WV SB1005

Expands oil and gas production reporting requirements from horizontal wells only to all oil and gas wells in West Virginia, requiring operators to provide detailed payment information including production volumes, prices, deductions, and contact information to interest owners

Extends payment timelines from 60 to 90 days for subsequent sales after initial production, while maintaining the $100 minimum threshold before remittance and mandatory annual payments to interest owners

Codifies royalty calculation standards based on Wellman v. Energy Resources (2001) and Estate of Tawney v. Columbia Natural Resources (2006) court decisions, requiring lessees to bear all costs of exploring, producing, marketing, and transporting product to point of sale unless leases expressly provide otherwise

Establishes penalties for inaccurate royalty payments including treble damages (three times the disputed amount) plus attorney fees if a court rules in favor of the lessor, with automatic lease termination if royalties remain unpaid 30 days after written notice

Requires quarterly reporting to the WVDEP Office of Oil and Gas on production volumes, actual prices received, and severance taxes paid, with lessors granted audit rights and electronic monitoring access to wells associated with their leased premises