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Senator presses agency over Rock Springs plan, coal leasing and new bonding rule

Senate Committee on Energy and Natural Resources · June 13, 2024

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Summary

At a Senate Energy and Natural Resources hearing, a senator criticized a draft Rock Springs resource management plan, raised concerns about Powder River Basin coal leasing and a new oil-and-gas bonding rule; an unnamed agency official defended extended comment periods, state collaboration and policy rationale.

A senator at a Senate Committee on Energy and Natural Resources hearing on Thursday sharply questioned an unnamed agency representative about the draft Rock Springs resource management plan and other agency actions affecting Wyoming energy and lands.

The senator said the Rock Springs plan "will devastate the people of South of Southwest Wyoming," arguing it would "lock up millions of acres" used by local communities and that the governor, state legislature and county commissioners oppose the proposal. The senator also highlighted coal and regulatory issues, saying last year "the Powder River Basin supplied 45% of all the coal mined in the United States," and criticized a recent rule raising oil-and-gas bonding requirements as "completely arbitrary" and "punitive."

The agency representative replied that the Rock Springs plan remains a draft, that the public comment period was extended, and that the agency has worked with the governor and a task force that visited Rock Springs and provided recommendations now under review. "We've done a lot of education work with your constituents," the official said, and the agency expects Wyoming voices to be reflected in the final plan.

On coal leasing, the senator pressed why the agency moved to prohibit leasing in parts of the Powder River Basin when, the senator said, the bureau's own documents indicate production impacts would not occur until roughly 2038. The agency respondent framed the work as part of a national transition to a cleaner energy economy and noted that lands in the Powder River Basin are leased through 2041, adding that the record of decision is still being formulated.

Responding to concerns about mineral development and the recent bonding rule, the agency official cited Government Accountability Office and Inspector General findings that suggested current bonding rates—more than six decades old—are inadequate and raised the risk that thousands of idled wells could become orphaned without stronger bonding. The official also noted recent permitting activity for renewables, saying the agency has permitted "7.9 gigawatts in just 3 and a half years."

The senator rejected that rationale, saying the bonding change would raise upfront costs for operators by as much as 25-fold and questioned the agency's characterization of abandoned wells, citing department data that he said showed 37 abandoned wells on agency-managed lands. The senator warned the plan and regulatory actions would undermine Wyoming's long-standing, bipartisan efforts to protect greater sage-grouse habitat while supporting economic activity.

The agency official said the agency has been meeting twice weekly with Wyoming officials on sage-grouse plans, working with the Western Governors' Association task force and "line editing" documents with the state to produce durable management measures.

The exchange ended with the senator invoking remarks by John F. Kennedy about balancing human actions and nature and accusing the agency of departing from that balance. No formal votes or motions were taken at the hearing segment recorded in the transcript.