New oil and Gas Well Plugging Assurance Act

HB 3416 requires oil and gas operators to secure funds for plugging new wells before they are permitted, effective July 1, 2026. Operators must provide either a single-well bond covering full plugging costs or set aside money in an escrow account managed by the state treasurer. This prevents "orphaned wells" - unplugged wells left on land without a responsible operator to pay for closure, which currently threaten landowners' property, safety, and groundwater. The law directly affects new well operators and protects surface landowners from future liabilities. It replaces outdated bonding methods that contributed to thousands of unplugged wells in West Virginia.