West Virginia Forced Pooling Bill is Dead for Another Year
Almost every year during the West Virginia legislature’s 60-day regular session (which happens at the beginning of each year) a forced pooling bill gets introduced. It happened again this year (see WV Makes a New Push for Forced Pooling Using New WVU Study). Just like every other year going back at least seven years, this year’s forced pooling bill has become mired in debate and will not make it out of committee for a vote.
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In February West Virginia Gov. Jim Justice announced a plan to eliminate the state’s personal income tax. In order to replace the $2.1 billion received annually from the personal income tax, Justice would raise other taxes, including a tiered system that potentially raises the state’s oil and gas severance tax…potentially by a lot (see 
Olympus Energy, the renamed Huntley & Huntley Energy Exploration (HHEX), concentrates its drilling in the Pittsburgh suburbs, including Upper Burrell and Allegheny Townships in Westmoreland County, PA. Olympus has just cut a $1.2 million deal with the Municipal Authority of the City of New Kensington to extend three miles of waterlines near three Marcellus well sites in Upper Burrell and Allegheny Townships.
Whether or not drilling companies have the right to deduct post-production expenses (processing the gas, pipeline transportation, etc.) has raged for more than a decade here in the Marcellus/Utica. Even if landowners have ironclad, very specific language in the contract prohibiting post-production deductions from royalties, some companies (*cough* Chesapeake Energy *cough*) still find ways to claim deductions anyway, leading to expensive and years-long lawsuits that benefit the lawyers more than anyone else. A decision in a recent Texas Supreme Court case gives landowners in the M-U some hope.
For years Vermont has made millions of dollars selling Renewable Energy Credits (RECs) to other states–a scam that allows pretentious environmentalists to claim they’re helping out the environment when in fact they still burn the same fossil fuels and biomass (i.e. woodburning) as they always did by paying a fee, a REC, and absolving themselves of feeling bad about it. Think of modern-day RECs like the Catholic Church selling indulgences in the Middle Ages to absolve you of your sins, or at least lessen the punishment for your sins. RECs are the new indulgences of the post-everything era we live in now. Selling REC indulgences is about to go away for Vermonters, and it may lead to widespread blackouts.
Joe Biden is proposing an insane “infrastructure” plan that will run into the trillions of dollars. All of that money comes from somewhere folks. Money is not free and you can’t simply print it forever without inflation going haywire and the U.S. becoming the new Venezuela. But we digress. As part of spending more money on infrastructure, Biden is looking to change the 50-year-old National Environmental Policy Act (NEPA), which regulates construction of infrastructure, by putting back into place strangling regulations that Donald Trump relaxed so it doesn’t take a decade to build a new road.
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