Wyoming pulls High Plains Gas' bonds, adds 2300 wells to plugging list - Billings Gazette
— Wyoming regulators seized some 2,300 idle coalbed methane wells from High Plains Gas Inc. It does not apply to around 700 High Plains wells on federal land. However, High Plains-Patriot has not provided this additional bonding by the required date,” Wyoming Oil and Gas Supervisor Mark Watson said in comments before the board. High Plains purchased Patriot Energy Resources and Patriot Energy Gathering out of bankruptcy from Luca Technologies earlier this year. The move means Wyoming will pull about $8. 2 million in bonding High Plains already has on file with the state. Oil and gas companies in Wyoming pay bonds to cover the costs of reclaiming the wells they drill. If a well stops producing, an additional bond is sought because of the possibility a company will go bankrupt and be unable to pay for the reclamation increases. The state also uses money raised from a production tax on oil and gas companies to pay for plugging. Matt Mead last year set a target of closing 1,200 orphaned coalbed methane wells by 2017. The state has plugged around 300 wells this year and is on track to close around 400 wells before 2014 ends. Mead, in an interview Tuesday, said the state will evaluate how to pay for plugging the additional wells if. Source: billingsgazette.com
