SB 245
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 detailed ‘Declaration of Pooled Unit’ with the county clerk whenever wells are planned for a unit. This declaration must include information about the unit’s boundaries, well locations, lease details, and acreage calculations. The bill also outlines a process for lessors and royalty owners to ensure accuracy and address any non-compliance, including the ability to pursue legal action if necessary.
Key provisions
- Operators must file a ‘Declaration of Pooled Unit’ within 60 days of a drilling permit.
- The declaration must include detailed information about wells, leases, and acreage.
- Specific data requirements include API numbers, wellbore lengths, and production allocation factors.
- Amendments to the declaration must be filed and recorded within 60 days.
- Lessor or royalty owners can request information from the operator regarding acreage calculations.
- Operators must provide requested information within 60 days.
- A lessor or royalty owner can initiate a civil action to enforce compliance if the operator fails to meet requirements.
- The declaration must include the names of original lessor(s) and lessee(s) on the lease(s).
Who is affected
- Oil and gas operators
- Lessees
- Royalty owners
- County Clerks
- Mineral rights owners
Notable changes
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