The proposed bill introduces the New Oil and Gas Well Plugging Assurance Act, which aims to address the issue of orphaned oil and gas wells in West Virginia. It mandates that no permits for new horizontal oil and gas wells can be issued after July 1, 2026, unless the operator provides either a single-well bond for plugging or establishes a plugging money set aside escrow account. This legislation is designed to ensure that wells without a bona fide future use are properly plugged to prevent environmental hazards and protect surface property rights. The bill outlines the requirements for the escrow account, including the management of funds, payment schedules, and reporting obligations for operators.

Additionally, the bill emphasizes the need for operators to comply with these new regulations to avoid forfeiture of their operating bond, which would halt production from their wells. The State Treasurer is also given the authority to propose rules for the implementation of this act. Overall, the legislation seeks to enhance the accountability of oil and gas operators in West Virginia and mitigate the risks associated with unplugged wells, while not altering existing bonding requirements for already drilled or permitted wells.

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