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 from conventional vertical wells. 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, equating to three times the market value of the unpaid royalties, unless there is a bona fide dispute or a written agreement states otherwise.

Additionally, the bill outlines that disputes regarding royalty payments 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 be awarded reasonable attorney's fees and costs, supplementing any other legal rights or remedies available. The provisions of this bill will take effect 90 days after its passage, on July 6, 2025.

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