The state’s draft policy on flaring of natural gas may be delayed until the January 2012 meeting of the State Board of Land Commissioners.

“We still have some work to do on it,” said Ryan Lance, director of the Office of State Lands and Investments.

The draft originally was scheduled to go before the state board, which includes the governor and the other four elected state officials, next month.

The key element in the draft policy is the requirement that companies pay state royalties on gas flared more than 15 days after a well is completed.

Some industry representatives want the state lands office to work more closely with the Wyoming Oil and Gas Conservation Commission, which has regulatory authority on the flaring, or venting, of natural gas.

“What we don’t want to do is to have the applicant for the flaring have to report two different sets of forms,” Lance said.

It will be more efficient, he added, to have a dual process and use the expertise of the Oil and Gas Conservation Commission on gas flaring.

Lance reiterated that he wants to get the policy right the first time so it won’t have to be changed later.

The modified proposal will be put out again for comment.

The agency sent out the first draft to people who signed up to receive it at a November meeting in Casper. The proposal also was posted on the agency’s website.

Because the draft is for a board policy, not rules, it is not subject to the public comment period and procedures required for agency rule-making, he said.

Even if members of the public do not submit comments on the draft policy to the state land office, they are free to appear before the state board.

“In no instance do we limit the public’s ability to come before the board and still make comment on the policy at that time.” Lance said.

State officials estimate that large amounts of lost revenue are being burned off by operators who flare natural gas from new wells, because there are no pipelines available to ship the gas for sale.

The money from wells producing on state land is dedicated to school funding.

It is the responsibility of the State Board of Land Commissioners and the state lands office to get as much money as possible from the resource for the public schools.

The proliferation of drilling in the Niobrara Shale in southeastern Wyoming triggered the proposed draft policy.