Legislative Priorities

2025 LEGISLATIVE SESSION ENDS WITH PASSAGE

OF SEVERAL IMPORTANT BILLS

 

The Government Affairs Committee of the Gas and Oil Association of West Virgina (GO-WV) is providing this summary from the 2025 WV Legislative Session that conclude on Saturday April 12.  There were several bills that passed that are beneficial to GO-WV and its members.  While the actual bill text can be found on-line by bill number at Bill Status – West Virginia Legislature, here is a summary explanation:

 

 

WVDEP supports passage of well plugging revisions:

Committee Substitute for House Bill 3336— defines the terms “modern well” and “non-modern well” and modifies plugging requirements to eliminate four and one-half inch casing for modern or later-day wells, it eliminates the removal of intermediate or surface casings for non-modern or older well and establishes requirements concerning plugs and casing perforation, establishes monitoring and documentation requirements, and finally exempts the removal of casing under certain defined circumstances.  This bill passed the House of Delegates and Senate and completed legislative action on April 11, was sent to the Governor on April 22. Industry members view this as a positive and cost-saving development.  GO-WV supported this legislation that was signed into law by Governor Morrisey on April 25, 2025 and becomes effective July 10, 2025.

 

One Stop Shop Permitting soon available:

Committee Substitute for House Bill 2002—creates the One Stop Shop Permitting Program in West Virginia that establishes a Permitting Dashboard to operate as a “one-stop-shop” for obtaining and renewing permits, licenses, and business registrations.  The Act requires the Secretary of the Department of Administration to coordinate and lead permitting agencies in implementing the program, to establish certain permitting and renewal fees, creates a refund requirement for late processing of a permit, creates the option to file applications for permits directly with participating agencies until July 1, 2027, provides exceptions to mandatory use of the permitting dashboard, and protects confidential information submitted with applications.  Permitting agency means any division, office, board, or other entity under the following departments or offices of this state that grants, issues, denies, or revokes a permit or business registration: (1) The Department of Commerce; (2) The Department of Environmental Protection; (3) The Office of Environmental Health Services; (4) The Department of Revenue, except the Lottery, Lottery Commission, and the Division of Financial Institutions shall be exempt; (5) The Department of Tourism; (6) The Department of Transportation (not including the Division of Motor Vehicles), and (7) The Secretary of State. This bill passed the Senate and the House of Delegates and completed legislative action on April 10, was sent to the Governor on April 15.  GO-WV supported this legislation that was signed into law by Governor Morrisey on on April 30, 2025, and becomes effective July 10, 2025.

 

 

 

HB 2014: Data Center Microgrids Creates Opportunities for Natural Gas Developers:

Committee Substitute for House Bill 2014—which creates the Power Generation and Consumption Act of 2025, seeks to incentivize the development of high impact data centers (HIDCs) and microgrid districts. The bill, introduced at the request of the Governor, establishes the Certified Microgrid Development Program and provides a new regulatory structure that facilitates third-party electric generation. This new framework creates a significant opportunity for natural gas developers to serve as key infrastructure partners to provide reliable, cost-effective energy to data-intensive facilities.

The bill rebrands the existing “Certified Industrial Business Expansion Development Program” as the “Certified Microgrid Development Program” and modifies the requirements of the existing two microgrid districts that were previously designated to BHE Renewables and Fidelis. Of note, it removes the limitation that only renewable resources may be used to generate electricity within the microgrid districts. While it keeps the cap on districts at two, it provides an unlimited cap on microgrid districts that feature a HIDC that consumes greater than 70% of the power generated within the microgrid district. A HIDC is defined as a data facility or group of facilities that is placed in service after July 1, 2025, with a minimum critical IT load of 90 megawatts, and is used for large-scale data storage, management, and transmission.

Electric generators within microgrid districts are exempt from Public Service Commission oversight in key areas, such as rates, service conditions, and net metering, but they are limited to selling no more than 10% of the electricity generated to the wholesale market. The infrastructure within these districts must be fully self-funded by the developer; regulated utilities and their broader customer base cannot bear any costs associated with microgrid generation, distribution, or grid interconnection. The program is limited to “new electric load,” meaning it only applies to new facilities or major expansions that do not reduce energy usage elsewhere in the state.

The bill also establishes the High Impact Data Center Program to be administered by the Division of Economic Development. To initiate the process to become a certified HIDC, developers must submit a confidential letter of intent to the Secretary of Commerce that includes detailed economic, engineering, and financial information about the proposed project. This must be preceded by a 120-day good faith negotiation effort with the local utility, unless the project generates 300 megawatts or more or intends to remain fully disconnected from the local grid.

The Department of Commerce is directed to assist both certified HIDCs and certified microgrid districts. Importantly, these projects are exempt from county and municipal zoning, permitting, and regulatory restrictions, providing fast-track development benefits. However, they must still meet state building code requirements and pay local utility, tax, and service obligations.

A special property tax valuation and revenue distribution method is established for HIDCs effective from July 1, 2025, through December 31, 2055. A base assessed value of data center property is locked in prior to certification, with annual comparisons made to determine an incremental value. Taxes generated from the increased value (the tax increment) are redistributed under a special formula. The use of Payment in Lieu of Taxes and Tax Increment Financing agreements for generation and distribution assets within the district. However, properties already entitled to special tax valuations (such as those applicable to natural gas assets) may retain those benefits.

The tax increment revenue is distributed as follows: 50% to the state’s Personal Income Tax Reduction Fund, 30% to the situs county, 10% distributed to counties statewide, and 5% each to the Economic Enhancement Grant Fund and Electric Grid Stabilization and Security Fund. The newly created Electric Grid Stabilization Fund is to be utilized to provide support for grid stabilization for regulated utilities and grid security but may not be used for the decommissioning or replacement of coal or gas assets.

In summary, this program presents a strategic opening for natural gas developers to play a foundational role in anchoring microgrid districts with reliable and scalable energy solutions. Natural gas producers can secure long-term energy customers while benefiting from streamlined regulations and clear tax and cost structures. This bill passed the House of Delegates and Senate and completed legislative action on April 12.  GO-WV fully supported this legislation that was signed into law by Governor Morrisey on April 30, 2025 and becomes effective July 11, 2025.  (Special thanks to James Bailey, Esq., Spilman Thomas & Battle, PLLC, who authored this individual bill report.)

 

Damages associated with unpaid royalties increased:

 

Committee Substitute for Senate Bill 22— Provides for enhanced damages for non-payment of royalties due from oil, natural gas, or natural gas liquids on well production under the terms of a lease or other agreement. It  provides that treble (3x) damages for unpaid royalties after non-payment for six months, unless there is a bona fide dispute or the damages are otherwise provided in writing. It also provides for proper jurisdiction and a venue for causes of action to resolve disputes and provides for the prevailing party to be awarded reasonable attorney’s fees and costs.  These damages apply to disputes filed on or after July 1, 2025.  This bill passed the Senate and the House of Delegates and completed legislative action on April 7, was sent to the Governor on April 9.  GO-WV is on record supporting the payment of royalties to lessors as provided in lease agreements unless there is a valid justification for not doing so.  This legislation became law on May 1, 2025, without the Governor’s signature, and becomes effective July 6, 2025.

Carbon Sequestration under state parks approved:

Committee Substitute for Senate Bill 627— Removes the prohibition against leasing state-owned pore spaces underlying lands designated as state parks for the sequestration of CO2.  It prohibits any disturbance of the surface of WV state park property for any drilling or injection activity; requires monetary proceeds from any leased state-owned pore spaces underlying state forests, state parks, natural and scenic areas, wildlife management areas, under the jurisdiction and control of the Director of the WVDNR be used exclusively where the leased pore space is located. It also has a setback provision requiring that the center of any well pad leased for pore space underlying state parks may not be located within 200 feet of a state park boundary.  The  Secretary of the Department of Commerce, in consultation with the Director of the Division of Natural Resources, may waive the setback requirement after considering the other various impact of the lessee’s proposed well-site location.  This bill passed the Senate and the House of Delegates and completed legislative action on April 9, was sent to the Governor on April 12. GO-WV worked in support of this legislation that was signed into law by Governor Morrisey on April 24, 2025, and becomes effective July 8, 2025.

WVDEP jurisdiction is more clearly defined:

Committee Substitute for Senate Bill 823—Revises the statutes to clarify and separate duties identified in the code between the Division of Emergency Management and the West Virginia Department of Environmental Protection (WVDEP) according to what each agency has the resources and expertise to fulfill.  It delegates the investigation of industrial facility emergency events and emergency incidents by well and pipeline operators shall be conducted by the WVDEP and applies the jurisdiction any fines and penalties imposed upon industrial facilities and well and pipeline operators to the WVDEP.  This bill passed the Senate and the House of Delegates and completed legislative action on March 31.   GO-WV did not oppose this legislation that was signed into law by Governor Morrisey on April 8, 2025, and becomes effective June 29, 2025.

There were several other pieces of legislation supported by GO-WV that unfortunately did not pass that would have been helpful including:

 

Modification of Statue of limitations on contracts, bonds and more:

Committee Substitute for SB 124—that sought to amend the statute of limitations reducing the time within which to bring actions to recover on written and oral contracts, certain bonds, and recognizances; and clarifying that the discovery rule applies to the affected statutes of limitations. As proposed and passed by the Senate, the limitations would have been reduced from 10 years to 5 years to comport with most other surrounding states.

Committee Substitute for Senate Bill 592 that sought to amend the Aboveground Storage Tank Act originally passed in 2014 and would have specifically exempted tanks having a capacity of 210 barrels or less, containing brine water or other fluids produced in connection with hydrocarbon transmission, storage field activities, or production activities, that are in a zone of critical concern.

Committee Substitute for Senate Bill 899 that sought to protect coal and oil and gas minerals from carbon capture practices by requiring that before a permit application may be approved, the secretary shall require a storage operator design a carbon sequestration project to isolate any existing or future production from the commercially valuable mineral, including the coal or oil and gas estate, from the carbon dioxide plume.

House Bill 2736 that sought provide continuity of service provided by or through an underground facility to ensure the safety of the public and operator personnel.

And finally, there were numerous bills which GO-WV did not support that failed to pass that would have been detrimental to our industry or members. Here is a short list of some that would have:

  • SB-720: Sought the requirement of filing a unit declaration within 60 days of filing a drilling permit application.
  • SB-840 and HB-3231: Sought to require producer/operators to withhold and remit estimated WV State Income Tax paid from natural resources royalty payments to nonresident lessors.
  • HB-2413: Sought to remove the cap on the number of wells to which a producer must and annual oversight fee.
  • HB-2414: Sought to modify and increase the setback limit of disturbance of a well site to no closer than 2,500.
  • HB-2416: Sought to require revised bonding requirements on new wells.
  • HB-2822: Would have prohibited public utilities from terminating or disconnecting services.
  • HB-3036: Sought to standardize oil and gas leases, deeds, or contracts.
  • HB-3112: Supported the installation of air monitor devices near facilities that emit air pollution.
  • HB-3174: Sought to assess impacts on any large water withdrawals to jurisdiction of the WVPSC.
  • HB-3310: Sought to force utility companies to absorb certain maintenance and upgrade costs.
  • HB-3401: Sought the recording of notices regarding possible surface encumbrances overlying

     minerals parcels under development.

Should you have any questions or these or other bills not identified here, please call the GO-WV office at 304-344-9867 and ask for Charlie Burd, President.