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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I spoke to someone about your earlier question and they had spoken to Jason Webb of West Virginia Land and Minerals Association about 30 minutes ago. Mr. Webb says they want to change the 1000 foot separation rule minimum in the Fleischauer Amendment to something more appealing to the gas companies.

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