EXPLORATIONThe petroleum industry has been exploring for oil and gas in Wyoming for over 131 years. In 1884 the first oil well was drilled southeast of present day Lander. During 2014, 1,264 wells were drilled and completed. Of that number, 535, or 42% found oil, 632 or 50% found gas, and 97 or 8% were dry holes. 83 new field wildcat wells, those drilled in unproven areas, were drilled in 2014. In 2014, 86% of wildcat wells found oil or gas.

The deepest well drilled in Wyoming to date was a 25,764-foot dry hole. The deepest producing well is a gas well drilled to 24,877 feet.

The 2014 monthly average rig count was 54; the 1995 average of 23 was the lowest since WWII. In 1981, the all-time record year for rotary rig activity in Wyoming, there was an average of 192 units working monthly.

AVERAGE MONTHLY RIGS WORKING

PRODUCTIONCrude oil and/or natural gas were produced in 22 of Wyoming’s 23 counties during 2014. Teton County produced neither.

oil well was 18 barrels. For a gas well, the average was 204 Mcf’s per day.

Wyoming had 43 operating gas plants in 2014 processing nearly 88% of the state’s gas production.

REFINING ANDTRANSPORTATIONWyoming’s first refinery was constructed in Casper in 1895. In 2014 there were six operating refineries in the state with a capacity to refine 166,300 barrels of crude oil each day. In 1981 there were 14 active refineries in the state.

The first crude oil pipeline was constructed in 1911. Today, there are approximately 100 companies operating over 38,600 miles (including gathering lines) of pipelines in Wyoming carrying crude oil, natural gas or petroleum products. Petroleum pipelines are located in all of the state’s 23 counties.

RESERVESAt the beginning of 2014, Wyoming ranked 6th in the nation in proved reserves of crude oil and 3rd in natural gas proved reserves. Crude oil reserves for

PROPERTY TAXESOil and gas production, by itself, accounted for over 40.4% of the total property taxes levied in Wyoming and more than 69.4% of the property taxes levied on all minerals.

Property taxes levied – 2013 Mineral Production

Crude Oil ......................................... $ 311,778,154Natural Gas ..................................... 315,271,683Oil and Gas Total ............................ $ 627,049,837

Coal ................................................. $ 235,738,003Trona ............................................... 29,600,724All others ......................................... 10,723,025Total All Minerals ............................. $ 903,111,589

Total All State Property……… ...... $ 1,552,111,794

2014 are 955 million barrels. Natural gas reserves for 2014 are 34.58 trillion cubic feet. 1960 was the largest year for crude oil reserves. 2009 was the largest year for natural gas reserves.

GROSS SALES UNITSPROVED RESERVES

In 2014, sales of crude oil production totaled 75.6 million barrels, up 9.72% from 2013. Sales of natural gas production in 2014 totaled 1,765 trillion cubic feet down 4.38% from 2013.

Nationally, Wyoming ranked 7th in production of crude oil in 2014 and 4th in natural gas production during 2013. In 2009 Wyoming recorded its highest level of natural gas production, 2009 marked the lowest level of crude oil production since 1954. 1970 was the year of highest crude oil production in the state, producing 141,546,503 barrels.

Campbell County was the leading crude oil producer in 2014 followed by Converse and Park Counties. Sublette County was the largest natural gas producer, with Sweetwater and Johnson Counties following.

During 2014, 388 companies/operators produced Wyoming’s crude oil and 250 produced natural gas. There were 35,258 producing wells. In 2014 approximately 11,501 wells produced oil and 23,757 produced gas of that number 9,643 were coal bed natural gas wells. The average daily production for an

n OIL & GAS n OIL ONLY NONE

Minerals are the only class or kind of property in Wyoming valued and taxed at 100% of their actual value. Minerals are also the only class or kind of property which pay two direct taxes (property and severance).

SEVERANCE TAXESCrude oil and natural gas production paid over $597 million in severance taxes, about 64% of all the severance taxes paid by minerals produced in 2013.

Severance Taxes - 2013 Production

Crude Oil ............................................ $ 291,701,423Natural Gas ........................................ 305,418,653Oil and Gas Total ............................... $ 597,120,076

Coal .................................................... $ 311,300,678Trona .................................................. 17,591,469All Others ........................................... 4,560,745Total All Minerals ............................. $ 930,572,968

Currently, a 6% severance tax rate applies to crude oil and natural gas production (4% on stripper). Severance tax revenues are distributed to a variety of funds including: General Fund, Permanent Mineral Trust Fund, schools, cities, towns, highways, counties and water development.

OIL & GAS SEVERANCE TAXES

ROYALTIESIn addition to property and severance taxes, Wyoming collects a royalty for petroleum produced on state owned lands along with certain fees and rentals. The state also receives one-half of the royalties paid to the federal government for leasing, production and fees on federal lands. Typically, the royalty rate on state leases is 16 2/3%. On federal lands, the rate is 12 1/2%.

GENERALIn 2014 Wyoming’s petroleum industry directly employed over 25,800 people with an annual payroll of over $1.5 billion. In 1981 employment peaked with more than 32,000 individuals working in the industry.

In fiscal year 2014 oil and gas production contributed the following to state and local governments:

Property Taxes................................ $ 627.0 million Severance Taxes ............................ 597.1 millionFederal Royalties ............................ 540.5 millionFederal Lease Revenues ............... 44.9 millionState Royalties ................................ 172.6 millionSales and Use Taxes ..................... 190.2 millionConservation Mill Levy ................... 4.7 millionTOTAL FOR STATE ...................... $ 2.2 Billion

That is a direct payment of nearly $3,766 for every person living in Wyoming.

The Oil & Gas Industry’s Shareof Property Assessed for Taxation by County

Fiscal Year 2014

Albany ....................4.62 Natrona ................ 43.35Big Horn……... .....45.88 Niobrara ............... 61.79Campbell ..............25.85 Park ..................... 58.34Carbon .................73.42 Platte .................... 10.00Converse ..............55.48 Sheridan .............. 20.08Crook ....................53.15 Sublette ............... 95.75Fremont ................63.00 Sweetwater .......... 53.58Goshen .................10.71 Teton .................... 00.16Hot Springs ..........77.19 Uinta .................... 61.84Johnson ................84.50 Washakie ............. 40.67Laramie ................16.05 Weston ................ 54.92Lincoln ..................52.57 TOTAL FOR STATE .........................48.67%

All data obtained from the State of Wyoming and/or federal agencies.

For further informationor additional copies contact:

Petroleum Association of Wyoming951 Werner Ct., Ste. 100Casper, WY 82601-1351

(307) 234-5333Email: paw@pawyo.org

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STATE OIL & GAS ROYALTY ANDLEASING INCOME

2015 Edition

OIL & GAS PROPERTY TAXESLEVIED