H. B. 2482
(By Delegate Gillespie)
[Introduced March 11, 1997; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact sections two and five, article ten,
chapter twenty-two of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, all relating
to the abandoned well act; and preserving free gas rights.
Be it enacted by the Legislature of West Virginia:
That sections two and five, article ten, chapter twenty-two
of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted, all to read as
follows:
ARTICLE 10. ABANDONED WELL ACT.
§22-10-2. Legislative findings; legislative statement of policy
and purpose.
(a) The Legislature finds and declares that:
(1) Oil and gas have been continuously produced in West Virginia for over one hundred years, during which time operators
of wells have been required by the laws of this state to plug
wells upon cessation of use;
(2) The plugging requirements for certain older oil and gas
and other wells may not have been sufficient to protect
underground water supplies, to prevent the movement of fluids
between geologic horizons, to allow coal operators to mine
through
such the wells safely, nor to allow for enhanced recovery
of oil, gas or other mineral resources of this state;
(3) Many wells may exist in West Virginia which are
abandoned and either not plugged or not properly plugged in a
manner to protect underground water supplies, to prevent the
movement of fluids between geologic horizons, to allow coal
operators to mine through
such the wells safely, to allow for
enhanced recovery of oil, gas and other mineral resources, and
generally to protect the environment and mineral resources of
this state, as aforesaid;
(4) Requirements for financial responsibility to assure
plugging of abandoned wells have not been required in this state
for older wells, and adequate financial responsibility should be
established with respect to all wells
demonstrated to be a
significant threat to the environment beyond the parcel boundary
where located; no free gas rights under lease may be nullified by any provision of law, promulgation of legislative rules or other
device, except when financial responsibility is not established
for wells causing significant demonstrable damage to the
environment beyond the parcel boundary where located;
(5) Programs and policies should be implemented to foster,
encourage and promote through the fullest practical means the
proper plugging of abandoned wells to protect the environment and
mineral resources of this state;
(6) Criteria should be established with respect to
priorities for the expenditure of moneys available for plugging
abandoned wells and identifying those abandoned wells which, as
a matter of public policy, should be plugged first; and
(7) The plugging of many abandoned wells may be accomplished
through the establishment of rights and procedures allowing
interested persons to apply for a permit to plug an abandoned
well
except where the well is being used for free gas and is not
causing significant damage to the environment beyond the parcel
where located.
(b) The Legislature hereby declares that it is in the public
interest and it is the public policy of this state, to foster,
encourage and promote the proper plugging of all wells at the
time of their abandonment to protect the environment and mineral
resources of this state.
§22-10-5. Financial responsibility -- Amount.
The financial responsibility requirements applicable to all
wells shall be as set forth in section twenty-six, article six of
this chapter, except that the amount of financial responsibility
through bonding or otherwise, as provided for in said section,
for an individual well shall be in the amount of five thousand
dollars. In lieu of separate, single well bonds, an operator may
either furnish a blanket bond in the sum of fifty thousand
dollars in accordance with the provisions of subsection (c) of
section twenty-six, article six of this chapter, or if the
operator has previously provided a blanket bond in the sum of
fifty thousand dollars which remains in effect, the operator may
cover wells subject to this article by such
such the existing blanket
bond.
Notwithstanding any other provision of this code to the
contrary, any well being used for free gas and not causing
demonstrable environmental damage of any significant proportions
beyond the parcel boundary where located and whether producing
commercially or not is exempt from bonding and plugging
requirements.
NOTE: The purpose of this bill is to protect free gas
rights under lease from the requirements of plugging abandoned
wells, except when there is a significant threat to the
environment.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.