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 the well or set aside funds in an escrow account to ensure that the well can be properly plugged once it ceases production. This legislation is designed to prevent wells without a bona fide future use from remaining unplugged on surface owners' land, thereby protecting property rights and the environment.

The bill outlines the establishment of a plugging money set aside escrow account, detailing the responsibilities of the escrow agent, the conditions under which funds can be disbursed, and the reporting requirements for operators. It emphasizes the need for financial assurance to prevent the abandonment of wells and the associated risks of environmental contamination. The legislation does not alter existing bonding requirements for wells that have already been drilled or permitted, focusing solely on new wells permitted after July 1, 2026.

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