WV Farm Bureau Magazine January 2016 | Page 20

NATURAL RESOURCES AND ENVIRONMENT 70. GENERAL POLICY ON OIL & GAS West Virginia Farm Bureau recognizes the importance of the oil and natural gas industry to the State of West Virginia and supports the responsible development of this industry, provided adequate protection is afforded to the state’s agricultural and other natural resources. Farm Bureau recognizes the importance of private property rights in our society and supports the rights of land and mineral owners to negotiate freely with other parties, but recognizes that certain proposals for unitization for oil and gas extraction may create opportunities for Farm Bureau members which outweigh any objections to the process. Farm Bureau believes that land use decisions should be made only after consideration of the impacts of any land use decision on the entire property, and that severance of the surface and subsurface estates is not only ill-advised as a matter of agricultural policy, but unduly burdensome to the eventual owners of each estate, and to our government for record keeping. Farm Bureau supports proposals that bring about the reunification of the surface and subsurface estate in all circumstances where the owner of a subsurface estate is missing, unidentifiable, unaccounted for, or fails to pay the mineral taxes. Moreover, Farm Bureau believes that proceeds from extractive industries should accrue to the benefit of those who own and harvest those resources, and those from whose lands these resources are extracted. Farm Bureau supports proposals that direct the payments due an unidentifiable, missing, 20 West Virginia Farm Bureau News or unaccounted for mineral owner under an existing lease agreement to the owner of the surface estate rather than to the State of West Virginia, and the eventual reunification of the mineral estate with the surface estate in cases where the owner of the mineral estate is unidentifiable or cannot be found. In circumstances where any portion of the subsurface estate is sold by a governmental entity for nonpayment of taxes, the owner of the surface estate should be given a right of first refusal to purchase that portion offered for sale. Farm Bureau is concerned about the removal of surface acreage from agricultural (cropland, pasture, hay and forestry) production to accommodate the needed infrastructure for oil and gas extraction. Farm Bureau believes that conservation of West Virginia’s farmland is essential to meet the growing demands for food and fiber production in America. Moreover, we support proposals that ensure landowners are adequately compensated for damages caused by the extraction of subsurface resources both in the short and long terms. We also support proposals requiring equal agriculture representation on the West Virginia Oil and Gas Conservation Commission. 71. TAXATION OF OIL AND NATURAL GAS AND THE CONSTITUENTS THEREOF AND OTHER MARKETABLE SUBSTANCES Farm Bureau believes in the fair apportionment of taxes and supports the farm use valuation for agricultural land as a means to encourage land to stay in agriculture production. We support proposals which ensure a landowner’s tax burden is not increased by the location of oil or gas extraction or processing point. Severance taxes should be calculated based on the wellhead production of oil, gas and natural gas and the constituents thereof and other marketable substances and valued at the point of an arm’s length sale. As for the oil and gas industry, we share the belief that natural resource extraction can be an important part of West Virginia’s economy for the foreseeable future, but we expect the tax burden associated with harvesting these resources to be borne by the industry, not by West Virginia farmers (surface owners).