CHARLESTON, W.Va. — Legislation dealing with property rights, gas drilling and forced pooling is nothing new in Charleston, but this year’s version of the bill dealing with those circumstances is far less considerate of private property owners’ rights, according to Charlie Wilfong of the West Virginia Farm Bureau.
Wilfong has been lobbying on behalf of property owners to create a framework for dealing with the natural gas industry on how to properly compensate landowners when a gas company attempts to pull together a group of mineral rights holders for the purpose of horizontal drilling.
“We want our folks to be treated fairly and we want our property rights protected in this,” he said. “It’s either been their way or the highway, especially with EQT.”
EQT is the largest driller in West Virginia working to acquire mineral rights for drilling. Wilfong said in an appearance on MetroNews Talkline the framework for negotiation hasn’t been fair in the legislation now being touted at the State Capitol.
“One of the things we really need to see is at least some negotiation from the oil and gas companies for placement of the well pads and roads on our property,” he said. “So that it doesn’t totally disrupt our agricultural enterprises.”
But industry representatives say they have made concessions and property rights have been considered throughout the process. One unnamed industry official indicated to MetroNews frustration by the industry in regard to working with landowners, “…it’s always one more thing.”
Plus, the West Virginia Oil and Natural Gas Association argues existing mineral rights leases already allow for drilling; the only difference is the drilling will be horizontal and not vertical, which may not have been contemplated under old leases.
Wilfong disagrees and said in this year’s talks there has been very little give and take by the industry. He feared members would suffer the brunt of property damage which would eat up any money earned through the lease and well pad installation agreements. He was also critical of the state’s attitude toward royalties on gas extraction.
“Today if the state of West Virginia leases any property to an oil and gas company they mandate a 20 percent minimum royalty with no deductions,” said Wilfong. “If that’s good enough for the state, why is that not good enough to the individual citizens of West Virginia.”
Senate Bill 576 was on third reading with a right to amend on the Senate Floor Monday.