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Committee approves draft to allow Oil and Gas Bonding Pool to retain investment earnings
Summary
The Joint Minerals Committee voted to draft a bill clarifying that assessments collected for the voluntary Oil and Gas Bonding Pool may be invested by the State Treasurer and that investment earnings remain in the conservation fund tied to the pool.
The Wyoming Joint Minerals Committee voted to advance a draft bill clarifying how investment earnings on voluntary Oil and Gas Bonding Pool assessments will be handled, approving language that would allow the State Treasurer to invest proceeds and retain earnings for the pool’s conservation fund.
Why it matters: the bonding pool, established last year in Senate File 20 as a voluntary mechanism to provide additional financial assurance for oil‑and‑gas reclamation, currently lacked explicit statutory language guaranteeing that investment earnings would remain available to the pool rather than revert to the general fund. Staff said the change is procedural but necessary to ensure the pool can accumulate and use investment income as intended.
What the committee approved: LSO staff presented 26LSO153 (draft 0.2), a one‑page amendment that would direct the state treasurer to invest bond‑pool assessments “in accordance with law” and deposit investment earnings in the conservation fund for use by the bonding pool. The draft carried an effective date of July 1, 2026.
Staff and commission testimony: Tom Kropatch, supervisor at the Wyoming Oil and Gas Commission, said auditors had identified the statutory gap and recommended clarified language so investment earnings would not be swept to the general fund. He estimated that, at full participation and the statutory assessment maximum, the pool could receive roughly $4.5 million a year; with wide participation the pool might approach $20 million over several years, though actual receipts will depend on operator participation.
Committee action: the committee moved and passed the drafting motion on a roll‑call vote (mover: Co‑chair Heiner; second: Representative Knapp). Committee members approved the draft; staff will prepare final drafting for a future committee meeting and fiscal note.
Clarifying details: record testimony noted the law that created the pool set the assessment at 0 until 2030; the proposed drafting is to ensure that, when assessments begin or if the assessment rate changes, investment yield will remain available to the conservation fund associated with the pool.
