WEST VIRGINIA LEGISLATURE
2024 REGULAR SESSION
Introduced House Bill 4292
By Delegates Anderson, Warner, Willis, Kelly and Zatezalo [Introduced January 10, 2024; Referred to the Committee on Energy and Manufacturing then Judiciary]
 Intr HB 4292
1 A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section,
2 designated §36-4-9c, relating to providing for enhanced damages for nonpayment of
3 royalties due from oil, natural gas, or natural gas liquids production under the terms of a
4 lease or other agreement.
Be it enacted by the Legislature of West Virginia:
ARTICLE 4. COVENANTS.
§36-4-9c. Penalties for nonpayment of royalties under the terms of oil and natural gas leases during production from conventional vertical wells.
1 With regard to conventional vertical oil, natural gas, or natural gas liquids, wells only,
2 permitted under §22-6-1 et seq. of this code, unless otherwise provided for in writing or unless
3 there is a bona fide dispute between the parties, any lessee or operator of oil, natural gas, or
4 natural gas liquids, or their successors or assigns, who fails to pay a royalty payment for mineral
5 production to a lessor, or their successors and assigns, under the terms of a lease or other
6 agreement within six months after the date payment is due under the terms of such lease or other
7 agreement, shall be liable to such lessor or landowner, or their successors or assigns, in an
8 amount equal to three times the market value of the extracted minerals for which payment is due,
9 plus reasonable attorney's fees and costs in addition to and notwithstanding any other rights,
10 remedies, and penalties otherwise provided by law.
NOTE: The purpose of this bill is to provide for enhanced damages for nonpayment of
royalties due from oil, natural gas, or natural gas liquids production under the terms of a lease or other agreement.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
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Statutes affected:
Introduced Version: 36-4-9c