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Lawsuit Against WV’s 2022 Forced Pooling Law Still Alive, for Now

Hopefully, we’re near the end of an effort to overturn a bill passed in early 2022 by the West Virginia legislature, Senate Bill (SB) 694, which finally brought forced pooling for shale wells to the Mountain State after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). A lawsuit brought by two West Virginia landowners seeking to overturn the state’s forced pooling (i.e., unitization) law was put on pause by a federal judge in December 2022 (see WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow). The federal judge said the lawsuit belongs in state court and that he did not have jurisdiction over the case. West Virginia officials disagreed and appealed the ruling to the next rung up the federal court ladder (see WV Appeals Lawsuit re Forced Pooling Law to Higher Fed Court). It took a while, but the U.S. Court of Appeals for the Fourth Circuit ruled two days ago that the federal district court judge didn’t do his job right (he DOES have jurisdiction) and bounced the matter back to him for resolution.
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WV Appeals Lawsuit re Forced Pooling Law to Higher Fed Court

Another twist in the effort to overturn a bill passed earlier this year by the West Virginia legislature, Senate Bill (SB) 694, which finally brings forced pooling for shale wells to the Mountain States after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). Earlier this month, a lawsuit brought by two West Virginia landowners seeking to overturn the state’s new forced pooling (i.e. unitization) law was put on pause by a federal judge (see WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow). The federal judge said the lawsuit belongs in state court. West Virginia officials disagree and have appealed his ruling to the next rung up the federal court ladder.
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WV Landowner Lawsuit to Block Forced Pooling Law Dealt Another Blow

A lawsuit brought by two West Virginia landowners seeking to overturn the state’s newly enacted forced pooling (i.e. unitization) law was put on pause by a federal judge on Dec. 1. The same two landowners had a previous version of the same lawsuit tossed by the judge back in September (see Lawsuit to Block West Virginia’s New Forced Pooling Law Tossed Out). The previous lawsuit sued the wrong people, according to the federal judge. This newer version sued the right people (mostly), but certain parts of it are more properly handled by state (and not federal) courts, according to the judge’s Dec. 1 ruling.
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Landowners Refile Lawsuit to Block WV’s New Forced Pooling Law

Two weeks ago, a lawsuit brought by two West Virginia landowners seeking to overturn the state’s newly enacted forced pooling (i.e. unitization) law was tossed by a federal judge (see Lawsuit to Block West Virginia’s New Forced Pooling Law Tossed Out). The judge told the landowners the lawsuit they filed had sued the wrong person/entity by suing Gov. Jim Justice for signing the measure into law. The judge left the door open for the lawsuit to be refiled. Taking the judge’s direction and advice, the landowners have just refiled the lawsuit, this time against the state Dept. of Environmental Protection, the Oil and Gas Conservation Commission, and Attorney General Patrick Morrisey.
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Lawsuit to Block West Virginia’s New Forced Pooling Law Tossed Out

Back in March, MDN told you about a bill passed by the West Virginia legislature, Senate Bill (SB) 694, which finally brings forced pooling for shale wells to the Mountain States after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). Shortly after passage, Gov. Jim Justice signed the bill into law. SB 694 went into effect on June 7, some 90 days following passage. However, two farmers from Brooke County sued Gov. Justice to overturn the new law claiming it is unconstitutional (see Landowners Sue to Block West Virginia’s New Forced Pooling Law). The lawsuit was thrown out last Wednesday.
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Landowners Sue to Block West Virginia’s New Forced Pooling Law

Back in March MDN told you about a bill passed by the West Virginia legislature, Senate Bill (SB) 694, which finally brings forced pooling for shale wells to the Mountain States after eight years of trying (see WV House Passes Forced Pooling Bill, Done Deal When Gov Signs). Shortly after passage Gov. Jim Justice signed the bill into law. SB 694 is set to become active on June 7, which is 90 days following passage. However, two farmers from Brooke County have just sued Gov. Justice to overturn the new law claiming it is unconstitutional.
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WV House Passes Forced Pooling Bill, Done Deal When Gov Signs

We’ve been tracking a bill in West Virginia that will finally, after more than eight years of trying, bring forced pooling to the Mountain State for Marcellus/Utica shale wells. Senate Bill (SB) 694 sailed through the WV Senate in record time and earlier this week hit the WV House. Yesterday the full House voted to approve SB 694 with some tweaks, sending it back to the Senate. Last night the Senate approved the House changes and the bill is now officially passed and on its way to the desk of Gov. Jim Justice for his signature. Will he sign it?
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Public Hearing Held on WV Forced Polling Bill, Final Vote This Week

Yesterday the West Virginia House Energy and Manufacturing Committee held a public hearing to elicit feedback and comments on Senate Bill (SB) 694, a bill that will, after nearly a decade, provide for forced pooling for shale wells in the state. The bill has already passed the WV Senate and likely will come up for a vote by the full House this week. Based on support from both drillers and landowner groups, it appears this bill is a done deal. Even surface owners are “OK” with the bill. Not thrilled, but OK. About the only dissent we could detect from the hearing is that some believe it doesn’t go far enough with forced pooling.
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WV Forced Pooling Bill Passes Senate, House Votes Next Week

One week ago MDN told you about the fast track for West Virginia Senate Bill (SB) 694, a bill that will, after nearly a decade, provide for forced pooling for shale wells in the state (see New WV Forced Pooling Bill Moves Rapidly, Up for Full Senate Vote). Over the past week, the bill passed a vote by the full WV Senate, went to the House Judiciary Committee (where it passed), and is likely due for a vote by the full House next week. This one looks, by all accounts, like a done deal.
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New WV Forced Pooling Bill Moves Rapidly, Up for Full Senate Vote

Will this finally be the year that West Virginia has a new forced pooling bill passed into law? Quite possibly, given the supersonic speed with which Senate Bill (SB) 694 was introduced and, without any discussion, passed through the Senate Finance Committee (at the last possible moment), and sent on to the full Senate for a vote. Of course, the bill still has to go to the WV House. SB 694 is complicated, but this time the bill appears to have widespread support, not only from drillers but from royalty owners too.
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ODNR Drops “Market Enhancement” Clause in Forced Pooling Orders

Ohio mineral rights owner Gateway Royalty researched unitization (aka force pooling) in the state and discovered a disturbing change introduced in existing unitization beginning three years ago. Since February 13, 2018, a “market enhancement” clause has been included in Ohio Dept. of Natural Resources’ (ODNR) forced pooling unitization orders, which allows the unit operator to deduct post-production costs from the royalties owed to mineral owners. These post-production costs are sometimes as much as 95% of the gross sale price. Gateway called attention to the practice and ODNR has since backed down and no longer includes the market enhancement clause in new unitization orders.
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ODNR Change to Forced Pooling Unitization in 2018 Reduces Royalties

In May MDN brought you the news that Ohio mineral rights owner Gateway Royalty was sounding the alarm over a new bill quickly advancing in the Ohio legislature. House Bill (HB) 152 would use forced pooling if 65% of a proposed unit’s landowners are leased (too low a bar) and also would force the landowner to accept a 12.5% royalty and force them to accept post-production deductions with royalties in some cases potentially going down to nothing (see Ohio HB 152 Forced Pooling Bill Disadvantages Unleased Landowners). As part of their effort to either defeat or significantly change HB 152, Gateway has been researching unitization (aka force pooling) in the state and discovered a disturbing change introduced in existing unitization beginning in 2018.
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Muskingum Watershed Joins Fight Against Ohio Forced Pooling Bill

In May MDN brought you the news that landowner Gateway Royalty was sounding the alarm over a new bill quickly advancing in the Ohio legislature. House Bill (HB) 152 would use forced pooling if 65% of a proposed unit’s landowners are leased (too low a bar) and also would force the landowner to accept a 12.5% royalty and force them to accept post-production deductions with royalties in some cases potentially going down to nothing (see Ohio HB 152 Forced Pooling Bill Disadvantages Unleased Landowners). Another major Ohio landowner with considerable acreage leased to the Utica Shale industry, the Muskingum Watershed Conservancy District (MWCD), is adding its voice of opposition to HB 152.
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Ohio HB 152 Forced Pooling Bill Disadvantages Unleased Landowners

Gateway Royalty is sounding the alarm over a new bill that’s quickly advancing in the Ohio legislature. Ohio’s House Bill (HB) 152 allows drillers to force-pool landowners if 65% of a drilling unit is signed to a lease–a pretty low bar if you ask us. But that’s not even the worst part. The reluctant landowner would receive a standard 12.5% royalty, no matter what the royalty is for the rest of the leases in the unit, AND post-production deductions would be taken out. Landowners could realistically see a 6.25% royalty…or less! It’s time to burn up the phone lines to either get this bill changed, or defeated.
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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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WV O&G Pushes Hard for Forced Pooling Law, Landowners Push Back

Last week MDN brought you news of a new forced pooling bill under consideration in this year’s West Virginia legislative session (see WV Makes a New Push for Forced Pooling Using New WVU Study). Forced pooling is one of those rare issues where drillers and landowners are typically on opposite sides of the debate. The WV drilling industry continues to press hard for this new bill, while landowner groups continue to push back just as hard against it.
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