Official Summary Text
Bill Summary - 24LSO-0221
Bill No.:
HB0141
Effective:
Immediately
LSO No.:
24LSO-0221
Enrolled Act No.:
HEA No. 0034
Chapter No.:
64
Prime Sponsor:
Western
Catch Title:
State land oil and gas leases-operator requirement.
Has Report:
No
Subject:
Requiring review of oil-and-gas state land lease bidders for qualifications.
Summary/Major Elements:
This act requires the Director of the Office of State Lands and Investments to use criteria that the Board of Land Commissioners establish to review the highest bid for an oil-and-gas lease on state lands to ensure that the applicant is a qualified oil-and-gas lease applicant.
Under this act, if the highest bidder is not qualified, then the Board of Land Commissioners must consider the second highest bidder to determine whether that bidder is a qualified applicant. If the applicant is qualified, then the Board may issue the lease if the applicant agrees to lease the lands for the highest amount bid before the disqualified applicant entered the lease auction or process or for the amount that the bidder bid, whichever is lower.
Any applicant whose bid is rejected for failing to meet the specified qualifications is subject to a civil penalty in the amount of that applicant's highest bid. The attorney general may bring an action to recover the civil penalty from that bidder.
The act requires the Board of Land Commissioners to promulgate rules to implement the act, including promulgating rules to define "qualified bidder" or "qualified oil-and-gas applicant" for purposes of bidding on an oil-and-gas lease on state land.
Nothing in the act is to be construed to impair or amend any lease or lease agreement for oil-and-gas production on state lands before the effective date of this act.
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.
While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.
Current Bill Text
Read the full stored bill text
24LSO-0221
ORIGINAL House
Bill No
.
HB0141
ENROLLED ACT NO. 34,
HOUSE OF REPRESENTATIVES
SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2024 Budget Session
AN ACT relating to state lands; specifying evaluation and review requirements before issuance of oil and gas leases on state lands; requiring rulemaking; specifying applicability; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 36
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6
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101 by creating a new subsection (p) is amended to read:
36
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6
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101.
Terms of leases; extensions; lessees specified; rules and regulations; rent and royalties; assignment of leases; grazing and agricultural leases; cooperation with United States or its lessees, in cooperative or unit plans.
(p)
Before issuing a lease of any state lands or state school lands for oil and gas production under this article, the director, subject to criteria established by the board, shall review the highest bid offered by an applicant to determine if the applicant is a qualified oil and gas lease applicant in accordance with rules of the board. If the highest bidder is not a qualified bidder, then the board shall consider the second highest bidder to determine whether that bidder is a qualified applicant, upon which the board may issue the lease if the applicant agrees to lease the lands for the highest amount bid before the disqualified applicant entered the lease auction or process or for the amount that the second highest bidder bid, whichever is lower. Any applicant whose bid is rejected under this subsection because the applicant is not a qualified oil and gas lease applicant shall be subject to a civil penalty in the amount of the applicant's highest bid. The attorney general may bring an action in a court of competent jurisdiction to recover the penalty specified in this subsection from the applicant.
Section 2.
The board of land commissioners shall promulgate all rules necessary to implement this act, including defining the term "qualified bidder" or "qualified oil and gas applicant" for purposes of bidding on oil and gas production leases on state land.
Section 3.
Nothing in this act shall be construed to alter, amend or impair any oil or gas lease for state lands or state school lands or lease assignment issued or made before the effective date of 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)
Speaker of the House
President of the Senate
Governor
TIME APPROVED: _________
DATE APPROVED: _________
I hereby certify that this act originated in the House.
Chief Clerk
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