This bill amends section 22C-9-7a of the Code of West Virginia to enhance the unitization process for horizontal well drilling units, promoting oil and gas exploration while protecting the rights of operators, royalty owners, and surface owners. It introduces definitions relevant to unitization, such as "bonded operator" and "horizontal well unit," and establishes conditions for controlling a horizontal well unit, including obtaining consent from a significant percentage of interests. A notable insertion in the bill defines an offer from a royalty owner to share on the same basis as others as a fair and reasonable offer, and it outlines the application requirements for establishing a horizontal well unit, including a comprehensive description of the unit and a proposed joint operating agreement.

The bill also details the procedures for issuing horizontal well unit orders, emphasizing the commission's role in evaluating applications and protecting well owners' interests. It includes provisions for addressing unknown and unlocatable interest owners, requiring operators to deposit payments into an escrow account, and sets timelines for drilling and completion. Additionally, it clarifies the rights of unknown owners regarding mineral interests, stating that they cannot initiate legal action to recover proceeds after a special commissioner's deed is recorded. The bill aims to streamline the unitization process while ensuring fair compensation and representation for all stakeholders involved in oil and gas production.

Statutes affected:
Introduced Version: 22C-9-7a