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 full-cost plugging bond 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 these wells from remaining unplugged and potentially causing environmental hazards or devaluing surface property. The bill outlines the conditions under which permits for new wells can be issued, emphasizing the need for financial assurance to cover the costs of plugging.

Additionally, the bill includes detailed provisions regarding the management of the escrow accounts, including the qualifications for escrow agents, the investment of funds, and the reporting requirements for operators. It also stipulates that failure to comply with these provisions could result in the forfeiture of the operator's bond and the cessation of production from their wells. The legislation does not alter existing bonding requirements for wells that have already been drilled or permitted, focusing solely on new wells to ensure responsible management and environmental protection.

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