Quick answer
| Topic | What the statute says | Citation |
|---|---|---|
| First payment deadline | Horizontal wells: within 120 days from the first date of sale | W. Va. Code § 37C-1-3 |
| Later payments | Horizontal wells: within 60 days after each later sale | W. Va. Code § 37C-1-3 |
| Minimum payment and aggregation | Horizontal wells: may accumulate until over $100; paid at least yearly and when production or payment responsibility ends | W. Va. Code § 37C-1-2 |
| Interest on late payments | Horizontal wells: prime rate plus two percent, compounded quarterly | W. Va. Code § 37C-1-3 |
| Suspense and withheld payments | Horizontal wells: deadlines do not apply for title defects, disputes or missing owners | W. Va. Code § 37C-1-3; W. Va. Code § 37B-2-4(a); W. Va. Code § 22C-9-7a(f)(16) |
| Division orders | Coalbed methane pooling orders only; no general statute found | W. Va. Code § 22-21-17(j) |
| Owner remedies, notice and attorney fees | Horizontal wells: certified-mail request and suit after 60 days; conventional wells: treble liability after six months unpaid | W. Va. Code § 37C-1-1(b); W. Va. Code § 36-4-9c(a); W. Va. Code § 36-4-9c(b); W. Va. Code § 36-4-9c(d) |
| Check-stub disclosures | Horizontal wells: statutory list of items with each payment | W. Va. Code § 37C-1-1(a); W. Va. Code § 37C-1-1(a)(1); W. Va. Code § 37C-1-1(a)(5); W. Va. Code § 37C-1-1(a)(8); W. Va. Code § 37C-1-1(a)(6); W. Va. Code § 37C-1-1(a)(10) |
| Unclaimed royalties (escheat) | No mineral-specific period; three-year catch-all | W. Va. Code § 36-8-2(a)(18); W. Va. Code § 37B-2-3; W. Va. Code § 37B-2-4(a) |
For horizontal wells, regular production payments due to an interest owner must be tendered within 120 days from the first date of sale. No first-payment deadline was found for conventional vertical wells.
Regular production payments from horizontal wells must be tendered within no more than 120 days from the first date of sale. (W. Va. Code § 37C-1-3)
Statute text “All regular production payments from horizontal wells due and owing to an interest owner shall be tendered in a timely manner, which shall not exceed 120 days from the first date of sale of oil, natural gas, or natural gas liquids is realized”
For horizontal wells, payments for each additional sale are due within 60 days thereafter. No general deadline for later payments was found for conventional vertical wells.
After the first payment, horizontal-well payments are due within 60 days for each additional sale. (W. Va. Code § 37C-1-3)
Statute text “and within 60 days thereafter for each additional sale”
Horizontal-well proceeds may be accumulated until the amount attributable to an interest owner exceeds $100, but must be remitted at least once a year, and all accumulated proceeds must be paid immediately or as soon as practicable when production ceases or payment responsibility is relinquished or transferred.
Horizontal-well proceeds may be held until they exceed $100, with remittance at least annually and payment on cessation of production or transfer of payment responsibility. (W. Va. Code § 37C-1-2)
Statute text “proceeds from production of oil, natural gas, and natural gas liquids from horizontal wells may be accumulated by the owners, cotenants, lessees, operators, or their agents, contractors, or assigns, until such time as proceeds attributable to any interest owner exceeds $100 before making a remittance: Provided, That, regardless of the amount of money accumulated, the owners, cotenants, lessees, operators, or their agents, contractors, or assigns shall remit proceeds from horizontal wells attributable to the interest owners not less than once annually”
Accumulated proceeds must be paid immediately, or as soon as practicable, upon cessation of production or relinquishment or transfer of payment responsibility. (W. Va. Code § 37C-1-2)
Statute text “That all accumulated proceeds from horizontal wells shall be paid to the interest owners entitled thereto immediately, or as soon as practicable, upon cessation of production of oil, natural gas, or natural gas liquids or upon relinquishment or transfer of the payment responsibility to another party.”
For horizontal wells, failure to pay on time results in a mandatory interest penalty at the prime rate plus two percent, compounded quarterly, until payment is made. The prime rate is the Wall Street Journal base rate on corporate loans published on the day of the sale. No statutory late-payment interest was found for conventional vertical wells (see owner remedies for the treble-damages provision).
Late horizontal-well payments carry a mandatory interest penalty of prime plus 2 percent, compounded quarterly, until paid; prime is the Wall Street Journal rate published on the day of sale. (W. Va. Code § 37C-1-3)
Statute text “Failure to remit timely payment for horizontal wells shall result in a mandatory additional payment of an interest penalty to be set at the prime rate plus an additional two percent until such payment is made, to be compounded quarterly. The prime rate shall be the rate published on the day of the sale of oil, natural gas, and natural gas liquids in the Wall Street Journal reflecting the base rate on corporate loans posted by at least 75 percent of the nation's 30 largest banks.”
The horizontal-well deadlines do not apply when the failure to pay is due to lack of record title in the interest owner, a legal dispute concerning the interest, a missing or unlocatable owner, or other conditions specified in the article. Separately, a holder must report and remit amounts reserved for unknown or unlocatable interest owners to the State Treasurer each calendar quarter, and in a commission-ordered horizontal well unit the operator must deposit amounts payable to unknown and unlocatable owners into an escrow account bearing a market rate of interest. The horizontal-well timing statute does not say whether its interest penalty runs on suspended funds.
Payment deadlines do not apply where nonpayment is due to lack of record title, a legal dispute over the interest, or a missing or unlocatable owner. (W. Va. Code § 37C-1-3)
Statute text “unless such failure to remit is due to lack of record title in the interest owner, a legal dispute concerning the interest, a missing or unlocatable owner of the interest, or due to conditions otherwise specified in this article.”
Holders must report reserved interests of unknown or unlocatable interest owners each calendar quarter and remit the reserved amount to the administrator at the same time. (W. Va. Code § 37B-2-4(a))
Statute text “The holder shall make a report to the administrator each calendar quarter concerning each reserved interest for each unknown or unlocatable interest owner and shall concurrently remit the amount reserved to the administrator. The quarterly report and remittances shall be submitted by the first day of the month following each calendar quarter.”
In a horizontal well unit that includes unknown and unlocatable interest owners, the operator must deposit their payments into an escrow account bearing a market rate of interest. (W. Va. Code § 22C-9-7a(f)(16))
Statute text “where the commission finds that the interest of one or more unknown and unlocatable interest owners are included in the horizontal well unit, the horizontal well unit operator shall deposit the moneys payable to unknown and unlocatable interest owners into an escrow account bearing a market rate of interest to be held, administered, and disbursed in accordance with an order of the commission and this section.”
No general division-order statute (rules on when a payor may require a division order or what it may change) was found. The only division-order provision found is in coalbed methane pooling: the review board enters a division order setting out each owner's interest, and payments follow it except that payments attributable to conflicting claims go into escrow.
In coalbed methane pooling, the review board enters a division order and payments are made according to it, except that amounts attributable to conflicting claims are deposited in escrow. (W. Va. Code § 22-21-17(j))
Statute text “the review board shall enter a division order which shall set out the net revenue interest of each working interest owner, including each carried interest owner and the royalty interest of each coalbed methane owner. Thereafter payments shall be made to working interest owners, carried interest owners and royalty interest owners in accordance with the division order, except that payments attributable to conflicting claims shall be deposited in the escrow account.”
For horizontal wells, an interest owner who does not timely receive the required payment information may request it by certified mail; if it is not provided within 60 days of receipt, the owner may sue and a prevailing owner recovers reasonable attorneys' fees and court costs. For conventional vertical wells, unless otherwise agreed in writing or there is a bona fide dispute, a lessee or operator that fails to pay a royalty within six months after the date it is due under the lease is liable for three times the market value of the unpaid royalty; this applies to disputes filed on or after July 1, 2025, and the prevailing party may be awarded reasonable attorney's fees and costs.
An owner may request missing horizontal-well payment information by certified mail; if not provided within 60 days, the owner may sue, and a prevailing owner recovers reasonable attorneys' fees and court costs. (W. Va. Code § 37C-1-1(b))
Statute text “An interest owner who does not receive the information required to be provided under this section in a timely manner may send a written request for the information by certified mail. Not later than the 60th day after the date the operator or producer receives the written request for information under this section, the operator or producer shall provide the requested information to the interest owner. If the interest owner makes a written request for information under this section and the operator or producer does not provide the information within the 60-day period, the interest owner may bring a civil action against the operator or producer to enforce the provisions of this section, and a prevailing interest owner shall be entitled to recover reasonable attorneys' fees and court costs incurred in the civil action.”
For conventional vertical wells, failure to pay a royalty within six months after it is due makes the lessee or operator liable for three times the market value of the unpaid royalty, unless otherwise agreed in writing or there is a bona fide dispute. (W. Va. Code § 36-4-9c(a))
Statute text “With regard to conventional vertical oil, natural gas wells, and derivative natural gas liquids only, permitted under §22-6-1 et seq. of this code, unless otherwise provided for in writing or unless there is a bona fide dispute between the parties, any lessee or operator of oil, natural gas, or natural gas liquids, or their successors or assigns, who fails to pay a royalty payment for mineral production to a lessor, or their successors and assigns, under the terms of a lease or other agreement within six months after the date payment is due under the terms of the lease or other agreement, shall be liable to such lessor or landowner, or their successors or assigns, in an amount equal to three times the market value of the unpaid royalty for which payment is due.”
The treble-damages provision applies to royalty payment disputes filed in court on or after July 1, 2025. (W. Va. Code § 36-4-9c(b))
Statute text “The provisions of subsection (a) of this section shall apply to all royalty payment disputes filed with a court of competent jurisdiction on or after July 1, 2025.”
The prevailing party may be awarded reasonable attorney's fees and costs. (W. Va. Code § 36-4-9c(d))
Statute text “The prevailing party may be awarded reasonable attorney's fees and costs in addition to and not withstanding any other rights, remedies, and penalties otherwise provided by law.”
For horizontal wells, each payment to an interest owner must include ten items: identification of the lease, property, unit, pad and well (with API number) and county; month and year of production; volumes sold; price per unit; gross value less taxes and deductions; aggregate deductions by category per well; the owner's decimal or fractional interest; the owner's share before and after taxes and deductions; and the producer's mailing address and telephone number. No check-stub statute was found for conventional vertical wells.
Operators or producers must provide specified information with each payment to interest owners from horizontal wells. (W. Va. Code § 37C-1-1(a))
Statute text “An operator or producer or their agents, contractors or assigns shall provide the following information with each payment to all interest owners receiving payments resulting from the development and production of oil, natural gas, or their constituents by horizontal wells governed by §22-6A-1 et seq. of this code, being the Natural Gas Horizontal Well Control Act:”
The statement must identify each lease, property, unit, pad and well, including the state-issued API number, and the county. (W. Va. Code § 37C-1-1(a)(1))
Statute text “(1) A name, number, or combination of name and number, and the state issued American Petroleum Institute number that identifies each lease, property, unit, pad, and well, for which payment is being made, and the county in which the lease, property, and well are located;”
The statement must show the gross value of the total proceeds from each well less taxes and deductions. (W. Va. Code § 37C-1-1(a)(5))
Statute text “(5) Gross value of the total proceeds from the sale of oil, natural gas, and natural gas liquids from each well less taxes and deductions set forth in §37B-1-1(a)(6) of this code;”
Separately, the statement must show the owner's ratable share of the total value before taxes and other deductions. (W. Va. Code § 37C-1-1(a)(8))
Statute text “(8) Interest owner's ratable share of the total value of the proceeds of the sale of oil, natural gas, and natural gas liquids prior to the deduction of taxes, if applicable, and other deductions set forth in §37B-1-1(a)(6) of this code;”
The statement must show aggregate amounts for each category of deductions for each well. (W. Va. Code § 37C-1-1(a)(6))
Statute text “(6) Aggregate amounts for each category of deductions for each well which affect payment and are allowed by law, including without limitation those deductions provided for under the terms of the governing lease;”
The statement must include the producer's contact information, including a mailing address and telephone number. (W. Va. Code § 37C-1-1(a)(10))
Statute text “(10) Contact information of the producer of the oil, natural gas, or natural gas liquids, including a mailing address and telephone number.”
The Uniform Unclaimed Property Act sets no separate dormancy period for mineral proceeds; its catch-all presumes 'all other property' abandoned three years after the owner's right to demand it or the obligation to pay arises, whichever is first. Separately, amounts reserved for unknown or unlocatable mineral interest owners (defined to include royalties and overriding royalties) are reported and remitted to the State Treasurer quarterly under the Unknown and Unlocatable Interest Owners Act, which is to be read in conjunction with the unclaimed property act.
All other property is presumed abandoned three years after the owner's right to demand it or the obligation to pay arises, whichever first occurs. (W. Va. Code § 36-8-2(a)(18))
Statute text “(18) All other property, three years after the owner's right to demand the property or after the obligation to pay or distribute the property arises, whichever first occurs.”
Reserved interests of unknown or unlocatable owners include royalties and overriding royalties payable for extraction, production or sale of minerals. (W. Va. Code § 37B-2-3)
Statute text “(ii) For the extraction, production or sale of minerals, including net revenue interests, royalties, overriding royalties, extraction payments and production payments; and”
Reserved interests for unknown or unlocatable owners are reported and remitted to the administrator every calendar quarter. (W. Va. Code § 37B-2-4(a))
Statute text “The holder shall make a report to the administrator each calendar quarter concerning each reserved interest for each unknown or unlocatable interest owner and shall concurrently remit the amount reserved to the administrator.”
Official unclaimed property search: West Virginia State Treasurer unclaimed property.
For horizontal wells, regular production payments due to an interest owner must be tendered within 120 days from the first date of sale. No first-payment deadline was found for conventional vertical wells. (W. Va. Code § 37C-1-3)
For horizontal wells, payments for each additional sale are due within 60 days thereafter. No general deadline for later payments was found for conventional vertical wells. (W. Va. Code § 37C-1-3)
Horizontal-well proceeds may be accumulated until the amount attributable to an interest owner exceeds $100, but must be remitted at least once a year, and all accumulated proceeds must be paid immediately or as soon as practicable when production ceases or payment responsibility is relinquished or transferred. (W. Va. Code § 37C-1-2)
For horizontal wells, failure to pay on time results in a mandatory interest penalty at the prime rate plus two percent, compounded quarterly, until payment is made. The prime rate is the Wall Street Journal base rate on corporate loans published on the day of the sale. No statutory late-payment interest was found for conventional vertical wells (see owner remedies for the treble-damages provision). (W. Va. Code § 37C-1-3)
The horizontal-well deadlines do not apply when the failure to pay is due to lack of record title in the interest owner, a legal dispute concerning the interest, a missing or unlocatable owner, or other conditions specified in the article. Separately, a holder must report and remit amounts reserved for unknown or unlocatable interest owners to the State Treasurer each calendar quarter, and in a commission-ordered horizontal well unit the operator must deposit amounts payable to unknown and unlocatable owners into an escrow account bearing a market rate of interest. The horizontal-well timing statute does not say whether its interest penalty runs on suspended funds. (W. Va. Code § 37C-1-3; W. Va. Code § 37B-2-4(a); W. Va. Code § 22C-9-7a(f)(16))
No general division-order statute (rules on when a payor may require a division order or what it may change) was found. The only division-order provision found is in coalbed methane pooling: the review board enters a division order setting out each owner's interest, and payments follow it except that payments attributable to conflicting claims go into escrow. (W. Va. Code § 22-21-17(j))
For horizontal wells, an interest owner who does not timely receive the required payment information may request it by certified mail; if it is not provided within 60 days of receipt, the owner may sue and a prevailing owner recovers reasonable attorneys' fees and court costs. For conventional vertical wells, unless otherwise agreed in writing or there is a bona fide dispute, a lessee or operator that fails to pay a royalty within six months after the date it is due under the lease is liable for three times the market value of the unpaid royalty; this applies to disputes filed on or after July 1, 2025, and the prevailing party may be awarded reasonable attorney's fees and costs. (W. Va. Code § 37C-1-1(b); W. Va. Code § 36-4-9c(a); W. Va. Code § 36-4-9c(b); W. Va. Code § 36-4-9c(d))
For horizontal wells, each payment to an interest owner must include ten items: identification of the lease, property, unit, pad and well (with API number) and county; month and year of production; volumes sold; price per unit; gross value less taxes and deductions; aggregate deductions by category per well; the owner's decimal or fractional interest; the owner's share before and after taxes and deductions; and the producer's mailing address and telephone number. No check-stub statute was found for conventional vertical wells. (W. Va. Code § 37C-1-1(a); W. Va. Code § 37C-1-1(a)(1); W. Va. Code § 37C-1-1(a)(5); W. Va. Code § 37C-1-1(a)(8); W. Va. Code § 37C-1-1(a)(6); W. Va. Code § 37C-1-1(a)(10))
The Uniform Unclaimed Property Act sets no separate dormancy period for mineral proceeds; its catch-all presumes 'all other property' abandoned three years after the owner's right to demand it or the obligation to pay arises, whichever is first. Separately, amounts reserved for unknown or unlocatable mineral interest owners (defined to include royalties and overriding royalties) are reported and remitted to the State Treasurer quarterly under the Unknown and Unlocatable Interest Owners Act, which is to be read in conjunction with the unclaimed property act. (W. Va. Code § 36-8-2(a)(18); W. Va. Code § 37B-2-3; W. Va. Code § 37B-2-4(a))
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Educational only — not legal advice; statutes change, so confirm the current version and consult a qualified attorney for your situation. For a question about a specific payment, consult an attorney licensed in West Virginia.
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