HOUSE CONCURRENT RESOLUTION NO. 77

(By Delegates Tucker, Pethtel, Browning, Guthrie, Hartman,

Kessler, Klempa, Marshall, Martin, Palumbo, Stephens,
Cowles, Hamilton, C. Miller and Sobonya)



Requesting the Joint Committee on Government and Finance study the administration and enforcement of oil and gas wells relating to the rights and responsibilities of surface owners and operators.

 Whereas, From 1994 to 2000, an average of 842 oil and gas drilling "well work" permits were issued in West Virginia. Between, 2001 to 2004, the average increased to 1,272 permits a year. In 2005, the Office of Oil and Gas of the Department of Environmental Protection issued 2,660 permits and, in 2006, the agency issued 3052 permits, a record, with the high volume of drilling continuing to the present; and
Whereas, The review and issuance of oil and gas well drilling permits together with the enforcement of the down-hole drilling requirements for protecting groundwater and other underground resources, as well as the requirements for enforcement of the reclamation of well sites, access roads and other surface uses, is all carried out primarily by the Office of Oil and Gas of the Department of Environmental Protection; and
Whereas, The Office of Oil and Gas has only 14 inspectors to review the numerous permit applications and oversee all of this drilling activity arising from the thousands of permits, and the same inspectors are also responsible for more than 40,000 active oil and gas wells and 25,000 inactive oil and gas wells; and
Whereas, A properly staffed Office of Oil and Gas is essential for the protection of the interests of the public, the surface owners and operators; and
Whereas, Issues arising from the goal to encourage oil and gas drilling as well as ensuring that the rights of surface owners are protected and the responsibilities of the operators in regard to surface disturbance and reclamation are properly enforced, and
Whereas Surface owners should have a timely and meaningful opportunity for involvement in the location of well sites and their supporting activities, in the oil and gas application process, in the reclamation of the disturbed land and proper compensation for damage caused by the drilling operations, all of which must be balanced with the rights of operators to properly drill for and transmit oil and gas in a competitive economic environment, and
Whereas, Surface owners and operators have voiced their concerns that their interests and the interests of the public are not adequately addressed by the current state of the law, procedures and statutes or by the State's current ability to carry out its duties; therefore, be it

Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby requested to study the existing law and regulation of oil and gas drilling by the State of West Virginia regarding the balance of existing rights between surface owners and operators and what mechanisms now exist or can be enacted in law so that the rights of both parties and the public are recognized; and, be it
Further Resolved, That the Joint Committee on Government and Finance is hereby requested to study the existing law and regulation of oil and gas drilling by the State of West Virginia and whether the law should be updated or otherwise changed to improve protection of the public interest and the varying interests of the individual surface owners and operators and has the authority to draft necessary legislation which addresses the various issues and the rights of the public and all the parties and, be it
Further Resolved, That the Joint Committee on Government and Finance is hereby requested to study the feasibility of requiring free, wholesale or retail gas for surface owners upon whose land well sites and access roads are or have been placed; and, be it
Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2009, on their findings, conclusions and recommendations; and, be it
Further Resolved, That the expenses necessary to conduct this study, to prepare reports and to draft legislation, if necessary, be paid from legislative appropriations to the Joint Committee on Government and Finance.