Wyoming Administrative Code › Agency 055 - Oil and Gas Conservation Commission › Sub-Agency 0001 - General Agency, Board or Commission Rules › Chapter 3 - OPERATIONAL RULES, DRILLING RULES › Section 3-4 - Bonding Requirements (Forms 8, 8A, 8E and 8F)

Current through July 13, 2024
(a) General.
(i) The purpose of a surety bond or other
				guaranty posted as security pursuant to the Commission's Rules is to insure
				that the principal or person posting same complies with the Wyoming
				Conservation Act, the Commission's Rules, and the orders of the Commission, the
				State Oil and Gas Supervisor, or his Authorized Agent, including, but not
				limited to, proper plugging of wells and seismic holes and reclamation of the
				area affected by same.
(ii) The
				Commission shall require from the Owner/Operator a good and sufficient bond
				running to the state of Wyoming to assure that each well and associated
				equipment shall be operated and maintained in such a manner as not to cause
				waste or damage the environment and upon permanent abandonment, each well shall
				be plugged in accordance with the Rules and Regulations of the
				Commission.
(iii) Site reclamation,
				including removal of equipment, shall be initiated within one (1) year of
				permanent abandonment of a well or last use of a pit, and shall be completed in
				as timely a manner as climatic conditions allow. For just cause, the Supervisor
				may grant an administrative variance providing for additional time.
(iv) Reclamation, including removal of
				equipment, shall be completed in accordance with the landowner's reasonable
				requests, and/or resemble the original vegetation and contour of adjoining
				lands. Where practical, topsoil shall be stockpiled during construction for use
				in reclamation. All disturbed areas on state lands will be recontoured and
				reseeded as required by the Office of State Lands and Investments. Appendix F
				includes information on reseeding.
(v) TRANSFER OF WELLS. The Supervisor shall
				be advised by the Owner/Operator of all transfers of wells at least thirty (30)
				days before the closing date of the transfer and the Supervisor retains the
				right for an additional thirty (30) days to evaluate pending transfer of
				well(s). Notice of transfer of wells must be accompanied by a list of all wells
				to be transferred that includes the well name, API number, legal description
				and well status. The purpose of the notice is to provide the Supervisor with an
				opportunity to evaluate the status and number of wells that may be involved in
				the transfer and determine the need for additional bonding by the new
				Owner/Operator. No later than thirty (30) days after notification, the
				Supervisor will notify the parties of his preliminary determination of
				additional bonding. The previous Owner/Operator's bond shall not be released
				until the new Owner/Operator provides bonding, including the additional bonding
				if requested. The Supervisor shall have the discretion to hold the prior bond
				for a period of six (6) months after the new bond has been posted to evaluate
				the performance and viability of the new operator. The Supervisor shall also
				provide thirty (30) days notice of the transfer of any well(s) to the county
				where the well(s) is located.
(vi)
				OTHER REQUIREMENTS. Nothing in this rule shall be construed to prevent the
				Supervisor, upon notice and for good cause, from requiring bonds in special
				cases in amounts greater than set out in this rule.