Statutes, codes, and regulations
Wyoming Administrative Code
Agency 060 - Lands and Investments, Office ofSubagency 0002 - Land Commissioners, Board of
Chapter 18 - LEASING OF OIL AND GAS
Section 18-13 - Bonds

060-18 Wyo. Code R. § 18-13

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Current through April 27, 2019
Section 18-13 - Bonds

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall submit a copy of Oil and Gas Conservation Commission Form 1, Application for Permit to Drill to the Office. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indemnify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

  • (i) The payment of all moneys, rents, and royalties accruing to the Board;
  • (ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;
  • (iii) The proper plugging and abandonment of all inactive, non-producible wells on the leases;
  • (iv) Reclamation of the surface; and
  • (v) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

  • (i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;
  • (ii) A cash bond;
  • (iii) A certified cashier's check made payable to the Office of State Lands and Investments;
  • (iv) A certificate of deposit in the name of the Office of State Lands and Investments;
  • (v) Non-revocable letters of credit; or
  • (vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require. The Director may require a per well bond instead of allowing bonding per lease.

060-18 Wyo. Code R. § 18-13