West Virginia Code of State Rules Agency 50 - Shallow Gas Well Review Board

1. Overview of West Virginia CSR, Agency 50 – Shallow Gas Well Review Board

Agency 50 governs the Shallow Gas Well Review Board (SGWRB), a state administrative body that reviews and regulates the drilling, operation, and abandonment of shallow gas wells in West Virginia. Its primary objectives are:

Protecting public health, safety, and welfare

Ensuring responsible development of shallow gas wells

Resolving disputes between operators, landowners, and state agencies

Implementing statutory authority from West Virginia Code Chapter 22, Article 6A (Oil and Gas Act – Shallow Gas Wells)

The Board is quasi-judicial, meaning it conducts hearings, makes findings of fact, and issues binding decisions, similar to a court but within its statutory scope.

2. Jurisdiction of the Shallow Gas Well Review Board

Agency 50 applies to:

Wells classified as “shallow gas wells”, typically defined by depth (usually less than 2,500 feet) and gas production volume.

Disputes over:

Drilling permits

Well siting and spacing

Safety and environmental compliance

Plugging and abandonment of wells

Compensation to landowners for well operations

Exclusions:

Deep oil and gas wells regulated by the West Virginia Department of Environmental Protection (DEP) Oil and Gas Division

Wells outside the statutory definition of “shallow gas well”

Case Law Principle:
Courts in West Virginia have consistently held that the Board’s jurisdiction is strictly limited to shallow gas wells. Any attempt to expand its authority to deep wells or unrelated mineral operations is outside statutory authority and therefore invalid.

3. Key Responsibilities of Agency 50

A. Permit Review and Issuance

The Board reviews permit applications for new shallow gas wells.

Factors considered:

Environmental impact

Safety measures

Surface and subsurface rights

The Board may approve, condition, or deny permits.

Case Law Example:
Courts have upheld the Board’s authority to deny a permit if safety or environmental criteria are not met, even if the operator claims economic hardship.

B. Well Siting and Spacing

Ensures proper distance between wells to prevent interference and protect groundwater.

Protects landowners from wells being drilled too close to homes, water sources, or other wells.

Case Law Principle:
West Virginia courts have reinforced that well spacing rules are not merely guidelines—they are enforceable safety and property protection measures. Operators challenging spacing decisions usually must show arbitrary or capricious action by the Board.

C. Compliance and Safety Enforcement

Monitors adherence to:

Well construction standards

Safety procedures

Environmental protections (including water well protection)

Can impose penalties, require corrective action, or order temporary shutdowns.

Case Law Principle:
Courts recognize that the Board has broad discretion to protect public safety, and enforcement decisions are rarely overturned unless clearly unreasonable.

D. Dispute Resolution

Resolves conflicts between:

Landowners and operators

Operators and state agencies

Holds formal hearings where evidence and testimony are presented.

Issues binding decisions on compensation, operational conditions, or compliance.

Case Law Principle:
Decisions of the Board are generally final unless appealed to a West Virginia court, and courts defer to the Board’s technical expertise in interpreting shallow gas well regulations.

E. Well Abandonment and Plugging

Establishes requirements for well plugging and abandonment to prevent leaks, contamination, and hazards.

Requires operators to submit plans and bonding to ensure proper closure.

Case Law Principle:
Courts uphold the Board’s authority to require plugging even for older wells if there’s a risk of environmental damage, emphasizing the preventive nature of regulation.

4. Procedural Rules for Board Hearings

Filing a Petition or Appeal: Operators or landowners may request Board review.

Notice: Parties must receive proper notice of hearings.

Evidence and Testimony: Presented under rules similar to administrative hearings; the Board has flexibility but must follow fair hearing standards.

Decisions: Written findings of fact and conclusions of law are issued.

Case Law Principle:
West Virginia courts stress that due process applies, including:

Adequate notice

Opportunity to present evidence

Impartial decision-maker
Failure to follow procedural requirements may result in vacating a Board decision.

5. Judicial Review

Board decisions may be appealed to West Virginia courts under the Administrative Procedures Act (W.Va. Code §29A).

Courts review:

Whether the Board acted within statutory authority

Whether findings are supported by substantial evidence

Whether decisions were arbitrary, capricious, or an abuse of discretion

Case Law Principle:
Courts generally defer to the Board’s technical expertise on drilling, safety, and environmental matters but will overturn decisions if:

The Board exceeds its statutory authority

It ignores procedural rules

It issues decisions not supported by evidence

6. Relationship to Other Regulations

Agency 50 works alongside:

DEP Oil and Gas rules for deeper wells

Environmental protection statutes

Local zoning and surface use regulations

Conflicts are resolved by statutory interpretation; Agency 50’s authority is limited to shallow gas wells only.

Case Law Principle:
Courts have emphasized that Agency 50 regulations cannot override general environmental or safety laws. Compliance with multiple regulatory frameworks is required.

7. Enforcement and Penalties

The Board can impose:

Fines

Orders to halt operations

Corrective measures (e.g., plugging, environmental mitigation)

Enforcement is often administrative but can escalate to court action.

Case Law Principle:
Courts uphold penalties if:

The Board followed its rules

Evidence supports the violation

The penalty is proportionate

8. Key Themes from West Virginia Case Law

Strict jurisdictional limits – Board only regulates shallow gas wells.

Deference to technical expertise – Courts rarely second-guess engineering or safety judgments.

Procedural due process required – Notice, hearing, and opportunity to respond are essential.

Public safety and environmental protection take precedence – Decisions prioritize health, water safety, and landowner rights.

Substantial evidence standard – Courts require evidence supporting Board findings.

9. Practical Takeaways

Anyone involved in shallow gas well operations in West Virginia must comply with Agency 50 rules.

Permits, well spacing, safety measures, and abandonment plans are mandatory.

Decisions of the Board can be appealed, but courts give strong weight to technical expertise.

Noncompliance can lead to fines, shutdown orders, or mandatory remediation.

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