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June 8, 2005
Wyoming Oil and Gas Conservation Commission Building
Casper, Wyoming
Senator Bill Hawks, Co-Chairman
Representative Thomas A. Lockhart, Co-Chairman
Senator Hank Coe
Senator Kit Jennings
Senator Charles Townsend
Representative Bob Brechtel
Representative Floyd Esquibel
Representative Debbie Hammons
Representative Elaine Harvey
Representative Becket Hinckley
Representative Frank Latta
Representative Lorraine Quarberg
Representative Doug Samuelson
Senator Bill Vasey
Maxine Weaver, Staff Attorney
Please refer to
Appendix 1 to review the Committee Sign-in Sheet
for a list of other individuals who attended the meeting.
Co-Chairman Lockhart called the meeting to order at 8:00 a.m. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.
Steve Ellenbecker, Energy Policy Advisor for Governor Fredenthal, presented information regarding Wyoming's energy production, use, transmission and potential. Mr. Ellenbecker recommended: 1) to follow the program of the Wyoming Infrastructure Authority in dealing with new electric and transmission lines; 2) to look at clean coal technology as a key to power facilities; 3) to strengthen the University of Wyoming technology research to sustain and build for Wyoming's economic future and 4) to invest in energy for the future. Mr. Ellenbecker discussed protocols in working with federal agencies concerning transmission corridors to improve the regional power grids and the move to new technologies using cleaner fuels.
Mike Easley, Chairman of the Wyoming Infrastructure Authority (WIA) explained the development of the WIA and the role of WIA in developing energy in Wyoming. Mr. Easley discussed some potential lines in Wyoming and some of the challenges for value added minerals. [Appendix 3]. The WIA will provide information to the Committee regarding what other states are doing in this respect and will come back to the Committee if WIA wants any legislation drafted.
Robert Kelly, Principal of DKRW Energy, LLC discussed his proposed project at Medicine Bow, Wyoming.
Mark Koenig with Rentech, Inc., discussed the economic viability of a Fischer-Tropsch facility in using Wyoming Coal and briefly summarized the study co-funded with the Wyoming Business Council. [Appendices 4-7].
John Rich, President of WMPI, Pty., LLC explained his project in Pennsylvania and its potential for Wyoming. [Appendices 8 and 9].
Dan Fessler, Managing Principal, Clear Energy Solutions, described the project his company is planning to build in Converse County. [Appendix 10].
A copy of a research memo [Appendix 11] and a DVD were provided to the Committee [Appendix 12].
Tucker Fagan, Chief Executive Officer, Wyoming Business Council (WBC) explained the various funding available under the WBC and how the WBC handles applications for funding. Currently, if the applicant meets the state requirements, the WBC refers the applicant to the State Loan and Investment Board for approval or disapproval. The $45 million appropriated for funding for this biennium has already been distributed. Mr. Fagan suggested moving recreation and landscaping to the community facilities program. Mr. Fagan explained the relationship between the WBC and the Cheyenne Capital Fund regarding venture capital.
Cynthia Lummis, State Treasurer and Brian Knitt, Cheyenne Capital Fund, discussed private equity funding, including venture capital. [Appendices 13-15]. If the legislature wishes to proceed with venture capital funding, Treasurer Lummis suggested: 1) to establish reasonable objectives and goals so the risks are clearly understood with realistic expectations; 2) to manage the fund professionally; 3) to establish the fund using general fund monies rather than permanent trust fund monies; 4) to establish the fund separate from other funds and 5) to establish the fund management outside the Treasurer's office.
Treasurer Lummis explained the goals for the fund need to be understood. For example, if the investment is for economic development, the priority for the fund is economic development, not the return on the investment. Fund goals might include educating people in due diligence, mentoring businesses or being closely involved in the management of the company. Some potential problems with investments are: 1) the company is not prepared to receive venture capital; 2) a business plan has not been developed; 3) adequate internal management has not been established; 4) adequate business experience is not available or 5) it may be necessary to replace the current management team.
Lynne Boomgaarden and Brad Miskimins with the Office of State Lands and Investments (OSLI) discussed the various programs managed under the OSLI. [Appendices 16-22]. Mr. Miskimins counsels applicants regarding OSLI programs and discusses whether the applicant may need to apply to other programs. The OSLI works with the Wyoming Business Council and other programs and has four semi-annual grant meetings. Generally, grant demand exceeds available resources while loan demand is less. The OSLI will look at promulgating some rules to clarify the State Land and Investment Board in its oversight of the Wyoming Business Council.
Co-chairman Lockhart suggested if there was anything the legislature can do to facilitate economic development, to get the information to LSO staff.
Pat Collins and Timothy Hibbard, Assistant Chief Engineers, Wyoming Department of Transportation (WYDOT) discussed some pending rule changes [Appendix 23]. WYDOT has concerns with safety adjacent to highway corridors, establishing who pays to move utilities when additional work is done in the highway corridor, dealing with federal regulations on interstate highways and adequate funding for corridor acquisitions. Currently only single pole overhead lines are allowed in highway rights-of-way. Mr. Collins explained WYDOT has discussed eminent domain with the Attorney General and expressed constitutional concerns about whether the State can provide support for private entities. WYDOT will provide follow up information to the Committee if legislation is considered necessary.
Ruth Hobbs, Deputy Director, Wyoming Public Service Commission (PSC), explained the functions and responsibilities of the PSC, including providing safe and reliable services, inspecting facilities, issuing fines, building to meet consumer demands and looking for reasonable cost solutions.
Mike Easley, WIA, testified about the mission of the WIA, the rights of ownership, acquiring property by condemnation and bonding authority [Appendix 24]. Mr. Easley explained the WIA is not ready with recommendations for the Committee at this time, but he provided some suggestions for the Committee [Appendix 25]. The WIA will further consider this issue and come back to the Committee if they have any recommendations for legislation.
Mark Doelger, Chairman of the Wyoming Natural Gas Pipeline Authority (WPA) provided WPA positions on this topic [Appendix 26] and provided an example of spot market prices [Appendix 27].
Rick Miller, Vice President Governmental, Community and Legal Affairs and Myron Allen, Associate Vice President, University of Wyoming, provided an update on the Wyoming Technology Business Center, the Energy Institute and the petroleum engineering degree. [Appendix 28]. The University is hiring a manager for the Technology Business Center. The initial plan for the Energy Institute report is due to this Committee by October 1, 2005. The University will provide drafts to the Co-chairmen at every stage. The decision on the degree for petroleum engineering will be considered by the University, and does not need to be addressed by the Committee.
Kathy Moriarty testified generally regarding adequate safeguards to Wyoming people, communities, wildlife, water, etc., in considering the growth and development of Wyoming to maintain the intrinsic value of Wyoming and its people.
Marion Loomis, Wyoming Mining Association, testified generally regarding value added for minerals and commented on the return to this topic from several years ago.
Rosemary Bratton, Executive Director, Wyoming Women's Business Center, provided information to the Committee. [Appendix 29].
Jim Patterson, NorthStar Economics, Inc., testified generally regarding venture capital and provided information to the Committee. [Appendix 30].
Co-Chairman Lockhart announced the next meeting of the Joint Minerals, Business and Economic Development Committee will be July 25, 2005 to discuss community landfill remediation.
There being no further business, Co-Chairman Lockhart adjourned the meeting at 2:45 p.m.
Respectfully submitted,
Representative Thomas A. Lockhart, Co-Chairman