Petroleum Association of Wyoming applauds passage of SF 20

CHEYENNE (WNE) — The Petroleum Association of Wyoming applauds the Wyoming Legislature and Gov. Mark Gordon for the passage and signing of Senate File 20, “Oil and gas bonding- options and bonding pools,” a news release from the organization said.

It calls SF 20 “a groundbreaking, first-in-the-nation approach that ensures Wyoming’s small oil and natural gas operators can continue to responsibly produce energy despite burdensome federal regulations.”

SF 20 was developed in response to the Biden administration’s rule that increased bonding amounts in Wyoming by 1,400% — a mandate that small, independent producers simply cannot afford, PAW’s news release said. Without a viable alternative, the federal rule could have forced many of them out of business, shutting down wells that provide jobs, tax revenue and reliable energy for Wyoming.

The new bonding pool system provides a cost-effective and responsible alternative to the federal mandate, ensuring that operators can meet their obligations while continuing to produce oil and natural gas for Wyoming. By utilizing industry contributions, the bill creates a self-sustaining safety net that protects the industry and the state’s economy, all without taxpayer subsidies, the release said.

“This bill is a Wyoming solution to a Washington problem,” PAW President Pete Obermueller said in the release.

“By creating a bonding pool funded by industry-paid fees and taxes, we’re ensuring that Wyoming’s small producers can meet their bonding requirements without being forced to shut down. This keeps wells operating, revenues flowing and jobs in our communities — all while maintaining our strong commitment to environmental responsibility.”

This story was published on February 26, 2025.