Members of the Minerals, Business and Economic Development Committee were the first to hold a legislative interim meeting this year, embarking on a several-month period of hearing from stakeholders about issues that could turn into new laws.
The committee spent the first day talking primarily to the Wyoming Business Council (WBC) and agencies that assist the council in economic development. These conversations are mostly a question-and-answer meeting for elected officials and the public, but will continue when the Appropriations Committee looks into the WBC later this week.
Outside of the WBC, the minerals committee spent its entire second day reviewing topics related to Wyoming’s energy industries and a potential new geological product the state may consider pursuing.
Produced water
In an effort to make the Wyoming economy more resilient as the Colorado River becomes increasingly overtapped, lawmakers are exploring the potential to reuse “produced water.” Wyoming statute refers to water that’s produced as an offshoot of oil and gas operations as “byproduct water,” but is commonly referred to as produced water within the oil and gas industry. It comes from the ground, as the water has been trapped, failing to flow into underground streams and remains trapped alongside resources. This can be used to enhance the way oil and gas are removed from the ground.
The committee may consider a bill that lays the foundation for oil and gas companies to share the produced water they gain during operation, which would lessen the reliance on finding more freshwater to use in fracking operations from sources like the Colorado River. The Wyoming Oil and Gas Conservation Commission (WOGCC) would be the primary regulator, but the state engineer could become involved if the state looks to expand the use of produced water.
Tom Kropatsch, commission secretary supervisor for the WOGCC, was in Washington, D.C. at the time of the meeting, discussing produced water uses with members of the Environmental Protection Agency (EPA). He explained some of those uses to the committee, such as using produced water for agricultural or wildlife discharge, cooling water, construction purposes and dust control.
The committee asked the Legislative Service Office (LSO) to begin drafting a bill creating the framework for the capture, use and sharing of produced water in Wyoming.
Energy dominance
During this year’s budget session, the Legislature passed two bills focused on maintaining Wyoming's competitive edge in the energy market. HB120 gave Wyoming the ability to create new industrial zones for energy production, and SF123 will give the Wyoming Energy Authority the ability to distribute grants and loans to new energy projects in Wyoming, excluding wind, solar or any project that may take longer than 10 years.
This led to a long discussion that covered a wide variety of energy-related topics. Lawmakers discussed the possibility to see Wyoming coal sold abroad due to disruptions caused by the Iran war, Wyoming’s ability to sell coal through some western ports, ways the state could provide energy for a data center boom while ensuring affordable residential power to Wyomingites, and how the state might speed up the development of more resilient energy supply lines amid increased demand for such equipment.
Lawmakers motioned to begin drafting bills to set expectations for utility requirements for certain electric generators, one to create an energy transmission loan program and one to amend reporting requirements for enhanced oil recovery tax exemption.
Curling stones
Perhaps the most exciting time for lawmakers was the final topic, as exemplified by the energy in Sen. Jim Anderson’s (R-Casper) voice upon the arrival of a local Casper curling stone to the committee room.
“Wait, wait, wait, this is really gonna be fun!” he said, briefly stepping away from the committee meeting.
The committee invited Ranie Lynds, the State Geologist, to explain the details of what it would take for Wyoming to create and produce curling stones. Straight away, Lynds made it clear she was unsure whether the proper material existed within state borders, but she told lawmakers the goal created “a use-case and challenge to [the state’s] geological infrastructure.”
“The bigger question is gonna be more along the lines of: Where can we find granite countertop material in Wyoming? Where can we find limestone aggregate? Is that limestone pure? Where is there copper, and what's the grade? Is it associated with any additional critical minerals?” she said.
Lawmakers were positive on the idea, as the process of finding the correct material could potentially open up other geological sources of profit or discovery. Lynds noted that only 16% of the state was mapped, and mapping single sections of Wyoming can take up to two years.
Lawmakers did not motion to begin a draft bill at this meeting. However, Sen. Cale Case (R-Lander) said the survey effort alone would yield more knowledge about the state. Case suggested the Wyoming Business Council could reach out to one of the 276 active firms that might be looking for a new source or product line and suggested they operate in the state.
Next up
Interim meetings continue this week, with the Appropriations Committee set to hear about the WBC’s loan and grant programs, the state retirement system, and the Wyoming Commission for the Deaf and Blind on Thursday and Friday.
This reporting was made possible by a grant from the Corporation For Public Broadcasting, supporting state government coverage in the state. Wyoming Public Media and Jackson Hole Community Radio are partnering to cover state issues both on air and online.
