Split estates-good faith negotiations.

20LSO-0408
2020
STATE OF WYOMING
20LSO-0408
Numbered
2.0

HOUSE BILL NO. HB0116

Split estates-good faith negotiations.

Sponsored by: Representative(s) Clausen, Barlow, Kirkbride and Lindholm and Senator(s) Boner and Wasserburger

A BILL

for

AN ACT relating to oil and gas; authorizing surface owner objections for an operator's failure to comply with requirements to negotiate in good faith; specifying procedures; amending notice requirements; and providing for an effective date.

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

Section 1
.

W.S. 30
‑
5
‑
404(c) and by creating a new subsection (h) is amended to read:

30
‑
5
‑
404.

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

(c)

Within seven (7) days following receipt of a 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 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).
The commission's notice shall also include a statement notifying the surface owner that within thirty (30) days after receipt of the notice the surface owner may object to the amount or the type of the surety bond or guaranty or to the oil and gas operator's failure to negotiate in good faith.
If, at the expiration of thirty (30) days after receipt of the commission's notice by the surface owner, he makes no objection
based on the oil and gas operator's failure to negotiate in good faith under W.S. 30
‑
5
‑
402(c) and (f) or
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
based on the oil and gas operator's failure to negotiate in good faith, the surface owner shall comply with subsection (h) of this section.
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.

(h)

A surface owner who objects based on the oil and gas operator's failure to negotiate in good faith under W.S. 30
‑
5
‑
402(c) and (f) shall file the objection in the
district court in the county where the land is located. The court shall proceed without a jury to resolve the objection. The parties may present oral and documentary proof and may argue in support of their respective positions but the rules of evidence need not be followed. Neither party is required to offer the opinion of an expert or to be represented by an attorney. Unless demanded by a party and at his own expense, a record of testimony received at the hearing need not be kept. The court may enter any order necessary to resolve the objection, including ordering the oil and gas operator to resume and attempt to complete good faith negotiations in accordance with W.S. 30
‑
5
‑
402(c) and (f). Either party, within thirty (30) days after entry of a final order resolving the objection, may file a written demand for trial. The action shall be restored to the docket of the court as though proceedings under this subsection had not occurred. The oil and gas operator shall not enter the land or otherwise access the property and shall not conduct oil and gas operations until final resolution of the objection and any appeals.

Section 2
.

This act is effective July 1, 2020
.

(END)

1
HB0116