SB 1005
Clarifying processes of royalty payments for wells in this state
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill aims to clarify the processes for royalty payments related to oil and natural gas wells in West Virginia. It requires operators and producers to provide detailed information about production, prices received, and deductions, and establishes requirements for royalty payments and auditing. The bill also introduces transparency measures, including reporting requirements and monitoring of leased minerals, and seeks to prevent disputes between landowners and operators by codifying existing legal interpretations.
Key provisions
- Requires operators to provide detailed monthly reports on oil and gas production, including barrel counts, prices, and deductions.
- Establishes a method for calculating royalty payments based on proceeds received by the lessee.
- Mandates auditing of information related to leased premises to ensure accurate royalty payments.
- Requires transparency through reporting to the WVDEP Office of Oil and Gas and posting of data on the WVDEP website.
- Defines key terms related to royalty payments, such as ‘affiliate,’ ‘executed lease,’ and ‘proceeds.’
- Specifies penalties for late royalty payments, including interest and potential fines.
- Codifies existing legal interpretations regarding royalty calculations, referencing ‘Wellman v. Energy Resources, Inc.’ and ‘Tawney v. Columbia Natural Resources, L.L.C.’
- Requires the lessee to provide access to well monitoring data upon lessor request.
Who is affected
- Oil and gas operators and producers
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