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West Virginia Bill SB 1005 requires detailed oil and gas production reporting, mandates post-production cost transparency, and sets penalties for late royalty payments

Original title: Clarifying processes of royalty payments for wells in this state

Last action · February 19, 2026: To JudiciarySponsors: Tom Willis and 1 other

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

West Virginia Senate Bill 1005 establishes strict reporting requirements, payment calculations, and auditing procedures for oil and natural gas well royalties. The measure prohibits lessees from deducting from mineral owners' royalties unless explicitly authorized by the lease, and imposes interest penalties and potential lease termination for late or inaccurate payments.

Why it matters

Mineral owners gain enforceable rights to audit production records, inspect daily well data, and receive detailed monthly statements, while producers face financial penalties and automatic lease termination if royalty payments are withheld beyond statutory deadlines.

Background
  • West Virginia royalty calculations have historically been shaped by landmark state Supreme Court rulings including Wellman v. Energy Resources, Inc. and Estate of Tawney v. Columbia Natural Resources, L.L.C. context
  • The West Virginia Legislature previously enacted §22-6-8 in 2018 to reaffirm standard royalty interpretations for flat-rate leases following previous court rulings. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Mineral Owners and Lessors

Mineral owners receive enhanced monthly reporting, audit rights, electronic well monitoring access, and stricter protections against unauthorized cost deductions.

Directly affected

Oil and Gas Operators and Lessees

Operators must comply with mandatory monthly reporting, absorb post-production costs unless leases explicitly state otherwise, provide audit and monitoring access, and face penalties or lease termination for late payments.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What information must be included with my royalty payment?
Payments must include well identification numbers, production month and year, total volumes and prices of oil, gas, and liquids sold, gross proceeds, itemized deductions, the owner's interest decimal, and producer contact information.
Can a producer deduct transportation and processing costs from my royalty?
Producers cannot deduct unless your oil and gas lease explicitly outlines those exact deductions, identifies specific cost types, and specifies the calculation method.
What happens if my royalty payment is late?
Late payments trigger an interest penalty equal to the prime rate plus two percent, compounded quarterly. If payment is not made within 30 days of receiving a written notice of nonpayment, the lease automatically terminates.
Do I have the right to audit my oil and gas producer?
Yes. Mineral owners may conduct an annual audit of the lessee's books and records pertaining to the development and sale of leased minerals upon reasonable prior written notice.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in Senate committee.

Procedural history

4 actions
  1. Feb 19, 2026SenateCommittee
    To Judiciary
  2. Feb 19, 2026SenateIntroduced
    Introduced in Senate
  3. Feb 19, 2026SenateCommittee
    To Judiciary
  4. Feb 19, 2026SenateIntroduced
    Filed for introduction

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Codification of Judicial Precedent

The bill explicitly references historical West Virginia court decisions such as Wellman and Tawney to cement existing judicial interpretations into statute.

Connected Entities

Laura Chapman, Tom Willis, Leggett v. EQT and 5 more
PersonLaura Chapman“Cosponsor of Senate Bill 1005”Map →
PersonTom Willis“Primary sponsor of Senate Bill 1005”Map →
otherLeggett v. EQT“West Virginia Supreme Court case addressing lease interpretations”Map →
otherWellman v. Energy Resources, Inc.“Judicial precedent regarding West Virginia royalty payment calculations”Map →
otherRomeo v. Antero“Recent court decision upholding prior royalty interpretations”Map →
otherEstate of Tawney v. Columbia Natural Resources, L.L.C.“Judicial precedent regarding royalty payment calculations”Map →
OrganizationWall Street Journal“Source publication for the prime interest rate used in penalty calculations”Map →
OrganizationWVDEP Office of Oil and Gas“Recipient of quarterly reports detailing well production, prices, and severance ”Map →

Sources

Open source document

www.wvlegislature.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 85)
  • Controversy75
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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