WV HB5414

Requires oil and gas well operators applying for permits after July 1, 2026 to either post a single-well bond covering full plugging and reclamation costs, or establish an escrow account to accumulate plugging funds over the well's productive life

Addresses the problem of orphaned wells in West Virginia by ensuring financial resources exist to plug horizontal wells when they cease production, preventing wells with no bona fide future use from remaining unplugged on surface owners' land

Escrow accounts must be held at federally insured banks, with funds invested in AAA-rated money market instruments and payment schedules based on production estimates, price projections, and inflation-adjusted plugging costs

The Chief of the Office of Oil and Gas determines bond amounts and escrow payment schedules, and has authority to order wells plugged using escrowed funds if operators fail to do so after statutory abandonment

Operators who fail to comply face forfeiture of their operating bond and must cease production from all wells they operate