H. B. 3354
(By Delegates Michael and Cann)
(Originating in the Committee on Finance)
[March 25, 2005]
A BILL to amend and reenact §22-6-2, §22-6-12 and §22-6-29 of the
Code of West Virginia, 1931, as amended; and to amend and
reenact §22-21-2, §22-21-3, §22-21-6, §22-21-7 and §22-21-20
of said Code, all relating to the secretary's authority to
assess a permit fee for well work permits, deep wells, coalbed
methane wells, and reclamation fund fees; plat information;
definitions; damage compensation; consent and agreement of
coal owner and operator; and spacing of coalbed methane wells.
Be it enacted by the Legislature of West Virginia:
That §22-6-2, §22-6-12 and §22-6-29 of the Code of West
Virginia, 1931, as amended, be amended and reenacted; and that §22-
21-2, §22-21-3, §22-21-6, §22-21-7 and §22-21-20 of said Code be
amended and reenacted, all to read as follows:
ARTICLE 6. OFFICE OF OIL AND GAS; OIL AND GAS WELLS;
ADMINISTRATION; ENFORCEMENT.
§22-6-2. Secretary -- Powers and duties generally; department records open to public; inspectors.
(a) The
director secretary shall have as his or her duty the
supervision of the execution and enforcement of matters related to
oil and gas set out in this article and in articles eight and nine
of this chapter.
(b) The
director secretary is authorized to
enact propose
rules
for legislative approval in accordance with the provisions of
article three, chapter twenty-nine-a of this code necessary to
effectuate the above stated purposes.
(c) The
director secretary shall have full charge of the oil
and gas matters set out in this article and in articles eight and
nine of this chapter. In addition to all other powers and duties
conferred upon him
or her, the
director secretary shall have the
power and duty to:
(1) Supervise and direct the activities of the office of oil
and gas and see that the purposes set forth in subsections (a) and
(b) of this section are carried out;
(2) Employ a supervising oil and gas inspector and oil and gas
inspectors;
(3) Supervise and direct such oil and gas inspectors and
supervising inspector in the performance of their duties;
(4) Suspend for good cause any oil and gas inspector or
supervising inspector without compensation for a period not
exceeding thirty days in any calendar year;
(5) Prepare report forms to be used by oil and gas inspectors or the supervising inspector in making their findings, orders and
notices, upon inspections made in accordance with this article and
articles seven, eight, nine and ten of this chapter;
(6) Employ a hearing officer and such clerks, stenographers
and other employees, as may be necessary to carry out his
or her
duties and the purposes of the office of oil and gas and fix their
compensation;
(7) Hear and determine applications made by owners, well
operators and coal operators for the annulment or revision of
orders made by oil and gas inspectors or the supervising inspector,
and to make inspections, in accordance with the provisions of this
article and articles eight and nine of this chapter;
(8) Cause a properly indexed permanent and public record to be
kept of all inspections made by the
director secretary or by oil
and gas inspectors or the supervising inspector;
(9) Conduct such research and studies as the
director
secretary shall deem necessary to aid in protecting the health and
safety of persons employed within or at potential or existing oil
or gas production fields within this state, to improve drilling and
production methods and to provide for the more efficient protection
and preservation of oil and gas-bearing rock strata and property
used in connection therewith;
(10) Collect a permit fee of
four hundred two hundred fifty
dollars for each permit application filed
other than an application
for a deep well or a coalbed methane well; and collect a permit fee
of six hundred and fifty dollars for each permit application filed for a deep well:
Provided, That no permit application fee shall be
required when an application is submitted solely for the plugging
or replugging of a well,
or to modify an existing application for
which the operator previously has submitted a permit fee under this
section. All application fees required hereunder shall be in
lieu
of and not in addition to any fees imposed under article eleven of
this chapter relating to discharges of stormwater but shall be in
addition to any other fees required by the provisions of this
article:
Provided, That upon a final determination by the United
States Environmental Protection Agency regarding the scope of the
exemption under section 402(l)(2) of the federal Clean Water Act
(33 U.S.C.1342(l)(2)), which determination requires a "national
pollutant discharge elimination system" permit for stormwater
discharges from the oil and gas operations described therein, any
permit fees for storm water permits required under article eleven
of this chapter for such operations shall not exceed one hundred
dollars.
(11) Perform all other duties which are expressly imposed upon
the
director secretary by the provisions of this chapter;
(12) Perform all duties as the permit issuing authority for
the state in all matters pertaining to the exploration,
development, production, storage and recovery of this state's oil
and gas;
(13) Adopt rules with respect to the issuance, denial,
retention, suspension or revocation of permits, authorizations and
requirements of this chapter, which rules shall assure that the rules, permits and authorizations issued by the
director secretary
are adequate to satisfy the purposes of this article and articles
seven, eight, nine and ten of this chapter particularly with
respect to the consolidation of the various state and federal
programs which place permitting requirements on the exploration,
development, production, storage and recovery of this state's oil
and gas:
Provided, That notwithstanding any provisions of this
article and articles seven, eight, nine and ten of this chapter to
the contrary, the environmental quality board shall have the sole
authority pursuant to section three, article three, chapter twenty-
two-b to promulgate rules setting standards of water quality
applicable to waters of the state; and
(14) Perform such acts as may be necessary or appropriate to
secure to this state the benefits of federal legislation
establishing programs relating to the exploration, development,
production, storage and recovery of this state's oil and gas, which
programs are assumable by the state.
(d) The
director secretary shall have authority to visit and
inspect any well or well site and any other oil or gas facility in
this state and may call for the assistance of any oil and gas
inspector or inspectors or supervising inspector whenever such
assistance is necessary in the inspection of any such well or well
site or any other oil or gas facility. Similarly, all oil and gas
inspectors and the supervising inspector shall have authority to
visit and inspect any well or well site and any other oil or gas
facility in this state. Any well operator, coal operator operating coal seams beneath the tract of land, or the coal seam owner or
lessee, if any, if said owner or lessee is not yet operating said
coal seams beneath said tract of land may request the
director
secretary to have an immediate inspection made. The operator or
owner of every well or well site or any other oil or gas facility
shall cooperate with the
director secretary, all oil and gas
inspectors and the supervising inspector in making inspections or
obtaining information.
(e) Oil and gas inspectors shall devote their full time and
undivided attention to the performance of their duties, and they
shall be responsible for the inspection of all wells or well sites
or other oil or gas facilities in their respective districts as
often as may be required in the performance of their duties.
(f) All records of the office shall be open to the public.
§22-6-12. Plats prerequisite to drilling or fracturing wells;
preparation and contents; notice and information
furnished to coal operators, owners or lessees;
issuance of permits; performance bonds or securities
in lieu thereof; bond forfeiture.
(a) Before drilling for oil or gas, or before fracturing or
stimulating a well on any tract of land, the well operator shall
have a plat prepared by a licensed land surveyor or registered
engineer showing the district and county in which the tract of land
is located, the name and acreage of the same, the names of the
owners of adjacent tracts, the proposed or actual location of the well determined by survey, the courses and distances of such
location from two permanent points or landmarks on said tract and
the number to be given the well
and the date of drilling completion
of a well when it is proposed that such well be fractured and shall
forward by registered or certified mail a copy of the plat to the
director. In the event the tract of land on which the said well
proposed to be drilled or fractured is located is known to be
underlaid with underlain by one or more coal seams, copies of the
plat shall be forwarded by registered or certified mail to each and
every coal operator operating said coal seams beneath said tract of
land, who has mapped the same and filed such maps with the office
of miners' health, safety and training in accordance with chapter
twenty-two-a of this code and the coal seam owner of record and
lessee of record, if any, if said owner or lessee has recorded the
declaration provided in section thirty-six of this article, and if
said owner or lessee is not yet operating said coal seams beneath
said tract of land. With each of such plats there shall be
enclosed a notice (form for which shall be furnished on request by
the
director secretary) addressed to the
director secretary and to
each such coal operator, owner and lessee, if any, at their
respective addresses, informing them that such plat and notice are
being mailed to them respectively by registered or certified mail,
pursuant to the requirements of this article.
(b) If no objections are made, or are found by the
director
secretary, to such proposed location or proposed fracturing within
fifteen days from receipt of such plat and notice by the
director secretary, the same shall be filed and become a permanent record of
such location or fracturing subject to inspection at any time by
any interested person, and the
director secretary may forthwith
issue to the well operator a permit reciting the filing of such
plat, that no objections have been made by the coal operators,
owners and lessees, if any, or found thereto by the
director
secretary, and authorizing the well operator to drill at such
location, or to fracture the well. Unless the
director secretary
has objections to such proposed location or proposed fracturing or
stimulating, such permit may be issued prior to the expiration of
such fifteen-day period upon the obtaining by the well operator of
the consent in writing of the coal operator or operators, owners
and lessees, if any, to whom copies of the plat and notice shall
have been mailed as herein required, and upon presentation of such
written consent to the
director secretary. The notice above
provided for may be given to the coal operator by delivering or
mailing it by registered or certified mail as above to any agent or
superintendent in actual charge of mines.
(c) A permit to drill, or to fracture or stimulate an oil or
gas well, shall not be issued unless the application therefor is
accompanied by a bond as provided in section twenty-six of this
article.
§22-6-29. Operating permit and processing fund; special
reclamation fund; fees.
(a) There is hereby continued within the treasury of the state
of West Virginia the special fund known as the oil and gas
operating permit and processing fund, and the
director secretary
shall deposit with the state treasurer to the credit of such
special fund all fees collected under the provisions of subdivision
ten, subsection (c), section two of this article.
The oil and gas operating permit and processing fund shall be
administered by the
director secretary for the purposes of carrying
out the provisions of this chapter.
The
director secretary shall make an annual report to the
governor and to the Legislature on the use of the fund, and shall
make a detailed accounting of all expenditures from the oil and gas
operating permit and processing fund.
(b) In addition to any other fees required by the provisions
of this article, every applicant for a permit to drill a well
shall, before the permit is issued, pay to the
director secretary
a special reclamation fee of one hundred
and fifty dollars for each
well to be drilled activity for which a well work application is
required to be filed: Provided, That a special reclamation fee
shall not be assessed for plugging activities. Such special
reclamation fee shall be paid at the time the application for a
drilling permit is filed with the
director secretary and the
payment of such reclamation fee shall be a condition precedent to
the issuance of said permit.
There is hereby continued within the treasury of the state of
West Virginia the special fund known as the oil and gas reclamation fund, and the
director secretary shall deposit with the state
treasurer to the credit of such special fund all special
reclamation fees collected. The proceeds of any bond forfeited
under the provisions of this article shall inure to the benefit of
and shall be deposited in such oil and gas reclamation fund.
The oil and gas reclamation fund shall be administered by the
director secretary. The
director secretary shall cause to be
prepared plans for the reclaiming and plugging of abandoned wells
which have not been reclaimed or plugged or which have been
improperly reclaimed or plugged. The
director secretary, as funds
become available in the oil and gas reclamation fund, shall reclaim
and properly plug wells in accordance with said plans and
specifications and in accordance with the provisions of this
article relating to the reclaiming and plugging of wells and all
rules promulgated thereunder. Such funds may also be utilized for
the purchase of abandoned wells, where such purchase is necessary,
and for the reclamation of such abandoned wells, and for any
engineering, administrative and research costs as may be necessary
to properly effectuate the reclaiming and plugging of all wells,
abandoned or otherwise.
The
director secretary may avail the division of any federal
funds provided on a matching basis that may be made available for
the purpose of reclaiming or plugging any wells.
The
director secretary shall make an annual report to the
governor and to the Legislature setting forth the number of wells
reclaimed or plugged through the use of the oil and gas reclamation fund provided for herein. Such report shall identify each such
reclamation and plugging project, state the number of wells
reclaimed or plugged thereby, show the county wherein such wells
are located and shall make a detailed accounting of all
expenditures from the oil and gas reclamation fund.
All wells shall be reclaimed or plugged by contract entered
into by the
director secretary on a competitive bid basis as
provided for under the provisions of article three, chapter five-a
of this code and the rules promulgated thereunder.
ARTICLE 21. COALBED METHANE WELLS AND UNITS.
§22-21-2. Definitions.
Unless the context in which used clearly requires a different
meaning, as used in this article:
(a) "Review board" means the West Virginia coalbed methane
review board which shall be comprised of the members of the West
Virginia shallow gas well review board provided for in article
eight, chapter twenty-two-c of this code, the state geologist, a
representative of the United Mine Workers of America, an employee
of the gas industry, and the director of the office of miners'
health, safety and training, and the chairman of the review board
shall be the chairman of the West Virginia shallow gas review
board;
(b) "Coalbed" or "coal seam" means a seam of coal, whether
workable or unworkable, and the noncoal roof and floor of said seam
of coal;
(c) "Coalbed methane" means gas which can be produced from a
coal seam, the rock or other strata in communication with a coal
seam, a mined-out area or a gob well;
(d) "Coalbed methane owner" means any owner of coalbed
methane;
(e) "Coalbed methane well" means any hole or well sunk,
drilled, bored or dug into the earth for the production of coalbed
methane for consumption or sale, including a gob well. The term
"well" shall mean a coalbed methane well unless the context
indicates otherwise. The term "coalbed methane well" does not
include any shaft, hole or well sunk, drilled, bored or dug into
the earth for core drilling, production of coal or water, venting
gas from a mine area, or degasification of a coal seam, or any
coalbed methane well extending from the surface into, but not
below, a coal seam being mined after such well or its horizontal
extension has been plugged in accordance with section twenty-three
of this article;
(f) "Coalbed methane well operator" or "well operator" means
any person who has the right to operate or does operate a coalbed
methane well;
(g) "Coal operator" means any person who proposes to or does
operate a coal mine;
(h) "Coal owner" means any person who owns or leases a coal
seam;
(i) "Chief" means the chief of the office of oil and gas of
the division of environmental protection provided for in section
eight, article one of this chapter;
(j)"Director" means the director of the division of
environmental protection;
(k) "Division" means the division of environmental protection;
(l) "Gob well" means a well drilled or vent hole converted to
a well pursuant to this article which produces or is capable of
producing coalbed methane or other natural gas from a distressed
zone created above and below a mined-out coal seam by any prior
full seam extraction of the coal;
(m) "Mine" or "mine areas," including the sub-definitions
under "mine areas," shall have the same definitions as are provided
in section two, article one, chapter twenty-two-a of this code;
(n) "Office" means office of oil and gas provided for in
section seven, article one of this chapter;
(o) "Person" means any natural person, corporation, firm,
partnership, partnership association, venture, receiver, trustee,
executor, administrator, guardian, fiduciary, other representative
of any kind, any recognized legal entity, or political subdivision
or agency thereof;
(p) "Stimulate" means any action taken to increase the natural
flow of coalbed methane or the inherent productivity of a coalbed
methane well, including, but not limited to, fracturing, shooting,
acidizing or water flooding, but excluding cleaning out, bailing or
workover operations;
(q) "Waste" means: (i) Physical waste as the term is
generally understood in the gas industry and as provided for in
article six of this chapter, but giving special consideration to
coal mining operations and the safe recovery of coal; (ii) the
locating, drilling, equipping, operating, producing or transporting
coalbed methane in a manner that causes or tends to cause a
substantial reduction in the quantity of coalbed methane
recoverable from a pool under prudent and proper operations, or
that causes or tends to cause a substantial or unnecessary or
excessive surface loss of coalbed methane; (iii) the drilling of
more wells than are reasonably required to recover efficiently and
economically the maximum amount of coalbed methane from a pool; or
(iv) substantially inefficient, excessive or improper use, or the
substantially unnecessary dissipation of reservoir pressure. Waste
does not include coalbed methane vented or released from any mine
area, the degasification of a coal seam for the purpose of mining
coal, the plugging of coalbed methane wells for the purpose of
mining coal,
coalbed methane vented or flared from a coalbed
methane well, after completion, for the purpose of evaluating its
economic viability, or the conversion of coalbed methane wells to
vent holes for the purpose of mining coal;
(r) "Workable coalbed" or "workable coal seam" means any seam
of coal twenty inches or more in thickness, or any seam of less
thickness which is being commercially mined or can be shown to be
capable of being commercially mined
;
(s) "Secretary" means the secretary of the department of
environmental protection.
§22-21-3. Application of article; exclusions; application of
chapter twenty-two-b to coalbed methane wells.
(a) The provisions of this article apply to (1) all lands in
this state under which a coalbed is located, including any lands
owned or administered by the state or any agency or subdivision
thereof, and (2) any coalbed methane well.
(b) This article does not apply to or affect (1) any well
otherwise permitted, approved or regulated under article six,
seven, eight, nine or ten of this chapter or article eight, chapter
twenty-two-c of this code, (2) any ventilation fan, vent hole,
mining apparatus, or other facility utilized solely for the purpose
of venting any mine or mine area, or (3) the ventilation of any
mine or mine area or degasification of any coal seam for the mining
of coal.
(c) This article does not apply to or affect subsurface
boreholes drilled from the mine face of an underground mine, except
that the provisions of sections fifteen, sixteen, seventeen,
eighteen and nineteen shall apply.
(d) To the extent that coalbed methane wells are similar to
wells, as defined in section one, article six of this chapter of
this code, and the production of coalbed methane is similar to the
production of natural gas, coalbed methane wells shall be treated as wells and coalbed methane treated as natural gas and subject to
the following sections of article six of this chapter:
(1) The provisions of section three pertaining to the findings
and orders of inspectors concerning violations, determination of
reasonable time for abatement, extensions of time for abatement,
special inspections, notice of findings and orders;
(2) The provisions of section four providing for the review of
findings and orders by the chief, special inspection, annulment,
revision of order and notice;
(3) The provisions of section five providing for the
requirements of findings, orders and notices; posting of findings
and orders; and judicial review of final orders of the chief;
(4) The provisions of section twenty-one providing for
protective devices--installation of freshwater casings;
(5) The provisions of section twenty-two providing for a well
log to be filed, contents, and authority to promulgate regulations.
In addition to the requirements of such section, the operator shall
certify that the well was drilled and completed as shown on the
well plat required for a coalbed methane well, or in the
alternative, file a revised well plat showing the actual location
of the well and the coal seams in which the well is completed for
production. Such log and certificate shall be served on all coal
owners and operators who must be named in the permit application
under section six of this article;
(6) The provisions of section twenty-eight providing for
supervision by the chief over drilling and reclamation operations,
complaints, hearings and appeals;
(7) The provisions of section twenty-nine providing for
special reclamation funds and fees;
(8) The provisions of section thirty providing for reclamation
requirements;
(9) The provisions of section thirty-one providing for
preventing waste of gas, plan of operation required for wasting gas
in process of producing oil and rejection thereof;
(10) The provisions of section thirty-two providing for the
right of adjacent owner or operator to prevent waste of gas and
recovery of costs;
(11) The provisions of section thirty-three providing for
restraining waste;
(12) The provisions of section thirty-four providing for
offenses and penalties;
(13) The provisions of section thirty-five providing for civil
action for contamination or deprivation of freshwater source or
supply and presumption;
(14) The provisions of section thirty-six providing for
declaration of notice by owners and lessees of coal seams and
setting out the form of such declaration; and
(15) The provisions of section thirty-nine providing for
injunctive relief.
In addition to the foregoing and subject to the same
qualifications, the provisions of article ten of this chapter shall
apply to coalbed methane wells. Any well which is abandoned or
presumed to be abandoned under the provisions of this article shall
be treated as an abandoned well under said article ten.
In
addition, the provisions of article seven of this chapter shall
apply to permits issued pursuant to this article.
§22-21-6. Permit required for coalbed methane well; permit fee;
application; soil erosion control plan; penalties.
(a) It is unlawful for any person to commence, operate, deepen
or stimulate any coalbed methane well, to conduct any horizontal
drilling of a well commenced from the surface for the purpose of
commercial production of coalbed methane, or to convert any
existing well, vent hole or other hole to a coalbed methane well,
including in any case site preparation work which involves any
disturbance of land, without first securing from the chief a permit
pursuant to this article.
(b) Every permit application filed under this section shall be
verified and shall contain the following:
(1) The names and addresses of (i) the well operator, (ii) the
agent required to be designated under subsection (e) of this
section, and (iii) every person or entity whom the applicant must
notify under any section of this article;
(2) The name and address of each coal operator and each coal
owner of record or providing a record declaration of notice pursuant to section thirty-six, article six of this chapter of any
coal seam which is (i) to be penetrated by a proposed well, (ii)
within seven hundred fifty horizontal feet of any portion of the
proposed well bore; or (iii) within one hundred vertical feet of
the designated completion coal seams of the proposed well, except
that in the case of an application to convert a ventilation hole to
a gob well, the name and address only of such owner or operator of
the seams to be penetrated by a proposed well shall be necessary;
(3) The well name or such other identification as the chief
may require;
(4) The approximate depth to which the well is to be drilled,
deepened or converted, the coal seams (stating the depth and
thickness of each seam) in which the well will be completed for
production, and any other coal seams (including the depth and
thickness of each seam) which will be penetrated by the well;
(5) A description of any means to be used to stimulate the
well;
(6) If the proposed well will require casing or tubing to be
set, the entire casing program for the well, including the size of
each string of pipe, the starting point and depth to which each
string is to be set, and the extent to which each such string is to
be cemented;
(7) If the proposed operation is to convert an existing well,
as defined in section one, article six of this chapter, or to
convert a vertical ventilation hole to a coalbed methane well, all
information required by this section, all formations from which production is anticipated, and any plans to plug any portion of the
well;
(8) Except for a gob well or vent hole proposed to be
converted to a well, if the proposed coalbed methane well will be
completed in some but not all coal seams for production, a plan and
design for the well which will protect all workable coal seams
which will be penetrated by the well;
(9) If the proposed operations will include horizontal
drilling of a well commenced on the surface, a description of such
operations, including both the vertical and horizontal alignment
and extent of the well from the surface to total depth;
(10) Any other relevant information which the chief may
require by rule.
(c) Each application for a coalbed methane well permit shall
be accompanied by the following:
(1) The applicable bond prescribed by section eight of this
article;
(2) A permit application fee of
two six hundred fifty dollars:
Provided, That no permit application fee shall be required to
modify an existing permit application for which the operator
previously has submitted a permit fee under this section. All
application fees required under this section shall be in lieu of
and not in addition to any fees relating to discharges of storm
water imposed under article eleven of this chapter: Provided, That
upon a final determination by the United States Environmental
Protection Agency regarding the scope of the exemption under section 402(l)(2) of the federal Clean Water Act (33
U.S.C.1342(l)(2)), which determination requires a "national
pollutant discharge elimination system" permit for stormwater
discharges from the oil and gas operations described therein, any
permit fees for storm water permits required under article eleven
of this chapter for such operations shall not exceed one hundred
dollars.
(3) The erosion and sediment control plan required under
subsection (d) of this section;
(4) The consent and agreement of the coal owner as required by
section seven and, if applicable, section twenty of this article;
(5) A plat prepared by a licensed land surveyor or registered
engineer showing the district and county in which the drill site is
located, the name of the surface owner of the drill site tract, the
acreage of the same, the names of the surface owners of adjacent
tracts, the names of all coal owners underlying the drill site
tract, the proposed or actual location of the well determined by a
survey, the courses and distances of such location from two
permanent points or landmarks on said tract, the location of any
other existing or permitted coalbed methane well or any oil or gas
well located within two thousand five hundred feet of the drill
site, the number to be given the coalbed methane well,
the proposed
date for completion of drilling, the proposed date for any
stimulation of the well, and if horizontal drilling of a well
commenced on the surface is proposed, the vertical and horizontal
alignment and extent of the well;
(6) A certificate by the applicant that the notice
requirements of section nine of this article have been satisfied by
the applicant. Such certification may be by affidavit of personal
service, or the return receipt card, or other postal receipt, for
certified mailing.
(d) An erosion and sediment control plan shall accompany each
application for a permit. Such plan shall contain methods of
stabilization and drainage, including a map of the project area
indicating the amount of acreage disturbed. The erosion and
sediment control plan shall meet the minimum requirements of the
West Virginia erosion and sediment control manual as adopted and
from time to time amended by the office of oil and gas in
consultation with the several soil conservation districts pursuant
to the control program established in this state through section
208 of the federal
Water Pollution Control Act Amendments of 1972
Clean Water Act [33 U.S.C. 1288]. The erosion and sediment control
plan shall become part of the terms and conditions of a permit and
the provisions of the plan shall be carried out where applicable in
operations under the permit. The erosion and sediment control plan
shall set out the proposed method of reclamation which shall comply
with the requirements of section thirty, article six of this
chapter.
(e) The well operator named in such application shall
designate the name and address of an agent for such operator who
shall be the attorney-in-fact for the operator and who shall be a
resident of the state of West Virginia, upon whom notices, orders or other communications issued pursuant to this article may be
served, and upon whom process may be served. Every well operator
required to designate an agent under this section shall within five
days after the termination of such designation notify the office of
such termination and designate a new agent.
(f) The well owner or operator shall install the permit number
as issued by the chief in a legible and permanent manner to the
well upon completion of any permitted work. The dimensions,
specifications and manner of installation shall be in accordance
with the rules of the chief.
(g) The chief shall deny the issuance of a permit if he or she
determines that the applicant has committed a substantial violation
of a previously issued permit, including the erosion and sediment
control plan, or a substantial violation of one or more of the
rules promulgated hereunder, and has failed to abate or seek review
of the violation. In the event that the chief finds that a
substantial violation has occurred with respect to existing
operations and that the operator has failed to abate or seek review
of the violation in the time prescribed, he or she may suspend the
permit on which said violation exists, after which suspension the
operator shall forthwith cease all work being conducted under the
permit until the chief reinstates the permit, at which time the
work may be continued. The chief shall make written findings of
any such determination made by him or her and may enforce the same
in the circuit courts of this state and the operator may appeal
such suspension pursuant to the provisions of section twenty-five of this article. The chief shall make a written finding of any
such determination.
(h) Any person who violates any provision of this section
shall be guilty of a misdemeanor, and, upon conviction thereof,
shall be fined not more than five thousand dollars, or be
imprisoned in the county jail not more than twelve months, or both
fined and imprisoned.
§22-21-7. Consent and agreement of coal owner or operator.
(a) No permit shall be issued for a coalbed methane well
unless and until the applicant has obtained and filed with the
chief a consent and agreement from each owner and each operator of
any workable coal seam
in West Virginia twenty-eight inches or more
in thickness which is within seven hundred fifty horizontal feet of
the proposed well bore and (i) which coal seam the applicant
proposes to stimulate or (ii) which coal seam is within one hundred
vertical feet above or below a coal seam which the applicant
proposes to stimulate. The requirement for consent and agreement
contained in this section shall not be considered to impair,
abridge or affect any contractual rights or objections arising out
of a contract or lease which provides for the development of
coalbed methane and stimulation of wells between the applicant and
any coal owner or operator and the existence of any such contract
or lease shall constitute a waiver of the requirement to file an
additional signed consent and agreement. Such consent and
agreement must provide: (i) That such coal owner or operator has been provided with a copy of the application for permit as required
by section six of this article and with a copy of all plats and
documents which must accompany the application and (ii) that such
coal owner or operator consents and agrees to the stimulation of
the coal seam as described in such application.
(b) In the absence of the applicant submitting the consent
described in subsection (a) above, the applicant may submit a
request for hearing before the board accompanied by an affidavit
which shall include the following:
(1) A statement that a coal owner or operator as described in
subsection (a) of this section has refused to provide written
authorization to stimulate the well;
(2) A statement detailing the efforts undertaken to obtain
such authorization;
(3) A statement setting out any known reasons for the
authorization not being provided;
(4) A statement or other information in addition to that
provided pursuant to subdivision (5), subsection (b), section six
of this article necessary to provide prima facie evidence that the
proposed method of stimulation will not render the coal seam
unworkable, or considering all factors, impair mine safety.
(c) Upon receipt of a request and affidavit as set forth in
subsection (b) of this section, the chief shall forward the
application to the board to consider the proposed stimulation, or
if other objections or notices are filed requiring a hearing before the board, the request hereunder may be included for consideration
by the board along with other matters related to the application.
(d) If the authorization of a coal owner or operator has been
withheld based upon reasons related to safety, the chief shall,
concurrent with submission of the request and affidavit to the
board, submit a copy of the application to the director of the
office of miners' health, safety and training who shall review the
application as to issues of mine safety and within thirty days
submit recommendations to the board.
§22-21-20. Spacing.
No coalbed methane well may be drilled closer than one hundred
feet of the
outside outermost boundary of the
coal tract coalbed
methane tract, leased premises, or unit from which coalbed methane
is or will be produced or within one thousand six hundred linear
feet of the location of an existing well
or a proposed well for
which a permit application is on file, unless all owners and
operators of any affected workable coal seams agree in writing.
Affected workable coal seams for purposes of this section shall be
those which will be penetrated or those seams more than twenty-
eight inches in thickness from which production is targeted.
Spacing shall otherwise be as provided in a pooling order issued by
the chief, an order establishing special field rules or an order
issued by the review board.