Energy

Senate Bill 641 amends West Virginia's Aboveground Storage Tank Act to expand exemptions for small tanks used in oil/gas operations and road maintenance. It exempts tanks holding 210 barrels or less of brine or hydrocarbon-related fluids (not in "zones of critical concern") from third-party inspection requirements, requiring owners to self-inspect, self-certify, and report annually instead. Tanks in "zones of critical concern" still require monthly secondary containment inspections but remain exempt from third-party certification. The bill directly affects oil and gas operators, coal mining sites, and road maintenance crews using these small tanks, while maintaining basic registration and signage rules.

SB 686 modifies West Virginia's coal law to allow mining operations when some co-owners of coal land consent, even if others do not. It states that operators mining with consent from at least one co-owner are not committing "waste" or "trespass," and nonconsenting co-owners (including unknown or unlocatable owners) must receive a royalty payment based on their ownership share. The bill creates a new "Unknown and Unlocatable Coal Interest Owners Fund" managed by the State Treasurer to hold royalties from unlocated owners, with funds later transferred to the Special Reclamation Fund. This directly affects coal operators, surface owners, and all co-owners of coal estates, streamlining mining operations while ensuring nonconsenting owners receive compensation.

This bill reduces the severance tax rate on metallurgical coal produced in West Virginia, affecting coal mining companies that extract this type of coal. The new rates will take effect in stages starting July 1, 2026, lowering the tax from 5% to 4.5% for the first year, then to 4% the following year, and finally to 3.5% beginning July 1, 2028. Metallurgical coal is defined as coal used for making steel and other metals, distinct from thermal coal used for electricity generation. The tax reduction applies to the gross value of coal produced and includes additional local taxes that are normally part of the total severance tax.