Joint Education Committee Minutes

Draft Only

Approval Pending

of SUMMARY

P ROCEEDINGS JOINT MINERALS, BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE

COMM ITTEE M EETING I NFORMATION December 12 and 13, 2013 Conference Room, Oil and Gas Commission Building 2211 Kings Boulevard Casper, Wyoming

JOINT M INERALS, BUSINESS AND ECO NOM IC DEVELOPMENT COM M ITTEE M EM BERS PRESENT Senator John Hines, Cochairman Representative Tom Lockhart, Cochairman Senator Jim Anderson (SD02) Senator Henry “Hank” Coe Senator Stan Cooper Senator Chris Rothfuss Representative Richard Cannady Representative Mike Greear Representative Norine Kasperik Representative Lloyd Larsen Representative Tom Reeder Representative Albert Sommers Representative Nathan Winters

COMM ITTEE M EM BERS NOT PRESENT Representative James Byrd

LEGISLATIVE SERVICE OFFICE STAFF Tania Hytrek, Staff Attorney Kelley Shepp, Research Analyst

OTHERS PRESENT AT M EETING Please refer to Appendix 1 to review the Committee Sign-in Sheet for a list of other individuals who attended the meeting.

The Committee Meeting Summary of Proceedings (meeting minutes) is prepared by the Legislative Service Office (LSO) and is the official record of the proceedings of a legislative committee meeting. This document does not represent a transcript of the meeting; it is a digest of the meeting and provides a record of official actions taken by the Committee. All meeting materials and handouts provided to the Committee by the Legislative Service Office, public officials, lobbyists, and the public are on file at the Legislative Service Office and are part of the official record of the meeting. An index of these materials is provided at the end of this document and these materials are on file at the Legislative Service Office. For more information or to review meeting materials, please contact the Legislative Service Office at (307) 777-7881 or by e-mail at [email protected]. The Summary of Proceedings for each legislative committee meeting can be found on the Wyoming Legislature’s website at http://legisweb.state.wy.us. PAGE 2 OF 12

EXECUTIVE SUMMARY. The Joint Minerals, Business and Economic Development met to receive information from the Wyoming Oil and Gas Conservation Commission, Governor Matt Mead's Office, the Department of Environmental Quality, the School of Energy Resources, the Wyoming Business Council and the Aeronautics Division of the Department of Transportation. Topics discussed included reclamation of abandoned or orphaned oil and gas wells, groundwater baseline monitoring, the atomic energy study, landfill cease and transfer activities and regional haze. The 2013 Consensus Revenue Estimating Group report and the activities of the Select Federal Natural Resource Management Committee were also discussed. Draft legislation was also presented.

CALL TO ORDER. Chairman Hines called the meeting to order at 9:00 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.

APPROVAL OF MINUTES. Minutes from the September 26 and 27, 2013 Joint Minerals, Business and Economic Development Committee meeting were approved without revision.

STATEWIDE PLAN AND SCHEDULE – ABANDONED AND ORPHANED OIL AND GAS WELL RECLAMATION AND BONDING. Mr. Cameron Nazminia, Governor Matt Mead's Office, spoke to the Committee about the statewide plan and schedule for reclamation of abandoned and orphaned oil and gas wells. See Appendix 3. Chairman Hines inquired about the reporting process for idle or orphaned wells. Mr. Nazminia responded reporting is governed by a process adopted by the Oil and Gas Conservation Commission. Mr. Nazminia state in addition to the wells currently identified as abandoned or orphaned, there are approximately 10,000 additional wells that are "of concern" to the OGCC. Representative Sommers inquired about the process for determination of wells that are “of concern.” Mr. Nazminia responded the wells are classified “of concern” based on criteria established by the OGCC. The wells are labeled "of concern" when the operator is not in compliance with OGCC rules in some regard. Representative Kasperik asked Mr. Nazminia to explain how the approach proposed today differs from the approach in the past. Mr. Nazminia responded the approach proposed today is a coordinated approach. He noted a four year plan, as opposed to a longer time period, was proposed as a result of the direction by co-chairs in the memo dated October 30, 2013. Mr. Nazminia summarized the costs associated with the plan as proposed, noting the average cost for reclamation per well is approximately $7,430. Senator Rothfuss requested the Governor’s Office provide additional information regarding possible options for additional funding for the reclamation activities. Supervisor Black explained the various revenues that flow to the Commission, noting a one-mill increase in the conservation tax would result in an additional one million dollars approximately. Supervisor Black noted the OGCC is currently working on revision of rules and Chairman Lockhart requested Supervisor Black provide the Committee with a copy of the revised rules as soon as possible. Representative Greear inquired about changes that will be necessary to accomplish the activities listed for the first quarter in the proposed plan. Supervisor Black stated the Commission has approximately $500,000 allocated through June 30, 2014 for the purpose of plugging activities. He stated further the Commission will proceed with the preliminary activities associated with plugging and reclamation to ensure that when the funds become available the agency is prepared. He noted that 67 wells are ready to go to bid for reclamation soon. Representative Sommers inquired about the possibility of an increase in the conservation tax to fund the $5 million shortfall. Mr. Nazminia commented that increasing the conservation tax would be the responsibility of the OGCC, not the Governor's Office.

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

WYOMING LEGISLATIVE SERVICE OFFICE • 213 State Capitol • Cheyenne, Wyoming 82002 TELEPHONE (307) 777-7881 • FAX 307-777-5466 • E-MAIL [email protected] • WEB SITE http://legisweb.state.wy.us PAGE 3 OF 12

Supervisor Black echoed the comments of Mr. Nazminia on the unpredictability of some aspects of the report, including the number of the wells that will become abandoned or orphaned and the financial resources that will be necessary for remediation of all abandoned or orphaned wells. Supervisor Black moved on to discussion of vacancies within the Commission, noting some of the positions have been vacant for some time. Representative Greear inquired about implementation of the plan to ensure progress continues to be made once the 67 wells have been plugged. Supervisor Black responded the preliminary work associated with plugging for the next group of wells is already underway to ensure progress continues. He noted that in the future, to further expedite the process, the project manager will group wells together for the purpose of receiving bids for completion of the work. Supervisor Black stated the Commission has a good working relationship with the Bureau of Land Management (BLM). He urged the Committee to maintain the rainy day fund for unforeseen issues that may arise, citing to the “Wheeler Well” which took substantially more funds to rectify than anticipated.

Ms. Jill Morrison, Power River Basin Resource Council, commented on the reclamation of abandoned and orphaned wells, noting the BLM does not move quickly in rectifying wells on federal land. She discussed the possibility of using funds generated by the conservation tax, which is imposed on all wells in the State, to rectify wells on federal land. Ms. Morrison encouraged the Committee to consider increasing the mill levy to generate funds to use in rectifying abandoned and orphaned wells. She urged the Committee to consider exploring mechanisms to increase the number of wells that are transferred to water use in a more simplified manner. Ms. Morrison noted the importance of putting together a plan to deal with the wells in production today to ensure the issue of abandoned and orphaned doesn’t repeat in the years to come. She requested the Committee consider revisiting the law in relation to bonding to ensure bonding is adequate with the onset of production rather than dealing with it on the back end.

Mr. Bruce Hinchey, Wyoming Petroleum Association, provided comments to the Committee on the efforts related to reclamation and plugging of wells on federal land. He explained OGCC can increase the mills imposed by an additional 4 mills, doubling the funds available for these activities. Senator Anderson inquired about the impact of horizontal drilling on plugging and reclamation. Mr. Hinchey responded that he didn’t see a significant increased threat with those types of wells. Representative Greear inquired about the appropriate time to review the bonding capacity and if it was related to the transfer of a well from a large company to a smaller operator. Mr. Hinchey responded, his opinion is that the issue is not due to transfer, but simply an issue related to the individual operator and their ability to bond appropriately and their financial stability. Senator Anderson urged the Committee to consider activities that will ensure the next generation of Wyoming citizens do not face the same issues.

GROUNDWATER BASELINE MONITORING. Mr. Jeremiah Rieman, Governor’s Office, spoke to the Committee about groundwater baseline monitoring and the rules and regulations associated with this topic. He noted the Governor’s Office received a substantial number of public comments during the informal comment period. Mr. Rieman summarized the proposed revisions to the rules and regulations. See Appendix 4 and 5.

POWER ATOMIC ENERGY AGREEMENT STATE FEASIBILITY STUDY. Mr. Todd Parfitt, Director of Department Environmental Quality (DEQ), introduced the topic of the atomic energy agreement state feasibility study to the Committee. Ms. Nancy Nuttbrock, Deputy, DEQ, provided a detailed outline of the report submitted to the Committee on this topic. Appendix 6 and 7. Ms. Nuttbrock described the areas of overlapping jurisdiction in reference to in-situ mining operations. She noted the task charged included recommendations on statutory changes necessary to participate as an agreement state. Ms. Nuttbrock stated an authorizing statute would be necessary, noting Wyoming could look to model legislation as guidance if it chose to proceed with becoming an agreement state. She

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

outlined the regulatory changes that would also be necessary for implementation of the program in Wyoming, which would include modification for a 4 tiered structure to regulate source material recovery and 11(e)2 byproducts. Ms. Nuttbrock reminded the Committee of the lengthy guidance documents that are available in relation to the operation of the agency in participation as an agreement state. She noted policy statements, regulatory interpretations, inspections and enforcement provisions would be necessary for regulation of such a program. She moved on to discussion of organizational changes that would be necessary for the administration of such a program, including the necessity of ten additional full-time equivalent positions. Ms. Nuttbrock stated eight additional technical positions, one administrative position and one legal position would be necessary for administration of the project. Ms. Nuttbrock noted the startup for the program would take approximately six years with two phases and the cost would be approximately 4.48 million dollars. She cited the importance of securing a legal position and a program manager in the initial stages of implementation. Senator Cooper inquired about the fee structure associated with this program. Ms. Nuttbrock responded to the Senator’s question, noting it is possible to set up a fee structure to accommodate for a downswing in the price of yellow cake. Senator Hines inquired about the cost associated with the first years of operation of the program. Chairman Lockhart inquired about the number of states that are agreement states and the time associated with permitting. Ms. Nuttbrock stated there are 37 agreement states and outlined the permitting process for Wyoming. Chairman Lockhart requested Ms. Nuttbrock prepare a letter to the Committee outlining the potential time savings associated with proceeding with permitting now. Mr. Chris Pugsley spoke to the Committee about the program as well, providing additional detail regarding the requirements for becoming an agreement state. He recommended the Committee allow an additional year of study to allow further exploration prior to making a determination as to becoming an agreement state. Senator Rothfuss inquired about the process for withdrawing from the agreement. Mr. Pugsley stated the process is largely standardized and not unduly burdensome.

Mr. Marion Looma, Wyoming Mining Association, voiced his support for the study and the report issued by the DEQ and urged the Committee to continue to explore the administration and implementation of such a program in Wyoming.

UPDATE ON LANDFILL REMEDIATION AND CLOSURE/TRANSFER PROGRAMS. Director Parfitt and Mr. Alan Edwards, DEQ, spoke to the Committee about the landfill remediation and closure and transfer program. See Appendix 9. Mr. Parfitt provided an update on the status of the rules as contemplated by the State Land and Investment Board (SLIB) and the DEQ. Senator Rothfuss inquired about the ability of small communities to utilize loan funds for the purpose of meeting the twenty-five percent participation required by the facility. Mr. Edwards noted the ability of in-kind services to be considering when determining the twenty-five percent required by the facility. Mr. Parfitt summarized the anticipated funds that will be necessary to fully fund the program. Representative Greear clarified the amounts provided in the report reflect one hundred percent of the funds necessary, with only seventy-five percent being the responsibility of the State. Director Partfitt confirmed this statement. Representative Greear inquired about a potential cost-saving of moving forward with the cease and transfer responsibility as opposed to remediating at a later date. Director Parfitt responded it will result in a cost-savings to the State to proceed with cease and transfer as opposed to remediating at a later date. He directed the Committee’s attention to Table 4 on page 6 of the Report to the Joint Minerals, Business and Economic Development Interim Committee dated December 2013, noting this is the recommendation by DEQ in relation to the expenditure of the funds and prioritization for cease and transfer projects.

Mr. Parfitt moved on to discussion of DEQ’s recommendation in relation to the transfer of leaking underground storage tanks funds (LUST) for the remediation of solid waste facilities, noting the DEQ’s recommendation was to study the issue for an additional year and the memo sent by the chairman

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

supporting this recommendation that was sent to the Joint Appropriations Interim Committee. Chairman Lockhart inquired about DEQ’s presentation to JAC on this issue. Mr. Parfitt noted his November 20th memo to JAC on the issue and the follow up material request. Appendix 10.

Mr. Mark Larson, Executive Director, Wyoming Petroleum Marketers Association, spoke to the Committee about the possibility of transferring LUST funds to the remediation of solid waste facilities. He stated he was fully supportive of DEQ's most recent recommendations to JAC on this issue. Mr. Larson summarized the number of tanks in the state and age of those tanks, noting that due to age and corrosion releases will continue to occur. He further stated Wyoming is number one in compliance for these facilities currently. Mr. Larson summarized the various initiatives assisting in limiting the releases.

Mr. Steve Moldt, President, Wyoming Solid Waste and Recycling Association, praised the DEQ in the rulemaking for administration of the remediation and cease and transfer programs. He commented that flexibility will be necessary in administration of the prioritization list presented by DEQ. Mr. Moldt commented on the reporting requirements for the cease and transfer program as proposed in the draft legislation, requesting the Committee allow stakeholders additional time to come to a consensus on these issues before moving forward with the draft legislation.

Chairman Lockhart requested an explanation from Director Parfitt regarding the requirements that exist in the statutes governing remediation and cease and transfer activities specifically as it relates to performance based systems or lined facility requirements. Chairman Lockhart requested that Director Parfitt provide the Committee with information regarding the guidance and changes related to performance based facilities or lined facilities and the acceptance of construction and demolition by sites or facilities by unlined or non-performance based systems. Senator Cooper requested clarification of the options available for participation in the cease and transfer programs. Director Parfitt responded currently there are two options under the program, performance based systems or a lined municipal solid waste facility. Mr. Edwards stated currently there are no facilities that have a performance based system. Representative Greear requested Director Parfitt advise communities of the two options available and engage in an effort to increase communication on this topic with communities.

BILL DRAFTS.

14 LSO-0228.C1 LSO staff explained the draft legislation related to adoption of a prioritized list of projects under the cease and transfer program. See Appendix 11. After significant discussion, the Committee directed staff to revise the draft to incorporate the prioritized list presented by the Department of Environmental Quality, to allow for the DEQ to revise the priority list under certain conditions, including to optimize efficiencies, based on project readiness, based on compliance with grant and loan qualifications or conditions or to address emergency needs. Chairman Lockhart stated the draft legislation would be considered by the Committee as the first item on the agenda for December 13, 2013.

14 LSO-0181.C1 LSO staff explained the draft legislation to require reporting for cease and transfer facilities. See Appendix 12. Senator Coe moved, seconded by Senator Anderson, that the Joint Minerals, Business and Economic Development Interim Committee sponsor the draft legislation 14LSO-0181.C1. After significant discussion, the motion to sponsor 14LSO-0181.C1 did not pass on voice vote.

14 LSO-0190.L3

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

Representative Larsen explained the draft legislation to modify the requirements associated with performance based systems and liners for the cease and transfer facilities. Appendix 13. Representative Larsen moved, seconded by Senator Cooper, that the Joint Minerals, Business and Economic Development Interim Committee sponsor the draft legislation 14LSO-0190.L3. The motion passed via a roll call vote. Appendix 13A. Chairman Lockhart stated the bill will begin in the House.

UPDATE ON REGIONAL HAZE RULES. Director Parfitt and Mr. Steve Dietrick Administrator for Air Quality Division, DEQ, provided a brief update on the rules governing regional haze. Mr. Dietrick stated the Environmental Protection Agency (EPA) partially accepted and partially rejected the state plan on this issue. He noted there were a total of 3 public hearings held on the topic and that EPA was going to take final action in November, but that it was unable to because of the government sequestration. An extension through January was granted.

RECESS. Chairman Hines recessed the meeting on December 12, 2013 (Thursday) at 5:15 p.m. Chairman Lockhart reconvened the meeting at 8:00 a.m. on December 13, 2013 (Friday).

14 LSO-0228.C2 LSO staff explained the draft legislation adopting a prioritized list of municipal solid waste facilities cease and transfer projects as revised in accordance with Committee direction the day prior. See Appendix 14. Chairman Hines moved, seconded by Representative Kasperik, that the Joint Minerals, Business and Economic Development Interim Committee sponsor 14 LSO-0228.C2. Senator Coe moved, seconded by Senator Cooper, that on page 7, line 9 after “committee” to insert “and the joint appropriations interim committee.” The motion to amend passed. Senator Rothfuss moved, seconded by Senator Coe, on page 2 lines 17-18 the language “for expenditure by the department of environmental quality for” be deleted and “pursuant to” be inserted; page 6, line 11 to delete “expenditure of” and insert “authorized”; page 6-line 22 to delete “(iii)” and insert “(iv)”. The motion to amend passed. Chairman Lockhart stated the proposed legislation would be a Senate File. The motion for the Joint Minerals, Business and Economic Development Interim Committee to sponsor 14 LSO-0228.C2 as amended passed via a roll-call vote. See Appendix 14A.

SCHOOL OF ENERGY RESOURCES AND UNIVERSITY OF WYOMING UPDATE. Mr. Chris Boswell spoke to the Committee about the activities of the School of Energy Resources (SER), specifically he discussed the activities related to obtaining tier one status. Chairman Lockhart requested Mr. Boswell provide the Committee with a copy of a one-page summary of the activities related to this effort. Dr. Mark Northram summarized some of the most notable achievements of the SER. See Appendices 15 and 16. Dr. Northram continued discussion of the activities and achievements of the SER. He discussed the merits of the High Bay Research Facility and outlined the projected construction, which will commence in the near future and with completion anticipated in 2015. Mr. Rob Hurless, Deputy Director of SER, spoke to the Committee about the relationship and collaboration between the SER, the Governor’s Office and the Wyoming Business Council (WBC). He summarized the research activities and projects that are being conducted jointly. Dr. John Middelstaedt, Chair and Professor, Department of Management and Marketing, addressed the Committee regarding the relationship between the SER and the school of business and the various opportunities this relationship provides. He outlined the various classes and courses offered, noting the energy MBA is a three semester program. The program has eight classes and faculty members have been hired for those positions. The first group of students just recently graduated from the program.

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

STATEWIDE PLAN AND SCHEDULE – ABANDONED AND ORPHANED OIL AND GAS WELL RECLAMATION AND BONDING (CONTINUED DISCUSSION OF AGENDA ITEM #1) Director Bridget Hill, Office of State Lands and Investments (OLSI), spoke to the Committee about the role of the OSLI in the context of the report submitted the day prior by the Governor’s Office on the statewide plan for remediation of abandoned and orphaned wells. She outlined the bonding requirements and the actions undertaking by her office in oversight of this aspect of well production. She discussed the difference between an orphaned well with the OGCC and how State Lands and Investment Board (SLIB) defines them. SLIB defines an orphaned well as a well with no responsible party in the chain of title. Director Hill discussed the total compliance program, which includes an aspect of bond compliance. See Appendix 17. She noted the program requirements include notification of all parties in the chain of title in any instance where 100% of the leasing rights are not maintained by a single owner. Director Hill noted that to date there are 5 orphaned wells on state lands and the depth of these wells vary. She stated further that the OSLI is undertaking a comprehensive review of all wells on state lands. Representative Greear inquired about the use of conservation tax to remediate wells on state lands. Director Hill responded in the event the OSLI cannot address the issue, the well will be referred the Conservation Commission for remediation.

14 LSO–0180.C1 Staff explained the draft legislation to limit leasing of state lands in instances where leaseholders or operators fail to comply with the provisions of state leases or applicable rules and regulations. See Appendix 18. Director Hill testified that her office has sufficient authority to deny leases under circumstances where leaseholders or operators are in violation via rule and regulation. See Appendix 19. After significant discussion, the Committee voted by voice vote to lay the draft legislation back from consideration. Representative Greear requested the Director pursue additional regulations or activities to ensure operators or leaseholders with common ownership interests are unable to lease state lands in the event one of the parties is in violation of the provisions of the lease or rules and regulations. He noted concern that operators or leaseholders simply dissolve a business entity and resume activity under an alternative subsidiary or similar company with the same owners. Director Hill responded the rules currently provide sufficient authority to deny the lease in the event the OSLI is aware of the similar ownership interests.

2013 OCTOBER CREG REPORT, INCLUDING UPDATE AND AML/FMR Mr. Dean Temte, Fiscal Analyst, Legislative Service Office, provided a report to the Committee on the 2013 Wyoming State Government Revenue Forecast (Fiscal Year 2014 – Fiscal Year 2018). See Appendices 20 and 21. Mr. Temte explained the process for preparing the CREG report and the various participants in compiling this information. He summarized the activities surrounding the budget discussions at the federal government level. Mr. Temte explained the various adjustments to the forecast this year. In addition, he briefly discussed the fiscal revenues for FY 14 for the first six (6) months of the fiscal year.

WYOMING BUSINESS COUNCIL Mr. Bob Jensen, Chief Executive Officer, Wyoming Business Council (WBC), spoke to the Committee generally about the activities of the Wyoming Business Council. He noted the budget request in relation to the Business Ready Community Program for additional funds. Chairman Lockhart requested additional information regarding the quantification of the benefit of this program and the difference it has made in gaining business or securing additional businesses in Wyoming. Mr. Jensen testified the evidence is anecdotal. The Committee moved on to discussion of the Industrial Development Bond Program in conjunction with the State Treasurer, Mark Gordon. See Appendix 22. Treasurer Gordon

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

described the various activities related to the program. He stated two projects have been funded and are close to finishing the final project. He described the administration and process associated with this program. Mr. Gordon noted the governing rules will be forthcoming in the first months of 2014. Chairman Lockhart requested Chairman Gordon provide a brief description of the Hawkinson Powers industrial development bond and the issues surrounding it. Ms. Sharon Garland, Deputy Treasurer, explained the difficulties associated with this bond and the events surrounding the recovery of the funds that took approximately 2 years. Treasurer Gordon stated the program currently requires the State to be in the first position, and fully secured, he noted this makes it difficult to administer and questioned if it is the best mechanism to support industrial development.

Mr. Ryan Whitehead, Manager of Business Finance, Business and Industry Division, spoke to the Committee about the Natural Gas Vehicle Infrastructure Challenge Loan Program. He noted the program has received one applicant. The loan program has seen interest from two companies. Chairman Lockhart inquired about the identity of the applicant. Representative Greear asked about the location. Mr. Whitehead responded the location of the applicant is in the western part of the state, noting he is not at liberty to share identity or specific location of the applicant at this time.

Mr. Nathan Nicholas, Governor Mead’s Office, spoke to the Committee about the activities associated with foreign trade activities. He summarized the recent trips by the Governor to Canada and Asia, which were made in an effort to increase foreign trade. Mr. Nicholas noted the Governor’s Office will publish a report including recommendations and a preliminary plan that will be submitted to the Legislature early in 2014. Mr. Nicholas continued discussion of the results in response to the Governor’s activities and the various trips that he has taken in relation to this project. He cited several preliminary contacts that have been made. Mr. Avery requested the Committee give adequate thought to consistent funding mechanisms for the program, noting the request will come through the Governor’s budget. Mr. Avery noted the activities associated with the Wyoming Rail Plan are on-going and the report is expected to be delivered in the second quarter of the next year.

ENCANA OIL AND GAS: MONETA DIVIDE UPDATE Chairman Lockhart noted that Mr. Paul Ulrich is unable to attend due to unforeseen circumstances. Representative Larsen updated the Committee on the activities associated with this project, noting the Neptune Water Project is underway and the construction has begun on that facility.

UPDATE FROM SELECT FEDERAL NATURAL RESOURCE MANAGEMENT COMMITTEE Senator Anderson briefed the Committee on the activities of the Select Federal Natural Resource Management Committee and the Taskforce on the Transfer of Public Lands, including the draft bills recommended to the Joint Minerals, Business and Economic Development Interim Committee for consideration by the Select Federal Natural Resource Management Committee. See Appendices 24 and 25. Substantial discussion was undertaken by the Committee regarding sponsorship of the proposed legislation.

14 LSO – 0203.W2 Senator Anderson and Representative Kasperik explained the draft legislation creating a select committee on the transfer of public lands. See Appendix 26. Representative Kasperik moved, seconded by Senator Anderson, that the Joint Minerals, Business and Economic Development Interim Committee sponsor 14 LSO-0203.W2. The motion passed via a roll-call vote. Chairman Lockhart stated the bill will begin in the House. See Appendix 26A.

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

14 LSO – 0208.W3 Senator Anderson and Representative Kasperik explained the draft legislation modifying the membership and activities of the natural resource management committee. See Appendix 26. Senator Anderson moved, seconded by Senator Cooper, that the Joint Minerals, Business and Economic Development Interim Committee sponsor 14 LSO-0208.W3. The motion passed via a roll-call vote. Chairman Lockhart stated the bill will begin in the Senate. See Appendix 26A.

UPDATE FROM THE AERONAUTICS DIVISION OF WYOMING DEPARTMENT OF TRANSPORTATION: AIR SERVICE ENHANCEMENT PROGRAM REPORT Mr. Dennis Byrne, Administrator, Aeronautics Division, Department of Transportation and Mr. Nick Wrangler, Aeronautics Division, Department of Transportation, provided the Committee with an update related to the Air Service Enhancement Program. See Appendices 28 and 29. Mr. Wrangler provided the Committee with an update on the airline industry and the current state of the commercial airline industry. He summarized airline capacity and noted the impact of the various mergers and buyouts that have occurred. Mr. Wrangler moved on to discuss passenger traffic in Wyoming and the trends of the traffic over the course of several years. He stated there have been significant gains in state-wide economic improvements when considered cumulatively.

CLOSING BUSINESS / PUBLIC COMMENT Mr. Pete Illoway, contractor with Wyoming Airport Operators, noted the support of the Governor in aeronautic funding and cited to the applicable provision within the Governor’s budget. Mr. Illoway cited to his paper on the topic of the importance of aeronautics in Wyoming and offered to provide a copy of the report to the Committee. See Appendix 30. Representative Greear inquired about the central air service as administered by the federal government. Mr. Illoway and Mr. Byrnes responded to the question, noting there has been no additional discussion of reduction of the funds allocated to this program by the federal government.

MEETING ADJOURNMENT There being no further business, Chairman Hines adjourned the meeting at 1:15pm.

Respectfully submitted,

Senator Hines, Co-chairman Representative Lockhart, Co-Chairman

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

Committee Meeting

Materials Index

Appendix Agenda Item Appendix Description Appendix Provider

1 Committee Sign-In Sheet Lists meeting attendees Legislative Service Office

2 Committee Meeting Provides an outline of the topics the Legislative Service Office Agenda Committee planned to address at meeting

3 Statewide Plan and Cover memo: December 9, 2013, to Joint Governor Mead's Office Schedule – Abandoned and Minerals, Business and Economic Orphaned Oil and Gas Well Development Interim Committee, from Reclamation and Bonding Governor Mead, re: Plan for Plugging Oil and Gas Wells; Report: "Wyoming Idle and Orphan Well Draft Plan," December 9, 2013

4 Groundwater Baseline Rules, November 14, 2013 Governor Mead's Office Monitoring

5 Groundwater Baseline Appendix K, Sampling and Analysis for the Governor Mead's Office Monitoring Wyoming Oil and Gas Conservation Wyoming Oil and Gas Commission, Groundwater Baseline Conservation Commission Sampling, Analysis, and Monitoring Program

6 Power Atomic Energy Cover memo: November 22, 2013, to Joint Wyoming Department of Agreement State Feasibility Minerals, Business and Economic Environmental Quality Study Development Interim Committee, from Director Todd Parfitt re: NRC State Feasibility Study; Report: "Feasibility Study for Becoming an Agreement State Under the Atomic Energy Act of 1954 for the Regulation of Source Material Recovery and 11E.(2) Byproduct Material," November 2013

7 Power Atomic Energy Power point: Atomic Energy Act Wyoming Department of Agreement State Feasibility Agreement State Feasibility Study, Environmental Quality Study December 12, 2013

8 Power Atomic Energy Letter: November 22, 2013, to Governor Strata Energy, Inc. Agreement State Feasibility Mead, from Strata Energy, Inc., re: Strata Study Energy Support for Wyoming becoming an Agreement State.

9 Update on Landfill Power point: Landfill Remediation, Solid Wyoming Department of

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

Remediation and Waste Funding – Possible Reallocation of Environmental Quality Closure/Transfer Programs LUST CAA Funds Update, December 12, 2103

10 Update on Landfill Letter: November 20, 2013, to Co-chairs of Wyoming Department of Remediation and the Joint Appropriations Interim Committee Environmental Quality Closure/Transfer Programs (JAC), from Director Todd Parfitt, re: additional information requested at the 11/18/2013 JAC hearing.

11 Draft Legislation 14 LSO-0228.C1 Legislative Service Office

12 Draft Legislation 14 LSO-0181.C1 Legislative Service Office

13 Draft Legislation 14 LSO-0190.L3 Legislative Service Office

13A Draft Legislation 14 LSO-0190.L3: Vote Record Legislative Service Office

14 Draft Legislation 14 LSO-0228.C2 Legislative Service Office

14A Draft Legislation 14 LSO-0228.C2: Vote Record Legislative Service Office

15 SER/UW Status Update Whitepaper: Highlight of Achievement, School of Energy UW School of Energy Resources, 2006- Resources (SER) / 2013, December 13, 2013 University of Wyoming (UW)

16 SER/UW Status Update Excel Spreadsheet: "Engineering Initative SER/UW Biennium Budget Request for FY2015- 2016

17 Statewide Plan and Whitepaper: "The Total Program Office of State Lands and Schedule – Abandoned and Compliance Initiative" Investments Orphaned Oil and Gas Well Reclamation and Bonding

18 Draft Legislation 14 LSO-0180.C1 Legislative Service Office

19 Statewide Plan and Rules and Regulations, Board of Land Office of State Lands and Schedule – Abandoned and Commissioners, Chapter 18, Leasing Oil Investments Orphaned Oil and Gas Well and Gas Reclamation and Bonding

20 2013 October CREG Wyoming State Government Revenue Legislative Service Office Report Forecast, Fiscal Year 2014-Fiscal Year 2015, Consensus Revenue Estimating Group, October 2013

21 2013 October CREG Fiscal Profile for 2013-14, October 2013 Legislative Service Office Report CREG revenue forecast, 10/23/2013

22 Wyoming Business Letter: December 2, 2013, to the Chairs of State of Wyoming, Office Council the Joint Minerals, Business and Economic of the State Treasurer Development Interim Committee, from

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings

Mark Gordon, State Treasurer, re: Report on Effectiveness of the Authorized Investment Program in Industrial Development Bonds (IDB)

23 Update form Select Federal Memo: November 19, 2013, to Joint Wyoming Task Force on Natural Resource Agriculture, State and Public Lands and the Transfer of Public Management Committee Water Resources Committee, Joint Lands Minerals, Business and Economic Development Interim Committee, Select Federal Natural Resource Management Committee, from the Wyoming Task Force on the Transfer of Public Land, Subject: Task Force Recommendations.

24 Update form Select Federal Letter: November 21, 2013, to , Joint Select Federal Natural Natural Resource Minerals, Business and Economic Resource Management Management Committee Development Interim Committee, from Senator Bebout, Chairman, re: Select Federal Natural Resource Management Activities and proposed legislation

25 Draft Legislation 14 LSO-0203.W2 Legislative Service Office

25A Draft Legislation 14 LSO-0203.W2: Vote Record Legislative Service Office

26 Draft Legislation 14 LSO-0208.W3 Legislative Service Office

26A Draft Legislation 14 LSO-0208.W3: Vote Record Legislative Service Office

27 Update from the Power point: Air Service Enhancement Aeronautics Division of Aeronautics Division of the Program Update, December 2013 the Wyoming Department Wyoming Department of of Transportation Transportation

28 Update from the Report: Air Service Enhancement Program, Aeronautics Division of Aeronautics Division of the September 2013 the Wyoming Department Wyoming Department of of Transportation Transportation

29 Update from the Whitepaper: Air Service in Wyoming and Pete Illoway Aeronautics Division of the the need for Air Service Enhancement Wyoming Department of Funding Transportation

JOINT EDUCATION INTERIM COMMITTEE Summary of Proceedings