The Senate Committee on Energy, Industry & Mining met Tuesday afternoon to continue discussion over Originating Bill 2 from last the meeting.
The proposed legislation would amend current West Virginia code to provide permitting fees for horizontal oil and gas well drilling in the state. Permit fees would go through the Department of Environmental Protection (DEP). Proceeds from the fees would be cut in half; one half would go to additional staffing for permits at the DEP with a hard cap of $ one million, and the other half would go to funding for plugging orphan wells.
One of the presenters provided information about how the proposed bill would impact the state’s efforts in plugging orphan wells.
Currently, there are 4,000 plus orphan wells in West Virginia, and that number is expected to exceed 10,000 the next 30 years. It costs between $40,000 – $100,000 to plug just one well.
Funding from this bill could range from $2.7 to $4.7 million per year, which would provide enough funding to plug 40 – 70 wells per year. If this legislation becomes law, it would take anywhere between 67 -107 years to fill all of the orphan wells in West Virginia.
After questioning counsel and other speakers, the Committee voted to approve the originating bill. It will be reported to the full Senate to be voted on.
RA
