West VirginiaSB 222025 Regular SessionSenateWALLET

Applying penalties for nonpayment of royalties under terms of oil and natural gas leases

Sponsored By: Randy E. Smith (Republican)

Became Law

§36-4-9C

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Triple damages for unpaid drilling royalties

West Virginia law makes operators and leaseholders, including successors and assigns, liable for three times an unpaid royalty’s market value. Payment must remain unpaid for six months after the due date set by the lease or other agreement. This covers conventional vertical oil and natural gas wells, including related natural gas liquids, permitted under state law. Triple damages do not apply when the parties agreed otherwise in writing or have a genuine dispute. These rules cover court cases filed on or after July 1, 2025, in the county containing the well and leasehold. Courts may award either winning party reasonable attorney fees and costs, alongside other legal rights, remedies, and penalties. The act takes effect 90 days after enactment; July 1, 2025, determines which court filings it covers.

Sponsors & Cosponsors

Sponsor

Randy E. Smith
Republican • Senate

Cosponsors

Bill Hamilton
Republican • Senate
Mike Woelfel
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 166 • No: 0

Senate vote • 4/7/2025

Passed Senate (Roll No. 322)

Yes: 34 • No: 0

House vote • 4/3/2025

Passed House (Roll No. 375)

Yes: 98 • No: 0

Senate vote • 3/7/2025

Passed Senate (Roll No. 71)