New Oil and Gas Well Plugging Assurance Act requires new wells to post a bond or escrow funds for future plugging.

The New Oil and Gas Well Plugging Assurance Act mandates that new oil and gas wells in West Virginia either post a full-cost plugging bond or establish an escrow account to cover future plugging costs. This ensures that wells that cease production and lack a responsible operator can still be plugged to prevent environmental damage and property devaluation. The escrow account must be held in a federally insured bank and earn interest, with funds managed by an escrow agent.

New Oil and Gas Well Plugging Assurance Act requires new wells to post a bond or escrow funds for future plugging.

The New Oil and Gas Well Plugging Assurance Act mandates that new oil and gas wells in West Virginia either post a full-cost plugging bond or establish an escrow account to cover future plugging costs. This ensures that wells that cease production and lack a responsible operator can still be plugged to prevent environmental damage and property devaluation. The escrow account must be held in a federally insured bank and earn interest, with funds managed by an escrow agent.