West Virginia Code of State Rules Agency 39 - Oil And Gas Conservation Commission
I. Overview of West Virginia CSR Agency 39 – Oil and Gas Conservation Commission
Agency 39 establishes the regulatory framework for the exploration, production, and conservation of oil and gas in West Virginia.
It implements West Virginia Code §22-6-1 et seq., the Oil and Gas Conservation Act, and ensures that the development of natural resources is safe, environmentally responsible, and in the public interest.
Primary purposes of Agency 39 rules:
Prevent waste of oil and gas resources
Protect underground water and surface resources
Ensure fair and orderly production and spacing of wells
Regulate drilling, plugging, and abandonment of wells
Provide procedures for hearings, permits, and enforcement
The Commission is composed of appointed members who adopt rules, issue permits, and enforce statutory mandates.
II. Structure of Agency 39 CSR
1. Permitting and Licensing
Drilling permits are required before initiating any oil or gas well.
Applicants must submit technical details: drilling plans, well logs, safety measures.
Operators must comply with spacing requirements, preventing over-drilling in a single formation.
Legal significance:
Permitting rules ensure resource conservation and safety.
Courts have upheld the Commission’s authority to deny or revoke permits if statutory or regulatory requirements are not met.
2. Conservation and Spacing Rules
Well spacing: Limits on the density of wells to prevent waste and protect reservoirs.
Pooling and unitization: Encourages shared development among multiple owners to prevent waste.
Secondary and enhanced recovery procedures: Rules for injection wells and gas pressure maintenance.
Legal significance:
Courts consistently recognize the Commission’s authority to regulate spacing and pooling as necessary for conservation and equitable resource distribution.
3. Environmental Protection Requirements
Surface and groundwater protection rules
Procedures for handling drilling waste, brine, and other byproducts
Requirements for well casing, cementing, and plugging
Legal significance:
Courts uphold rules requiring operators to prevent contamination, even if it limits production.
Violations may lead to fines, mandatory remediation, or permit revocation.
4. Operational Standards
Well construction and safety standards: Casing, blowout prevention, and equipment inspection
Reporting obligations: Monthly production reports, incident reports
Emergency procedures: Spill response, blowout management
Legal significance:
Failure to comply can be treated as a civil violation or, in extreme cases, criminal negligence.
5. Hearings, Enforcement, and Penalties
Commission may conduct hearings on permit applications, violations, or complaints
Administrative fines and penalties for violations
Orders to plug abandoned wells
Enforcement authority includes civil injunctions and license suspension
Legal significance:
All actions must comply with West Virginia Administrative Procedures Act.
Licensees and operators have rights to appeal Commission decisions in court.
III. Case Law Principles Related to Agency 39
Although case law is specialized, West Virginia courts have consistently addressed themes around Commission authority, environmental protection, and property rights.
1. Commission Authority and Statutory Deference
Principle: The Commission has broad discretion to implement rules necessary to conserve oil and gas resources.
Courts defer to the Commission’s expertise in technical matters such as well spacing, pooling, or injection procedures.
Example theme: Denial of a permit due to spacing requirements is upheld if rules are applied fairly and consistently.
2. Environmental and Safety Enforcement
Principle: Regulatory enforcement is valid even if it limits production.
Courts have held that protecting groundwater and preventing environmental harm justifies regulatory restrictions.
Operators cannot claim unfettered property rights if their actions risk environmental damage.
3. Procedural Fairness / Due Process
Operators are entitled to notice, opportunity to be heard, and the right to appeal under the WV APA.
Courts will overturn Commission orders if procedures were not properly followed, but substantive judgments on safety or spacing are highly deferential to the Commission.
4. Property Rights vs. Regulatory Authority
Oil and gas ownership in West Virginia includes both surface and mineral rights, often severed.
Courts recognize the Commission can limit drilling practices or impose spacing/unitization even if it restricts mineral owners’ production.
Legal principle: Conservation and equitable resource extraction outweigh absolute extraction rights.
5. Liability for Violations
Operators who fail to comply with CSR 39 can face:
Administrative fines
Orders to cease operations
Civil liability for environmental damage
Courts uphold penalties if rules are clear and properly promulgated.
IV. Practical Implications for Oil & Gas Operators
Permit compliance is mandatory: Drilling without Commission approval risks fines, civil liability, or criminal charges.
Technical rules are enforceable: Spacing, pooling, and environmental regulations cannot be ignored.
Procedural compliance matters: Operators can appeal Commission decisions but must follow statutory and APA timelines.
Environmental protection is a priority: Courts uphold stringent rules for water, soil, and safety protections.
Deference to Commission expertise: Courts rarely override technical determinations unless arbitrary or procedurally defective.
V. Summary
West Virginia CSR Agency 39 – Oil and Gas Conservation Commission ensures:
Conservation of oil and gas resources
Environmental protection
Public health and safety
Fairness among operators and owners
Clear administrative procedures and enforcement mechanisms
Key legal themes:
Commission has broad regulatory discretion
Courts defer to technical expertise
Procedural fairness is required under WV APA
Environmental and conservation objectives outweigh unrestricted extraction rights
RELATED Blog
comments