Oil development in the state is bringing up natural gas along with the oil, but some of the gas is getting burned off in flares and the state is missing out on taxes and royalty payments. The reason the gas is getting flared is that there are not enough pipelines in place to connect new wells to markets.
The President of the Wyoming Petroleum Association, Bruce Hinchey, says it doesn’t always make sense to build new pipelines for the relatively small quantities of gas coming up.
We recently reported that the federal government – and consequently Wyoming – might be getting shortchanged when it comes to royalty payments on coal going overseas. Turns out, the government is missing out on royalties in other ways, too. Wyoming Public Radio’s Irina Zhorov reports that right here in Wyoming, companies are quite literally burning up both federal and state royalty money when they flare natural gas.