Governor Supports New Proposed Oil and Gas Drilling Rules
Written by jordanmckamey on July 10, 2019
Governor Gordon on Tuesday expressed his support for proposed changes to rules governing oil and gas drilling permits–following through with a commitment he made to address the issue during the 2019 Legislative Session.
On Tuesday–the Wyoming Oil and Gas Conservation Commission released a proposed rule intended to provide a “level playing field” for all operators with intent to drill and develop minerals within the state of Wyoming.
The proposed rule would mean Wyoming would continue to be a first-to-file state–where the first operator to apply for a permit and receive approval has the right to drill–but only for a two-year period. After the initial two-year period–other working interest owners within a drilling and spacing unit will be able to file applications for permits to drill with a time limit placed on the operator to drill the well.
Governor Gordon stated–quote–“The oil and gas industry is essential to Wyoming, and over the years it has adapted to evolving challenges. As that happens our regulatory framework must also evolve to protect the interests of our state–our citizens– and the producers’ ability to efficiently develop these resources.” End quote.
Since 2016, Wyoming has seen a high volume of drilling permit applications filed–ideally this proposed rule will reduce the number of pending applications.