Revision to Wyoming’s APD Rules: Proposal for Wyoming’s First to File Rule to Expire in 2 Years
At yesterday’s hearings, the Wyoming Oil and Gas Conservation Commission (“WOGCC”) released a proposed rule aimed at addressing the increased volume of drilling permits filed in the Cowboy State. The formal bulletin entitled, “WOGCC Proposes Rule to Address Volume of Drilling Permits,” can be found here.
If approved, the proposed rule, released in accordance with Wyoming’s rulemaking guidelines, will change several aspects concerning the filing of Applications for Permits to Drill (“APDs”), according to the bulletin:
- Going forward, Wyoming will remain a “first to file state” for a two-year period
- After the expiration of the initial two-year period, other working interest owners within a drilling and spacing unit (“DSU”) will be able to file APDs with a time limit placed on the operator to drill the well
- A new checklist will be provided for information to be included in and submitted with an APD from (i) the operator who is not the current operator of the DSU and (ii) the operator of the DSU who holds the oldest pending APD or producing well
To review the proposed rule, click here. Prior to the comment period, a public meeting will be held to explain the rule and answer any questions. Written public comments will be collected and reviewed during the 45-day comment period.
Stay tuned as we will be monitoring how this proposed rule develops! This is a big proposed change that could have many potential consequences for operators.