reglab/statecodes huggingface dataset:
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-5 - Leasing Procedures

Current through July 13, 2024
(a) All oil and gas
				leases on state lands will be first offered by competitive bidding. The Office
				shall set a time and place for the auction sale, describing each tract to be
				offered, noting the terms of the leases to be issued, noting the terms and
				conditions of sale, detailing the procedure to be followed in conducting the
				sale, and any other necessary information. Notice of the sale shall be given in
				such form and manner as the Board shall direct but shall at a minimum be
				published in a Wyoming newspaper of statewide distribution and provided
				individually to entities and persons having registered with the Office to
				receive auction listings.
(b)
				Leases which are not purchased at the initial auction sale may be offered at a
				subsequent auction at a lower royalty rate.
(c) After leases have been offered
				competitively under subsections (a) and (b) of this section, the Office shall
				place them on a list of leases available for lease to the first qualified
				applicant filing an application. The Office may remove leases from the list at
				any time. Applications may be filed with the Office during regular hours of any
				business day.
The Office shall note the date of filing on all applications.
				  Applications filed on the same day, whether presented by personal delivery or
				  received through any mail service, shall be considered as filed
				  simultaneously.
(d) Each
				application must be accompanied by the required filing fee as established by
				the Board in Chapter 17 of the Board's rules. The filing fee will not be
				refunded on any application. An application under this section must also be
				accompanied by a remittance for the advance rental for the first year at the
				rental per acre specified in Section
				6 of this chapter.
(e) If two or more applications for the same
				interests in oil and gas are filed simultaneously, the applications are in
				conflict.
(i) An application which is in
				conflict as to only a part of the lands applied for, will be processed as to
				the lands not in conflict in the same manner as a separate application for such
				lands.
(ii) The priority of
				applications which are in conflict as to all or any part of the lands applied
				for shall, as to the lands in conflict, be determined by sealed bid between the
				applicants in conflict.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-6 - Rentals

Current through July 13, 2024
(a) The annual
				rental payments on all non-producing oil and gas leases shall be one dollar
				($1)/acre per year for the five (5) year term, and for producing leases, two
				dollars ($2)/acre per year for the remaining term of the lease.
(b) Failure to pay rentals on or before the
				lease anniversary date shall result in termination of the lease. Termination of
				a lease shall not relieve the lessee of any obligation incurred under the lease
				other than the obligation to pay rental or penalty.
(c) After initial submission of the increased
				annual rental required by the lease upon the discovery of oil and gas in paying
				quantities, lessees are exempt from submission of subsequent annual creditable
				lease annual rentals for so long as annual royalties paid meet or exceed the
				required annual rental amount. The annual rental shall be held for a credit on
				annual royalty in any year the annual royalty does not equal the required
				annual rental (minimum royalty) amount. Any credit amount used in making up the
				difference in royalty paid and the minimum lease royalty due must be paid
				within thirty (30) days following the next lease anniversary date to continue
				the lease. The Office shall notify lessees of any minimum royalty amount due
				after the lease anniversary for which a shortfall occurs.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-6 - Rentals

Current through July 13, 2024
(a) The annual rental payments on all
				non-producing oil and gas leases shall be one dollar ($1)/acre per year for the
				five (5) year term, and for producing leases, two dollars ($2)/acre per year
				for the remaining term of the lease.
(b) Failure to pay rentals on or before the
				lease anniversary date shall result in termination of the lease. Termination of
				a lease shall not relieve the lessee of any obligation incurred under the lease
				other than the obligation to pay rental or penalty.
(c) After initial submission of the increased
				annual rental required by the lease upon the discovery of oil and gas in paying
				quantities, lessees are exempt from submission of subsequent annual creditable
				lease annual rentals for so long as annual royalties paid meet or exceed the
				required annual rental amount. The annual rental shall be held for a credit on
				annual royalty in any year the annual royalty does not equal the required
				annual rental (minimum royalty) amount. Any credit amount used in making up the
				difference in royalty paid and the minimum lease royalty due must be paid
				within thirty (30) days following the next lease anniversary date to continue
				the lease. The Office shall notify lessees of any minimum royalty amount due
				after the lease anniversary for which a shortfall occurs.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-8 - Lease Term

Current through July 13, 2024
(a) Oil and gas
				leases shall be for a primary term of five (5) years and as long thereafter as
				oil or gas may be produced in paying quantities.
(b) The Board may extend the term of an
				existing undeveloped and non-unitized oil and gas lease for a period not to
				exceed five (5) years, in one-year increments, if it determines that the lessee
				has been prevented from drilling because of governmental action or regulation,
				safety issues to include but not limited to proximity to mining operations,
				permitted surface activities or habitation, drilling target zone conditions, or
				other causes beyond the lessee's reasonable control. Rig availability,
				financing, geological or geophysical reviews, weather conditions, and product
				pricing shall not be considered as causes beyond the lessee's reasonable
				control but ordinary to the business. A single extension request may be
				considered based on weather where the attempt to prudently drill prior to the
				expiration of the lease primary term was negated by unseasonable weather
				conditions.
(i) Extensions shall be on the
				express condition that the lessee commence drilling operations on the leased
				lands within the extended term and drill the well diligently to completion as a
				dry hole, producing well, or after commencement of drilling operations loses
				the hole due to uncontrollable downhole conditions.
(ii) Unless specifically waived by the Board,
				lessees must agree to pay liquidated damages if the well is not commenced and
				completed or unavoidably lost in accordance with the terms of the lease
				extension. The lessee shall furnish a ten thousand dollar ($10,000) cash bond
				in the form of a certified or cashier's check made payable to the Office or a
				ten thousand dollar ($10,000) certificate of deposit in the name of the Office
				of State Lands and Investments as an amount approved by the Board to secure the
				payment of such liquidated damages, refundable upon lessee's fulfillment of
				lease drilling requirements or usable as necessary to meet the performance bond
				obligations of the lease and Section  13  of this chapter.
(iii) Notwithstanding subsection (b) above,
				the Board may extend the term of an existing undeveloped oil and gas lease for
				a period not to exceed five (5) years in one-year increments, for rig
				unavailability. These extensions shall only be granted where the lessee has
				filed with the Office of State Lands and Investments written correspondence
				dated within the year of the extension with all known financially,
				environmentally and operationally suitable drilling contractors operating in
				the Rocky Mountain Region showing the unavailability of drilling rigs through
				those contractors. Such correspondence must be filed on an annual basis along
				with an application for an extension of the lease term.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-8 - Lease Term

Current through July 13, 2024
(a) Oil and gas
				leases shall be for a primary term of five (5) years and as long thereafter as
				oil or gas may be produced in paying quantities.
(b) The Board may extend the term of an
				existing undeveloped and non-unitized oil and gas lease for a period not to
				exceed five (5) years, in one-year increments, if it determines that the lessee
				has been prevented from drilling because of governmental action or regulation,
				safety issues to include but not limited to proximity to mining operations,
				permitted surface activities or habitation, drilling target zone conditions, or
				other causes beyond the lessee's reasonable control. Rig availability,
				financing, geological or geophysical reviews, weather conditions, and product
				pricing shall not be considered as causes beyond the lessee's reasonable
				control but ordinary to the business. A single extension request may be
				considered based on weather where the attempt to prudently drill prior to the
				expiration of the lease primary term was negated by unseasonable weather
				conditions.
(i) Extensions shall be on the
				express condition that the lessee commence drilling operations on the leased
				lands within the extended term and drill the well diligently to completion as a
				dry hole, producing well, or after commencement of drilling operations loses
				the hole due to uncontrollable downhole conditions.
(ii) Unless specifically waived by the Board,
				lessees must agree to pay liquidated damages if the well is not commenced and
				completed or unavoidably lost in accordance with the terms of the lease
				extension. The lessee shall furnish a ten thousand dollar ($10,000) cash bond
				in the form of a certified or cashier's check made payable to the Office or a
				ten thousand dollar ($10,000) certificate of deposit in the name of the Office
				of State Lands and Investments as an amount approved by the Board to secure the
				payment of such liquidated damages, refundable upon lessee's fulfillment of
				lease drilling requirements or usable as necessary to meet the performance bond
				obligations of the lease and Section
				13 of this chapter.
(iii) Notwithstanding subsection (b) above,
				the Board may extend the term of an existing undeveloped oil and gas lease for
				a period not to exceed five (5) years in one-year increments, for rig
				unavailability. These extensions shall only be granted where the lessee has
				filed with the Office of State Lands and Investments written correspondence
				dated within the year of the extension with all known financially,
				environmentally and operationally suitable drilling contractors operating in
				the Rocky Mountain Region showing the unavailability of drilling rigs through
				those contractors. Such correspondence must be filed on an annual basis along
				with an application for an extension of the lease term.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-9 - Unit or Cooperative Plans and Agreements

Current through July 13, 2024
(a) All leases
				are issued subject to the right of the Director to require a cooperative plan
				or unit agreement if the Director determines that participation is necessary to
				protect the state's interest.
(b)
				Any person may request that state lands be included in a cooperative or unit
				plan for exploration, development, operation, and production of oil and gas
				through the following procedure:
(i) The
				proponent of the plan or agreement shall submit to the Office two (2) copies of
				a plat showing the area to be unitized, together with such geological and other
				information as may exist and be available, in support of the delineation of the
				area sought for unitization or cooperative development. The Office shall hold
				the information submitted confidential until released by the
				proponent.
(ii) The proponent shall
				submit to the Office:
(A) Two (2) copies of
				the preliminary draft of the agreement for approval as to form;
(B) A copy of the schedule of interest
				ownership by tract and, upon request, any operating agreement, accounting
				agreement, or other pertinent documents affecting the plan or
				agreement;
(C) The fee established
				by the Board in Chapter 17 of the Board's rules.
(iii) If the form is acceptable to the
				Office, the unit or cooperative plan meets the requirements of W.S. 36-6-101
				(d) and (k), and all leases sought for commitment are in good standing, the
				Director will approve the agreement. If approved, it will be duly executed
				using the Board's "Approval-Certification-Determination" form.
(iv) If the Director approves the agreement,
				the proponent of the agreement shall submit for execution as many counterpart
				joinder copies as are required for all parties in interest, including one copy
				to be delivered when fully executed to the Office and any final form of
				agreement if different from the draft submitted.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-9 - Unit or Cooperative Plans and Agreements

Current through July 13, 2024
(a) All
				leases are issued subject to the right of the Director to require a cooperative
				plan or unit agreement if the Director determines that participation is
				necessary to protect the state's interest.
(b) Any person may request that state lands
				be included in a cooperative or unit plan for exploration, development,
				operation, and production of oil and gas through the following procedure:
(i) The proponent of the plan or agreement
				shall submit to the Office two (2) copies of a plat showing the area to be
				unitized, together with such geological and other information as may exist and
				be available, in support of the delineation of the area sought for unitization
				or cooperative development. The Office shall hold the information submitted
				confidential until released by the proponent.
(ii) The proponent shall submit to the
				Office:
(A) Two (2) copies of the preliminary
				draft of the agreement for approval as to form;
(B) A copy of the schedule of interest
				ownership by tract and, upon request, any operating agreement, accounting
				agreement, or other pertinent documents affecting the plan or
				agreement;
(C) The fee established
				by the Board in Chapter 17 of the Board's rules.
(iii) If the form is acceptable to the
				Office, the unit or cooperative plan meets the requirements of
				W.S.
				36-6-101(d) and (k), and all
				leases sought for commitment are in good standing, the Director will approve
				the agreement. If approved, it will be duly executed using the Board's
				"Approval-Certification-Determination" form.
(iv) If the Director approves the agreement,
				the proponent of the agreement shall submit for execution as many counterpart
				joinder copies as are required for all parties in interest, including one copy
				to be delivered when fully executed to the Office and any final form of
				agreement if different from the draft submitted.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-10 - General Assignment Requirements

Current through July 13, 2024
(a) Pursuant to
				W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or
				transfer of a lease or an interest therein. Assignments shall be submitted for
				approval in duplicate on the form provided by the Office. If an assignment
				transfers an interest in more than one lease, an extra duly executed copy of
				the assignment or a photostatic copy of the original assignment shall be
				furnished for each lease in which an interest is transferred. The required
				filing fee must be paid for each separate lease in which an interest is
				assigned.
(b) The Director shall
				approve an assignment which has been properly executed and appears to comply
				with the law and this chapter, unless he determines that:
(i) Approval would interfere with the
				development of the oil or gas;
(ii)
				The assignable lease is delinquent in rental or royalty payment
				status;
(iii) Existing bonding is
				insufficient to cover lease premises activities;
(iv) Conditions exist that would otherwise be
				detrimental to the interests of the beneficiaries;
(v) The assignee is not a qualified lessee as
				provided in Section  4  of this chapter; or
(vi) The number of persons holding undivided
				interest in a lease exceed two (2) in number, unless a designation of agent or
				a power of attorney executed by all lessees is filed with the Office which
				designates one of the lessees as agent or attorney to receive all notices, pay
				all rentals, and is authorized to represent the lessees with the same effect as
				though the agent or attorney was the sole lessee. For the purposes of this
				paragraph, owners of overriding royalties, production payments or other
				cost-free interests are not considered lessees, but owners of carried working
				interest, net profit owners, and other persons who may be required to bear a
				share of the cost out of their share of the production are considered
				lessees.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-10 - General Assignment Requirements

Current through July 13, 2024
(a) Pursuant to
				W.S.
				36-6-101(c), the Director
				shall approve or disapprove any assignment or transfer of a lease or an
				interest therein. Assignments shall be submitted for approval in duplicate on
				the form provided by the Office. If an assignment transfers an interest in more
				than one lease, an extra duly executed copy of the assignment or a photostatic
				copy of the original assignment shall be furnished for each lease in which an
				interest is transferred. The required filing fee must be paid for each separate
				lease in which an interest is assigned.
(b) The Director shall approve an assignment
				which has been properly executed and appears to comply with the law and this
				chapter, unless he determines that:
(i)
				Approval would interfere with the development of the oil or gas;
(ii) The assignable lease is delinquent in
				rental or royalty payment status;
(iii) Existing bonding is insufficient to
				cover lease premises activities;
(iv) Conditions exist that would otherwise be
				detrimental to the interests of the beneficiaries;
(v) The assignee is not a qualified lessee as
				provided in Section
				4 of this chapter; or
(vi) The number of persons holding undivided
				interest in a lease exceed two (2) in number, unless a designation of agent or
				a power of attorney executed by all lessees is filed with the Office which
				designates one of the lessees as agent or attorney to receive all notices, pay
				all rentals, and is authorized to represent the lessees with the same effect as
				though the agent or attorney was the sole lessee. For the purposes of this
				paragraph, owners of overriding royalties, production payments or other
				cost-free interests are not considered lessees, but owners of carried working
				interest, net profit owners, and other persons who may be required to bear a
				share of the cost out of their share of the production are considered
				lessees.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-11 - Partial Assignments

Current through July 13, 2024
(a) Subject to
				the requirements of this chapter, a lessee may assign or transfer all or part
				of his interest in the released acreage as to either a divided or undivided
				interest therein, including cost-free interest such as overriding royalties and
				production payments.
(b) The
				Director shall approve assignments or reservations of an overriding royalty
				subject to the condition that the overriding royalty or a portion thereof may
				be cancelled or suspended by the Board if it finds that it creates a burden
				upon the lease which prevents or unreasonably interferes with
				development.
(c) Assignment of a
				divided interest, i.e., an assignment of the full leasehold or working interest
				in a lease as to all interest in all deposits, formations, or depths below a
				separate tract of the lands subject to the lease or as to one or more separate
				deposits, formations, or depths below all or a part of the land subject to the
				lease, segregates the assigned interest from the retained interest and creates
				new lease obligations as to the lands and the deposits, formations, or depths
				assigned.
(i) The rights and obligations of
				the lessees under the retained portion and the assigned portion of the original
				lease are separate and distinct as though two (2) separate leases, one (1)
				covering only the retained interest and the other the assigned interest, had
				originally been issued on the effective date of the original lease.
(ii) The Director may disapprove any
				assignment which has the effect of creating separate lease obligations covering
				the retained and the assigned interest even though it purports to assign less
				than all of the leasehold or working interest, unless both assignor and
				assignee agree to accept the separate obligations.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-11 - Partial Assignments

Current through July 13, 2024
(a) Subject to the
				requirements of this chapter, a lessee may assign or transfer all or part of
				his interest in the released acreage as to either a divided or undivided
				interest therein, including cost-free interest such as overriding royalties and
				production payments.
(b) The
				Director shall approve assignments or reservations of an overriding royalty
				subject to the condition that the overriding royalty or a portion thereof may
				be cancelled or suspended by the Board if it finds that it creates a burden
				upon the lease which prevents or unreasonably interferes with
				development.
(c) Assignment of a
				divided interest, i.e., an assignment of the full leasehold or working interest
				in a lease as to all interest in all deposits, formations, or depths below a
				separate tract of the lands subject to the lease or as to one or more separate
				deposits, formations, or depths below all or a part of the land subject to the
				lease, segregates the assigned interest from the retained interest and creates
				new lease obligations as to the lands and the deposits, formations, or depths
				assigned.
(i) The rights and obligations of
				the lessees under the retained portion and the assigned portion of the original
				lease are separate and distinct as though two (2) separate leases, one (1)
				covering only the retained interest and the other the assigned interest, had
				originally been issued on the effective date of the original lease.
(ii) The Director may disapprove any
				assignment which has the effect of creating separate lease obligations covering
				the retained and the assigned interest even though it purports to assign less
				than all of the leasehold or working interest, unless both assignor and
				assignee agree to accept the separate obligations.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-13 - Bonds

Current through July 13, 2024
(a) A lessee is
				not required to post a bond until actual operations, including exploration
				activities, are to be commenced on the leased lands. Before commencing actual
				operations, the lessee shall submit a copy of Oil and Gas Conservation
				Commission Form 1, Application for Permit to Drill to the Office. Operations
				shall not commence until an adequate bond has been furnished and
				approved.
(b) The bond shall be in
				an amount found by the Director sufficient to protect and indemnify the State
				of Wyoming and shall be in the form approved by the Wyoming Attorney General.
				Two (2) executed copies of the bond must be submitted to the Office. The bond
				shall bind the principal and its surety for:
(i) The payment of all moneys, rents, and
				royalties accruing to the Board;
(ii) Full compliance with all applicable
				statutes and terms and conditions of the Board's leases and rules and
				regulations;
(iii) The proper
				plugging and abandonment of all inactive, non-producible wells on the
				leases;
(iv) Reclamation of the
				surface; and
(v) For the payment of
				all disturbances to the surface and improvements thereon.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-13 - Bonds

Current through July 13, 2024
(a) A lessee is not required to post a bond
				until actual operations, including exploration activities, are to be commenced
				on the leased lands. Before commencing actual operations, the lessee shall
				submit a copy of Oil and Gas Conservation Commission Form 1,
Application for Permit to Drill
to the Office.
				Operations shall not commence until an adequate bond has been furnished and
				approved.
(b) The bond shall be in
				an amount found by the Director sufficient to protect and indemnify the State
				of Wyoming and shall be in the form approved by the Wyoming Attorney General.
				Two (2) executed copies of the bond must be submitted to the Office. The bond
				shall bind the principal and its surety for:
(i) The payment of all moneys, rents, and
				royalties accruing to the Board;
(ii) Full compliance with all applicable
				statutes and terms and conditions of the Board's leases and rules and
				regulations;
(iii) The proper
				plugging and abandonment of all inactive, non-producible wells on the
				leases;
(iv) Reclamation of the
				surface; and
(v) For the payment of
				all disturbances to the surface and improvements thereon.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-14 - Relinquishment

Current through July 13, 2024
(a) An oil and
				gas lease or any divided interest therein may be relinquished by the record
				title holder to the Board in the following manner:
(i) If no operations have been conducted
				under the lease and no surface disturbance or damage has occurred on the land
				to be relinquished, the lessee shall file with the Office a written statement
				on a form provided by the Office that he wishes to relinquish the lease or
				interest. The relinquishment shall become effective on the date and hour of
				receipt by the Office or at some later date if specified.
(ii) If operations have been conducted under
				the lease or surface disturbance or damage has occurred on land proposed to be
				relinquished, the lessee shall file with the Office a statement on a form
				provided by the Office that he wishes to relinquish the lease or interest.
				Relinquishment shall not become effective until the land and the wells thereon
				shall have been placed in acceptable condition and an inspection report has
				been completed by the State Oil & Gas Supervisor.
(iii) Once a relinquishment on state lands
				becomes effective, the lease may not be reinstated. The lands shall be made
				available for lease as provided in Section  5  of this chapter.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-14 - Relinquishment

Current through July 13, 2024
(a) An oil and gas lease or any divided
				interest therein may be relinquished by the record title holder to the Board in
				the following manner:
(i) If no operations
				have been conducted under the lease and no surface disturbance or damage has
				occurred on the land to be relinquished, the lessee shall file with the Office
				a written statement on a form provided by the Office that he wishes to
				relinquish the lease or interest. The relinquishment shall become effective on
				the date and hour of receipt by the Office or at some later date if
				specified.
(ii) If operations have
				been conducted under the lease or surface disturbance or damage has occurred on
				land proposed to be relinquished, the lessee shall file with the Office a
				statement on a form provided by the Office that he wishes to relinquish the
				lease or interest. Relinquishment shall not become effective until the land and
				the wells thereon shall have been placed in acceptable condition and an
				inspection report has been completed by the State Oil & Gas
				Supervisor.
(iii) Once a
				relinquishment on state lands becomes effective, the lease may not be
				reinstated. The lands shall be made available for lease as provided in Section
				5 of this chapter.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-15 - Royalty Reporting

Current through July 13, 2024
(a) All lessees
				shall submit to the Office a completed monthly royalty reporting statement on a
				form provided by the Office for each lease (Forms M-1 and/or M-2). The lessee
				shall submit each lease statement within thirty (30) days of the last day of
				the month of sales for oil and condensate and sixty (60) days of the last day
				of the month of sales for gas and gas plant products. The lessee shall attach
				to the M-1 statement copies of original arms-length sales transaction documents
				showing the quantity, quality, and value of products sold, including all lease
				volume sales through affiliate companies.
(b) For participating leases within a unit, a
				participating area, or a cooperative plan, the unit operator, the participating
				area operator, or the cooperative plan (communitization) operator shall submit
				to the Office a completed monthly royalty reporting statement on a form
				provided by the Office for each unit, unit participating area, and cooperative
				plan embracing state leases (Form M-4). The respective operator shall attach to
				the M-4 statement copies of original arms-length sales transaction documents
				showing the quantity, quality, and value of products sold.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-16 - Field Audits

Current through July 13, 2024
(a) The Wyoming
				Department of Audit, the Director, or the duly authorized representative of
				either shall have the right at reasonable times and intervals to audit the
				books and records of any oil and gas lessee or operator on state lands and to
				inspect the leased premises and conduct field audits for the purpose of
				determining compliance with this chapter or the terms of the lease.
(b) Any and all parties producing and selling
				state lands royalty interests shall retain their records for six (6) years from
				the date of sale reporting as due under this chapter for any production from or
				allocated to state lands for all periods ending after January 1,
				2000.
(c) Absent state lessee or
				operator production sales reporting as required in this subsection, the state's
				oil and gas lessee shall only sell or deliver any leased substance to any
				person who agrees:
(i) To file reports with
				the Office stating the price, quantity, origin, and disposition of all
				production purchased from a state lease; and
(ii) To allow an audit as provided for in
				this section.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-17 - Cancellation for Default

Current through July 13, 2024
(a) If any oil
				and gas lessee defaults in the performance or observance of any of this chapter
				or any of the terms, covenants, or conditions of the lease under which it is
				operating, the Board may serve notice of such failure or default either by
				personal service or by certified or registered mail upon the lessee. If the
				failure or default continues for a period of thirty (30) days after service of
				the notice, the Board may declare a forfeiture and cancel the lease, whereupon
				all rights and privileges obtained by the lessee under the lease shall
				terminate, and the Board may re-enter and take possession of the premises and
				surface and down hole equipment if there are outstanding obligations owed the
				State.
(b) This section shall not
				be construed to prevent the exercise by the Director or the Board of any other
				legal or equitable remedy which the state might otherwise have nor to relieve
				the lessee from any accrued obligation under the lease. Failure of the lessor
				to give notice of default in any particular case or waiver of a particular
				cause of forfeiture shall not prevent the cancellation and forfeiture of the
				lease for any other cause of forfeiture or for the same default or cause if it
				continues or occurs at any other time.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 18 - LEASING OF OIL AND GAS › Section 18-17 - Cancellation for Default

Current through July 13, 2024
(a) If any oil and
				gas lessee defaults in the performance or observance of any of this chapter or
				any of the terms, covenants, or conditions of the lease under which it is
				operating, the Board may serve notice of such failure or default either by
				personal service or by certified or registered mail upon the lessee. If the
				failure or default continues for a period of thirty (30) days after service of
				the notice, the Board may declare a forfeiture and cancel the lease, whereupon
				all rights and privileges obtained by the lessee under the lease shall
				terminate, and the Board may re-enter and take possession of the premises and
				surface and down hole equipment if there are outstanding obligations owed the
				State.
(a) This section shall not
				be construed to prevent the exercise by the Director or the Board of any other
				legal or equitable remedy which the state might otherwise have nor to relieve
				the lessee from any accrued obligation under the lease. Failure of the lessor
				to give notice of default in any particular case or waiver of a particular
				cause of forfeiture not prevent the cancellation and forfeiture of the lease
				for any other cause of forfeiture or for the same default or cause if it
				continues or occurs at any other time.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-2 - Definitions

Current through July 13, 2024
(a) "Beneficiaries" means the common schools
				and those state institutions designated by Congress as beneficiaries of lands
				granted to the State of Wyoming.
(b) "Board" means the Board of Land
				Commissioners.
(c) "Director" means
				The Director of the Office of State Lands and Investments.
(d) "Office" means the Office of State Lands
				and Investments.
(e) "Mineral"
				means coal, trona/sodium, uranium and associated minerals, clays, stones of
				various sorts, salts, and any and all substances formed by nature in or as
				rocks of the earth and recognized in law, geology, or by the courts as
				minerals.
(f) "State Lands" means
				all lands under the jurisdiction of the Board of Land Commissioners in which
				the Board owns some or all of the mineral estate.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-3 - General Provisions

Current through July 13, 2024
(a) The Board may,
				without prior notice, withdraw specific lands from leasing for coal when it
				appears reasonably necessary to protect the economic or environmental interests
				of the beneficiaries. Any party desiring to lease lands for coal which have
				been withdrawn may request that a withdrawal be rescinded in whole or in
				part.
(b) The Board may condition
				the issuance of any coal lease upon specific stipulations for the protection of
				the public, the environment, the waters of the state, historical, archeological
				or pale-ontological materials, the wildlife resources, or any of the subsurface
				or surface resources of the state.
(c) The Board may deny a coal lease to any
				person or legal entity which has failed to comply with any rules of the Board
				or any terms and conditions of any lease or other agreement with the
				Board.
(d) The Board may refuse to
				issue a coal lease or approve an assignment of an interest in an existing coal
				lease if issuing the lease or approving the assignment will diminish the
				interest of the beneficiaries.
(e)
				On lands in which the state owns less than the entire interest in the coal
				estate, a lease will be issued by the Board covering the state's interest
				independent of the other co-owners.
(f) Coal covered by an existing lease is not
				available for lease (top leasing) until the existing lease terminates, and the
				coal is made available for leasing under Section
				5 of this chapter.
(g) An application may be filed for a lease
				on lands not shown by the records of the Office to be owned by the state. The
				applicant must submit evidence through the Office to the Wyoming Attorney
				General showing that it is probable that the lands applied for, or any interest
				therein, have escheated to the State of Wyoming. Such applicant shall
				coordinate with and pay for all costs for the Office and the Attorney General
				pursuant to the filing of a petition under
				W.S.
				9-5-203 seeking title for the state. After
				receiving a court order vesting title in the state, the applicant shall have
				the right to lease the escheated lands under the Board's current form of lease
				without bidding thereon at auction. If the lands are not found to have
				escheated to the state, applicant will not be entitled to any lease or cost
				reimbursement.
(h) Discovery of
				historical, archaeological, or paleontological deposits on state lands during
				the course of development shall be reported to the Office by the lessee prior
				to further disturbance, and operations may only re-commence as authorized by
				the Director. The Director shall notify the lessee regarding mitigation within
				five (5) working days after receiving the report.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-4 - Qualified Lessee

Current through July 13, 2024
To be qualified to receive or hold any interest in a state
				  lease, corporations, limited partnerships, and limited liability companies must
				  be authorized to transact business in the State of Wyoming by the Secretary of
				  State, and general partnerships shall provide the Office with a copy of their
				  partnership papers.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-5 - Leasing Procedures

Current through July 13, 2024
(a) Coal shall be
				available for lease to the first qualified applicant filing an application.
				Applications may be filed with the Office during the regular hours of any
				business day. The Office shall note the date of filing on all applications.
				Applications filed on the same day, whether presented by personal delivery or
				received through any mail service, shall be considered as filed
				simultaneously.
(b) Each
				application must be accompanied by the required filing fee as established by
				the Board in Chapter 17 of the Board's rules. The filing fee will not be
				refunded on any application. An application under this section must also be
				accompanied by a remittance for the advance rental for the first year, at the
				rental per acre specified in Section
				6 of this chapter.
(c) If two or more applications for the same
				interests in coal are filed simultaneously, the applications are in conflict.
(i) An application which is in conflict as to
				only a part of the lands applied for, shall be processed as to the lands not in
				conflict in the same manner as a separate application for such lands.
(ii) The priority of applications which are
				in conflict as to all or any part of the lands applied for shall, as to the
				lands in conflict, be determined by sealed bid between the applicants in
				conflict.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-6 - Rentals

Current through July 13, 2024
(a) The annual rental payments on all coal
				leases shall be:
(i) One dollar ($1) per acre
				for the first through the fifth years;
(ii) Two dollars ($2) per acre for the sixth
				through tenth years of the primary lease term and for any renewal year within a
				second ten (10) year term.
(iii)
				Three dollars ($3) per acre for each year for renewals for a third ten (10)
				year term; and
(iv) Four dollars
				($4) per acre for each year for renewals for a fourth ten (10) year
				term.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-7 - Royalties

Current through July 13, 2024
(a) Royalties for coal shall be based on the
				terms of the particular lease agreement, subject to all state royalty statutes
				and rules, and shall be based on the total consideration received for state
				production. The following royalty rates shall apply, unless a different rate is
				specifically authorized by the Board:
(i) On
				surface-mined coal, at twelve and one-half percent (121/2%) of gross mine
				realization; and
(ii) On
				underground-mined coal, at eight percent (8%) of gross mine
				realization.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-8 - Lease Term

Current through July 13, 2024
(a) Coal leases
				shall be for a primary term often (10) years.
(b) The term of a coal lease may be extended
				beyond its primary term only as provided by law, by these rules, or by a
				specific lease provision.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-9 - Cooperative Plans and Agreements

Current through July 13, 2024
(a) All leases are
				issued subject to the right of the Director to require a cooperative plan for
				exploration, development, operation, and production of coal.
(b) Any person may request that state lands
				be included in a cooperative plan by submitting two (2) copies of the
				preliminary draft agreement to the Director for approval.
Wyoming Administrative Code › Agency 060 - Lands and Investments, Office of › Sub-Agency 0002 - Land Commissioners, Board of › Chapter 19 - LEASING OF COAL › Section 19-10 - General Assignment Requirements

Current through July 13, 2024
(a) Pursuant to
				W.S.
				36-6-101(c), the Director
				shall approve or disapprove any assignment or transfer of a lease or an
				interest therein. Assignments shall be submitted for approval in duplicate on
				the form provided by the Office. If an assignment transfers an interest in more
				than one lease, an extra duly executed copy of the assignment or a photostatic
				copy of the original assignment shall be furnished for each lease in which an
				interest is transferred. The required filing fee must be paid for each separate
				lease in which an interest is assigned.
(b) The Director shall approve an assignment
				which has been properly executed and appears to comply with the law and this
				chapter, unless he determines that:
Approval would interfere with the development of the
				  coal;
(ii) The assignable lease is
				delinquent in rental or royalty payment status;
(iii) Existing bonding is insufficient to
				cover lease premises activities;
(iv) Conditions exist that would otherwise be
				detrimental to the interests of the beneficiaries;
(v) The assignee is not a qualified lessee as
				provided in Section
				4 of this chapter; or
(vi) The number of persons holding undivided
				interest in a lease exceed two (2) in number, unless a designation of agent or
				a power of attorney executed by all lessees is filed with the Office which
				designates one of the lessees as agent or attorney to receive all notices, pay
				all rentals, and is authorized to represent the lessees with the same effect as
				though the agent or attorney was the sole lessee. For the purposes of this
				paragraph, owners of overriding royalties, production payments or other
				cost-free interests are not considered lessees, but owners of carried working
				interest, net profit owners, and other persons who may be required to bear a
				share of the cost out of their share of the production are considered
				lessees.