72. NATURAL GAS, OIL & CONSTITUENT ROYALTY
West Virginia Farm Bureau recommends that a royalty for oil, natural gas and the constituents thereof and other marketable substances produced and saved from any formations on the owners’ royalty, an amount equal to at least 20 % gross / without deductions of the price be received from the sale of such gas and constituents thereof. Payment of royalty for all products produced and marketed during any calendar month is to be made within ninety( 90) days from the end of the month of production.
All products produced shall be measured by a meter set at the wellhead and the royalty shall be paid based on the arm’ s length sales points on the volume of gas products measured accurately at that point. If royalty payments are less than $ 25, they may be paid annually.
WVFB supports transparency of financial and production records.
73. FORCED POOLING OF HORIZONTAL GAS WELLS
West Virginia Farm Bureau supports responsible development of oil and gas and believes that forced pooling should rarely be used. If forced pooling is used, all contracts involved in that pool area shall be released to public record filed in the county of record prior to WV Oil & Gas Commission or court action. The pooling threshold percentage will be calculated based on net acreage in the pool area.
Forced pooling will only be utilized in a specific geologic formation for the extraction of oil, natural gas and the constituents thereof and other marketable substances from that formation. The forced pooling will not permit the use of a well for the storage of gas or as a waste disposal well.
74. THEFT OF OIL, NATURAL GAS AND THE CONSTITUENTS THEREOF AND OTHER MARKETABLE SUBSTANCES
Because there have been and continue to be thefts of significant amounts of oil, natural gas and the constituents thereof and other marketable substances, and since these thefts have not been considered criminal actions, those whose resources were stolen are forced to seek redress in civil court against individuals and firms with significant resources, thus making recovery difficult if not impossible.
West Virginia Farm Bureau supports legislation specifying that the theft of oil, natural gas and the constituents thereof and other marketable substances be crimes. The same financial guidelines shall be used to determine the amounts classifying the crimes as misdemeanors or felonies.
The owner of the natural gas, oil, coal or constituents oil, natural gas and the constituents thereof and other marketable substances should receive treble damages as a result of the theft.
75. ABANDONED PIPELINE RIGHTS-OF-WAY
Land rights-of-way for pipelines or for any other public or private utilities that have been abandoned for two or more years shall be removed from the title of the surface owner.
Removal of abandoned equipment and material must be the responsibility of the utility or company of ownership and must take place within 12 months from the time of abandonment.
The landowner shall not be held liable for any damages or pollution caused from this abandoned equipment or material.
76. COAL BED METHANE
Coal bed methane is a gaseous fossil fuel, and should be considered as such. Therefore, West Virginia Farm Bureau believes it should not be construed as part of the solid coal, but should be considered the property of the owner of the oil and gas resources.
77. DEP OFFICE OF OIL & GAS MINUTES
West Virginia Farm Bureau recommends the hearings and meeting minutes of the West Virginia DEP Office of Oil and Gas be a matter of public record and those records be made available to the public through internet access.
78. LEASE INTEGRATION FOR HORIZONTAL GAS WELLS
West Virginia Farm Bureau supports the right of property owners to negotiate new leases and
West Virginia Farm Bureau News 21