SB576 SFA Romano 3-27 #1

Baker 7816

Senator Romano moved to amend the bill on page five, section four, line twenty-four, after the word “subdivision” by inserting a comma and the words “or for a review by the oil and gas conservation commission, as specified in subsection (b) of this section”;

On page five, section four, lines twenty-six and twenty-seven, by striking out the words “paragraph (A), subdivision (1) of this subsection” and inserting in lieu thereof the words “subsection (b) of this section”;

On page five, section four, line twenty-nine, by striking out the words “paragraph (A), subdivision (1) of this subsection” and inserting in lieu thereof the words “subsection (b) of this section”;

And,

On page five, section four, after line twenty-nine, by inserting a new subsection, designated subsection (b), to read as follows:

(b) (1) For purposes of this section, “oil and gas conservation commission” or “commission” means the commission created in article nine, chapter twenty-two-c of this code.

(2) If a nonconsenting cotenant elects, or is deemed to have elected, for review by the oil and gas conservation commission, the nonconsenting cotenant shall notify the operator in writing of this election within the 45-day period set forth in subsection (a) of this section. The operator shall, within thirty days of the receipt of the nonconsenting cotenant’s election for review by the commission, submit the best and final lease offer and any accompanying documentation to the commission and deliver a copy of all filed documents to the nonconsenting cotenant. The nonconsenting cotenant shall, within thirty days of the receipt of the operator’s filing to the commission, submit any additional documentation to the commission that the nonconsenting cotenant believes to be relevant to the determination. The commission shall set the matter for a hearing within forty-five days of receiving the nonconsenting cotenant’s documentation or, if no such documentation was filed, within seventy-five days of receiving the operator’s documentation. The commission shall provide no less than thirty days’ notice of the hearing date to the nonconsenting cotenant and the operator, and shall allow for rescheduling or continuance if good cause is shown.

(3) At the hearing, all interested parties shall be permitted to present relevant evidence to the determination. Following the hearing, the commission shall determine what is just and reasonable consideration for the nonconsenting cotenant to receive as consideration based on relevant evidence adduced at the hearing and through the filed documentation including, but not limited to, amounts paid or consideration given in arm's length transactions in the vicinity of the horizontal well unit and within a reasonable time prior to the hearing for transactions of the same nature and involving similar geologic conditions as that transaction being considered by the commission. Under no circumstances may the commission determine that consideration less than that contained in the operator’s best and final lease offer or compensation less than provided in subdivision (1), subsection (a) of this section is just and reasonable. The commission shall, within twenty days of the hearing, enter an order setting forth a determination of just and reasonable compensation for the nonconsenting cotenant.

(4) Within ten days after the commission’s order is entered, any interested party may file exceptions thereto, and demand that the question of the just and reasonable compensation, be ascertained by a jury, in which case a jury of twelve citizens shall be selected and impaneled for the purpose, as juries are selected in civil actions. The cause shall be tried as other causes in such court, except that any member of the oil and gas conservation commission shall not be examined as a witness. The jury, ascertaining the just and reasonable compensation to which the nonconsenting cotenant is entitled, shall be governed by the limitations set forth in subdivision (3) of this subsection. In the event a demand is made by a party in interest, and the judge deems it reasonably necessary to fairly resolve the matter, the jury shall be taken to view the property, and in such case, the judge presiding at the trial shall go with the jury and shall control the proceedings. All parties have a right to appeal from the jury’s decision to the Supreme Court of Appeals of West Virginia.

If no exceptions are filed to the commission’s order, and neither party demand a trial by jury as aforesaid, the commission’s order is final.