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 either provide a single-well bond that covers the full cost of plugging or set aside funds in an escrow account to ensure that the well can be properly plugged once it ceases production and has no bona fide future use. This legislation is a response to the growing number of unplugged wells that pose risks to surface property and the environment, as well as the lack of responsible operators to manage these wells.

The bill outlines the conditions under which permits for new wells can be issued, emphasizing the need for financial assurance to prevent future orphaning of wells. It includes detailed provisions for the establishment and management of escrow accounts, including the investment of funds, reporting requirements, and penalties for non-compliance. The legislation does not alter existing bonding requirements for wells that have already been drilled or permitted, focusing solely on new wells to ensure that they are financially accountable for their eventual plugging.

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