WEST VIRGINIA HOUSE FINANCE COMMITTEE PASSES SB424 WITH ENVIRONMENTAL AND SURFACE OWNER PROVISIONS INTACT

THE WEST VIRGINIA HOUSE FINANCE COMMITTEE TODAY APPROVED A NEW VERSION OF SB424 THAT INCLUDES AN AMENDMENT SPONSORED BY BARBARA FLEISCHAUER (D-MONONGALIA) AND MIKE MANYPENNY (D-TAYLOR). HOUSE SPEAKER RICHARD THOMPSON SENT THE BILL ON TO THE FULL HOUSE FOR PASSAGE BUT AT THE LAST MINUTE DELEGATE RON WALTERS (R-KANAWHA) ASKED THAT THE BILL BE READ IN ITS ENTIRETY PRIOR TO A VOTE, WHICH MAY HOLD UP ITS PASSAGE. THE AMENDMENT MAKES THE FOLLOWING CHANGES TO THE SENATE VERSION:1) IF YOU OWN SURFACE WHERE THE MINERALS HAVE BEEN SEVERED, THE GAS COMPANY/OPERATOR MUST HAVE A COMPENSATION AGREEMENT WITH YOU OR THEY CAN'T DRILL A WELL ON YOUR PROPERTY; 2) NO WELLS MAY BE DRILLED WITHIN 1000 FEET OF AN OCCUPIED HOME OR WATER WELL; 3) A THIRTY (30) DAY CERTIFIED NOTICE IS REQUIRED PRIOR TO THE COMMENCEMENT OF SURVEYING YOUR SURFACE PROPERTY FOR ROADS, ETC.; 4) NO WELL WITHIN 100 FEET OF ANY WATERCOURSE, LAKE OR WETLAND; 5) NO WELLS WITHIN 1000 FEET OF ANY SURFACE WATER OR GROUNDWATER INTAKE FOR A PUBLIC WATER SUPPLY;         6) UPON REQUEST, ANY SURFACE OWNER WITHIN 5,500 FEET OF ANY PROPOSED GAS WELL USING HYDRAULIC FRACTURING MAY REQUEST THE GAS COMPANY/OPERATOR TO PERFORM A PREDRILLING OR PREALTERATION SURVEY DONE BY A STATE APPROVED LABORATORY TO TEST FOR COMPOUNDS KNOWN TO BE USED IN HYDRAULIC FRACTURING; 7) THE GAS COMPANY, WITHOUT DIVULGING COMPANY SECRETS, IS REQUIRED TO SUPPLY A LIST OF THE CHEMICALS AND CHEMICAL COMPOUNDS USED IN HYDRAULIC FRACTURING; 8) THE GAS COMPANY SHALL KEEP RECORDS SHOWING HOW MUCH FRAC FLUIDS WERE USED AND HOW MUCH RETURNED TO THE SURFACE; AND 9) THE GAS COMPANY/OPERATOR SHALL PAY THE SURFACE OWNER FOR A) LOST WAGES DUE TO THE DRILLING OF THE WELL; B) CROPS DESTROYED; C) TIMBER DESTROYED; D) DAMAGE TO WATER SUPPLY; E) LOSS OF PERSONAL PROPERTY; AND F) DIMINISHED PROPERTY VALUE. THESE CHANGES ONLY APPLY TO THE MARCELLUS SHALE.

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Permalink Reply by 29041431 on March 10, 2011 at 5:17pm

THE VERSION OF SB424 PASSED BY THE WEST VIRGINIA HOUSE FINANCE COMMITTEE THIS MORNING DOES NOT HAVE A SET DOLLAR AMOUNT FOR THE PERMIT FEES. IT LEAVES THAT UP TO THE DIRECTOR OF THE DEP. THE PERMIT FEE IN THE SENATE VERSION WAS FIXED AT $5000 FOR THE FIRST GAS WELL AND $1,000 FOR EACH ADDITIONAL WELL. THE MANDATORY NOTICE TO SURFACE OWNERS IS SET AT THIRTY (30) DAYS MINIMUM IN THE HOUSE VERSION OF THE BILL AND WAS SEVENTY-TWO (72) HOURS IN THE SENATE VERSION. THERE ARE EXTENSIVE DIFFERENCES IN THE WATER WITHDRAWAL REQUIREMENTS IN BOTH THE HOUSE AND SENATE VERSIONS OF THE BILL. IF YOU DON'T WORK OUT A COMPENSATION AGREEMENT FOR THE SURFACE, THE GAS COMPANY/OPERATOR IS PERMITTED TO CONSTRUCT ROADS AND PIPELINES ON YOUR SURFACE WITHOUT YOUR CONSENT BUT YOU MUST BE COMPENSATED FOR SAME. IF YOU OWN THE SURFACE AND THE OIL AND GAS, THESE NEW CHANGES DO NOT AFFECT YOU. THE NEW HOUSE VERSION MAY BE FOUND AT:http://www.legis.state.wv.us/Bill_Text_HTML/2011_SESSIONS/RS/amendm...

Permalink Reply by 29041431 on March 11, 2011 at 12:41pm

IF YOU FAVOR Senate Bill 424 in its current form, NOW IS THE TIME TO CONTACT HOUSE DELEGATES TO URGE PASSAGE. HE IS AN EMAIL THAT JUST RECEIVED FROM DELEGATE MIKE MANYPENNY (D-TAYLOR):

Mike Manypenny [Mike.Manypenny@wvhouse.gov]

Thank you for your support and I urge you to get others to email legislators to pass this as we have been getting bombarded by industry to vote no  on it. Thank you and please stay strong.
Respectfully Yours, Mike Manypenny
Permalink Reply by gasoholic on March 11, 2011 at 1:28pm

29041431,

 I can accept SB424 in it's current form, without "FORCED POOLING".

Hopefully, our Legislators are now beginning to understand that the "Forced Pooling" issue is only a means for the companies to get our "minerals" on the "cheap" and "take away" our right to a "fair lease". By keeping "Forced Pooling" out, that will mean "Billions" coming into WV over the coming years, not going out ! The Legislators have come a long way on this bill. Let's just remind them to keep "Forced Pooling" out !

So, "Forced Pooling" out, better protections for the surface, I say enact SB424.

Thanks for all your help and support on this issue !

Permalink Reply by 29041431 on March 12, 2011 at 3:47am
Good morning. It’s Saturday, March 12, 2011. This is the last day of the current 2011 Legislative Session. The House Session begins at 11:00 A.M. this morning. There are a total of 17 bills to be considered. SB424 is Bill #7 in the order at this time (that could change). SB424 is up for its third and final reading. Each bill is introduced, Amendments are offered up and voted on (one by one) and then the bill is voted on in its entirety. It is believed that they may get to SB424 by 12:00 P.M. or 12:30 P.M. (that could change either way). It is believed that SB424 could take 30-60 minutes to be brought up for a vote once the Amendment Process begins and ends. Before the House voted last night on SB424, Delegate Samuel J. Cann, Jr. (Democrat – Harrison) stood up to verify that he could offer up Amendments in today’s session. It is not known what those Amendments will be. Those Amendments are to be restricted. However, it is believed that Forced Pooling could be one of the items offered up in Delegate McCann’s Amendments. Now is the time to start calling and emailing ALL HOUSE DELEGATES and tell them that you are opposed to FORCED POOLING. You may access their contact information on the internet by going to http://www.legis.state.wv.us/House/members/delmemview1.cfm. You may listen in to all the legislative action on the internet at: http://www.legis.state.wv.us/live.cfm then click on the House Chamber button and go from there. Nobody is able to predict with much certainty how this is going to turn out. Your future is at stake. Make it count. Thank you.
Permalink Reply by 29041431 on March 12, 2011 at 3:58am

What happens now you ask? Once the House votes on SB424, it goes to the Senate. If it passes, that's it. If it doesn't, the House and the Senate go to a Conference Committee TODAY to work out their differences. The Conference Committee can be made of up of 3, 5 or 7 members from each side. It is believed that Samuel J. McCann, Sr. (Democrat-Harrison) would be one of the House conferees by virtue of his adding his Amendments in the House session earlier in the day. Are you starting to get a picture of where this is going? It could come down to a total of six people who will decide your future! If you're starting to get worried, START CALLING OR EMAILING! Now is the time!

Permalink Reply by Nancy Mosley on March 12, 2011 at 5:47am
I emailed everybody on in the House and have already received 3 replies. They listen!
Permalink Reply by 29041431 on March 12, 2011 at 5:59am
That's great Nancy. It's time to stand up for West Virginia! The House is in recess until 2:30 P.M.  
Permalink Reply by 29041431 on March 12, 2011 at 11:04am
TIME IS RUNNING OUT ON SB424 IN THE WEST VIRGINIA LEGISLATURE. THE HOUSE OF DELEGATES  ADJOURNED UNTIL 7:00 P.M. THIS EVENING. WHEN THEY RETURN, SB424 IS THE NEXT BILL TO BE CONSIDERED. IF THE LEGISLATION PASSES IN THE HOUSE, IT THEN GOES TO THE SENATE. UNDER REGULAR RULES, IF THE SENATE WERE TO VOTE AND NOT APPROVE THE BILL IN ITS CURRENT FORM, BOTH HOUSES WOULD CONFERENCE TO IRON OUT THE DISAGREEMENTS. HOWEVER, HOUSE and SENATE RULES DEMAND THAT ALL CONFERENCE COMMITTEE REPORTS BE TURNED IN BY 6:00 P.M. TODAY SO CONFERENCING MAY NOT BE POSSIBLE. SO UNDER THE PRESUMED SCENARIO, SB424 MAY BE DECIDED BY AN UP AND DOWN VOTE IN THE SENATE TONIGHT, ASSUMING OF COURSE, THAT IT PASSES IN THE HOUSE. I HAVE SPENT THE LAST HOUR OR SO CONTACTING SENATORS.
Permalink Reply by brinlady on March 13, 2011 at 1:22am

Here's an analysis from the Beckley paper about the fate of the Marcellus bill:

 

http://www.register-herald.com/todaysfrontpage/x449491003/Split-dec...

 

Brinlady

Permalink Reply by brinlady on March 12, 2011 at 5:13am

Could you shed some light on the last three graphs in this mornings AP article?

 

http://www.news-register.net/page/content.detail/id/132388/Marcellu...

 

Do you have any idea what these WVMOA initiated amendments may be?  And does this effect the message we are to be delivering to Legislators?

 

Thanks.

 

Brinlady

Permalink Reply by 29041431 on March 12, 2011 at 5:47am
First of all, this is not the WVMOA (West Virginia Mineral Owners Association) but rather the West Virginia Land and Mineral Owners Association. The latter is made up of "mineral owners" such as the Lawson Heirs, Lewis Glasser Casey & Rollins (a law firm that promoted Forced Pooling in the current 2011 Legislative Session) and a host of other very large entities including gas and coal companies. I don't know what additional Amendments they would like to add. I shall ask Ron Hayhurst of WVMOA if he knows the next time I talk to him. We are at the end of this Legislative Session. This is not, however, the end of all Marcellus Legislation. This is only the beginning. This will be a continuous process from this day forward. I personally recommend that as a mineral owner, that you "reinforce" your opposition to Forced Pooling by contacting House delegates now and telling them that you are concerned that there may be an attempt to insert it at the last moment of today's session and that you oppose it. Aside from that, if you own surface and minerals or if you agree with SB424 in its current form, I recommend that you endorse its passage without further Amendment. I have contacted every House member this week urging passage without change.  
Permalink Reply by brinlady on March 12, 2011 at 7:11am

Thanks.  I was reading in a hurry.  Appreciate the background info.  That explains the law firm's natural gas blog.  It's frustrating being a West Virginia mineral land owner and tax payer, but not being a West Virginia resident.  I've been away from the state for 30 years and am just learning the whos and whats of state natural gas.

 

Have already contacted my county's Legislators expressing agreement with SB424 in its current form. 

 

Agreed that this is only the beginning of the Marcellus legislation.  This is going to be an annual event.

 

Brinlady

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