Methane firm ordered to post $6.8 million in bonds - KOTA Territory News

Methane firm ordered to post $6.8 million in bonds

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CASPER, Wyo. (AP) - Wyoming regulators have ordered a Sheridan coal-bed methane company to put up $6.8 million in bonds on hundreds of idle wells in the Big Horn Basin.

The Oil and Gas Conservation Commission on Tuesday gave High Plains Gas 120 days to come up with the bonds, which the state requires to ensure idle wells are properly managed if operators go bankrupt.

The Casper Star-Tribune reports (http://tinyurl.com/ojf6akc) the state could plug the wells if High Plains doesn't post the bonds.

The commission also fined High Plains $20,000, saying the company didn't have sufficient bonds and didn't perform tests required on non-producing wells.

High Plains' attorney said the state could be stuck with millions of dollars in costs if it plugs the wells because the company hadn't posted all the bonds.

Information from: Casper (Wyo.) Star-Tribune, http://www.trib.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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