The bill amends the Code of West Virginia by adding a new section, 36-4-9c, which establishes enhanced penalties for non-payment of royalties related to oil, natural gas, or natural gas liquids production. Specifically, it stipulates that if a lessee or operator fails to pay royalties within six months of the due date, they will be liable for treble damages, unless there is a bona fide dispute or an alternative written agreement exists. This provision is applicable only to conventional vertical wells and is designed to protect lessors and landowners from delayed payments.

Additionally, the bill outlines that disputes regarding unpaid royalties must be filed in a court of competent jurisdiction on or after July 1, 2025, and establishes that jurisdiction and venue are appropriate in the county where the well and leasehold are located. It also allows the prevailing party in such disputes to recover reasonable attorney's fees and costs, further strengthening the rights of lessors in royalty payment disputes.

Statutes affected:
Introduced Version: 36-4-9c
Committee Substitute: 36-4-9c
Enrolled Committee Substitute: 36-4-9c