Energy Law Update: W.Va. Law Clarifies Notice Requirements for Coalbed Methane Development
On May 6, 2009, West Virginia Governor Joe Manchin signed Senate Bill 613 into law, making several clarifications to the notice process for permitting and pooling coalbed methane wells and coalbed methane drilling units. These new notice provisions clarify who is entitled to personal service of notice for pooling and permitting applications. In addition, the new provisions establish a method to provide legal notice to parties in a pooling proceeding who cannot be located, whose identities are unknown, or whose claims do not arise from the coal or natural gas chain of title. The bill takes effect July 10, 2009.
With the changes made by Senate Bill 613, the Legislature clarified that the parties entitled to receive personal notice of an application for a coalbed methane well work permit are the owners and operators identified in West Virginia Code Section 22-21-9, which include (1) the owners of record of the surface tract(s) where the coalbed methane well will be located or which will be used for roads; (2) coal owners and coal operators within 750 feet of the wellbore or whose consent is required under other sections of the coalbed methane statute; and (3) oil and gas owners and oil and gas lessees to the top of the Onondaga surrounding the wellbore. Senate Bill 613 also revised the required notice to be given to owners and operators of coal seams located within 100 vertical feet of the completion coal seams of the proposed well by making clear that notice need only be provided to such owners and operators within 100 vertical feet if the coalbed methane well will be stimulated.
In addition, Senate Bill 613 amended West Virginia Code Section 22-21-16 to clarify that personal service with respect to pooling applications shall be made on (1) coal owners and operators of the targeted seam within the unit; (2) natural gas owners and operators above the Onondaga within the unit; and (3) any party who is a record owner of an interest in coalbed methane acquired from one of the aforementioned parties. In addition to personal service, the bill added an additional notice provision, requiring that at least 30 days prior to the pooling application hearing date, the applicant must publish a Class II legal advertisement in the county or counties where the well unit is located. A new subsection has been added to West Virginia Code Section 22-21-16, which provides that notice by the applicant to all persons entitled to notice under Section 22-21-16(a) and notice by publication as provided in Section 22-21-16(b) shall be deemed to be sufficient notice to all potential claimants to ownership of the coalbed methane.
Ryan J. Morgan
P.O. Box 1588
Charleston, WV 25326-1588
Phone (304) 353-8000
Fax (304) 353-8144
ryan.morgan@steptoe-johnson.com
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