WV Farm Bureau Magazine January 2014 | Page 22

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