split estate

The Wyoming Senate began debate on a bill that would increase bonding requirements for oil and gas operators on split estate properties.

The bill would increase the bond for operators drilling on land where they don't own the surface rights from two-thousand dollars to ten thousand.  Supporters say that operators are causing surface damage in excess of ten thousand dollars. 

Senators voted down an amendment to reduce limit the bond to six thousand dollars.  Kaycee Senator John Schiffer says the higher bond helps protect landowner rights.

The Senate Minerals Committee approved a bill Monday that would increase the amount of money oil and gas operators have to put up before accessing split estate properties.

A split estate is when a private landowner owns the surface land and not the mineral rights. The bill raises the minimum bonding amount from $2,000 to $10,000. The bond covers any damages to the property from development, when a surface use agreement can’t be negotiated.