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West Virginia Senate gas well bill heads to Judiciary Committee


The Dominion Post

CHARLESTON, W.Va.  — The Senate Education, Industry and Mining Committee unanimously approved on Tuesday a bill to ban post-production expenses from royalty checks for certain kinds of leases, and sent it on to the Judiciary Committee.

Committee chair Randy Smith, R-Tucker, said he had expected gas industry representatives to show up and oppose the bill, and he was prepared to send SB 360 to a subcommittee for massaging, but no one appeared so he went ahead and held a vote.

SB 360 prohibits deduction of post-production expenses — such as transportation and processing for sale — from royalty payments.

The bill applies only to old flat-rate leases that were converted to one-eighth royalty leases based on a 1982 change to state code.

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