# Sell West Virginia Mineral Rights | Marcellus | Berlin Royalties

> Sell West Virginia mineral rights and Marcellus royalties. Tawney, Romeo v. Antero 2025, the 2018 cotenancy act, flat rate lease conversion, and the 2.5 percent nonresident withholding at closing.

Source: https://www.berlinroyalties.com/west-virginia/
Publisher: Berlin Royalties, a veteran-owned oil and gas mineral and royalty buyer in Tulsa, Oklahoma, buying for its own account since 2014. Call or text 918-984-1645.
License: free to quote and cite with attribution to Berlin Royalties and a link to the source URL.

Where We Buy · West Virginia

## Sell your West Virginia mineral rights and royalties.

West Virginia gives royalty owners the strongest post production cost protection in the country, and it got stronger in June 2025. If your check shows processing and transportation deductions, read this before you sell anything.

[Get a Free Valuation](https://www.berlinroyalties.com/free-valuation/)
or call or text [918-984-1645](tel:9189841645)

West Virginia is the best state in the country to be a royalty owner, legally speaking, and most West Virginia owners do not know it. The rule on post production deductions here is the strongest anywhere, it was strengthened again in 2025, and no competitor page in this industry covers the 2025 case at all.

Berlin buys West Virginia Marcellus and Utica royalties and minerals, plus older conventional interests. We are a Tulsa company and we are not going to pretend otherwise. What we bring is underwriting that reads your actual lease against the actual controlling law, because in West Virginia the gap between a lease that survives *Tawney* scrutiny and one that does not is a large permanent difference in what your interest is worth.

## The deduction rule, and why it just got better

Three cases, in order.

***Wellman v. Energy Resources, Inc.***, 210 W. Va. 200, 557 S.E.2d 254 (2001), established that a lessee must bear the costs of getting the product to a marketable condition.

***Estate of Tawney v. Columbia Natural Resources, LLC***, 219 W. Va. 266, 633 S.E.2d 22 (2006), added the three part test that still governs. A lease provision purporting to allocate post production costs to the lessor must:

- **expressly provide** that the lessor shall bear some part of the costs,

- **identify with particularity** the specific deductions the lessee intends to take, and

- **state the method of calculating** the amount to be deducted.

Language like "at the wellhead," standing alone, is ambiguous and does not satisfy the test. A great many West Virginia leases, particularly older ones, fail it outright.

***Romeo v. Antero Resources Corp.***, No. 23-589 (W. Va. June 11, 2025), is the newest and the one nobody is writing about. The Supreme Court of Appeals extended the point of sale rule to processed products, holding that a producer may not deduct from a mineral owner's royalty a proportionate share of the costs incurred in **processing, fractionating, and transporting residue gas and natural gas liquids to the point of sale**. Both leases at issue, from 1979 and 1984, were silent on post production costs, and therefore no deductions were permitted.

There was a vigorous dissent urging that *Tawney* be overruled. This area is live, and we will say that plainly rather than pretending the law is settled forever. But as of today, West Virginia is a **point of sale, gross proceeds, no deductions** state absent lease language that clears the *Tawney* bar.

Now compare [Pennsylvania](https://www.berlinroyalties.com/pennsylvania/), thirty miles north, where *Kilmer v. Elexco* holds the Guaranteed Minimum Royalty Act **permits** net back deductions. Same basin. Same operators. Opposite rule. If you own on both sides of that line, you own two different assets.

## What this means when someone offers to buy your royalty

Two things, and both cut in your favor.

First, if your check currently shows processing, fractionation, or transportation deductions and your lease does not satisfy *Tawney*, the check you are receiving today may understate what you are entitled to. A buyer valuing your interest off that reduced check is buying at a discount to the real number. We do not do that, and we will show you the arithmetic both ways.

Second, a West Virginia interest under a *Tawney* compliant lease with express, particularized deductions is genuinely worth less than one under a silent lease, and any honest buyer should tell you which one you have. Our [royalty statement decoder](https://www.berlinroyalties.com/royalty-statement-decoder/) explains the line items, and our [letter templates](https://www.berlinroyalties.com/letter-templates/) include a certified mail demand for an itemized accounting of deductions.

There was also a major royalty class action against EQT, *The Kay Company, LLC v. EQT Production Co.*, in the Northern District of West Virginia, which **settled for $53.5 million in 2019**. It is frequently miscited as a holding on deductions. It was a settlement. The controlling authority is *Wellman*, *Tawney*, and *Romeo*.

## Flat rate leases

West Virginia has an unusual legacy problem: leases from the 1890s and early 1900s that pay a **flat amount per well per year** rather than a share of production. Some are still in the chain.

**W. Va. Code section 22-6-8** addresses these, conditioning a drilling permit on the operator agreeing to pay a royalty of at least one eighth. The Supreme Court of Appeals has held the statutory minimum royalty may not be diluted by the deduction of post production costs.

If you have an old West Virginia lease that pays a fixed dollar amount, have someone read it. Owners frequently do not realize the statute changed the economics of the instrument they are holding.

## The 2018 cotenancy act, and what it does to a minority owner

West Virginia mineral ownership is more fragmented than almost anywhere, because of generations of intestate succession across small farms. Before 2018 that fragmentation could block development entirely.

The **Cotenancy Modernization and Majority Protection Act**, W. Va. Code chapter 37B (HB 4268, 2018), changed it. Cotenants owning at least an undivided **three fourths** interest may consent to development, W. Va. Code section 37B-1-3.

Section 37B-1-4 protects the minority. A nonconsenting cotenant has **45 days** to elect either:

- **(a)** a pro rata production royalty paid on **gross proceeds at the first point of sale to an unaffiliated third party purchaser, free of post production expenses**, equal to the **highest royalty percentage paid to any consenting cotenant** in the same mineral property, or

- **(b)** participation in revenues and costs, with recovery at **200 percent** of the cost share.

**Failure to elect defaults to option (a).** Unknown or unlocatable owners are automatically deemed to elect (a), and their funds are held and remitted to the State Treasurer; after seven years a surface owner may bring a quiet title action as to those unclaimed funds.

Option (a) is a strong outcome. It ties a nonconsenting minority owner to the **best** royalty in the tract, at gross proceeds, free of deductions. If you received a cotenancy notice and ignored it, you probably landed in the better position by accident. If you have unclaimed funds sitting with the State Treasurer, see [unclaimed royalties](https://www.berlinroyalties.com/unclaimed-royalties/).

## Taxes, including the one that surprises out of state sellers

- **Severance tax:** base rate **5 percent** of gross value for oil and natural gas, W. Va. Code section 11-13A-3a. A tiered rate effective January 1, 2020 applies **2.5 percent** to lower volume conventional wells (gas between 5,000 and 60,000 cubic feet per day; oil between 0.5 and 10 barrels per day) and **5 percent** to higher volume wells and to all shale horizontal production. Marginal well exemptions apply.

- **Income tax:** graduated, top rate **4.82 percent**.

- **Nonresident withholding at closing: 2.5 percent** of the sale proceeds, or of the estimated capital gain, when a nonresident sells West Virginia real property. W. Va. Code section 11-21-71b. Minerals are real property, so this applies to a mineral conveyance.

That last one is the item most often missed. An out of state seller should know the figure before signing, not discover it on the settlement statement. We disclose it up front on every West Virginia purchase. See [taxes when you sell mineral rights](https://www.berlinroyalties.com/mineral-rights-capital-gains-tax/).

## What actually moves a West Virginia interest's value

- **Your lease against the *Tawney* test.** This is first, and it is bigger here than in any other state.

- **Wet gas versus dry gas.** The northern counties produce liquids rich gas, which pays better and which is exactly where the *Romeo* processing question bites.

- **Undeveloped Utica.** Much producing Marcellus acreage has Utica beneath it, usually under the same lease. That inventory has value now.

- **Fragmentation and title.** West Virginia interests are frequently held by dozens of cotenants through unprobated estates. We pay for curative work as part of a purchase. See [selling inherited minerals before probate is done](https://www.berlinroyalties.com/sell-inherited-minerals-probate/) and [can I sell my share](https://www.berlinroyalties.com/sell-my-share-siblings/).

- **Operator.** Antero, EQT, Southwestern, HG Energy, Arsenal, Diversified, and Northeast Natural Energy report and deduct differently. Our [operator directory](https://www.berlinroyalties.com/operators/) has contacts.

## Statutes and primary sources

- **Cotenancy Modernization and Majority Protection Act**, [W. Va. Code chapter 37B](https://code.wvlegislature.gov/37B-1-3/), especially [section 37B-1-4](https://code.wvlegislature.gov/37B-1-4/)

- **Flat rate lease royalty**, W. Va. Code section 22-6-8

- **Severance tax**, [W. Va. Code section 11-13A-3a](https://code.wvlegislature.gov/11-13A-3A/)

- **Nonresident real property withholding**, W. Va. Code section 11-21-71b

- **Missing, unknown, and abandoning mineral owners**, [W. Va. Code chapter 55 article 12A](https://code.wvlegislature.gov/55-12A-1/)

- *Wellman v. Energy Resources, Inc.*, 210 W. Va. 200, 557 S.E.2d 254 (2001)

- *Estate of Tawney v. Columbia Natural Resources, LLC*, 219 W. Va. 266, 633 S.E.2d 22 (2006)

- [Romeo v. Antero Resources Corp., No. 23-589 (W. Va. June 11, 2025)](https://law.justia.com/cases/west-virginia/supreme-court/2025/23-589-0.html)

- **West Virginia Department of Environmental Protection, Office of Oil and Gas**: [dep.wv.gov/oil-and-gas](https://dep.wv.gov/oil-and-gas/Pages/default.aspx). See our [well records by state](https://www.berlinroyalties.com/well-records/) page.

- Land records are held by **county clerks**. West Virginia has no statewide official portal.

Last reviewed August 2026. This area of West Virginia law is actively litigated and *Romeo* drew a dissent urging that *Tawney* be overruled. Berlin Royalties is a mineral buyer and a landman shop, not a law firm, and this page is general information rather than legal advice about your lease. If you believe you are being underpaid, talk to a West Virginia oil and gas attorney; several handle these on contingency.

## Where to start

Also see our [Marcellus Shale basin page](https://www.berlinroyalties.com/basins/marcellus/), which sets the West Virginia and Pennsylvania rules side by side, and the [Utica page](https://www.berlinroyalties.com/basins/utica/).

Send us the lease and a recent check stub. We will tell you whether your lease satisfies *Tawney*, what your interest is worth with and without deductions, what the 2.5 percent withholding will be if you are out of state, and whether we think you should sell at all. Free, and no obligation of any kind.

Formations & Plays

## What produces here

### Marcellus Shale

The core wet gas fairway runs through Doddridge, Harrison, Ritchie, Tyler, Wetzel, and Marshall. Some of the most productive gas wells in the country sit under these counties.

### Utica / Point Pleasant

Deeper, still lightly drilled in most of West Virginia, and frequently covered by the same lease as the Marcellus. Undeveloped Utica rights under producing Marcellus acreage are real value that mailer offers ignore.

### Shallow conventional and Devonian sands

Century old production across the state, much of it under flat rate leases that were converted by statute. Small checks, and title chains reaching back to the 1890s.

Counties

## Where we're most active

[Doddridge County](https://www.berlinroyalties.com/west-virginia/doddridge-county/)

[Tyler County](https://www.berlinroyalties.com/west-virginia/tyler-county/)

[Harrison County](https://www.berlinroyalties.com/west-virginia/harrison-county/)

[Ritchie County](https://www.berlinroyalties.com/west-virginia/ritchie-county/)

[Wetzel County](https://www.berlinroyalties.com/west-virginia/wetzel-county/)

[Marshall County](https://www.berlinroyalties.com/west-virginia/marshall-county/)

[Marion County](https://www.berlinroyalties.com/west-virginia/marion-county/)

[Monongalia County](https://www.berlinroyalties.com/west-virginia/monongalia-county/)

[Lewis County](https://www.berlinroyalties.com/west-virginia/lewis-county/)

Barbour

Upshur

Brooke

The northern panhandle and north central wet gas counties are our focus, and we review interests statewide including old shallow conventional.

### The West Virginia mineral owner's guide

Everything a West Virginia owner needs in one place: who owns what under state law, how royalties must be paid and by when, what a buyer can and cannot deduct, the tax treatment of a sale, and the deadlines that quietly cost people their minerals. Free, and no sign-up.

[Read the West Virginia guide](https://www.berlinroyalties.com/guide/west-virginia/)

Questions

## Straight answers for West Virginia owners

Can Antero or EQT deduct processing and transportation from my West Virginia royalty?
Generally no, and this is the most owner favorable rule in the country. West Virginia follows the marketable product line running from Wellman v. Energy Resources in 2001 through Estate of Tawney v. Columbia Natural Resources in 2006. Tawney holds that a lease clause allocating post production costs to the lessor must expressly say so, identify the specific deductions with particularity, and state the method of calculating them. Most leases fail that test. In June 2025 the Supreme Court of Appeals decided Romeo v. Antero Resources Corp. and extended the rule to the point of sale, holding a producer may not deduct a proportionate share of the costs of processing, fractionating, and transporting residue gas and natural gas liquids to the point of sale. If you are seeing those deductions on a West Virginia check, ask about them.

My family owns a share of the minerals but not all of it, and the others agreed to lease. Can they force development?
Yes, since 2018. The Cotenancy Modernization and Majority Protection Act at W. Va. Code chapter 37B lets cotenants owning at least an undivided three fourths interest authorize development over the objection of the minority. Under section 37B-1-4 a nonconsenting cotenant has 45 days to elect either a pro rata production royalty paid on gross proceeds at the first point of sale to an unaffiliated third party purchaser and free of post production expenses, at the highest royalty percentage paid to any consenting cotenant, or participation in costs with recovery at 200 percent. Failing to elect defaults you into the royalty option, which for most owners is the better one anyway. Unknown or unlocatable owners are deemed to elect the royalty, and their share is held for the State Treasurer.

I inherited an old West Virginia lease that pays a flat amount per well per year. Is that still enforceable?
Not at that rate. West Virginia Code section 22-6-8 addresses flat rate leases and conditions a permit on the operator agreeing to pay a royalty of at least one eighth. The West Virginia Supreme Court of Appeals has held that the statutory minimum royalty provision does not authorize the deduction of post production costs from that royalty. Old flat rate leases from the 1890s and early 1900s are common in West Virginia and are worth having someone read, because owners often do not realize the statute changed their economics.

I live out of state. Will anything be withheld when I sell West Virginia minerals?
Yes. West Virginia requires withholding of 2.5 percent of the sale proceeds, or of the estimated capital gain, when a nonresident sells West Virginia real property, under W. Va. Code section 11-21-71b. Minerals are real property. This should be disclosed and handled at closing rather than surprising you afterward. We handle it on our purchases and we will tell you the exact figure before you sign anything.

Does West Virginia have a dormant mineral act that could take my minerals away?
Not in the way Ohio or Kansas do. A widely circulated online table lists West Virginia as having a seven year dormant mineral statute. That appears to be wrong. West Virginia Code chapter 55 article 12A governs the lease and conveyance of mineral interests owned by missing, unknown, or abandoning owners, and it defines an abandoning owner by intent to relinquish rather than by any stated number of years. The seven year figure that does appear in West Virginia law is the cotenancy quiet title period for unclaimed escrowed funds under section 37B-1-4. Do not assume you have lost a West Virginia interest because a chart said so.

## Before you sign anything in West Virginia

The things owners here most often wish they had read first. All free, none of it gated.

- [How mineral rights are valued](https://www.berlinroyalties.com/mineral-rights-value/), including the rule of thumb people quote and why it is usually wrong

- [Selling mineral rights](https://www.berlinroyalties.com/sell-mineral-rights/) and [selling oil and gas royalties](https://www.berlinroyalties.com/sell-oil-and-gas-royalties/), with the real process and timeline

- [The Pugh clause](https://www.berlinroyalties.com/pugh-clause/), the single most valuable sentence you can negotiate into a lease

- [What a farm out is](https://www.berlinroyalties.com/farmout-agreements/), and why your operator suddenly changed

- [The rule of capture](https://www.berlinroyalties.com/rule-of-capture/), and why a neighbor's well can legally drain your minerals

- [Non-participating royalty interests](https://www.berlinroyalties.com/non-participating-royalty-interest/), if your deed carved one out

- [Executive rights](https://www.berlinroyalties.com/executive-rights/), if somebody else signs the lease that binds your minerals

- [Surface owner rights](https://www.berlinroyalties.com/surface-owner-rights/), if you own the ground and someone else owns what is under it

- [Questions to ask a buyer](https://www.berlinroyalties.com/questions-to-ask/) and [what happens if you want out after signing](https://www.berlinroyalties.com/can-i-back-out-of-a-mineral-rights-sale/)

Free Valuation

## Find out what your West Virginia minerals are worth.

Free, no obligation, and no pressure. We reply within one business day, usually faster.

Prefer the phone? Call or text [918-984-1645](tel:9189841645) and you will get Stephen, the owner, not a call center. If we miss you, we text back the same day.

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