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WV SB22
WV SB22Applying penalties for nonpayment of royalties under terms of oil and natural gas leases
summary
Introduced
02/12/2025
02/12/2025
In Committee
03/10/2025
03/10/2025
Crossed Over
03/07/2025
03/07/2025
Passed
04/12/2025
04/12/2025
Dead
Signed/Enacted/Adopted
04/12/2025
04/12/2025
Introduced Session
2025 Regular Session
Bill Summary
AN ACT to amend the Code of West Virginia, 1931, as amended, by adding a new section, designated §36-4-9c, relating to providing for enhanced damages for non-payment of royalties due from oil, natural gas, or natural gas liquids production under the terms of a lease or other agreement; providing for treble damages for unpaid royalties after non-payment for six months, unless there is a bona fide dispute or the damages are otherwise provided for in writing; providing for proper jurisdiction and venue for causes of action to resolve disputes; providing for the prevailing party to be awarded reasonable attorney’s fees and costs; and providing that the section applies to disputes filed on or after July 1, 2025.
AI Summary
This bill addresses penalties for nonpayment of royalties in oil and natural gas lease agreements in West Virginia, specifically for conventional vertical wells. The legislation stipulates that if a lessee or operator fails to pay royalties within six months after the payment is due, they will be liable to pay the lessor or landowner three times the market value of the unpaid royalty, unless there is a written agreement specifying different terms or a genuine dispute exists. The bill applies to royalty payment disputes filed on or after July 1, 2025, and establishes that jurisdiction for such disputes will be in the county where the well and leasehold are located. Additionally, the prevailing party in such legal actions may be awarded reasonable attorney's fees and costs. This legislation aims to protect landowners and mineral rights holders by providing a strong financial deterrent against delayed or withheld royalty payments, while also offering a clear legal framework for resolving such disputes.
Committee Categories
Agriculture and Natural Resources, Justice
Sponsors (3)
Last Action
Became law 5/1/2025 (on 05/01/2025)
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