West Virginia

Tulsa-based Samson Resources II LLC reported 30-day initial production of 2,339 boe/d (97% oil) from the Spearhead (Federal 11-2635 4075) well in the Shannon formation in Converse County, WY, within the Powder River Basin. With about 145,000 net acres in the PRB, the board is considering expanding its delineation program. An operating budget is be finalized late in 1Q2019.

Diversified Gas & Oil plc is doubling down on its well plugging obligations across the Appalachian Basin, defending its commitment to the process in West Virginia, where it’s being challenged by a skeptical landowner rights organization that’s concerned about how far the company is willing to go to fulfill its responsibilities.

West Virginia has been accepted as the 14th member of the Energy Council, an international nonpartisan legislative organization whose members are focused on a wide variety of energy-related issues.

The Mountain Valley Pipeline (MVP) has again been ordered to temporarily stop work on a small stretch of the project in southern West Virginia so that a circuit court judge may review a pending appeal filed by landowners and environmental organizations.  

Rover Pipeline LLC has agreed to pay a $430,030 civil penalty for numerous sediment and erosion control violations during construction in West Virginia, according to a consent order released by the state’s Department of Environmental Protection (WVDEP).

West Virginia has filed a motion to dismiss EQT Corp.’s federal lawsuit challenging the state’s flat-rate lease statute, arguing that the state can’t be coerced by the company to reverse its laws.

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.

EQT Corp. has filed a lawsuit in federal court arguing that West Virginia’s flat-rate lease statute is unconstitutional. Legislators last month passed a bill prohibiting post-production expenses from being deducted from flat-rate royalties.

The co-tenancy legislation that passed during this year’s regular session in West Virginia is generally expected to aid natural gas development, but exactly how significant its impact will be remains unclear.