West Virginia’s co-tenancy law is working, but there are still kinks to be worked out with the fledgling law, attendees of the fall meeting of the West Virginia Oil & Natural Gas Association learned Thursday.
Co-tenancy, which passed last year and became law in July 2018, is designed to advance the state’s natural gas industry. It requires 75% of land owners to approve gas drilling on site. Perhaps more importantly, however, it gives non-consenting owners a pro-rata share of lease bonuses and royalties on a working natural gas well.
Besides advancing the state’s natural gas industry, the idea behind the bill is how to deal with property that may have been divided many times throughout the years and has more than seven owners.
“The bill is working,” said Jamie Chapman, a land litigation attorney at Antero Resources in Pittsburgh during the meeting held at the Morgantown Marriott at Waterfront Place. “It fits and makes sense.”
“There is something for everyone.”
Money earned from gas leases for unknown owners are placed into a State Treasurer’s account. After seven years, however, those funds may revert back to the state if they are not claimed.
Anne Blankenship, executive director of WVONGA, said it will be a while before the law is fully understood.
“Everyone reads rules differently,” she said. “We’re making progress.”
The meeting, which attracted 160 attendees, wraps up today at the Marriott.
The opening speaker will be Charlotte Lane, chairman of the West Virginia Public Service Commission, who will talk about industry issues within the state. Anand Yegnan, director of Gas Transmission Business Development for Dominion Energy Transmission, will give an update on the Atlantic Coast Pipeline.
Austin Caperton, secretary of the West Virginia Department of Environmental Protection, is scheduled to discuss the Appalachian Petrochemical Renaissance.
Other issues that will be discussed include the future of petrochemicals in the Mid-Ohio Valley, and how to deal with marijuana and other drugs in the workplace.
