By Mike Tony, Charleston Gazette-Mail
CHARLESTON, W.Va. — West Virginia lawmakers have advanced legislation designed to discourage nonpayment of royalties due from oil, natural gas or natural gas liquids production.
The state House Energy and Manufacturing Committee on Tuesday approved House Bill 4292, which would set a penalty for nonpayment of royalties under oil and natural gas leases during production from conventional vertical wells.
Under HB 4292, any lessee or operator of oil, natural gas, or natural gas liquids who fails to pay a royalty payment for mineral production to a lessor under the terms of a lease or other agreement within six months after the date payment is due would be liable for three times the market value of the extracted minerals for which payment is due. The lessee or operator also would be liable for attorney’s fees.
The Energy and Manufacturing Committee advanced the bill to the House Judiciary Committee, where an identical version of the bill stalled last year when it was called HB 3335.
