Wyoming is intensifying its efforts to acquire federal lands in the Powder River Basin, a region rich in oil and other fossil fuels, following a pivot from a controversial land swap proposal, Wyo File reports.
The State Board of Land Commissioners recently approved the sale of the Kelly Parcel—a 640-acre state-owned tract near Grand Teton National Park—for $100 million to the federal government, aiming to include it in the park. Despite this, the board declined to tie the sale to a potential swap for federal mineral-rich lands in the Powder River Basin, leaving the state to explore other avenues to boost its energy sector.
The board’s decision underscores the complexity of balancing Wyoming’s economic priorities, environmental conservation, and public land management. Superintendent of Public Instruction Megan Degenfelder, who voted against the sale, has emerged as a central figure in the state’s push to acquire federal land in the Powder River Basin for oil production.
While the Kelly Parcel sale represents a win for conservationists—preserving a unique and scenic ecosystem within Grand Teton National Park—Wyoming continues to focus on maximizing the revenue potential of its vast school trust lands. The state’s 3.4 million acres of trust lands are constitutionally mandated to support K-12 education, a duty that has historically involved leveraging these lands for resource extraction.
Degenfelder has coordinated with Governor Mark Gordon to assemble a task force focused on acquiring federal lands in the Powder River Basin, which accounts for over 60% of Wyoming’s crude oil production. The task force, which includes top state officials and experienced energy professionals, aims to capitalize on the basin’s untapped oil reserves.
“This region holds immense potential for boosting Wyoming’s oil production and generating significant tax revenue,” said Jimmy Goolsby, a member of the task force.
Goolsby emphasized that acquiring federal land could streamline drilling operations, reduce permitting delays, and increase revenue for Wyoming schools.
The Powder River Basin is best known for its vast coal deposits, but recent advancements in horizontal drilling have positioned the area as a prime location for oil extraction. Wyoming’s strategy hinges on acquiring federal land currently managed by the US Bureau of Land Management (BLM), a process that involves lengthy negotiations and navigating federal regulations.
State officials have identified approximately 100,000 acres of federal land with significant oil potential. The goal is to secure contiguous tracts of land to facilitate more efficient drilling operations under state oversight.
“This could transform acreage worth X dollars into X-plus dollars by eliminating federal oversight,” Goolsby explained.
He noted that the resulting tax revenues and royalties would directly benefit Wyoming’s education system.
Degenfelder’s leadership of the task force has raised questions about potential conflicts of interest due to her family’s involvement in Wyoming’s oil and gas industry and her prior work in the energy sector. Critics worry that her connections could influence decision-making in favor of industry stakeholders.
Degenfelder has dismissed these concerns, calling them “offensive and disappointing.” She emphasized her transparency and adherence to conflict-of-interest protocols, including recusing herself from decisions involving her family’s company.
“There is no conflict of interest… I’ve been open about my background, and my work on this task force is focused solely on Wyoming’s best interests,” she said.
Goolsby, who has decades of experience in the energy sector, also defended the task force’s integrity.
“I wouldn’t be involved if this process wasn’t legitimate and transparent,” he stated.
The task force’s efforts highlight the ongoing tension between resource extraction and conservation in Wyoming. While proponents argue that acquiring federal land for oil development would bolster the state’s economy and fund education, critics caution against over-reliance on fossil fuels and the potential environmental impacts of increased drilling.
The Powder River Basin represents a critical opportunity for Wyoming to secure long-term revenue. However, the path forward requires navigating legal, regulatory, and public concerns while ensuring that state actions align with broader economic and environmental goals.
