Relating to funding for the DEP Office of Oil and Gas
Impact
The passage of HB2021 is expected to enhance the ability of the Office of Oil and Gas to effectively regulate and oversee oil and gas activities in the state. By providing a steady funding stream, the bill aims to ensure that the office can maintain a more adequate staff-to-well ratio, which currently stands at a minimal number of inspectors relative to the total active wells. This increase in funding is particularly pertinent in light of the ongoing issues with orphaned wells, which pose environmental hazards and need to be plugged swiftly.
Summary
House Bill 2021 aims to amend and reenact specific sections of the West Virginia Code related to the funding for the Office of Oil and Gas within the Department of Environmental Protection. A critical aspect of this bill is the introduction of an annual oversight fee of $100 for each oil and gas well that remains unpluggable. This fee is intended to provide stable and adequate funding for the office, which has historically relied on one-time fees from initial drilling permits, creating difficulties in maintaining consistent operational oversight.
Sentiment
The sentiment surrounding HB2021 appears to be generally positive among supporters who argue that the bill is essential for public safety and environmental protection. Many legislators, especially those concerned with environmental issues, view it as a necessary measure to streamline the oversight of oil and gas operations. However, concerns were raised by some stakeholders regarding the new fee structure and its potential financial impact on small operators within the industry.
Contention
Notably, there is contention surrounding the imposition of the $100 fee for each unpluggable well, with some industry representatives arguing that it could disproportionately affect smaller operators who may already be facing financial challenges. There is also apprehension regarding the handling of funds collected through this mechanism, particularly in ensuring transparency and that they are effectively utilized for their intended purpose of reclaiming and plugging orphaned wells. The bill's provisions for an annual report to the governor and legislature are aimed at assuring accountability.