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HB 2413

Removing cap on numbers of wells operators required to pay annual oversight fee

2025 Regular Session Introduced by Evan Hansen

House Bill 2413 removes the cap on oversight fees for oil and gas well operators in West Virginia, ensuring all wells contribute to regulatory funding and oversight.

To House Energy and Public Works
#naturalresources
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WeVote Research Nonpartisan
Bill Summary · HB 2413

Summary of House Bill 2413 (HB 2413)

Bill Information:
- Bill Number: HB 2413
- Title: Removing cap on numbers of wells operators required to pay annual oversight fee
- Status: To House Energy and Public Works
- Introduced: January 31, 2025
- Classification: Bill
- Subject: Natural Resources

Purpose and Intent

House Bill 2413 aims to amend existing regulations regarding the oversight fees that operators of oil and gas wells are required to pay in West Virginia. The primary intent of the bill is to remove the cap on the number of wells for which operators must pay an annual oversight fee, thereby ensuring that all wells are subject to oversight regardless of their quantity.

Key Provisions

  • Removal of Cap: The bill eliminates the current limitation on the number of wells that operators are required to pay an oversight fee for. Previously, operators were only required to pay fees for a specified number of wells, which could limit the financial contributions towards regulatory oversight.

  • Annual Oversight Fees: The bill maintains the structure of annual oversight fees based on the production levels of the wells. The fees are categorized as follows:

    • $350 for each well producing more than 250,000 cubic feet of gas per day.
    • $75 for each well producing between 60,000 and 250,000 cubic feet of gas per day.
    • $25 for each well producing between 10,000 and 60,000 cubic feet of gas per day.

  • Fee Collection Timeline: The fees are to be collected annually, starting on July 1 of each year, from operators of wells that have not yet been plugged.

Who Would Be Affected

  • Well Operators: The primary stakeholders affected by this bill are operators of oil and gas wells in West Virginia. By removing the cap, operators with a larger number of wells will now be responsible for oversight fees for all their wells, potentially increasing their financial obligations.

  • State Regulatory Bodies: The bill is expected to enhance the funding available for the Office of Oil and Gas, which is responsible for the supervision and enforcement of regulations related to oil and gas extraction.

Procedural Aspects

  • Legislative Journey:
    • The bill was introduced on January 31, 2025, and has undergone several procedural steps, including being referred to the House Energy and Public Works Committee.
    • It has garnered multiple co-sponsors, indicating a level of support among legislators.
    • The bill is currently awaiting further action in the legislative process.

Conclusion

House Bill 2413 represents a significant change in the regulatory landscape for oil and gas well operators in West Virginia by removing the cap on the number of wells subject to oversight fees. This change aims to enhance regulatory oversight and ensure that all wells contribute to the funding necessary for effective management and enforcement of oil and gas regulations.

Compiled from official sources — confirm details with the bill’s official record.

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