Our lawyer just made us aware of pending legislation in the state of Wyoming that would be a positive law for mineral right owners. Is there any Mineral Rights Group or entity in the State to join that would lobby on our behalf? I’m certain the companies will be trying to kill it with their lawyers and lobbyists.
Give us more information on the Pending Legislation please!
Are you talking about the new rules for permitting?
The current version of the bill text is displayed below. To view all versions of the bill with page and line numbers, use the PDF documents located to the right, under “Bill Versions & Resources.”
Here is a copy of the Senate bill - it would help keep in check some of the oil companies that are taking out permits on our properties without leasing them first. As it stands they are running unchecked, in my opinion and will charge a non-consenting owner enormous amounts often resulting in a legal challenge just to find out the true development costs. We have such a situation with one of the “BIG” players who have bee less than cordial with our enquiries.
2019
STATE OF WYOMING
19LSO-0394
SENATE FILE NO. SF0036
Oil and gas drilling units-calculation of owner shares.
Sponsored by: Senator(s) Von Flatern and Representative(s) Barlow and Clausen
A BILL
for
AN ACT relating to oil and gas; amending the calculation of owners’ shares for drilling units as specified; specifying applicability; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1. W.S. 30‑5‑109(g)(ii) is amended to read:
30‑5‑109. Rules and regulations governing drilling units.
(g) Each pooling order shall provide for the drilling and operation of a well on the drilling unit, and for the payment of the cost thereof, as provided in this subsection. The commission is specifically authorized to provide that the owner or owners drilling or paying for the drilling or for the operation of a well for the benefit of all owners shall be entitled to all production from the well which would be received by the owner or owners, for whose benefit the well was drilled or operated, after payment of royalty as provided in the lease, if any, applicable to each tract or interest, and obligations payable out of production, until the owner or owners drilling or operating the well or both have been paid the amount due under the terms of the pooling order or order settling the dispute. In the event of any disputed cost, the commission shall determine the proper cost. The order shall determine the interest of each owner in the unit, and may provide that each owner who agrees with the person or persons drilling and operating the well for the payment by the owner of his share of the costs, unless he has agreed otherwise, shall be entitled to receive, subject to royalty or similar obligations, the share of the production of the well applicable to the tract of the nonconsenting owner. Each owner who does not agree, shall be entitled to receive from the person or persons drilling and operating the well on the unit his share of the production applicable to his interest after the person or persons drilling and operating the well have recovered the following:
(ii) Up to three hundred percent (300%) one hundred twenty‑five percent (125%) of that portion of the costs and expenses of drilling, reworking, deepening or plugging back, testing and completing, after deducting any cash contributions received and up to two hundred percent (200%) one hundred ten percent (110%) of that portion of the cost of newly acquired equipment in the well, to and including the wellhead connections, which would have been chargeable to the nonconsenting owner if he had participated therein.
Section 2. This act shall apply to pooling orders entered on or after the effective date of this act.
Section 3. This act is effective July 1, 2019.
(END)
1
SF0036
Sponsor: Senator Von Flatern
Co-Sponsor:
Bill Versions and Resources:
Introduced Version initially introduced on the floor for debate.
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Last Action Date: 12/26/2018
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Effective: 3/1/2019
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I hope we can get this passed because I am already affected by the current rules in the Jones (Deed) Unit Area. I did sign ratification but did not sign the Joinder Agreement which would hold me financially liable for drilling and production expenses on some of the minerals within the unit that are not currently leased. I am hoping that I can get them leased someday soon.
The National Association of Royalty Owners (NARO) is one of the mineral owner groups you can join. Their website is www.naro-us.org. When you join, indicate your state. They have regional meetings in various states once a year and then a national meeting once a year as well. Great way to learn about pending legislation, meet other mineral owners with knowledge about your area and get up to speed on what you need to know.