Small oil and gas operators in Wyoming are facing a significant threat as a new rule change from the federal government is set to take effect in less than a month. The rule change, proposed by the Bureau of Land Management (BLM), aims to increase the minimum bond amounts required for oil well reclamation, a move that could potentially push small operators out of the industry.
Currently, operators like Clark Kissack, who owns six wells, are required to pay a minimum bond amount of $10,000 per well for lease reclamation. However, under the new rule change, this amount will skyrocket to $150,000 per well. For statewide bonds, the minimum amount will increase from $25,000 to $500,000. The BLM argues that these increases are necessary to account for inflation and to protect the fiscal interests of the American public.
Kissack and other small operators are concerned about the impact of these drastic increases. They argue that while they understand the need for adjustments, the new bond amounts are simply unfeasible and could force many operators to abandon their wells.
In response to the rule change, Wyoming lawmakers are working to create a voluntary bonding pool that would allow operators to pay into a program to help cover these increased bond amounts. However, some operators and officials believe that more action is needed to protect the interests of small operators in the face of these federal regulations.
A public meeting is scheduled for June 2 at the Rockpile Community Center to discuss the rule change and its potential implications for the industry and the community as a whole. Clark Kissack and others are urging their fellow operators to stand up and fight back against what they see as an unjust burden placed on their livelihoods.
