Wyoming Tax Revenue
Wyoming’s revenue, both on the state and county levels, has steadily increased since CBNG production began in earnest around 1991.

Campbell County, where coalbed natural gas development began in the Powder River Basin, has seen a major economic impact to their coffers. When tracking the progress of development, deep gas and coalbed natural gas are not separated for taxing and valuation purposes. However, it’s easy to see the rise in production of CBNG and the corresponding increase in valuation. In 1996, Campbell County's assessed valuation of both deep natural gas and coalbed natural gas was over $20 million on 18 mcf (million cubic feet) with the unit price at $1.10/mcf. In 6 years, the valuation had jumped to over $645 million on over 253 mcf of gas produced when the unit price went to $2.67. This is sizeable growth, thanks to both an increase in production and price. In 2002, the Washington Post quoted Dan Yergin of Cambridge Energy Research Associates, who stated that in the Gillette area alone, there were 900 coalbed natural gas-related jobs. Royalties to schools and public programs and both the state and local tax impact were estimated at $4.8 billion.

Sheridan and Johnson Counties have had more recent production due to the progression of the development westward across the Powder River Basin. Sheridan and Johnson Counties have little deep gas production so most reporting of natural as production and valuation is primarily coalbed natural gas. In 2000, Sheridan County’s natural gas production was over a million cubic feet (mcf) and its valuation was greater than $4 million. In 2002, production had jumped to more than 39 mcf and a subsequent valuation of $56 million. Johnson County’s production shot up from just over 800,000 mcf in 2001 to nearly 5 million mcf in 2002. This production increase nearly quadrupled the natural gas valuation in Johnson County. And these are the early days of production for the western counties in the Powder River Basin. The potential for the production from the Big George coal seam which runs westward in the Basin is immense.

Since there’s generally a lag in reaping the tax benefits from CBNG development, the immediate impact on Sheridan and Johnson County's revenues is not as apparent as in Campbell County. Nevertheless, there has been an increase in high wage job creation due to CBNG development. Additionally, associated support businesses have also been created or expanded. (Production and valuation information provided by the Campbell County Assessor’s Office, the Sheridan County Treasurer’s Office, the Wyoming Oil and Gas Conservation Commission and the Wyoming Taxpayer's Association.)