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2010 SESSION

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SB 376 Coalbed methane gas; presumption of ownership, report.

Introduced by: Phillip P. Puckett | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Coalbed methane gas; presumption regarding estate of owner of surface rights.  Provides that a conveyance, reservation, or exception of coal shall not be deemed to include coalbed methane gas. The presumption does not affect (i) a coal operator's right to vent coalbed methane gas for safety purposes or release coalbed methane gas in connection with mining operations or (ii) any settlement of any dispute, or any judgment or governmental order, as to the ownership or development of coalbed methane gas made or entered prior to the enactment of this provision. The Auditor of Public Accounts is required to conduct an operational and performance review of the accounting policies and procedures for the collection and disbursement of the escrow accounts by the Virginia Gas and Oil Board. The review will include (i) best practices for the collection of funds from gas operators to ensure that the Virginia Gas and Oil Board receives all moneys owing under law and allocates such moneys to entitled owners; (ii) best management practices for the disbursement of funds to ensure that entitled owners are promptly notified and able to access their funds; and (iii) recommendations for statutory or regulatory changes governing the management and accounting of all escrow funds under the control of the Virginia Gas and Oil Board. The bill declares that an emergency exists and that the bill is effective upon passage. This bill is identical to HB 1179.

SUMMARY AS PASSED SENATE:

Coalbed methane gas; presumption regarding estate of owner of surface rights.  Provides that a conveyance, reservation, or exception of coal shall not be deemed to include coalbed methane gas. The presumption does not affect (i) a coal operator's right to vent coalbed methane gas for safety purposes or release coalbed methane gas in connection with mining operations or (ii) any settlement of any dispute, or any judgment or governmental order, as to the ownership or development of coalbed methane gas made or entered prior to the enactment of this provision. The Auditor of Public Accounts is required to conduct an operational and performance review of the accounting policies and procedures for the collection and disbursement of the escrow accounts by the Virginia Gas and Oil Board. The review will include (i) best practices for the collection of funds from gas operators to ensure that the Virginia Gas and Oil Board receives all moneys owing under law and allocates such moneys to entitled owners; (ii) best management practices for the disbursement of funds to ensure that entitled owners are promptly notified and able to access their funds; and (iii) recommendations for statutory or regulatory changes governing the management and accounting of all escrow funds under the control of the Virginia Gas and Oil Board.  

SUMMARY AS INTRODUCED:

Natural gas; presumption of ownership. Provides that the surface owner of real property shall be presumed to be the owner of any natural gas, including coalbed methane gas, below the surface unless the right to ownership or possession of the natural gas has been expressly conferred by deed or other instrument. The owner or lessee of a minerals estate shall bear the burden of proof to establish, by a preponderance of the evidence, that the ownership or possession of natural gas was transferred by the deed or instrument that created or severed the mineral estate. The Auditor of Public Accounts is required to audit escrow accounts containing gas royalties from units with unknown or disputed owners.