| Oil and gas industry officials continue to be outraged by a $404 million dollar jury verdict in Roane County against Chesapeake Energy.
Chesapeake spokesman Scott Rotruck has announced the company's plan to build its regional headquarters in Charleston are on hold.
Gov. Joe Manchin, a former energy broker, speaking at the winter meeting of the Independent Oil and Gas Association of West Virginia at Embassy Suites, opened his comments with "I have so many friends in this industry."
Manchin said the judicial branch, "can be devastating and challenging," referring to the jury decision. He went on to refer to Judge Thomas Evans III, saying the verdict was "before a conservative judge in a very conservative part of the state."
Manchin said it is his understanding many of the issues stem from the federal deregulation of the industry in the 1990s.
"We must have a level playing field...I just know we have to make it clearer," he said.
The jury verdict "is an industry issue now," not just a Chesapeake Energy problem, Rotruck said. "We're all in the same situation. We need legislation that creates a level of confidence so the industry will keep investing."
A part of the jury verdict involved the deduction of post-production costs by the gas companies, which appeared to be one of the core issues royalty holders claimed the companies were cheating them.
Chesapeake officials said, "We do need reasonable caps on punitive damages and the money from punitive damages needs to go to the public good," he said.
"We want legislation this session," Rotruck said.
Gas company officials said the Roane County case involved the deductibility of gas-gathering expenses, the ability to share line losses, flat rate pricing and the sale of natural gas on the futures market. "We don't trust the judicial arm to treat us fairly" on these issues.
"We think our best shot is through the Legislative branch. You may see one bill or a bill with an accompanying bill. We're working with the administration. This could have dramatic impacts on us."
Denny Harton of the gas association said he expects the legislature to pass a bill that protects the company form such lawsuits.
"The bottom line is, the Federal Energy Regulatory Commission changed the way gas moves and how cost is allocated," Harton said. "I believe the court decision erred because it completely ignored the evolution of deregulation and the impact that has on the market today."
Anne Tawney Goff, daughter of Garrison Tawney of Roane County, who started the suit, said "Unfortunately, few are speaking out on how these corporations have rolled-over royalty holders and cheated them."
"The jury stood up for the little guys," she said. "Don't they matter?"
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