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Increased Interest in Wyoming Oil and Gas

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My Alma matter recently started using a slogan that I absolutely love – “the world needs more cowboys” – check out the University of Wyoming homepage here.   

However, the Cowboy State is not
just home to cowboys.  Wyoming is also
home to deposits of oil, gas, trona, coal, uranium, bentonite, and other
elements – the Wyoming Mining Association website, which can be found here, and the Wyoming Oil & Gas
Conservation Commission (“WOGCC”) website, which can be found here, are both excellent sources for
information on Wyoming’s resources.  

Wyoming is no stranger to cowboys or to the booms and busts of the energy sector.  In fact, the foundation of Wyoming is deeply rooted in the hard working men and women who are gritty enough to work through the cyclical nature of the energy industry, not to mention those who can withstand the wind and the weather.  However, although Wyoming has struggled in recent years due to downturns in the oil and gas industry and the coal sector, Wyoming is increasingly on the radar for future oil and gas production.    

According to an article published
in Oil and Gas 360 in late September of 2018 entitled, Wyoming Has 18,000 Drilling Permits in the
Queue for Approval and 30 Active Rigs
, “Wyoming regulators have 18,000
applications for permit to drill in a queue awaiting approval” and the WOGCC is
reportedly moving through up to 150 APDs per month.  The article
further points out
that, “[m]any of those [APDs] will not be approved, but
the activity speaks to increased interest in either drilling in Wyoming or
securing primacy over a drilling area by being the first to secure a permit.”

In addition, the WOGCC has been
forced to take action since it is being bombarded with applications, further
reflecting the spike in interest in Wyoming oil and gas development: 

1.         Effective with the July 2018 hearings,
because the WOGCC has been so inundated with applications, an Inactive Docket
(“B” docket) was created to lessen the burden on WOGCC staff.  Pursuant to the Protest
Policy for Spacing Related Hearings
issued on June 12, 2018, any protested
spacing related application that is continued more than once will be
automatically placed on the “B” Docket for a period of up to one year until it
is either resolved by the parties or set for a hearing at the request of either
party.  This is an effort to ease the
workload on WOGCC staff and to get the process more streamlined.

2.         More recently, effective December 11,
2018, the WOGCC implemented a new hearing policy regarding amending
applications.  The full updated policy
can be found here.  The new hearing policy provides
that when a hearing application is amended, it will be continued and assessed a
continuance fee – and the applicant will be required to re-notice the
application and provide a new affidavit of mailing.  According to Mark Watson, Oil & Gas
Supervisor, this new policy is reportedly
designed to provide the WOGCC staff adequate time to prepare the docket for
hearing. 

It is clear that interest in
Wyoming oil and gas development is on the rise and the good news is that the
WOGCC is taking steps to accommodate the influx.  This news is not only good for those in the
oil and gas industry itself, but for all Wyoming folks working in businesses
that help support energy workers. 

Stay tuned – we will continue to
monitor the energy sector in the Cowboy state.

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