A controversial oil and gas bill passed the West Virginia Senate Saturday morning — the farthest a bill with similar goals has ever gotten.
House Bill 4268, or the so-called “co-tenancy” bill, passed 23-11 during a floor session, but not without more debate. On Friday, Senators debated for at least an hour over three amendments that didn’t pass.
The bill would allow natural gas and oil companies to drill on land with the consent of at least 75 percent of the owners. It’s a simpler iteration of similar bills introduced the last few years. Three years ago, the “forced pooling bill” died the last night of the session with a tied vote, and last year, the bill included a provision for “joint development.” That bill died on the House floor, where it originated this year.
Sen. Charles Trump, R-Morgan, chair of the Senate Judiciary Committee, made a point of addressing that this version of the bill had no provisions for forced pooling or joint development.
“This bill is at its essence a property owners’ rights bill,” he said.
But that didn’t sway Sen. Michael Romano, D-Harrison, who proposed amendments in the Senate judiciary committee this week as well as on the Senate floor Friday, and spoke against the bill Saturday.
The bill makes it too easy for big companies to take property and make a profit, Romano argued. He voted against it.
“This is about the love of money and power,” he said.
Advocates of the bill have repeatedly said the bill is a delicate compromise of priorities, and were happy to see the bill pass Saturday.
“Surface owners are pleased the bill passed and we can now get the legislature to focus on other issues we care about and that it has the surface protections in it that it does, including the money going to plugging orphan wells,” said Dave McMahon, founder of the West Virginia Surface Owners Rights Organization.
The bill includes an amendment to give 50 percent of unknown owners’ interest on the minerals to a Public Employees Insurance Agency stability fund. The fund has been a point of conflict for lawmakers trying to figure out how to better pay teachers and public employees.
“If you vote against this bill, you’re voting against funding PEIA,” Trump said, eliciting chatter and groans from the gallery.
Seeing the bill advance is a success, said Delegate Bill Anderson, R-Wood, lead sponsor of the bill.
“It’s an important step in modernizing our mineral laws in West Virginia, it’s an important step in allowing people to enjoy the full use of their property that’s been held up some times by multiple ownerships,” he said.
He said he’s “optimistic” Gov. Jim Justice will sign the bill into law.
Earlier this week at a town hall meeting with teachers at Wheeling Park High School, Justice called for a special legislative session for the bill and urged senators to kill it. Later, he changed his mind, supporting the bill again.
The bill will diversify the economy, generate jobs and create severance taxes, said Phil Reale, lobbyist for the Independent Oil and Natural Gas Association.
“I would hope the governor would sign the bill, I can’t imagine why he wouldn’t want those things happening,” he said.
