CASPER, Wyo. — The decline in natural gas prices is causing the state to take a harder look at extensions granted to owners of idle coal bed methane leases.
The Casper Star-Tribune reported Monday that the new policy will allow leases for non-producing wells to be extended for up to five years. After that, owners will have to justify their need for an extension.
The Wyoming Board of Land Commissioners, which includes the governor, will have the final say. The board can also decide whether to charge a higher royalty fee and rental fee and whether to increase the reclamation bond.
Until now, the state board has almost routinely allowed extensions on idle leases.
Revenue from leases on state trust lands help fund public schools.
Information from: Casper (Wyo.) Star-Tribune, http://www.trib.com