Proposed Legislation for Forced Pooling in WV Gaining Steam - Beware Mineral Owners

Have been following this closely and it appears the proposed Forced Pooling Legislation in the State of West Virginia is getting pushed along by the Oil and Gas Industry. There is already a law in place that covers formations below the Marcellus, but it appears now, the Oil and Gas Industry would like to take more from Land and Mineral Owners. The Legislation proposed by Industry Lawyers would put in place a 5 person committee, made up of an Industry Shills no doubt, to decided what "Fair and Just" bonus payments and royalty amounts will be paid to Land / Mineral Owners. This committee will base it's ruling on evidence that the O&G companies present, including what other minerals in the proximity of the mineral in question, were leased for. So if a mineral was leased for $10 per acre 20 years ago at the base rate of 12.5%, this could be used as evidence and what you could be paid under the proposed law. Keep in mind that this is being proposed because O&G Operators have such a hard time of tracking down the thousands of mineral owners required to be profitable and have abandoned massive amounts of mineral because they couldn't locate a mineral owner who's 10 acres blocked them from fully producing the 640 acre production unit and because many Land / Mineral Owners refuse to negotiate. I say that with the most sarcastic tone possible because that's what the O&G PR machine was churning out on Inside Shale (WAJR) this morning... a radio show that is paid for by the WV Oil and Natural Gas Association (WVONGA).

If you own mineral in the State of West Virginia and don't feel that your mineral should be stolen from you because you decide to decline the "Fair and Just" offer made to you by the Oil and Gas Industry, better start calling and writing letters to your state and local politicians to have your voice heard. Right now they are proposing a requirement of 67% be leased before they can Force Pool your minerals. A mineral owner group has proposed their own legislation with a 90% requirement but it will no doubt be negotiated down.

You can read more about the proposed legislation or google forced pooling in wv.

http://wvpublic.org/term/forced-pooling

Anybody out there for Forced Pooling? I'm not convinced as I've sat in negotiations where landmen have threatened my family to sign for cheap or they will drill our mineral and hold it in an account until we sign their cheap offer. I think this will be another tool they use to force folks into signing bad leases that benefit their own pockets.

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Permalink Reply by Dan Warner on February 25, 2015 at 5:25am

I missed the last 15 minutes.

Can anyone tell me how the meeting ended up?

Permalink Reply by Todd on February 25, 2015 at 5:31am
They're currently on recess. They'll be talking to Mr. Martin more about royalties when the come back.
Permalink Reply by Dan Warner on February 25, 2015 at 6:07am

After lunch?

Permalink Reply by Adam Martin on February 25, 2015 at 6:41am
Yeah, at 1pm...
Permalink Reply by Todd on February 25, 2015 at 7:35am
Yeah, they mentioned 1pm earlier but I'm still not hearing any live coverage?
Permalink Reply by Adam Martin on February 25, 2015 at 7:42am
Yeah, same here. Perhaps the guy from Antero took them all out for a nice lunch and they decided to just not come back to the office!
Permalink Reply by Todd on February 25, 2015 at 10:24am

The WV Royalty Owner's Association support of the forced pooling bill HB 2688 should be discredited because the organizer and president of WVROA, Ronald Hayhurst, is accused of conspiring with the Marshall County Commission to defraud the plaintiff of his oil and gas rights. Judge Bailey denied motions to dismiss the complaint so there must be something there.   

   
This case is currently in Federal Court at the United States Court for the Northern District of West Virginia.  Please see attachment.  
   
This complaint is unbelievable against Ronald Hayhurst.  This information needs to be presented to the Legislature and House Judiciary Committee ASAP in my opinion.  It is possible that Hayhurst organized the WV Royalty Owners Association as way to create political influence for the acceptance and false belief for WV mineral rights owners and politicians that forced pooling somehow is good for private citizens.  I don't know where to start regarding the conduct of his fraudulent business tactics to steal and sell 1238 acres of mineral rights that were purportedly "delinquent" on $27 of taxes.  It is egregious.  And the fact that he is running this business from a home in Orlando makes it all the more suspect.   
   
It should be considered that Ronald Hayhurst created the WV Royalty Owners Association and supports this bill in order to allow his fraudulent business tactics to prosper at the dire expense of actual mineral owners.   
 
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Permalink Reply by Dan Warner on March 3, 2015 at 7:05am

Todd,

thanks for the heads up.

I have been unable to establish whether or not Mr. Hayhurst is the president of WVROA, which is a red flag in itself.  Most citizens' advocate groups are quoite open as to their leadership.

Can you point me toward your source of this fact?

Permalink Reply by Dan Warner on March 3, 2015 at 3:28pm

Never mind.

From the NARO-Appalachia website:

"As Ron Hayhurst, President WV Royalty Owners Association, pointed out,..."

Permalink Reply by Dan Warner on March 3, 2015 at 6:55am

"Right now WV has no set back rules for gas wells and its my understanding this will be part of this legislation too."

In fact, this bill explicitly denies the Commission the power to regulate spacing.

Permalink Reply by Dan Warner on February 25, 2015 at 1:32pm

The bill was railroaded through the House Judiciary today, and sent to the full House.

I didn't hear everything, but judging from what I did, none of the 10 amendments suggested passed.

Permalink Reply by Dan Warner on February 25, 2015 at 1:39pm

I am attaching a recording of the House Judiciary voice 'vote'.

If you have trouble listening, reply here, and I'll see if I can help.

Everyone needs to understand what is happening here, and why.

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