Senate Bill No. 15
(By Senator Deem)
____________
[Introduced January 12, 2000; referred to the Committee
on Energy, Industry and Mining.]
____________
A BILL to amend and reenact sections nineteen and twenty-four,
article six, chapter twenty-two of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
all relating to when a well must be plugged; and methods of
plugging wells.
Be it enacted by the Legislature of West Virginia:
That sections nineteen and twenty-four, article six, chapter
twenty-two of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 6. OFFICE OF OIL AND GAS; OIL AND GAS WELLS;
ADMINISTRATION, ENFORCEMENT.
§22-6-19. Protective devices -- Continuance during life of well;
dry or abandoned wells.
In the event that a well becomes productive of natural gas
or petroleum, or is drilled for or converted for the introduction
of pressure, whether liquid or gas, or for the introduction of
liquid for the purposes provided for in section twenty-five of
this article or for the disposal of pollutants or the effluent
therefrom, all coal-protecting strings of casing and all
water-protecting strings of casing shall remain in place until
the well is plugged or abandoned. During the life of the well
the annular spaces between the various strings of casing adjacent
to workable beds of coal shall be kept open, and the top ends of
all such the strings shall be provided with casing heads, or such
other suitable devices as will permit the free passage of gas and
prevent filling of such the annular spaces with dirt or debris.
Any well which is completed as a dry hole or which is not in
use for a period of twelve consecutive months shall be presumed
to have been abandoned and shall promptly be plugged by the
operator in accordance with the provisions of this article,
unless the operator furnishes satisfactory proof to the director
that there is a bona fide future use for such the well or unless the well continues to be covered by a performance bond as
required by section twenty-six of this article.
§22-6-24. Methods of plugging well.
Upon the abandonment or cessation of the operation of any
well drilled for natural gas or petroleum, or drilled or
converted for the introduction of pressure, whether liquid or
gas, or for the introduction of liquid for the purposes provided
for in section twenty-five of this article or for the disposal of
pollutants or the effluent therefrom the well operator, at the
time of such the abandonment or cessation, shall fill and plug
the well in the following manner:
(a) Where the well does not penetrate workable coal beds, it
shall either be filled with mud, clay or other nonporous material
from the bottom of the well to a point twenty feet above the top
of its lowest oil, gas or water-bearing stratum; or a permanent
bridge shall be anchored thirty feet below its lowest oil, gas or
water-bearing stratum, and from such the bridge it shall be
filled with mud, clay or other nonporous material to a point
twenty feet above such the stratum; at this point there shall be
placed a plug of cement or other suitable material which will
completely seal the hole. Between this sealing plug and a point twenty feet above the next higher oil, gas or water-bearing
stratum, the hole shall be filled, in the manner just described;
and at such the point there shall be placed another plug of
cement or other suitable material which will completely seal the
hole. In like manner the hole shall be filled and plugged, with
reference to each of its oil, gas or water-bearing strata.
However, whenever such the strata are not widely separated and
are free from water, or when the director determines that they
may should be grouped and treated as a single sand, gas or
petroleum horizon, and the aforesaid filling and plugging may be
performed as though there were but one horizon. After the
plugging of all oil, gas or water-bearing strata, as aforesaid,
a final cement plug shall be placed approximately ten feet below
the bottom of the largest casing in the well; from this point to
the surface the well shall be filled with mud, clay or other
nonporous material. In case any of the oil or gas-bearing strata
in a well shall have been shot, thereby creating cavities which
cannot readily be filled in the manner above described, the well
operator shall follow either of the following methods:
(1) Should the stratum which has been shot be the lowest one
in the well, there shall be placed, at the nearest suitable point, but not less than twenty feet above the stratum, a plug of
cement or other suitable material which will completely seal the
hole. In the event, however, that the shooting has been done
above one or more oil or gas-bearing strata in the well, plugging
in the manner specified shall be done at the nearest suitable
point, but not less than twenty feet below and above the stratum
shot; or
(2) When such cavity shall be in the lowest oil or
gas-bearing stratum in the well, a liner shall be placed which
shall extend from below the stratum to a suitable point, but not
less than twenty feet above the stratum in which shooting has
been done. In the event, however, that the shooting has been
done above one or more oil or gas-bearing strata in the well, the
liner shall be so placed that it will extend not less than twenty
feet above, nor less than twenty feet below, the stratum in which
shooting has been done. Following the placing of the liner in
the manner here specified it shall be compactly filled with
cement, mud, clay or other nonporous sealing material.
(b) Where the well penetrates one or more workable coal beds
and a coal protection string of casing has been circulated and
cemented into the surface, the well shall be filled and securely plugged in the manner provided in subsection (a) of this section,
except that expanding cement shall be used instead of regular
hydraulic cement, to a point approximately one hundred feet below
the bottom of the coal protection string of casing. A one
hundred foot plug of expanding cement shall then be placed in the
well so that the top of such the plug is located at a point just
below the coal protection string of casing. After such the plug
has been securely placed in the well, the coal protection string
of casing shall be emptied of liquid from the surface to a point
one hundred feet below the lowest workable coal bed or to the
bottom of the coal protection string of casing, whichever is
shallower. A vent or other device approved by the director shall
then be installed on the top of the coal protection string of
casing in such a manner that will prevent liquids and solids from
entering the well but will permit ready access to the full
internal diameter of the coal protection string of casing when
required. The coal protection string of casing and the vent or
other device approved by the director shall extend, when finally
in place, a distance of not less than thirty inches above ground
level and shall be permanently marked with the well number
assigned by the director;
(c) Where the well penetrates one or more workable coal beds
and a coal protection string of casing has not been circulated
and cemented into the surface, the well shall be filled and
securely plugged in the manner provided in subsection (a) of this
section to a point fifty feet below the lowest workable coal bed.
Thereafter, a plug of cement shall be placed in the well at a
point not less than forty feet below the lowest workable coal
bed. After the cement plug has been securely placed in the well,
the well shall be filled with cement to a point twenty feet above
the lowest workable coal bed. From this point the well shall be
filled with mud, clay or other nonporous material to a point
forty feet beneath the next overlying workable coal bed, if such
there be, and the well shall then be filled with cement from this
point to a point twenty feet above such workable coal bed, and
similarly, in case there are more overlying workable coal beds.
After the filling and plugging of the well to a point above the
highest workable coal bed, filling and plugging of the well shall
continue in the manner provided in subsection (a) of this section
to a point fifty feet below the surface, and a plug of cement
shall be installed from the point fifty feet below the surface to
the surface with a monument installed therein extending thirty inches above ground level;
(d) (1) Where the well penetrates one or more workable coal
beds and a coal protection string of casing has not been
circulated and cemented into the surface, a coal operator or
coal seam owner may request that the well be plugged in the
manner provided in subdivision (3) of this subsection rather than
by the method provided in subsection (c) of this section. Such
The request (forms for which shall be provided by the director)
must be filed in writing with the director prior to the scheduled
plugging of the well, and must include the number of the well to
be plugged and the name and address of the well operator. At the
time such the request is filed with the director, a copy of such
the request must also be mailed by registered or certified mail
to the well operator named in the request.
(2) Upon receipt of such the request, the director shall
issue an order staying the plugging of the well and shall
promptly determine the cost of plugging the well in the manner
provided in subdivision (3) of this subsection and the cost of
plugging the well in the manner provided in subsection (c) of
this section. In making such the determination, the director
shall take into consideration any agreement previously made between the well operator and the coal operator or coal seam
owner making the request. If the director determines that the
cost of plugging the well in the manner provided in subsection
(c) of this section exceeds the cost of plugging the well in the
manner provided in subdivision (3) of this subsection, the
director shall grant the request of the coal operator or owner
and shall issue an order requiring the well operator to plug the
well in the manner provided in subdivision (3) of this
subsection. If the director determines that the cost of plugging
the well in the manner provided in subsection (c) of this section
is less than the cost of plugging the well in the manner provided
in subdivision (3) of this subsection, the director shall request
payment into escrow of the difference between the determined
costs by the coal operator or coal seam owner making the request.
Upon receipt of satisfactory notice of such the payment, or upon
receipt of notice that the well operator has waived such payment,
the director shall grant the request of the coal operator or coal
seam owner and shall issue an order requiring the well operator
to plug the well in the manner provided in subdivision (3) of
this subsection. If satisfactory notice of payment into escrow,
or notice that the well operator has waived such the payment, is not received by the director within fifteen days after the
request for payment into escrow, the director shall issue an
order permitting the plugging of the well in the manner provided
in subsection (c) of this section. Copies of all orders issued
by the director shall be sent by registered or certified mail to
the coal operator or coal seam owner making the request and to
the well operator. When the escrow agent has received
certification from the director of the satisfactory completion of
the plugging work and the reimbursable extra cost thereof (that
is, the difference between the director's determination of
plugging cost in the manner provided in subsection (c) of this
section and the well operator's actual plugging cost in the
manner provided in subdivision (3) of this subsection), the
escrow agent shall pay the reimbursable sum to the well operator
or the well operator's nominee from the payment into escrow to
the extent available. The amount by which the payment into
escrow exceeds the reimbursable sum plus the escrow agent's fee,
if any, shall be repaid to the coal owner. If the amount paid to
the well operator or the well operator's nominee is less than the
actual reimbursable sum, the escrow agent shall inform the coal
owner, who shall pay the deficiency to the well operator or the well operator's nominee within thirty days. If the coal operator
breaches this duty to pay the deficiency, the well operator shall
have a right of action and be entitled to recover damages as if
for wrongful conversion of personalty, and reasonable attorney
fees.
(3) Where a request of a coal operator or coal seam owner
filed pursuant to subdivision (1) of this subsection has been
granted by the director, the well shall be plugged in the manner
provided in subsection (a) of this section, except that expanding
cement shall be used instead of regular hydraulic cement, to a
point approximately two hundred feet below the lowest workable
coal bed. A one hundred foot plug of expanding cement shall then
be placed in the well beginning at the point approximately two
hundred feet below the lowest workable coal bed and extending to
a point approximately one hundred feet below the lowest workable
coal bed. A string of casing with an outside diameter no less
than four and one-half inches shall then be run into the well to
a point approximately one hundred feet below the lowest workable
coal bed and such the string of casing shall be circulated and
cemented into the surface. The casing shall then be emptied of
liquid from a point approximately one hundred feet below the lowest workable coal bed to the surface, and a vent or other
device approved by the director shall be installed on the top of
the string of casing in such a manner that it will prevent
liquids and solids from entering the well but will permit ready
access to the full internal diameter of the coal protection
string of casing when required. The string of casing and the
vent or other device approved by the director shall extend, when
finally in place, a distance of no less than thirty inches above
ground level and shall be permanently marked with the well number
assigned by the director. Notwithstanding the foregoing
provisions of this subdivision, if under particular circumstances
a different method of plugging is required to obtain the approval
of another governmental agency for the safe mining through of
said the well, the director may approve such different method of
plugging if the director finds the same to be as safe for mining
through and otherwise adequate to prevent gas or other fluid
migration from the oil and gas reservoirs as the method above
specified.
(e) Any person may apply to the director for an order to
clean out and replug a previously plugged well in a manner which
will permit the safe mining through of such well. Such The application shall be filed with the director and shall contain
the well number, a general description of the well location, the
name and address of the owner of the surface land upon which the
well is located, a copy of or record reference to a deed, lease
or other document which entitles the applicant to enter upon the
surface land, a description of the methods by which the well was
previously plugged, and a description of the method by which such
the applicant proposes to clean out and replug the well. At the
time an application is filed with the director, a copy shall be
mailed by registered or certified mail to the owner or owners of
the land, and the oil and gas lessee of record, if any, of the
site upon which the well is located. If no objection to the
replugging of the well is filed by any such landowner or oil and
gas lessee within thirty days after the filing of the
application, and if the director determines that the method
proposed for replugging the well will permit the safe mining
through of such the well, the director shall grant the
application by an order authorizing the replugging of the well.
Such The order shall specify the method by which the well shall
be replugged, and copies thereof shall be mailed by certified or
registered mail to the applicant and to the owner or owners of the land, and the oil and gas lessee, if any, of the site upon
which such the well is located. If any such landowner or oil and
gas lessee objects to the replugging of the well, the director
shall notify the applicant of such the objection. Thereafter,
the director shall schedule a hearing to consider the objection,
which hearing shall be held after notice by registered or
certified mail to the objectors and the applicant. After
consideration of the evidence presented at the hearing, the
director shall issue an order authorizing the replugging of the
well if the director determines that replugging of the well will
permit the safe mining through of such the well. Such order
shall specify the manner in which the well shall be replugged and
copies thereof shall be sent by registered or certified mail to
the applicant and objectors. The director shall issue an order
rejecting the application if the director determines that the
proposed method for replugging the well will not permit the safe
mining through of such the well;
(f) All persons adversely affected, by a determination or
order of the director issued pursuant to the provisions of this
section shall be entitled to judicial review in accordance with
the provisions of articles five and six, chapter twenty-nine-a of this code.
NOTE: The purpose of this bill is to allow a well not in
use but covered by a performance bond not to be plugged and to
allow the director to determine when strata should be treated as
a single horizon for the purpose of plugging wells.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.