The West Virginia Senate has sent a bill to the governor that would allow enhanced oil and gas recovery techniques in horizontal wells and horizontal drilling well work.
Enhanced recovery has been explored in recent years as an approach to large-scale geologic carbon dioxide storage and has been used to recover minerals from fields no longer productive through conventional recovery methods.
HB 5268 would expand allowable horizontal wells and drilling to include injection of any fluid or gas not otherwise prohibited by law, including carbon dioxide, to enhance gas and oil recovery.
Charlie Burd, Gas and Oil Association of West Virginia executive director, called HB 5268 a “commonsense measure to modernize current regulations†in an email.
House Energy and Manufacturing Committee Chairman Bill Anderson, R-Wood, argued in a House floor speech Monday the bill was important to move the state toward getting “every last MCF [thousand cubic feet] of gas and every last drop of oil we can,†in part to make companies more profitable and return revenue to investors.
Newer well completions nationwide predominantly have been horizontal or directional rather than vertical. According to the federal Energy Information Administration, an estimated 81% of well completions nationwide were horizontal or directional as opposed to 19% that were drilled vertically in 2021. Horizontal wells involve drilling a vertical well and then angling the path of drilling away from the vertical well.
But some environmentalists have opposed the legislation due to its potential groundwater impacts and use by oil and gas companies that pose other environmental health hazards.
West Virginia Surface Owners’ Rights Organization cofounder Dave McMahon told the Energy and Manufacturing Committee during its consideration of the bill last week operators may have to get new leases from landowners if planning enhanced oil and recovery.
“[I]t may not be something that was in the contemplation of the parties at the time,†McMahon said. “If I own the surface and minerals, I may have some questions, whether my lease actually allows this and whether I like it.â€