060-18 Wyo. Code R. § 18-10

Current through April 27, 2019

Section 18-10 - General Assignment Requirements

(a) Pursuant to W.S. 36-6-101(c), the Director shall approve or disapprove any assignment or transfer of a lease or an interest therein. Assignments shall be submitted for approval in duplicate on the form provided by the Office. If an assignment transfers an interest in more than one lease, an extra duly executed copy of the assignment or a photostatic copy of the original assignment shall be furnished for each lease in which an interest is transferred. The required filing fee must be paid for each separate lease in which an interest is assigned.

(b) The Director shall approve an assignment which has been properly executed and appears to comply with the law and this chapter, unless he determines that:

(i) Approval would interfere with the development of the oil or gas;

(ii) The assignable lease is delinquent in rental or royalty payment status;

(iii) Existing bonding is insufficient to cover lease premises activities;

(iv) Conditions exist that would otherwise be detrimental to the interests of the beneficiaries;

(v) The assignee is not a qualified lessee as provided in Section 4 of this chapter; or

(vi) The number of persons holding undivided interest in a lease exceed two (2) in number, unless a designation of agent or a power of attorney executed by all lessees is filed with the Office which designates one of the lessees as agent or attorney to receive all notices, pay all rentals, and is authorized to represent the lessees with the same effect as though the agent or attorney was the sole lessee. For the purposes of this paragraph, owners of overriding royalties, production payments or other cost-free interests are not considered lessees, but owners of carried working interest, net profit owners, and other persons who may be required to bear a share of the cost out of their share of the production are considered lessees.

(c) If the Director disapproves an assignment, he shall advise the assignee by letter of his decision, the reason for disapproval, and when possible, advise what action is necessary to secure approval.

(d) An assignment or transfer of a lease or any interest therein, including overriding royalties and other cost-free interests created out of the leasehold estate, must be in writing and executed and acknowledged in accordance with the requirements of the law applicable to conveyances of interest in real estate. The instrument must clearly set forth the serial number of the lease, accurately describe the lands affected, the interest being conveyed as a percentage of total leasehold, and be free of any ambiguity.

060-18 Wyo. Code R. § 18-10