WV HB3416

Requires operators of new horizontal oil and gas wells permitted after July 1, 2026, to post either a single-well bond covering the full cost of plugging or establish an escrow account to fund future plugging costs

Escrow accounts must be held with federally insured banks, with payment schedules based on production estimates, product prices, and projected plugging costs, requiring higher payments during initial high-production periods

The Chief of the Office of Oil and Gas controls disbursement of escrow funds, releasing money only when a well is properly plugged or using the funds to plug abandoned wells if operators fail to do so

Operators must submit annual reports on escrow fund status, and failure to comply with the law results in forfeiture of operating bonds and cessation of production from all wells they operate

Aims to prevent new wells from becoming "orphaned" on surface owners' land without adequate funds for plugging, addressing environmental concerns including gas and oil leaks, groundwater contamination, and surface property devaluation