Conservationists to Be Blocked From Bidding on Oil and Gas Land Leases in Wyoming

Officials in Wyoming have set new restrictions on who can bid on oil and gas leases in the state. The new rules prohibit conservationists from bidding with intentions to preserve the land.

The bill, HB0141, was passed in March 2024. It was introduced by State Representative Cyrus Western (R-Big Horn) on behalf of the Petroleum Association of Wyoming following bids on a parcel of land by the conservation group the Wyoming Outdoor Council, WyoFile reported. The group had bid on oil and gas lease in Sublette County last summer; the Wyoming Outdoor Council bid with plans to preserve the land after its requests to remove the parcel from leasing, because of the area’s importance to pronghorns, were denied.

As explained by the Wyoming Outdoor Council, the organization isn’t opposed to oil and gas leases but hopes to protect some of the most unique areas of land in the state, including the parcel that it bid on in July 2023 in order to protect pronghorn migratory habitat.

Although the Wyoming Outdoor Council was not the highest bidder for the land, officials have still responded with a bidding ban for those without oil and gas interests. The Petroleum Association of Wyoming told WyoFile that billionaires against oil and gas development could come in and bid on oil and gas leases, and the bill was intended to prevent that from happening in the future. 

Further, the highest bidder of the parcel, Kirkwood Oil and Gas, argued that having a conservation group bidding on the lease caused the price to artificially increase.

“In our eyes, our bid was an effort to demonstrate that we could still produce revenue for our state while also preserving important wildlife habitat,” the Wyoming Outdoor Council explained on its website.

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According to the legislation text, the highest bids on leases for oil and gas production must be reviewed to ensure the applicant “is a qualified oil and gas lease applicant in accordance with rules of the board.” If not, officials will then consider the second highest bidder, who will also be reviewed for eligibility.

Further, the bill stated, “Any applicant whose bid is rejected under this subsection because the applicant is not a qualified oil and gas lease applicant shall be subject to a civil penalty in the amount of the applicant’s highest bid. The attorney general may bring an action in a court of competent jurisdiction to recover the penalty specified in this subsection from the applicant.”

In response, the Wyoming Outdoor Council has released a two-part message, noting that officials have a responsibility to protect state lands and should consider the long-term impacts of leasing important wildlife habitats for oil and gas development.

“If you want to really generate some revenue for Wyoming’s beneficiaries, it’s time to make lease sales competitive again, and allow a diversity of monied interests to vie for these parcels, be it for energy, conservation, recreation, or one of Wyoming’s many other values in the land,” Carl Fisher, executive director for the Wyoming Outdoor Council, wrote in a statement. “The proof is right there in the pudding: They wanted to get it for $3/acre, we went to $18. Are we promoting auctions for the beneficiaries, or fire sales on Wyoming’s landscapes? We believe we can lease, monetize and protect.”