A new law in West Virginia as of June 7, 2022 called SB 694, provides significant benefits to mineral owners and should be read before signing any lease with an O&G company. It requires the company to “Force Pool” the mineral owner into a set of minimum requirements - pay the average bonus of the pool, pay the maximum royalty in the pool with no deductions, sell the gas as a third party arms length transaction, limits the formation to that being drilled, provides no lease extension, and if you want, allows you to be an operator instead of a leasor, and other provisions. No one should sign a lease less than this law requires, BUT you must avail yourself of the law to have its benefits! It is not automatic. You must invoke it!
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