Wyoming Adjusts Coalbed Methane Gas Well Permit Bond Amount
Tuesday May 31, 2016
If you are a coalbed methane gas well owner in Wyoming, there are new regulations in the state to consider. They are the new standard for staying in legal compliance.
The Wyoming Oil and Gas Conservation Commission (WOGCC) has adopted changes to the coalbed methane gas well permit bond requirement and introduced a new surety bond requirement for seismic exploration activities.
The new legal framework aims to guarantee the proper handling of land after it has been used for mining. In this way, funds will be secured for plugging of wells and land reclamation, as the need arises. The increase is enacted to tackle issues with abandoned mined land across the state.
Let’s take a look at the most important legal changes for Wyoming coalbed methane gas well owners.
The legal requirements for well owners in Wyoming
Until now, the bond amount for wells less than 2,000 feet was set at $10,000. Well owners of wells deeper than 2,000 feet had to post a $20,000 permit bond. For multiple-well owners, there was a possibility to obtain a blanket bond of $75,000, covering all locations.
Additionally, if drilling occurred on private land, $2,000 bond for each well location was also required.
Seismic exploration operators were not required to get bonded to operate legally previously.
The new coalbed methane gas well permit bond
The most significant alterations made by the Commission concern the amount of the coalbed methane gas well permit bond. The new regulations stipulate that the bond amount is...