HB 5676
Relating to Forced Pooling and negotiating with unleased owners.
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Sign in to take action- Introduced
- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill addresses forced pooling and negotiating with unleased mineral owners in West Virginia, particularly concerning horizontal drilling. It establishes a framework for unitization of horizontal wells, aiming to maximize resource recovery and prevent waste. The bill outlines requirements for obtaining consent from royalty owners, defines key terms related to unitization, and establishes procedures for dealing with unknown or unlocatable mineral owners, including provisions for offering them the opportunity to participate in the project or have their interests acquired by the surface owner.
Key provisions
- Defines a ‘fair and reasonable voluntary pooling offer’ for horizontal wells.
- Establishes requirements for obtaining consent from royalty owners for horizontal well unitization.
- Outlines procedures for calculating unitization consideration to be paid to royalty owners.
- Specifies acreage limitations for horizontal well units.
- Details requirements for applications for horizontal well unit orders, including information on the proposed unit and interested parties.
- Addresses the rights of surface owners regarding mineral interests included in horizontal well units.
Who is affected
- Oil and gas operators
- Royalty owners
- Surface owners
- Mineral rights owners
- West Virginia residents
Notable changes
- Clarifies the definition of ‘fair and reasonable voluntary pooling offer’.
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