Wyoming oil and gas laws can be found in Chapter 5, Title 30 of Wyoming Statutes. Pursuant to Wyo. Stat. § 30-5-102, the waste of oil and gas or either of them in the state of Wyoming is prohibited.
Powers and Jurisdiction of the Commission
Pursuant to Wyo. Stat. § 30-5-103, the oil and gas conservation commission consists of a governor, a director of the office of state lands and investments, the state geologist and two additional members from the public at large who should be appointed by the governor.
The Wyoming oil and gas conservation commission has jurisdiction and authority over all persons and property, public and private, necessary to effectuate the purposes and intent of the statute, including the authority to set, assess and collect reasonable fees[i].
The commission has authority and it is its duty to make investigations to determine whether waste exists or is imminent, or whether other facts exist, which justify or require action by it. The commission is authorized to submit orders following any investigatory hearings if proper notice given to operators, producers and processors under the provisions of the Wyoming Administrative Procedure Act and rules of the commission[ii].
Pursuant to Wyo. Stat. § 30-5-104 (d) (i), the commission has the authority to require:
- Identification of ownership of wells, producing leases, tanks, plants and drilling structures;
- The making and filing of reports, well logs, and directional surveys; provided, however, that logs of exploratory or “wildcat” wells marked confidential should be kept confidential for six months after the filing thereof, unless the owner gives written permission to release such logs at an earlier date;
- The drilling, casing, and plugging of wells in such manner as to prevent the escape of oil or gas out of one stratum into another, the intrusion of water into an oil and gas stratum, the pollution of fresh water supplies by oil, gas, or salt water, and to prevent blowouts, cavings, seepages, and fires;
- The furnishing of a surety bond or other guaranty, conditioned for or securing the performance of the duty to plug each dry or abandoned well or the repair of wells causing waste and compliance with the rules and orders of the commission;
- The operation of wells with efficient gas-oil and water-oil ratios, and to fix these ratios;
- Gauging or other measuring of oil and gas to determine the quantity and quality thereof;
- That every person who produces oil or gas in this state should keep and maintain for a period of five years within this state complete and accurate record of the quantities, which records or certified copies thereof should be available for examination by the commission or its agents at all reasonable times.
Regulations of Production
Pursuant to Wyo. Stat. § 30-5-104(c), the commission makes rules, regulations, and orders, and takes other appropriate action to effectuate the purposes and intent of the statute. The commission has authority to adopt rules and regulations to[iii]:
- 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;
- Require an applicant to certify that all underground electrical conductors outside of its facilities, fenced enclosures or posted areas comply with the national electric code; and
- Require an operator to install and maintain all electrical equipment located in and around an oil and gas well to comply with the national electrical code.
Civil Actions
Pursuant to Wyo. Stat. § 30-5-114, if any person violates or threatens to violate any provision of this statute or order of the commission, the commission may bring suit in the name of the state against such person in the district court in the county of the residence of the defendant, or in the county of the residence of any defendant if there be more than one defendant, or in the county where the violation is alleged to have occurred.
In such suit, the commission can recover penalties for violations. The court can grant injunctions, prohibitory and mandatory, including temporary restraining orders and temporary injunctions in any such suit.
Appeals
Appeals may be taken from any judgment; decree or order in any such suit as provided in the code of civil procedure and all proceedings in the trial and appellate court should have precedence over any other proceedings then pending in such courts[iv].
Penalties
- Any person who violates any provision of the statute should forfeit an amount up to five thousand dollars for each act of violation, and for each day that such violation continues, to be fixed and determined by the commission after notice and opportunity for hearing. Any person who knowingly and willfully violates any provision of this statute will be liable to pay an amount up to ten thousand dollars[v].
- Any person who makes any false entry in any report, record, account, or memorandum, or by any such rule, regulation, or order, or omit, or cause to be omitted, from any such report, record, account, or memorandum, full, true, and correct entries or destroy, mutilate, alter, or falsify any such record, account, or memorandum will be guilty of a misdemeanor and, upon conviction, be subject to a fine up to five thousand dollars or imprisonment for a term up to six months, or to both such fine and imprisonment[vi].
- Any person knowingly aiding or abetting any other person in the violation of any provision of the statute, or any rule, regulation, or order of the commission shall be subject to the same penalty and punishment as that prescribed by the statute for the violation by such other person[vii].
- Any person or corporation violating the provisions of the statute or rules and regulations or the lawful orders of the oil and gas supervisor or his/her assistants or representatives under said rules and regulations upon conviction be fined up to five hundred dollars or imprisoned up to six months[viii].
- The commission can waive any penalty for good cause[ix].
[i] Wyo. Stat. § 30-5-104(a).
[ii] Wyo. Stat. § 30-5-104(b).
[iii] Wyo. Stat. § 30-5-104 (v).
[iv] Wyo. Stat. § 30-5-114.
[v] Wyo. Stat. § 30-5-119(a).
[vi] Wyo. Stat. § 30-5-119(b).
[vii] Wyo. Stat. § 30-5-119(a).
[viii] Wyo. Stat. § 30-5-119(e).
[ix] Wyo. Stat. § 30-5-119(g).