Delegate Tim Manchin (D-Marion) was co-chair of the WV Select Committee on Marcellus Shale. In December, the Governor scrapped the Committee’s “Marcellus shale framework bill” in order to serve the last minute whims of the oil and gas industry. A Marcellus bill with major modifications was passed.
According to newspaper reports, Delegate Manchin is now thinking of a bargain with the industry, as for example, an increase in the natural gas severence tax in exchange for a state law that mineral and land owners be required to participate in “pooling” so large tracts of contiguous land would be available to the drilling companies.
The WV severence tax is now at 5% on produced natural gas. Manchin suggested an increase to 5.5 or 6%, with the additional tax income being used for the state’s highways and other infrastructure. Manchin said the state could match that additional money to grow the infrastructure fund and convince the public that forced pooling is a good idea.
If the State moves to approve forced pooling, gas companies would be allowed to combine properties where owners refuse to lease their mineral rights with adjoining properties when leases have been obtained. The companies could then remove gas from all the properties in that unit, even if some property owners refused lease agreements. Gas companies would not be permitted to build roads or pipelines on properties taken to complete a unit, and they also would not be allowed to drill wells on those sites.
Manchin said that the Marcellus shale bill passed last month by West Virginia lawmakers was “a good bill – a bill worth voting for,” but said the bill should have required drillers to report how many of their employees are West Virginia residents. Many others have found faults with the bill that was passed.
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