060-18 Wyo. Code R. §§ 18-5 - [Effective until 10/24/2024] Leasing Procedures

(a) All oil and gas leases on state lands will be first offered by competitive bidding. The Office shall set a time and place for the auction sale, describing each tract to be offered, noting the terms of the leases to be issued, noting the terms and conditions of sale, detailing the procedure to be followed in conducting the sale, and any other necessary information. Notice of the sale shall be given in such form and manner as the Board shall direct but shall at a minimum be published in a Wyoming newspaper of statewide distribution and provided individually to entities and persons having registered with the Office to receive auction listings.

(b) The Director, shall review the highest bid offered by an applicant to determine if the applicant is a Qualified Bidder.

(i) If the highest bidder is a Qualified Bidder, the Director may recommend awarding the lease to the highest bidder.

(ii) If the highest bidder is not a Qualified Bidder, as determined by the Director, the applicant shall be disqualified. The Director shall then determine if the second highest bidder is a Qualified Bidder.

(iii) If the Director determines the second highest bidder to be a Qualified Bidder, the Director may recommend issuing the lease to the second highest bidder at the lower of the following:

(A) the highest amount bid before the disqualified applicant entered the lease auction; or

(B) the amount bid by the second highest bidder.

(c) Any applicant whose bid is rejected because the applicant is not a Qualified Bidder shall be subject to a civil penalty in the amount of the applicant's highest bid.

(d) Leases which are not purchased at the initial auction sale may be offered at a subsequent auction at a lower royalty rate.

(e) After leases have been offered competitively under subsections (a) and (b) of this section, the Office shall place them on a list of leases available for lease to the first qualified applicant filing an application. The Office may remove leases from the list at any time. Applications may be filed with the Office during regular hours of any business day. The Office shall note the date of filing on all applications. Applications filed on the same day, whether presented by personal delivery or received through any mail service, shall be considered as filed simultaneously.

(f) Each application must be accompanied by the required filing fee as established by the Board in Chapter 17 of the Board's rules. The filing fee will not be refunded on any application. An application under this section must also be accompanied by a remittance for the advance rental for the first year at the rental per acre specified in Section 6 of this chapter.

(g) If two or more applications for the same interests in oil and gas are filed simultaneously, the applications are in conflict.

(i) An application which is in conflict as to only a part of the lands applied for, will be processed as to the lands not in conflict in the same manner as a separate application for such lands.

(ii) The priority of applications which are in conflict as to all or any part of the lands applied for shall, as to the lands in conflict, be determined by sealed bid between the applicants in conflict.

(h) When an application is rejected in its entirety, advance rentals paid by the applicant will be refunded. When rejected in part, the unused portion of the advance rental payment will be refunded.

(i) An application for an oil and gas lease may be withdrawn, in whole or in part, at any time prior to issuance of the lease. The advance rental and all fees transmitted with the application applicable to the portion of the application withdrawn, will be forfeited for failure to fulfill the obligations of the lease offer. However, if a withdrawal was for the purpose of removing a conflict, rentals applicable to the portion withdrawn will be refunded if a lease for the portion withdrawn is issued to another applicant.

Notes

060-18 Wyo. Code R. §§ 18-5

Amended, Eff. 6/26/2024, exp. 10/24/2024 (Emergency).