Administrative Rule Review Report  #AR10-039

Legislative Service Office

2-July-10

REVISED RULE REVIEW – JULY 12, 2010

AGENCY: Oil & Gas Commission.

DATE SUBMITTED: June 28, 2010.

SUBJECT: Chapter 1, Authority and Definitions; Chapter 2, General Rules; Chapter 3, Operational Rules, Drilling Rules; Chapter 4, Environmental Rules, Including Underground Injection Control Program; and Chapter 5, Practice and Procedure.

NATURE OF RULES:                     Legislative, Procedural

STATUTORY AUTHORITY:         W.S. 30-5-104(c)

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION SUBMITTED BY THE AGENCY TO LSO:

The Legislative Service Office (LSO) received the Notice of Intent to Adopt Rules on January 29, 2010.  The Notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28‑9‑103(d).  No comments have been received to date. 

The original LSO rule review recommended that these rules be placed on the nonconsent list and not be approved by the Governor since it appeared from a spreadsheet showing changes made from proposed rules that the statement of reasons had not adequately conveyed the changes being made in the rules.  That conclusion was based on a misunderstanding between the agency and the LSO concerning the issue of "fracking." LSO understood from discussions and an agency spreadsheet showing changes in the rules that provisions addressing "fracking" had been removed from the initial proposed rules.  In fact, the fracking provisions remain in the rules although they were moved into other sections of the rules.  Some minor terminology changes additionally confused the issue. 

The rules have not changed substantively since the notice of intent was submitted.  Therefore the initial statement of reasons was and remains adequate.

SUMMARY OF RULES:

These new rules are being promulgated to provide updates to the rules and to incorporate changes from 2009 Session Laws, Chapter 50, responsibilities of injectors and pore space owners.  These rules address changes in chapters covering definitions, general rules, operational rules, drilling rules, environmental rules and the rules of practice. 

Administrative Rule Review Report  #AR10-039

Legislative Service Office

2-July-10

Page 2

For more in depth discussion of the changes in each chapter, see the Statement of Principal Reasons.

FINDINGS:

Compliance with federal law has not been determined as it is assumed the Attorney General has provided such review.

The rules appear to be within the scope of statutory authority and legislative intent. 

STAFF RECOMMENDATION: 

That the rules be approved by the Council as submitted by the Commission. 

Please note that this is a different recommendation from that initially submitted to Council.

A postcard ballot was sent with the original recommendation, but only three votes have been received on that ballot.  A new postcard has been included for this revised recommendation since it seems best to have an affirmative vote approving the rules (rather than the general "default" of approval of a "consent list" recommendation by failing to object.)

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Lynda Cook

Staff Attorney

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Dave Gruver

Assistant Director