This bill amends the Code of West Virginia to enhance the reporting and payment processes for oil and natural gas production. It broadens the reporting requirements to encompass all oil and gas wells, not just horizontal ones, and mandates that operators provide detailed production information to interest owners with each payment. The legislation establishes a framework for timely payments, allowing proceeds to accumulate until they exceed $100, while ensuring annual payments are made. It also introduces penalties for late payments and permits interest owners to take civil action against operators for non-compliance. Additionally, a new article is introduced to clarify royalty payment calculations and define responsibilities related to oil and gas leases.

The bill aims to improve compliance and transparency in royalty reporting and payments. It allows lessors to petition a court for compliance if a lessee does not respond to requests within 120 days, imposing a daily fine of $1,000 on the lessee until compliance is achieved. Furthermore, it requires lessees and their affiliates to submit quarterly reports to the West Virginia Department of Environmental Protection, detailing production, prices received, and severance tax paid. The reports will be publicly accessible on the WVDEP website, promoting accountability and fair practices in the oil and gas industry while maintaining existing judicial interpretations regarding royalty payments.

Statutes affected:
Introduced Version: 37C-1-1, 37C-1-2, 37C-1-3, 37C-2-1, 37C-2-2, 37C-2-3, 37C-2-4