Oil & Gas Survey: West Virginia (2020)

Abstract

This Article summarizes and discusses important recent developments in West Virginia’s oil and gas law as determined by recent West Virginia Supreme Court of Appeals cases. There were no substantial legislative changes in the covered period.

The discussed cases considered:

(1) whether hydraulic fracturing and horizontal drilling were allowed when an old lease could not have contemplated such methods were not permissible;

(2) proper interpretation of deed language;

(3) whether all oil and gas leases have implied rights of pooling;

(4) whether partial, but regular, tax payments precluded a tax sale; and

(5) whether the West Virginia Code allowed for a cap placed on operating expense deductions and if the cap can be described as both a percentage and dollar figure.

Keywords: oil, gas, natural gas, shale, Marcellus, hydraulic fracturing, fracking, mineral rights, royalty, property, pooling, tax, operating expense, deductions

JEL Classification: Q4, Q40, Q41, Q48, Q13, Q21, Q28, Q3, Q31, Q31, Q33, Q38