West Virginia Gov. Jim Justice in an unexpected move has vetoed two bills aimed at helping smaller natural gas producers in the state.
Justice
Articles from Justice
Brief — West Virginia EO
West Virginia Gov. Jim Justice has issued an executive order (EO) requiring regulators to expedite permitting “for all projects” and prioritize permits for projects of “critical economic concern.” The order, which would cover Marcellus and Utica shale drilling and infrastructure, requires written reports be made to permit applicants explaining inaction on critical projects. It also establishes annual reporting requirements from the state development office to the governor and legislature about the progress of expedited permitting. Justice, a Republican, said the actions mirror President Trump. Trump signed an EO in 2017 to expedite major infrastructure permitting.
Brief — West Virginia Legislation
West Virginia Gov. Jim Justicehas signed two bills into law that could have far-reaching impacts for oil and natural gas producers. Justice signed HB 4268, which takes effect July 1 and enacts co-tenancy. The bill would require a producer to obtain consent from 75% of mineral rights owners of a single tract of land. The legislation modernizes mineral laws and should help producers block up larger tracts of land for longer laterals. Justice also signed SB 360, which prohibits producersfrom deducting post-production expenses from landowner royalty payments.It takes effect May 31.

West Virginia Governor Reverses Position, Would Sign Co-Tenancy Legislation If Passed
In what’s been a stressful week for supporters of a delicate proposal to help West Virginia natural gas producers develop larger tracts of land with co-tenancy legislation, Republican Gov. Jim Justice backed off threats that he would veto the legislation unless the industry agreed to a higher severance tax rate.
WV Gov. Justice Proposes Help, Not Harm For NatGas Producers
West Virginia Gov. Jim Justice delivered his first state-of-the-state address late Wednesday, and the Democrat voiced strong support for Appalachian shale producers, saying a tiered severance tax should be established and the industry should be helped, not hindered by the state.
GOP Senators Tell Justice to Drop Inquiries Into Private Entity Views on Climate Change
Five Republican senators are calling on U.S. Attorney General Loretta Lynch to drop any investigations into private entities’ views on climate change, a probe that the Department of Justice has not acknowledged is ongoing.
Antitrust Investigation Targets Biggest U.S. Pressure Pumpers
Baker Hughes Inc. and Halliburton Co. said last week they have received civil investigation demands (CID) from the Department of Justice (DOJ) to provide documents and information on their pressure pumping businesses.
Antitrust Probe of Pressure Pumping Leaders Expands
Baker Hughes Inc. and Halliburton Co. said they have received civil investigation demands (CID) from the Department of Justice (DOJ) to provide documents and information on their pressure pumping businesses.
People
Former Enron Corp. CEO Jeffrey Skilling, 59, reached agreement with the U.S. Department of Justice that could allow him to be free as soon as 2017, according to a court filing. Skilling agreed to waive his rights to any further appeals and would allow more than $40 million of forfeited assets to be distributed to victims of Enron’s colossal collapse in 2001. Skilling was convicted in 2006 by a Houston jury on 19 criminal counts and originally was sentenced to federal prison for 24 years and four months (see NGI, May 29, 2006). The U.S. Court of Appeals for the Fifth Circuit in New Orleans twice said the sentence had been miscalculated (see NGI, April 11, 2011). “Although the recommended sentence for Jeff would still be more than double any other Enron defendant, all of whom have long been out of prison, Jeff will at least have the chance to get back a meaningful part of his life,” said Skilling attorney Daniel M. Petrocelli.
People
Former Enron Corp. CEO Jeffrey Skilling, 59, has reached agreement with the U.S. Department of Justice that could allow him to be free as soon as 2017, according to a court filing. Under the agreement, Skilling is waiving his rights to any further appeals and would allow more than $40 million of his forfeited assets to be distributed to victims of Enron’s colossal collapse in 2001. Skilling was convicted in 2006 by a Houston jury on 19 criminal counts and originally was sentenced to federal prison for 24 years and four months (see NGI, May 29, 2006). The U.S. Court of Appeals for the Fifth Circuit in New Orleans twice said the sentence had been miscalculated by the district court (see NGI, April 11, 2011). “The proposed agreement brings certainty and finality to a long painful process,” said Skilling lawyer Daniel M. Petrocelli. “Although the recommended sentence for Jeff would still be more than double any other Enron defendant, all of whom have long been out of prison, Jeff will at least have the chance to get back a meaningful part of his life.”