Powder River Basin, WY

One Ranch Family's Struggle with Coalbed Methane

By Nancy and Robert Sorensen

We have lived for the last 29 years on a cattle ranch in the Powder River Basin in northern Wyoming, and my husband's family has pioneer roots reaching back over 100 years. This semi-arid environment only allows so much disturbance before the land is stressed to the point that a living cannot be made.  My husband's family listened to the land and has persevered for four generations.

Our ranch is typical of many in the West in that the mineral and surface rights to the same parcel of land are often held by different parties (known as a "split estate"). We share mineral ownership 50-50 with Shriners Hospitals for Children under 2,500 acres of our ranch, and the federal Bureau of Land Management and State of Wyoming own the minerals under 200 and 160 acres of our ranch, respectively.

Nancy Sorenson

In October 1999, we were approached by a coalbed methane company to drill on a state-owned section of land that we lease. After consultation with the State Lands Office we attempted to reach a surface use agreement with the company that was in line with our philosophy of sustainability. After a long negotiation, an agreement was sent to the company management that we understood they had approved. The company rejected the agreement, and the State Lands Office allowed development operations to begin. A substantially weaker agreement was later offered to us by the company which the state urged us to sign. We did.

Being denied a reasonable agreement was only the first defeat. Next, we tried to get the company to live up to the agreement that it had authored.

Prior to commencing operations the company was supposed to provide us with a map. We finally received one six months after commencement of operations. There were to be no overhead power lines, but the company went ahead and constructed them anyway. The company also failed to discuss water management plans with us prior to beginning operations as it had agreed.

Over time the company has violated at least eight provisions contained in its agreement.

The problem as we see it is the overwhelming advantage of the mineral owner against the surface owner. We need regulations that give surface owners a more equitable bargaining position for surface damages.