This bill amends sections of the Code of West Virginia concerning the production of oil and natural gas, focusing on the reporting and payment processes for oil and gas wells. It requires operators or producers to provide detailed production information to interest owners with each payment, including total volumes produced, prices received, and deductions made. Timely payments are mandated, with penalties for late payments, and interest owners are granted the right to take civil action against operators for non-compliance. Additionally, operators must provide monthly statements when recouping payments from lessors.

The legislation also introduces a new article that clarifies royalty payment calculations, ensuring that royalties are based on proceeds received by the lessee, who is responsible for production and marketing costs unless specified otherwise in the lease. It grants lessors the right to audit lessee records and requires transparency in production and sales data reporting. Furthermore, upon written request, lessees must provide electronic access for daily monitoring of well production, with penalties for non-compliance. Lessees and their affiliates are also required to submit quarterly reports to the West Virginia Department of Environmental Protection, detailing production figures, prices, and severance taxes, which will be publicly accessible on the WVDEP website. Overall, the bill aims to enhance accountability and protect the interests of mineral owners in the oil and gas industry.

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