HB0101 • 2022

Drilling units-mandatory royalty amendment.

AN ACT relating to oil and gas; clarifying the amount of the cost-free royalty interest to which a nonconsenting owner in a drilling unit is entitled; requiring rulemaking; specifying applicability; and providing for an effective date.

Energy Land

Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor: Representative Clausen
Last action: 2022-02-18
Official status: inactive
Effective date: 3/1/2022

Plain English Breakdown

The bill did not pass and was not enacted, so its provisions do not apply in practice.

Clarifying Oil and Gas Royalties

This act aims to clarify how much non-consenting landowners receive in royalties from oil and gas drilling.

What This Bill Does

Amends the law to specify that non-consenting owners are entitled to a cost-free royalty interest equal to the greater of an acreage-weighted average fee royalty interest within their drilling unit.
Requires the Oil and Gas Conservation Commission to create rules for implementing this act.

Who It Names or Affects

Non-consenting landowners in oil and gas drilling units.
Oil and gas companies operating wells that include non-consenting owners.
The Oil and Gas Conservation Commission, which must make new rules based on the bill's requirements.

Terms To Know

non-consenting owner: A person who owns land with oil or gas but does not agree to drilling plans on that land.
pooling order: An official decision allowing companies to drill in a specific area, even if some owners do not consent.

Limits and Unknowns

The bill did not pass and was not signed into law.
It only affects future pooling orders after the effective date of March 1, 2022, which never occurred due to the bill's failure.

Bill History

2022-02-18 House
H Failed Introduction 13-47-0-0-0
2022-02-14 House
H Received for Introduction
2022-02-11 LSO
Bill Number Assigned

Current Bill Text

Read the full stored bill text

22LSO-0358
2022
STATE OF WYOMING
22LSO-0358
Numbered
2.0

HOUSE BILL NO. HB0101

Drilling units-mandatory royalty amendment.

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

A BILL

for

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

Section 1
.

W.S. 30
‑
5
‑
109(h)(ii) is amended to read:

30
‑
5
‑
109.

Rules and regulations governing drilling units.

(h)

During the time the person or persons drilling and operating a well are recovering costs from a nonconsenting owner as authorized in a pooling order issued pursuant to subsection (g) of this section, a nonconsenting owner of a tract or interest in a drilling unit that is not subject to a lease or other contract for oil and gas development shall be entitled to a cost
‑
free royalty interest equal to the greater of:

(ii)

The acreage weighted average
fee
royalty interest of the leased tracts within the drilling unit.

Section 2.

This act shall apply to all pooling orders issued on and after the effective date of this act.

Section 3.

The oil and gas conservation commission shall promulgate all rules necessary to implement this act.

Section 4
.

This act is
effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

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HB0101