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.