Wyoming Gov. Mark Gordon has signed into law two measures that impact the state’s oil and natural gas sector.
State Senate File 0045 changes the way the Wyoming Oil and Gas Conservation Commission (WOGCC) deals with underground disposal wells, while House Bill 0003 creates the Wyoming Energy Authority, which merges the infrastructure and pipeline authorities.
WOGCC’s Tom Kropatsch, deputy oil and gas supervisor, told NGI’s Shale Daily that the new senate bill has modest additions as the state already regulates Class II disposal wells. The new legislation, however, added commercial disposal well oversight.
“We believe current regulations for Class II disposal wells would also be generally appropriate for the commercial Class II wells,” Kropatsch said.
The changes allow third parties to operate the Class II wells or allow operators to take produced water or other oilfield waste at their disposal well from another operator.
There are about 450 Class II disposal wells active or permitted for development, Kropatsch said. For comparison there are only 21 Class I commercial oilfield waste disposal wells, including 12 active and nine permits for future development.
Meanwhile, the House bill, which takes effect July 1, amends the oversight board’s makeup, bonding requirements and limits on authority. Seven board members would be appointed by the governor. The board also would have nonvoting members represented from the Enhanced Oil Recovery Institute, Business Council and the WOGCC.