SB 720
Requiring declaration of pooled units be filed with drilling permits
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- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill requires oil and gas operators in West Virginia to file a ‘Declaration of Pooled Unit’ with the county clerk’s office whenever wells are planned for a unit. The declaration must include detailed information about the unit’s boundaries, well locations, leaseholders, and acreage. Specifically, it addresses situations where a unit boundary crosses a wellbore, requiring additional data on the traversing well and production allocation. Lessors and royalty owners have the right to request information from the operator and can pursue legal action if compliance is not achieved.
Key provisions
- Operators must file a ‘Declaration of Pooled Unit’ within 60 days of a drilling permit issuance.
- The declaration must include detailed information about the unit, wells, and leaseholders.
- Specific requirements are added when a unit boundary is crossed by a wellbore.
- Operators must provide information to lessors upon request.
- Lessors can initiate a civil action to enforce compliance if the operator fails to meet the requirements.
- Amendments to the declaration must also be filed and recorded within 60 days.
- The declaration must include the names of original lessor(s) and lessee(s) on the lease(s).
- The declaration must include the surface tax map parcel identification for each surface parcel.
Who is affected
- Oil and gas operators
- Mineral lessees
- Royalty owners
- County Clerks
- West Virginia residents
Notable changes
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