LARAMIE - Legislation establishing a School of Energy Resources at the University of Wyoming was signed by Gov. Dave Freudenthal Thursday and welcomed by UW President Tom Buchanan as both an opportunity and a challenge for the university.

At a signing ceremony in the university's Foundation House, Freudenthal said the school was "the culmination of activity that started many years ago and came to fruition in this legislative session."

The new school is backed by a $12.1 million appropriation for its first two years, would cut across departmental lines and is expected to bring nationally and internationally known faculty members to the campus to teach courses and conduct research.

The institution would be overseen by an Energy Council, whose membership was a bone of contention in the Legislature.

The original UW proposal was for the university trustees, the governor and the Legislature to each appoint three members. In the final version, the president of the university and the director of the Ruckelshaus Institute of Environment and Natural Resources will serve as ex-officio members. The governor will appoint seven members; the speaker of the House and president of the Senate will each appoint one. The appointments will be subject to confirmation by the Senate.

Buchanan told the UW Board of Trustees that the council is intended "to help influence and guide the focus of the school to make sure we are matching up with industry in ways that are helpful and well conceived."

"This is something that we think will change the face of the University of Wyoming," Buchanan said.

After its initial two years, he said, the school is expected to have an annual budget of about $10 million per year.

"This is a tremendous opportunity for us, but also a tremendous challenge to make sure that we get on this, we get on it quickly and we do it right," he told the trustees.

Buchanan and a number of trustees attended the signing, which was held during a recess in deliberations that resulted in an announcement that Buchanan would be considered a finalist for the UW presidency. He has been acting as president since July 1, when Philip L. Dubois resigned the post to return to the University of North Carolina at Charlotte as chancellor.

Judi Richards, president of the Board of Trustees, said the legislation was "a wonderful opportunity for the state to move forward in an area that has endeared the energy companies to this state." Richards said the measure "will benefit our youth as well as our state for decades."

Myron Allen, vice president for academic affairs, said the energy school "has been a dream of mine for most of my career as a faculty member here." Allen developed the plan for the school in cooperation with members of the faculty, legislators and other state officials and representatives of the energy industry.

Star-Tribune correspondent W. Dale Nelson can be reached at wdnelson@bresnan.net.