060-7 Wyo. Code R. §§ 7-5 - Sale of Royalty Oil and Gas to Responsible Bidders

(a) For royalty oil and gas bid sales to responsible bidders, the Office will solicit bids under the terms and conditions, and for the royalty production only, as set out in its bid package. When offering in-kind royalty oil or gas for bid, the Board reserves the right to reject any or all bids, and to waive any informality or technical defect regarding any bid. The Board will award bid contracts to the most responsive and responsible bidders. No bidder will be allowed to withdraw its bid for a period of the earlier of forty-five (45) days having expired or until the successful bidder has entered into a contract with the Board.

(b) The Office may make such investigation as it deems necessary to determine the ability of a bidder to make payment and the bidder shall promptly furnish to the Office all such information and data for this purpose as the Office may request. If the bidder does not supply information requested by the Office in a timely manner, the Office may determine the bidder is unresponsive and may disqualify the bidder.

(c) Submission of a bid will indicate acceptance by the bidder of the provisions and terms contained in the applicable royalty sales contract contained in the bid package. The successful bidder will be required to enter into a formal contract with the Board.

(d) The Director shall examine all bids filed by responsible bidders to a royalty volume sale, and shall award upon Board approval, royalty oil or gas to the bidder(s) offering the highest price for the oil or gas available for the period available, relying on market indices and comparable value experiences for like production in quality and general location.

(e) The successful responsible bidder shall purchase the Board's entire monthly crude oil/ condensate or natural gas in-kind royalty available from the leases or wells contracted during the term of the contract.

(f) The purchase term for oil and gas sales to responsible bidders shall be for no greater than six months from the contract effective date, and monthly thereafter by agreement of both parties, in writing, subject to Board approval.

(g) Unless waived by the Board, the successful responsible bidder must furnish performance and payment bonds guaranteeing the faithful performance of the contract and the payment thereunder. Bonds are to be in a sum sufficient to cover the estimated monthly production for two (2) months of all of the Board's crude oil/condensate and three (3) months for all of the Board's gas royalties taken in-kind as bid and remain in force for a period of two (2) months after delivery cessation for oil and three (3) months for gas.

Notes

060-7 Wyo. Code R. §§ 7-5