American Oil and Gas Reporter - April 2015 - 38

State Legislative Reports

Wyoming Legislators Head To Interim

CHEYENNE, WY.-The 2015
Wyoming legislative session is in the
books, and Bruce Hinchey, president of
the Petroleum Association of Wyoming,
says while nothing emerged that was harmful to oil and gas producers, what happens
in the interim session is a major concern.
When they completed the 2015 general
session, state lawmakers passed 203 out
of 410 introduced bills, Hinchey says,
few of which directly affect oil and gas
operators. But before they meet again on
Feb. 8, 2016, for a 20-day budget session,
legislators will hold several interim committee sessions.
"There are many committees that PAW
will have to deal with during the interim
that it normally does not," Hinchey says,
including the Revenue, Joint Agriculture,
Preparations, Joint Transportation, Joint
Labor, and Joint Minerals committees.
The latter group will consider alternative energy fuels, such as natural gas,
for vehicle use and also look at well
flaring, Hinchey says. "The state says
the industry flares about 2 million cubic

feet of gas a day. That pales in comparison
with North Dakota, but the committee
wants to see if there are ways to reduce
flaring. There are, but you have problems
when you have a developing field with
no infrastructure," he says.

2015 Session
One of the first bills that emerged in
the 2015 session, HB 2, sponsored by
the Joint Corporations, Elections and Political Subdivisions Interim Committee,
specified procedures that established special museum districts in Wyoming.
Hinchey says PAW opposed the measure
because it would have increased county
taxes by as much as a three mills on production as well as oil and gas equipment.
"In some counties, the industry already
pays as much as 90 percent of the taxes,
so the association was quite concerned
with that bill. It died on the session's
very first day," he says.
Several other tax proposals failed to
advance, including HB 84, which sought
new tax revenues for conservation districts,

Hinchey says. HB 84 would have imposed
a mill levy on all production, equipment
and homes, with the money going to water-specific projects such as reservoirs or
ranchers' irrigation systems.
Legislators also defeated a proposal
for changing ad valorem tax collection
dates. HB 169 sought to move the collection date forward to the current year,
instead of lagging a year, Hinchey details.
"This will happen at some point, but
PAW did not want to see it now," he
says.
Another bill, HB 200, dealt with tax
lien superiority on mineral production,
he says. It would have made taxes from
the state or county superior to any other
lien on mineral production. "PAW was
concerned with that bill and wanted association attorneys to have a better chance
to look at it. That probably will happen
in the interim session. That is a much
better time for the association to work
on this issue," he assesses.
Legislators also failed to advance a
proposed tax change on natural gas flaring,



American Oil and Gas Reporter - April 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2015

Contents
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