Regulation

Yesterday MDN reported a story that (so far) few others have bothered to report: West Virginia’s House Bill (HB) 2688 failed to gain passage at literally the eleventh hour–one hour before the annual 60-day session ended (see Republicans (!) Help Defeat WV Forced Pooling at 11th Hour). We believed, and repeated, the reporting we saw on the final vote–that Republicans were largely responsible for the last minute defeat of the bill. That was inaccurate. We were contacted yesterday by Ron Hayhurst, head of the West Virginia Royalty Owners Association, who was himself very much a part of brokering what he believes is the best possible bill (HB2688) to protect mineral rights owners in the Mountain State. Ron told us the last minute change in the House vote had nothing to do with Republicans defecting–and he is right. Although House Del. Pat McGeehan (a Republican) voted “no” both times, he was not the hero of the day, as reported in some media accounts. The truth is this: WV Democrats got their knickers in a twist over losing several other votes last Saturday and they decided to punish the Republicans by denying them passage of this bill. The original House vote was 60-40 in favor of HB2688. The final vote was 49-49 tie (with 2 people missing in action for the final vote). Of the 11 who changed their votes (names below) from “yes” the first time to “no” the second time–all 11 were Democrats. There were two Republicans who changed from an original “no” to vote “yes”–but it wasn’t enough to eke out a win. Hayhurst says when forced pooling is passed (a question of when, not if) the bill may not be as favorable to mineral rights owners as this one was…
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In a stunning upset at the eleventh hour, WV House Bill (HB) 2688, a bill that allows forced pooling (and a bill that seemed assured of passage just last Friday) died in a rare tied vote. On Friday, we told you HB2688 was all but a done deal (see Looks Like Forced Pooling is, After 5 Years, Coming to WV). So what happened? As predicted, the bill went to the WV Senate where it was passed on a vote of 24-10. The House had previously passed it on a vote of 60-40, but the bill had amendments that took it back to the House for final passage on the very last day of the regular session (Saturday). The last vote on the bill ended up in a rare tie of 49-49. When a vote on a bill ends in a tie, it doesn’t pass. And there it ended. Why did the vote swing from a comfortable margin the first time it passed in the House to a tie the second time? It largely appears to be the efforts of House member Pat McGeehan, a Republican, who calls forced pooling “legal plundering”…
Read More “Republicans (!) Help Defeat WV Forced Pooling at 11th Hour”

Sadly, it appears that West Virginia House Bill (HB) 2688 is all but passed in the WV legislature. The WV legislature meets for 60 days each year (we wish it were that way in New York!). There’s only three days left in the session for this year and HB2688 has been on a freight train fast track. We told you last week the bill had passed the House and had gone to the Senate (see WV Forced Pooling HB2688 Passes House, Heads to Senate). The bill was voted on and passed in the Senate Judiciary Committee. The next stop is a vote by the full Senate and Charleston insiders predict it will pass with a minimum of fuss. This forced pooling bill is supposedly different than previous versions that failed to pass over the past five years. HB2688 requires 80% of surrounding land to be leased before the final 20% can be forced to allow drilling under (not on) their land. Good for the 80% and for drillers, but it violates the sacrosanct property rights of the 20%. In addition to HB2688, a second bill important to the oil and gas industry is poised to pass, Senate Bill (SB) 423, which will lessen the reporting burden from a previous law that requires all above ground storage tanks to be registered…
Read More “Looks Like Forced Pooling is, After 5 Years, Coming to WV”