Wyoming Launches Nation’s First State-Backed Oil and Gas Bonding Pool

The initiative follows the 2025 passage of Senate File 20, a legislative push signed by Governor Mark Gordon to modernize how the state handles decommissioning liabilities. Under the new system, operators in good standing can utilize the WellSecure platform to manage their financial assurance obligations. By shifting away from rigid, traditional bonding, the state aims to protect itself from the risk of orphaned wells while preventing smaller operators from being squeezed out of business by federal mandates.

Tom Kropatch, state oil and gas supervisor for the Wyoming Oil and Gas Conservation Commission, described the program as a practical, homegrown response to industry financial challenges. For the Petroleum Association of Wyoming, the pool represents a necessary departure from federal models that have become increasingly difficult for local firms to navigate. While participation remains voluntary, the program provides a state-sanctioned mechanism to ensure that long-term reclamation costs are fully funded, even if a company defaults. OneNexus will oversee the operation, using a structure backed by Munich Re capital and Travelers Casualty and Surety Company of America to maintain compliance and financial stability.