taxing surface owners for the commercial value of
the oil and gas infrastructure placed upon the surface
of their land. Such taxes would be levied against
the surface owner regardless of whether they own or
benefit from the mineral extraction. WVFB supports
legislative changes to HB 401 Chapter 22-6 of the
WV Code which allows for a onetime payment from
the mineral extractor of $2,500. WVFB recommends
that WV Code specify compensation to land owners
for any increase in property taxes as a result of
horizontal well pads. WVFB members believe that
taxes on extraction infrastructure should be borne
by the mineral extraction company, not the surface
owner.
FORCED POOLING OF HORIZONTAL
GAS WELLS
Farm Bureau supports negotiations between the
mineral rights owner and those requesting a lease.
West Virginia Farm Bureau regards forced pooling/
lease integration to be a violation of private property
rights. Therefore, we are opposed to any legislation
that minimizes the negotiation ability of the private
property rights owner. WVFB recommends that
the WV Legislature reconvene the Joint Select
Committee on Oil and Gas to study the forced
pooling issue.
COAL BED METHANE
Coal bed methane is a gaseous fossil fuel, and
should be considered as such. Therefore, 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.
OIL AND GAS EXPLORATION
Farm Bureau supports reasonable and responsible
legislation to regulate the rapidly expanding oil and
gas industry, which offers great economic potential
for our state. It is essential that such legislation
protects private property/surface owners’ rights;
addresses issues unique to split real property estates,
where the mineral estate has been separated off from
the surface estate; and addresses environmental
concerns.
Farm Bureau maintains the following components
must be addressed in legislation:
Thirty-day notice to property/surface owners
required prior to initial entry onto the land
22 West Virginia Farm Bureau News
for surveying, seismic activity, and any land
disturbance
Require those drilling and/or operating oil and
gas fields - both shallow and deep, including
storage fields - to pay to the owner of the
surface a yearly damage fee at a minimum of
1% of gross production for each producing
well; that a capped well incur an industry
average production fee of a minimum of 1%
of gross production for a similar type well;
and storage fields incur a fee of 0.5% of gross
value of annually stored hydrocarbons; and
for all environmental damages
WVFB believes that a minimum 250 foot
setback from the well pad edge to the
residence and farm structures is necessary and
that we support the adoption of environmental
monitoring for noise, air, dust, water and heat
emissions as identified in a report prepared
by Dr. Michael McCawley, interim chairman
of WVU’s Department of Occupational and
Environmental Health Sciences. Monitoring
will be provided by WVDEP and the
monitoring data shall be available in a live
electronic format
WVFB supports a distance of 625’ from the
edge of the well pad to agricultural buildings
of 1500 square feet or more , existing water
wells or developed springs without the written
consent of the owner
WVFB believes that the WV Oil and Gas
Conservation Commission be made up of
two members from the Oil and Gas Industry,
two members from the Agriculture/Forestry
Community and one from a Conservation
group
Unclaimed oil and gas revenue should be
retained by the WV Treasures Office for
a period of no less than 7 years and then
returned to the community of its origin for the
promotion of agriculture
No water from any aquifer should be used in
the fracturing “Frack” process of oil and gas
wells
Compensation to the landowner for damage
sustained from drilling, transportation and
other activities should be based on actual
losses rather than a set fee
Legislation must not revise, repeal or