Virginia oil and gas laws can be found in Chapter 22.1, Title 45.1 of Virginia Code.  Pursuant to Va. Code Ann. § 45.1-361.4, the director has the power and duty to regulate gas, oil, or geophysical operations, collect fees, and perform other responsibilities as may be prescribed in regulations promulgated by the department or the board.

Powers and Jurisdiction of the Board

Pursuant to Va. Code Ann. § 45.1-361.13, the board is composed of seven members consisting of the Director or his/her designee; one individual who is a representative of the gas and oil industry; one individual who is a representative of the coal industry; and four other individuals who are not representatives of the gas, oil or coal industry.  All the members are appointed by the governor.

Pursuant to Va. Code Ann. § 45.1-361.14, the board will have the power necessary to execute and carry out all of its duties as per the statute.  The board is authorized to investigate and inspect such records and facilities as are necessary and proper to perform its duties.  The board may also employ such personnel and consultants as may be necessary to perform its duties.

Pursuant to Va. Code Ann. § 45.1-361.15, while executing its duties, the board should:

• Foster, encourage and promote the safe and efficient exploration for and development, production and conservation of the gas and oil resources located in the Commonwealth;
• Administer a method of gas and oil conservation for the purpose of maximizing exploration, development, production and utilization of gas and oil resources;
• Administer procedures for the recognition and protection of the rights of gas or oil owners with interests in gas or oil resources contained within a pool;
• Promote the maximum production and recovery of coal without substantially affecting the right of a gas owner proposing a gas well to explore for and produce gas.

Regulation of Production

Pursuant to Va. Code Ann. § 45.1-361.27, the director promulgates and enforces rules, regulations, and orders necessary to ensure the safe and efficient development and production of gas and oil resources located in the Commonwealth.

Such rules, regulations, and orders are designed to:

• Prevent pollution of state waters and require compliance with the Water Quality Standards adopted by the State Water Control Board;
• Protect against off-site disturbances from gas, oil, or geophysical operations;
• Ensure the restoration of all sites disturbed by gas, oil, or geophysical operations;
• Prevent the escape of the Commonwealth’s gas and oil resources;
• Provide for safety in coal and mineral mining and coalbed methane well and related facility operations;
• Control wastes from gas, oil, or geophysical operations;
• Provide for the accurate measurement of gas and oil production and delivery to the first point of sale; and
• Protect the public safety and general welfare.

Appeals

Pursuant to Va. Code Ann. § 45.1-361.36, any person who is aggrieved by a decision of the director may appeal to the board, by petition to the Board filed within ten days following the appealed decision.

Penalties

• Pursuant to Va. Code Ann. § 45.1-361.8, any person who violates or refuses, fails or neglects to comply with any regulation or order of the board, director, or inspector, will be guilty of a Class 1 misdemeanor.
• In addition, any person who violates any provision of the statute, any condition of a permit, or any regulation or order of the board, director, or inspector be assessed a civil penalty up to $ 10,000 for each day of such violation

Leases

Pursuant to Va. Code Ann. § 45.1-361.10, any person, either as principal or agent, who executes a lease of land or right for drilling for gas or oil, or for the development or production of gas or oil, will do so in duplicate.  One copy of the lease, duly executed by the lessee will be furnished to the lessor.