Bill No.: SF0060                  Drafter:  JHR

 

LSO No.:  05LSO-0120              Effective Date:  7/1/2005

 

Enrolled Act No.:  SEA0045

 

Chapter No.:       81

 

Prime Sponsor:     Joint Judiciary Interim Committee

 

Catch Title:       Split estates-procedures for oil and gas operations.

 

Subject:  Establishes procedures and requirements prior to commencing oil and gas operations on split estates.

 

Summary/Major Elements:

·         Under current law, no uniform procedures exist to define the relationship between surface owners and oil and gas operators when the mineral estate is severed from the surface estate.

·         This Bill:

·         Establishes procedures that oil and gas operators shall comply with prior to commencing drilling operations on land that is not owned by the mineral estate owner;

·         Establishes the "accommodation doctrine" in Wyoming that recognizes the dominance of the mineral estate, but requires that the mineral estate reasonably accommodate the surface uses of the land and pay compensation for damage caused by the extraction activities;

·         Establishes requirements for notice, good faith negotiation by both parties and an application to drill prior to entry onto the surface estate;

·         Requires the oil and gas operator to provide a copy of this act with the initial notice to the surface owner;

·         Authorizes the oil and gas operator to post a per well site bond or a blanket bond with the Oil & Gas Conservation Commission in lieu of a surface use agreement with the surface owner when the latter is not feasible;

·         Provides an appeal process to challenge the amount of the bond; 

·         Provides for surface damage and disruption payments and a process to negotiate such payments;

·         Allows the surface owner to waive the requirements of the act;

·         Establishes a 2 year statute of limitations for the surface owner to bring an action for damages after discovery of the damage;

·         Exempts surface use agreements, consents or prior regulatory approval from the requirements of the act.

 

Comments:  

·Popular name – Split Estates