For many years there have been real and perceived deficiencies in the amount of bonding required and held by the OSLI and WOGCC for plugging, abandonment and surface restoration of oil and gas wells and facilities permitted by oil and gas operators. The more prudent and compliant operators are at risk for additional taxation, under the auspices of an increased conservation tax if “under bonded” and non-compliant oil and gas companies default on their responsibilities. This program will track the activities of oil and gas companies in the state and their performance related to regulatory requirements. The State of Wyoming will develop recommendations for a program to ensure that oil and gas companies that are adequately capitalized, have historically met their regulatory burdens, and those that are in good standing, will potentially receive beneficial considerations in bonding, streamlined regulatory processes, and increased protection against additional costs from conservation taxes. Others oil and gas companies would still have the capacity to do business within the state but without the benefits of the incentive program.
The creation for the State of Wyoming of a multi-tiered certified oil and gas operator program
Office of State Lands and Investments, Wyoming Oil and Gas Conservation Commission