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. This provision is applicable only to conventional vertical wells and is designed to protect lessors and landowners from delayed payments.

Additionally, the bill outlines the proper jurisdiction and venue for disputes, stating that they should be filed 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. The provisions of this new section will apply to all royalty payment disputes filed on or after July 1, 2025, and the 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