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HB 0089, gives teeth to Oil and Gas Commission

March 10, 2022

House Bill 0089 has made it through both the House and the Senate and now awaits the governor’s signature. 

House Bill 0089 proposes adding language to Wyoming State Statute 30‑5‑104. That statute defines the Oil and Gas Conservation Commission powers, duties and regulations. The added language would give the commission the authority to plug a well, prohibit drilling or regulate production if an owner or producer has more than $2 million in unpaid taxes that are more than 90 days delinquent of ad valorem tax on gross product of their mineral production.

The bill awaits the governor’s signature on the heels of Johnson’s tax settlement with Carbon Creek/US Realm in the amount of $22.7 million.

Johnson County Commission Chairman Bill Novotny helped to draft the bill in an effort to protect future commissions from oil and gas companies that intend to evade tax payments. 

Chairman B. Novotny

As of March 1, Carbon Creek owed Johnson County $31.7 million in back taxes. With the settlement the county lost approximately $9 million, most of which was penalties and interest the county would not likely have seen if the litigation process continued to drag on.

House bill 0089 now only awaits the signature of Governor Mark Gordon.

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Last modified: March 10, 2022

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