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In 1966, Hathaway was elected governor of Wyoming, a Republican-leaning year. He defeated the Democrat Ernest Wilkerson, 54.3 to 45.7 percent, an attorney from Casper who proposed a state severance tax.<ref>Taxing Wyoming Minerals: Severance Taxes and Permanent Funds | WyoHistory.org, accessed July 22, 2021.</ref>
 
In 1966, Hathaway was elected governor of Wyoming, a Republican-leaning year. He defeated the Democrat Ernest Wilkerson, 54.3 to 45.7 percent, an attorney from Casper who proposed a state severance tax.<ref>Taxing Wyoming Minerals: Severance Taxes and Permanent Funds | WyoHistory.org, accessed July 22, 2021.</ref>
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In 1970, Hathaway defeated the Democrat John J. Rooney (1915-1998), 62.8 to 37.2 percent and bucked the nation Democratic tide that year. He declined to run for a third term in 1974 and was succeeded by the Democrat, Edgar Jacob Herschler (1918-1990), who defeated the Republican state Senator Richard A. "Dick" Jones (1910-2008), 55.9 to 44.1 percent.<ref name=WYSBJ200510/>
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In 1970, Hathaway defeated the Democrat John J. Rooney (1915-1998), 62.8 to 37.2 percent and bucked the nation Democratic tide that year. He declined to run for a third term in 1974 and was succeeded by the Democrat, Edgar Jacob Herschler (1918-1990), who defeated the Republican state Senator [[Dick Jones (Wyoming politician)|Richard R. "Dick" Jones (1910-2008), 55.9 to 44.1 percent.<ref name=WYSBJ200510/>
    
Governor Hathaway worked to reorganize state government and to enact new environmental laws on air and water quality, surface mining regulations, and the establishment of the Wyoming Department of Environmental Quality. Other new departments created during the Hathaway administration were a Department of Recreation to oversee and improve care of state parks and to provide support for Wyoming's tourism industry, and a Department of Economic Planning and Development to promote economic growth.<ref>Sally Vanderpoel, "Stan Hathaway: A Biography", ISBN 9742860-1-X, January 2003,  pp. 159-160.</ref> The state economy was sluggish when Hathaway was elected governor, but he set in motion initiatives which brought a booming economy by the time he left office. Wilkerson lost the 1966 election, but winner Hathaway also pushed for the enactment of Wyoming's first mineral severance tax in 1969, and the establishment of a Permanent Mineral Trust Fund, financed by a 1.5 percent tax on the extraction of minerals. The trust fund reached $2.25 billion by the time of Hathaway's death. The taxes go into the state's general fund.
 
Governor Hathaway worked to reorganize state government and to enact new environmental laws on air and water quality, surface mining regulations, and the establishment of the Wyoming Department of Environmental Quality. Other new departments created during the Hathaway administration were a Department of Recreation to oversee and improve care of state parks and to provide support for Wyoming's tourism industry, and a Department of Economic Planning and Development to promote economic growth.<ref>Sally Vanderpoel, "Stan Hathaway: A Biography", ISBN 9742860-1-X, January 2003,  pp. 159-160.</ref> The state economy was sluggish when Hathaway was elected governor, but he set in motion initiatives which brought a booming economy by the time he left office. Wilkerson lost the 1966 election, but winner Hathaway also pushed for the enactment of Wyoming's first mineral severance tax in 1969, and the establishment of a Permanent Mineral Trust Fund, financed by a 1.5 percent tax on the extraction of minerals. The trust fund reached $2.25 billion by the time of Hathaway's death. The taxes go into the state's general fund.
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