Wyoming’s Office of State Lands and Investments could begin pulling coal-bed methane permits soon in an attempt to force producers to restart a mass of nonproducing wells in the Powder River Basin.

Office Director Ryan Lance told a group of oil and gas industry representatives at a Jackson natural gas convention Thursday that his agency is issuing notices to operators of inactive and delinquent wells. Lance told the group that his department is no longer receiving royalties on many of the wells.

“We’ve lived by the sword in coal-bed methane production of the Powder River Basin,” he said. “There is lots of open well bore. There is not adequate bonding. We’re shipping product, but not getting paid royalty.” MORE …