vibrations originating outside the property in question.

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
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402(e).
Neither
the 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.

A permit
to conduct geophysical/seismic operations issued under the authority of W.S. 30
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104
shall include a statement that it shall not constitute authorization or permission to trespass on the surface estate.

The commission shall not
accept a surety bond for seismic activities for land which the oil and gas operator or seismic activity operator has no right to enter. The operator shall provide evidence of the right to enter
derived from one (1) or more mineral interest owners.

(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
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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
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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)

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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