Committee meeting at WV Legislature
From Julie Archer, WV Surface Owners’ Rights Organization, January 27, 2018
Dear Friends,
The 2018 legislative session is in full swing and you may have heard on the news or via social media that a “co-tenancy” bill (HB 4268) is now being considered by the House Energy Committee. This is one of a series of oil and gas development bills that have been introduced in recent years in various forms and degrees, and which is sometimes referred to as “forced pooling.” A bill passed by the Senate last year (SB 576) contained two forms: “lease integration” or what we call “invisible ink,” and “co-tenancy,” which we called “majority rules.”
HB 4268 deals only with what the industry calls “co-tenancy,” which we are now calling the “cousins” bill. Like last year’s bill HB 4268 is problematic in a number of ways which we’ve outlined in detail below, and we oppose the bill unless these issues are addressed by the committee.
Please contact members of the House Energy Committee and voice your concerns about HB 4268. Urge them to prioritize other legislation before them that will help those most affect by drilling and natural gas infrastructure.
These include HB 2990, which would require continuous monitoring of air, noise, dust, and particulates as recommended by the studies mandated by the 2011 Horizontal Well Act; and HB 3011, which would allow property owners to share financially in the gains from the various interstate pipeline projects, if they are approved and built. (More information about these bills is available here.)
Click here for a list of House Energy Committee members with their phone number and email address, followed by a ‘list’ of emails for all members that can easily be copied and pasted into the ‘To’ field of your email.
On Thursday, the committee heard an explanation of HB 4268 and then delayed further consideration of the bill until Tuesday.
Please act now and make your voice heard. And, thank you for your assistance.
>>> Julie Archer, Executive Director, WVSORO
West Virginia Surface Owners’ Rights Organization
1500 Dixie Street, Charleston, WV 25311
info@wvsoro.org …… 304.346.5891
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{ 6 comments… read them below or add one }
Problems with the WV House Bill — HB 4268
From the WV Surface Owners’ Rights Organization —
First, in order to drill a horizontal well the driller has to start on one surface tract, drill down to the mineral tract underlying that surface tract, and then drill horizontally a mile or more through many neighboring surface tracts. Under current law, if the driller while drilling horizontally for that mile or more runs into that mineral tract where the driller only has leases from, say, 90% of the mineral owners, the driller has to stop. If this bill passes the driller will be able to keep drilling even longer horizontal well bores through those neighboring mineral tracts. This means more time on the first surface owner’s land, more trucks, more noise, more light, more dust, and other air pollution to drill the longer horizontal.
As the bill is currently drafted the surface owner’s consent is not needed if they use the bill to drill through that neighboring mineral tract. The current bill only requires surface owner consent if the bill is used for the one mineral tract directly under the surface owner.
The bill should require the driller to get the surface owner’s consent if the bill is used to drill not only the mineral tract under the pad, but any mineral tract being accessed from the pad.
Second, the bill contains a loophole that would allow a driller with an existing surface use agreement or other valid contract that pre-dates horizontal drilling to be used to locate well pads for horizontal drilling on a surface owner’s land.
Last but not least, the bill requires that non-consenting cotenants be paid the highest royalty in leases signed by the consenting owners. This is an improvement over the earlier bill. A knowledgeable mineral owner still might be able to negotiate a better deal but if 75% of their out-of-state cousins sign bad leases with low bonuses, with low royalties, with clauses that allow disposal wells to be drilled on the property, or other bad provisions, then they are stuck with those terms. The bill lacks due process (right to appeal, etc.) for non-consenting owners. Those mineral owners who do not like their cousins’ leases should get a due process hearing before the existing Oil and Gas Conservation Commission to try to get better terms.
This still confuses me, because you mention surface owners. I thought surface owners had no rights, unless they are also mineral owners. Is that what you meant? And you say they should have to have all surface owners’ consent (do you mean all mineral owners?)–but that would just mean no “co-tenancy” bill, right?
Mary Wildfire, Roane County, WV
REGARDING HB 4268 and HB 4168
The co tenancy bill HB4268, is full of industry friendly loop holes and does not protect surface owners or mineral owners. In North Central WV severed mineral rights has left many rural home and property owners helpless. Industry can come on your property, destroy what you own and decrease your property values to the point you can not afford to sell and relocate. The Legislative Leadership should be protecting our citizens interest instead of representing only the interest of industry. Using the excuse that unknown mineral owners are stopping drilling of certain tracts is false. WV Code 55-12a-1, states that if there are unknown owners in a mineral tract that industry can drill and the money is held in escrow for 7 years, then the surface owner takes possession of the minerals and the money in escrow.
The Fraser Institute did a study and found WV is the 5th friendliest place in the WORLD for oil and gas drilling. Pennsylvania is number 32 and Ohio is further down the list. These billion dollar corporations want to use campaign contributions to buy our elected leaders to pass laws allowing them to abuse our citizens. Did we not learn from coal?
HB 4268 as currently drafted allows use of the surface owner’s property to build a pad that industry can use to drill other tracts without the property owner’s permission. There is also a loophole that industry with an existing agreement or contract that pre-dates horizontal drilling can locate pads on the surface owners land.
The bill also requires a more knowledgeable mineral owner to accept the terms that 75% of the other owners leased for and strips the 25% owner of their legal rights to go to court. Industry wants access to the legal system but the rest of us are not to have the opportunity. EQT does not like a Supreme Court decision so they spend millions to get a Judge elected and get the decision changed. Many WV mineral owners do not even get a full 1/8th royalty and in some cases are getting a bill for their minerals being produced.
HB 4168 the Trespass Bill. EQT sues landowners/farmers for access to their property for surveying. A Monroe County Judge sided with the landowners and said EQT had to get permission to enter private property. Now the industry wants to enter your land at their free will by use of State Law. This includes use of ATV’s. I do not need our Legislative Leaders telling me who can trespass on my land!
PLEASE take time to call House Energy members and you elected representative and oppose these bills. Forward this information to all your contacts that value what they own and have worked for.
Bill Suan
REPLY TO Mary Wildfire, et al.
It is true that surface owners have few rights in the leasing, drilling and fracking unless they are also mineral owners.
BUT, surface owners SHOULD have a major say in what happens on the surface. This includes the location of access roads and drill pads and pipelines!
I’m sure you agree!
Duane Nichols
Please Oppose HB 4268 and HB4168
The Forced Pooling Bills are now upon us again and moving thru the WV Legislature under the friendly name of Co tenancy HB 4268 is Evil and Sad.
If this passes the Gas Industry can come on your property, destroy what you own and decrease your property values to the point you cannot afford to sell and relocate.
The Legislative Leadership should be protecting our citizens interest instead of representing only the interest of industry so please vote No on HB 4268 and HB 4168.
Did we not learn from coal?
HB 4268 as currently drafted allows use of the surface owner’s property to build a pad that industry can use to drill other tracts without the property owner’s permission. There is also a loophole that industry with an existing agreement or contract that pre-dates horizontal drilling can locate pads on the surface owners land.
HB 4168 the Trespass Bill. EQT sues landowners/farmers for access to their property for surveying. A Monroe County Judge sided with the landowners and said EQT had to get permission to enter private property.
Now the industry wants to enter your land at their free will by use of State Law. This includes use of ATV’s. I do not need our Legislative Leaders telling me who can trespass on my land!
PLEASE take time to call House Energy members and your elected representative and oppose these bills.
Now we will be faced with Super Pads with 35 to 40 Drilling Wells.
Please! Don’t let this happen, take action now and call the legislature …….
Thanks, John Cobb, Lewis County
ACTION ALERT from the Greenbrier River Watershed Association
RE: Proposal for Forced Pooling in West Virginia
On Wednesday, February 7th, there will be a public hearing on HB 4268 in the House Chamber of the Capitol building in Charleston. This bill, written by out-of-state gas companies, is called “co-tenancy,” but it’s simply Forced Pooling lite.
Citizens who are concerned about this legislation are welcome and encouraged to attend and have their voices heard at the hearing.
We recommend arriving before the Capitol doors open at 8:00 am because there will probably be a line. You can find out more about visiting the Capitol at this link: http://www.wvlegislature.gov/Educational/citizens/guide.cfm
This public hearing gives us an important opportunity to tell our legislators directly that this bill will violate the rights of property owners. West Virginians have the right to make financial agreements about their property freely, without being forced into bad deals with no right to an appeal. West Virginians have the right to say NO.
Background:
HB 4268 is a Forced Pooling bill which the gas and oil industry is trying to rebrand as “cotenancy.” This bill is a vicious attack on property rights because it would allow a gas company to force development on a tract if they have made agreements with the owners of 75% of the mineral rights. This bill will enable big out-of-state gas companies to steal the mineral rights of native West Virginians.
On Tuesday, January 30th, the House Energy Committee voted 14-10 to advance HB 4268 to the House Judiciary Committee. Soon after the vote, concerned citizens requested a public hearing on the bill.
See the bill history (including a link to the text of the bill) here: http://www.wvlegislature.gov/Bill_Status/bills_history.cfm?INPUT=4268&year=2018&sessiontype=RS