Monday, February 7, 2011

DEP Regulatory, Pooling Bill Introduced In West Virginia Legislature

The Tomblin Administration's version of a DEP regulatory reform bill has been introduced in both houses of the West Virginia Legislature. The bills are S.B. 424 and H.B. 3042. The legislation adds a new category of well, the "horizontal shallow well," to the regulatory structure and includes a statutory pooling provision for those shallow horizontal wells. The bills are largely based on the existing requirements for statutory pooling of deep wells with certain revisions. Under the bills, a slightly reconstituted Oil and Gas Commission shall decide pooling and unitization issues for shallow horizontal wells.