Bill to Strengthen Pipeline Safety Moves in the House

In the House chamber Tuesday, Delegates approved an amendment to a pipeline safety bill proposed on behalf of the governor.

House Bill 4323 was on second reading in the House, also known as the amendment phase. The bill requires pipeline operators to report an accident or emergency at their facility to the state Department of Homeland Security and Emergency Management within 15 minutes or face a fine of up to $50,000.

Delegates considered one change on the House floor. House Energy Chairman Woody Ireland proposed the amendment to the full chamber. His change adjusts the definition of a pipeline facility, exempting pipelines that are 4 inches in diameter or less and service a farm or residence.

“The reason for that was to try to get the thing to really address issues that were high risk and really did impact folks’ safety,” Ireland said, “Now, the governor’s bill as it was proposed talked about all pipelines, and this was just a clarification of what a pipeline facility really meant.”

Ireland agrees that pipelines serving the oil and gas industry should be held to the reporting requirements, but small pipelines on personal property should not face such steep penalties. The fines for the failure to report an accident within 15 minutes range from $2,500 to $50,000.

Ireland’s amendment was passed unanimously by members in the House.

Some citizens interested in the bill, however, have voiced concerns over the $50,000 penalty, suggesting it’s actually too small and pipeline operators will be able to pay off any emergency incident easily.

Ireland disagrees.

“That’s a pretty stiff penalty, and it’s consistent with the other penalties that DEP have leveled on other commercial enterprises such as chemical industry and so forth. So $50,000 is pretty stiff, and it’s not something people are going to take lightly,” he said.

Ireland says the industry is also struggling financially because of the decline in natural gas prices and the penalty will be more than enough of an incentive to report the incident.

House Bill 4323 will be up for a final vote in the House chamber Wednesday.

Forced Pooling Resurfaces in W.Va. Legislature

Two bills that both died on the final night of the 2015 legislative session, resurfaced Monday during interim meetings – forced pooling and public charter schools. Both ideas erupted in debate in 2015, but Monday’s discussions were calm and reflective – but not without some concerns.

The separate discussions Monday on forced pooling and charter schools were mostly on how to make these controversial pieces of legislation work for lawmakers and interested parties on both sides of the issues.

First, forced pooling –

Delegate Woody Ireland chairs the House Energy Committee and sponsored the forced pooling legislation during the 2015 session. He told his fellow lawmakers Monday they must do something about pooling, even if they don’t all agree.

Forced pooling works like this – When companies prepare to drill a well, they create a giant rectangle of land parcels and then negotiate with the mineral owners within that rectangle for their gas rights.

The 2015 bill would have allowed companies to force owners to sell their minerals if they could get 80 percent of the owners in their parcel to agree to the drilling. However, the 20 percent forced to sell would still get paid for their proportion of gas drilled.

Democrats and some tea party Republicans were strongly against the bill, even showing their discontent through demonstrations on the floor. On the final night, the bill died on a tie vote in the House.

Now, Delegate Ireland has proposed a new pooling bill.

“With the passage of this bill, it would create a lot of land owner protections that currently aren’t available,” explained Seth Gaskins, counsel to the committees on Energy, “and the new title for the bill is the Horizontal Well Unitization of Landowner Protection Act. We wanted to make sure that this bill is known as a protection bill as well as a pooling bill.”

One aspect of this new bill would clarify the royalty rights of mineral owners. It would protect owners from deductions if they are included in a pool without their consent.

But there’s more – Ireland is also proposing what he calls a companion bill to compliment the Horizontal Well Unitization of Landowner Protection Act.

“This bill attempts to create some transparency,” Gaskins said, “in the royalty payment process as well as institute or establish rather, reporting more frequent report of production…reporting of production data to the office of oil and gas.”

While there was little debate during the meeting, a couple lawmakers did express some concern over the two new draft bills, but Ireland says the legislature has to make pooling a priority.

“I think what we have currently is an opportunity to really improve on personal property rights,” Ireland said, “If you look at the statutes that includes forced pooling from the deep strata, and you look at what’s going on in the industry with a movement towards the Utica shale, which is a deep strata, so if we don’t do something, we basically have forced pooling already.”

The second controversial piece of legislation taken up during November interims Monday – public charter schools.

The 2015 bill on charter schools also died on the final night but not quite as loudly as forced pooling.

Public Charter Schools receive state and county funds just like regular public schools, but charter schools are not held to the same regulations as regular public schools. This in turn would give teachers at charter schools more flexibility in the way they deliver their curriculum, but they would still be subject to state education standards.

Lawmakers in the Joint Standing Committee on Education revisited the idea Monday and were presented statistics that showed increased test scores and creativity. Other studies, however, show charter schools do not increase student achievement and actually hurt low income and minority students. But Monday, lawmakers were presented with a new concern; lower rates of pay for educators.

“I’d say our teacher with twenty-eight years experience all-together is probably gonna make $38,000 and the teacher at the traditional public school is probably gonna make $58,000,” Susie Pierce said, the principal of the Rural Community Academy; a charter school in Graysville, Indiana.

Some lawmakers expressed concerns over how to attract and keep teachers in charter schools if they’re going to be paid less than traditional public school teachers.

Delegate Amanda Pasdon, a Co-Chair on the Joint Education Committee, says she’s looking forward to continuing the discussion in 2016.

“I’m glad that they were honest about their challenges,” Pasdon noted, “because what we’d like to do in West Virginia is take note of the challenges that other states have faced. We’re not reinventing the wheel, so we can learn from their successes and then also be aware of their challenges, so we know how to navigate them a little better.”

House Judiciary Looks at Coal Jobs and Safety Act of 2015

House Judiciary took up a bill Tuesday that addresses mine safety. Senate Bill 357, also known as House Bill 2566, is the Coal Jobs and Safety Act of 2015. This is a big bill with many provisions, and House Judiciary considered a handful of amendments to it.

There were two amendments to the bill that stirred up some debate within the House Judiciary Committee. Amendment number 2, as the delegates called it, was an amendment proposed by Delegate Woody Ireland of Ritchie County.

Ireland’s amendment addresses when and how and who moves equipment within a coal mine. This amendment adjusts some language related to energized trolley wire, which is a way for miners to move large loads of equipment in shuttle cars.

Delegate Tim Manchin of Marion County proposed a rival amendment to Ireland’s. In Manchin’s amendment, which was referred to as amendment number 4, it suggests putting the language back in the bill that is currently law saying there would be restrictions on how the equipment would be moved.

Manchin called Ireland’s amendment a roll back in mine safety.

“This is a huge roll back in miner safety to take seventy some mines out of the control of this statute to say that seventy some mines will now be allowed to move oversized equipment with motors and other apparatuses that are being strained to their limits in carrying that equipment, to remove those from the provisions and to subject coal miners to being in by of those where they’re going to be exposed to those fumes and fire and all the noxious smoke that comes off of that is an outrage,” Manchin said, “It is a roll back in coal miner safety, it should not be permitted, that we have not been given any adequate excuse to do that, and therefore we should reject this. Men have died, men died to get this statute passed, men died after this statute was passed. Nine men, in Marion and Monongalia County died, I think it was in the 60s or early 70s if I’m not mistaken, because, for this statute, and now we’re going to remove that.”

Delegate Stephen Skinner of Jefferson County, a fellow sponsor of Manchin’s amendment, also spoke against Ireland’s amendment, number 2.

“The amendment offered by the gentleman across applies to a very narrow number of mines,” Skinner said, “The statute as it is right now applies to all mines and is safety focused. We should make the choice for making decisions based on evidence, and we don’t have that evidence here today.”

Delegate Patrick Lane of Kanawha County supported Ireland’s amendment, explaining that amendment number 2 was a good middle-ground and still addressed all the safety concerns.

“The gentleman from Ritchie has offered, what I would consider to be a balanced approach to making sure that miners in most of the mines where there’s a real safety issue with the movement of equipment are protected, but at the same time allowing that equipment to be moved in an efficient manner,” Lane noted, “and I would just remind people to look at the language that it says that a qualified person has to be in charge of transporting it, and specifically, as we heard yesterday, the primary issue is the energized wire that can create the problem, the real safety issue, and I think the gentleman has addressed that specifically, and would ask the committee to adopt amendment number 2 offered by the gentleman from Ritchie and reject amendment number 4.”

After the debate however, Ireland’s amendment passed, and Manchin’s amendment was rejected.

Two more amendments were proposed by Delegates Manchin and Skinner; one having to do with the diesel commission and inspections, while the other had to do with rail track variants from the face of a mine. Both amendments were rejected.

Senate Bill 357 now reports to the floor for its consideration.

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