The Times West Virginian

West Virginia

August 16, 2010

W.Va. lawmakers eye state forest drilling

Ask DNR officials to examine leasing of natural gas rights

CHARLESTON — Some state lawmakers want to start tapping portions of the publicly owned mineral wealth beneath West Virginia’s state forests.

Legislators have asked the Division of Natural Resources to examine the possibility of leasing natural gas drilling rights at those properties. The topic arose during last week’s monthly interim study meetings.

“There appears to be a growing interest in leasing the rights,” said DNR Director Frank Jezioro.

Senate Finance Chairman Walt Helmick, who helped lead the discussion during interims, said gas leases could provide a serious revenue boost for that agency.

With the state budget still weathering the effects of the Great Recession, DNR is projected to spend around $86 million from general revenue taxes, federal funds, lottery proceeds, and such special sources as permits and fees this budget year. The agency also oversees state parks and wildlife management areas among its various duties.

“They’re here looking for money today, and they have a significant resource in minerals,” said Helmick, D-Pocahontas. “We also want to determine how much wealth is out there.”

Agency officials estimate that the state owns a total of 42,577 acres of oil and gas deposits beneath all of the eight state forests except Cabwaylingo in southwestern West Virginia.

The holdings range from 49 acres beneath the 9,300-acre Kanawha State Forest to 13,739 acres beneath Cooper’s Rock State Forest in Monongalia and Preston counties, which has a surface area of 12,747 acres.

Officials also estimate that the earth beneath these lands contain 57,817 acres of coal, though Jezioro said there’s been no discussion of developing those resources. The surface area of the eight forests together total more than 71,000 acres.

Natural gas drilling on public lands is not new. Private interests have active wells on three of the properties, including Kanawha State Forest. A poorly cut access road there prompted 2007 legislation meant to control and limit how these drilling operations disturb the surface.

Cabwaylingo also hosts private wells, as does Camp Creek State Forest in Mercer County, said Joe Scarberry, DNR’s Land and Streams supervisor.

Jezioro said his agency is proceeding on the legislative request with caution.

“There’s a lot that has to be decided,” Jezioro said. “We’re the stewards of these natural resources. But the real owners are the people. We have to take into consideration how the citizens of the state would approach it.”

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