HOUSE CONCURRENT RESOLUTION NO. 147

(By Delegates Ashley, Anderson, Williams, Evans, Canterbury, Hamilton, Pethtel, Householder, Butler, Espinosa, Moye, Westfall, Frich, Bates, Storch, H.K. White, Gearheart and Miller)

 

 

(Originating in the Committee on Finance)

 

[March 11, 2015]

 

Requesting the Joint Committee on Government and Finance to study the leasing of oil and gas mineral rights on State lands.

            Whereas, The State of West Virginia is endowed with some of the most valuable mineral deposits in the world, located in the shale formations thousands of feet below the surface; and

            Whereas, The government of West Virginia owns thousands of square miles of the surface and the valuable minerals appurtenant thereto; and

            Whereas, The instruments of government in possession of these lands including but not limited to the Division of Highways, the Division of Natural Resources, the Division of Corrections, the institutions of higher education, and the state militia and others all have celebrated budget needs; and

            Whereas, There remains many other needs for budget improvements and tax relief to balance; and

             Whereas, The leasing of oil and gas mineral rights is a highly specialized field, requiring advanced knowledge of this market, area of law, specific geologies, extraction methods, and other pertinent information, in order to secure the best deal for the people; and

             Whereas, The people of West Virginia expect its government to provide for mineral rights to be leased in an economically prudent manner and for lessees to get no better advantages under state contract than may be realized in the private market place; and

             Whereas, The development of these oil and gas resources and the resources and policy to responsibly develop them, are of critical importance to the people of West Virginia; therefore, be it

            Resolved by the Legislature of West Virginia:

            That the Joint Committee on Government and Finance is requested to study the leasing of all oil and gas mineral rights under State lands; and, be it

            Further Resolved, That the study involve planning for the creation of a central governmental body to evaluate public mineral parcels to determine if mineral leasing may be productive and desirable; to advertise, auction and negotiate all State lease contracts; and to determine how the proceeds of the leases are to be disposed; and, be it

            Further Resolved, That the Joint Committee on Government and Finance report to the Legislature, on the first day of the regular session, 2016, on its findings, conclusions and recommendations together with drafts of any legislation to effectuate its recommendations; and, be it

            Further Resolved, That the expenses necessary to conduct this study, to prepare a report, and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.