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Which of those exist in West Virginia in what circumstances? Pooling and unitization can be done by agreement here. There is no mandatory gas well spacing. Forced pooling and unitization only exists in very limited circumstances. Right now in West Virginia the ability of one mineral owner or another party whose interests are affected by the drilling of a well to “force” well spacing and royalty sharing on the oil or gas well drillers or on reluctant mineral owners only applies in three circumstances. First, we have a statute that allows forced well spacing and royalty sharing for statutory “deep wells”. The reasons for that are explained later. Second, for statutory “shallow wells”, we have a statute that allows a coal owner to force well spacing and unitization upon wells drilled through their coal seams. Again, the reasons for that are explained later. Third, we have a statute that allows forced well spacing and royalty sharing for “coal bed methane wells”. And again, the reasons for that are explained later. Click here to learn about coal bed methane. The rest of this slide show will explain in further detail how the Rule of Capture operates; how it results in legalized stealing of oil or gas out from under neighboring mineral owners; why it results in unnecessary well drilling; how well spacing and royalty sharing would work and its benefits; and why many drillers want to avoid it. |
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