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Report Calls Flaring a Glaring Waste of Taxpayer Money

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Thursday, November 20, 2014   

LANDER, Wy. - When it comes to the flaring of natural gas, some analysts say Wyoming should be following the lead of Alaska, which has strict rules that seldom allow the practice.

In Wyoming, however, excess natural gas goes up in flames every day - typically at oil drilling sites where natural gas is considered a byproduct.

A new report from the Western Organization of Resource Councils says the burning of natural gas as a nuisance must stop, as it increases air pollution and deprives royalty payments to those who own natural gas rights.

Amber Wilson, environmental quality coordinator at the Wyoming Outdoor Council, says production companies let the gas go because prices are low.

"It doesn't matter what the market price is to that company at this moment," she says. "That's a resource the public will never get back."

The good news in the report is Wyoming has made progress to get control of flaring, with the Wyoming Oil and Gas Conservation Commission expected to tighten rules in response to a request from the Powder River Basin Resource Council.

The report found natural gas "flared" in 2011 could have provided close to three million homes with all the natural gas needed that year. While Wyoming's estimated loss rate of two percent may appear to be a small volume, Wilson says it adds up to thousands of dollars in lost royalties. She adds oil companies don't often have a way to distribute any gas collected.

"The legislature should work with companies to increase the capacity of infrastructure around the state for collecting natural gas," says Wilson, "because we do acknowledge that the infrastructure can be a problem."

The report recommends hard limits on flaring, requiring companies to pay full royalties to all mineral owners on all gas that is flared or vented, fines for violators, and a review of air-quality monitoring and laws.


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