May 22, 2012 How We Managed an Oil Boom Williston Basin Petroleum Conference Presented by Cindy DeLancey

Current population of Wyoming 536,626. Population up 14.1% latest census. Population increase largely attributed to Energy Industry. Growth taken place in rural counties. Sublette County, Wyoming led the pack by Growing 73% in the county. City of Gillette grew by 48% Unemployment rate 6.4% compared to 9.4% national average. WY 7 th largest oil producing state and in 2008 ranked 2nd for natural gas reserves.

Wyoming Oil and Gas Conservation Commission. Board made up of Governor, Director of Office of State Lands, State Geologist and two other Commission members. Oversees permitting process for Oil and Gas drilling in the state. Counties do not have regulatory authority over permitting of Oil or Gas. Oil and Gas development is exempt from Industrial Siting (No Impact Assistance) Pros and Cons of no regulatory authority at county level. Split Estate Laws apply in Wyoming codified in 2005.

Road usage Air Quality Strain on Social Services Change of local character of Community Crime Increase Strain on aging infrastructure or lack of adequate infrastructure

Communication is Key!! Get to know your commissioners and local elected officials and keep them informed about activities in their area. Ask the Local Officials in your preliminary meetings to articulate their expectations up front. This will avoid misunderstandings later. Continue communications frequently and often. Share the good and the bad. No one likes surprises!! Educate the local elected officials about the oil industry. Provide current local company contacts on who to contact if there is a problem. Encourage your elected officials to come for a tour. Seeing is believing.

Wyoming Business Council Funded through the Wyoming Legislature. Last Budget session about $15 million dollars for local development of public infrastructure. Business council helps communities build critical infrastructure. Programs include: Business Ready Community Grant program, Community Development Block Grants and Community Facilities Grant and Loan program.

Business Council has developed programs to assist with Business Relocation Assistance. Industrial Development often needs so many other ancillary businesses to help the industry be successful. Business Council in Wyoming has also been successful in attempting to attract new industries to an area to help diversify Local and State economies.

State Permanent Mineral Trust Fund : Money that is deposited into a long term savings account that flows from revenues collected from mineral extraction revenues. Current balance as of the end of 2011: $5.3 Billion. WY also has another $1.2 Billion in our “rainy day fund”. Money is there at the state level for the future. Campbell County, WY started their own local permanent mineral trust fund. Wyoming counties would like statutory mechanism to develop local savings. Trust funds are necessary to preserve money for future sustainability of infrastructure built today.

Partnership Examples of effective collaboration Monthly breakfast with elected officials Working with community colleges on job training programs Helping develop emergency services Developing responsible and reasonable regulation through the public process Working with local governments on legislative issues County Road Impact Fund Socioeconomic study: Governments need help in developing

Elk Herd

20 of the 23 Counties in Wyoming have gas production. (All have pipelines) Sublette County 2011 Production 389,149,877 Mcf Johnson County 2011 Production 125,853,618 Mcf We are supplying our nation with domestic energy Wyoming 2 nd in Natural gas production with Sublette County leading the way. (Jonah Field) 25,666 wells in Wyoming producing gas, 15,725 were coal bed natural gas wells. In 2009 Wyoming had 44 operating gas plants processing 72% of the state’s gas production. Jobs… jobs…. jobs…… 20,000 people in industry. Minerals are only class or kind of property in Wyoming valued and taxed at 100% of their actual value.

Wyoming taxes paid by Natural Gas in 2009 $524,467,321 in Property Taxes to Wyoming Counties. (Schools are funded from this also) Wyoming collected approximately $355,260,588 in severance taxes from Natural Gas in Severance Tax rate 6%: Tax distributed to State General fund, schools, cities and counties highways and water development. Sales Tax Collection 2009: $163.1 million. Bottom Line: Direct payment of nearly $4,692 for every person living in Wyoming. Keeps our taxes low.

Join forces with your local government officials as they are the government closest to the people. Inform the elected officials as much as you can so they know what is going on. No politician likes to have to say … “I don’t know”. Impacts are real, must be aware and address together. Socioeconomics of impacts are complicated and resources need help. The impacts are hard now, but there will come a point when they level off and the community can go forward and do some great things.

Cindy DeLancey Executive Director, WCCA cell office