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Rep. Stan Cooper, R Kemmerer, introduced an amendment to make the bond amount $6,000, but it was rejected.
Senate File 83, sponsored by Sen. Jim Anderson, R Glenrock, now heads to the Senate floor for debate.
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In 2005, the Legislature passed a law that required the $2,000 in bonding per well sitefor landowners in split estate cases. Energy companies have to get the bonds if they can't come to a surface use agreement with landowners. Oil or natural gas operators pay the surety bond to the Wyoming Oil and Gas Conservation Commission.
Shannon Anderson, an attorney for the resource council, said damage to some land could be $200,000, but her organization's members supported $10,000. Shannon Anderson said bond money is always returned to energy companies after drilling unless there is damage. The bonds become a vital source of money for a landowner if the energy company becomes financially insolvent.
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The Senate Minerals, Business and Economic Development Committee approved a bill Monday that would increase the bond for land on top of which oil and gas is drilled from $2,000 per well site to $10,000.
Anderson lives in Converse County, where oil drilling is Nike Cortez Cholo Style
specific amount, saying it was up to committee members. But Cheyenne attorney Lynne Boomgarden, who was representing Wyoming GRMR Oil and Gas of Broomfield, Colo., suggested $4,800 since the value of non irrigated land that's used for grazing can be worth just $175 an acre. She said the Wyoming state oil and gas supervisor can increase a bond amount if the land is sensitive and landowners can protest a bond amount as being too low. Also, if land damages are above the amount of the bond, landowners can sue the energy companies to recover costs, she said.
When the original law passed in 2005, $2,000 was considered fair because most of the drilling was for coal bed methane. However, nowadays, drilling is different, Hinchey said. Well pads span five to eight acres. There can be four or five wells per pad, Hinchey said.
When negotiating surface agreements, landowners want to negotiate with energy companies the source of underground water they will use, the roads they will use to get to the site and the amount of distance away from homes Nike Cortez White Obsidian and buildings, said Alex Bowler, a small landowner 15 miles east of Cheyenne.
"The drilling is different," he said. "We're seeing large locations, large rigs. We're seeing depths going down 10,000 feet, then laterally going out perhaps 5,000 feet."
Representatives from the Sheridan based Powder River Basin Resource Council, which represents ranchers, and the Casper based Petroleum Association of Wyoming, which represents energy producers, told the committee Monday the amount needed to be increased, but they disagreed by how much.
booming. The boom is bringing wealth and opportunities to residents in his area, but residents have also told Anderson they wanted a higher bond because of the potential effects of drilling on their land, he said.
Bruce Hinchey, president of the petroleum association, said the bond amount should be lower than $10,000 but didn't give a Nike Cortez Cholo Shoes
Wyoming committee endorses split
"We deserve a degree of protection," she said. "Oil and gas companies invest millions of dollars, usually $1 (million) to $4 million at each site, so $10,000 represents very little a drop in the bucket, as they say."We provide this community forum for readers to exchange ideas and opinions on the news of the day. Passionate views, pointed criticism and critical thinking are welcome. Name calling, crude language and personal abuse are not welcome. Moderators will monitor comments with an eye toward maintaining a high level of civility in this forum. Our comment policy explains the rules of the road for registered commenters.
But at $2,000, many energy companies find it cheaper to obtain a bond than to negotiate, said Cheyenne landowner Marilyn Ham.
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