Date Requested: February 20, 2021
Time Requested: 01:00 PM
Agency: Energy, WV Division of
CBD Number: Version: Bill Number: Resolution Number:
2256 Introduced SB362
CBD Subject:


Well Plugging Assurance Account

Sources of Revenue:

Other Fund creates an escrow account with Treasurer

Legislation creates:

Creates New Program, Creates New Fund: Escrow accounts with the Treasurer

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

SB362 will require oil and gas well operators to provide well plugging assurance in the form of a bond, cash/collateral, or an escrow account established by the State Treasurer, for each well, prior to being issued a permit to operate those wells. These funds are to be used to plug the wells once they are no longer viable. Currently, DEP is unable to determine the number of potential new wells that will be applying for permits in the future and therefore cannot provide a reasonable analysis of the expected revenues and expenditures.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

Upon full implementation of this bill, DEP expects to incur personnel costs to review well operator's compliance with the requirements of this bill and provide an estimated cost of plugging each well prior to issuing permits, as well as approving the release of the assurance funds upon satisfying the plugging requirement. Due to the unknown workload, it has not been determined whether a new employee will be hired or a current employee will be assigned these responsibilities. However, section 22-10A-6(a)(6) of the bill provides funding form the assurance accounts to cover the cost of administering the program, so it is not expected that the current DEP funds will be significantly affected.


Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form. None.

    Person submitting Fiscal Note: Gary W Rogers
    Email Address: