The proposed bill, known as the New Oil and Gas Well Plugging Assurance Act, aims to address the issue of orphaned oil and gas wells in West Virginia by establishing new requirements for the permitting of new horizontal wells. Specifically, it mandates that operators must provide either a single-well bond that covers the full cost of plugging or set aside funds in an escrow account to ensure that wells without a bona fide future use are properly plugged. This is intended to prevent the devaluation of surface property and mitigate environmental risks associated with unplugged wells. The bill outlines the conditions under which permits for new wells can be issued, emphasizing the need for financial assurance to cover plugging costs.

Additionally, the bill details the requirements for the escrow accounts, including the management of funds, reporting obligations, and penalties for non-compliance. Operators are required to establish these accounts with a qualified escrow agent, and the funds can only be disbursed for plugging the well upon certification by the chief of the Office of Oil and Gas. The legislation also allows for the State Treasurer to propose rules to facilitate the implementation of these provisions. Overall, the bill seeks to enhance the accountability of oil and gas operators and protect both landowners and the environment from the consequences of abandoned wells.

Statutes affected:
Introduced Version: 22-10A-1, 22-10A-2, 22-10A-3, 22-10A-4