W. Va. Code R. § 112-16-5 - Due Diligence and Reporting

5.1. Holders shall make reasonable efforts to identify and locate every owner of a reserved interest in the possession of the holder not less than once per calendar year before submitting a report to the administrator. Holders may not charge the expenses of identifying or locating an owner against the amount owed the owner.

5.2. If a holder has been unable to determine the name of an owner, due diligence under this § 112-16-5 is not required.

5.3. Holders shall file reports in the form and format established by the administrator.

5.4. Holders of property reportable shall file their initial report within 120 days from the date upon which the property became reportable. The report shall be verified and filed with the administrator containing the following:

5.4.1. any information that identifies the reserved interest, including without limitation, the legal description of the real property interest, name of the county and district in which the mineral property is located, tax map and parcel of the associated surface property at the time of the report, tax map and parcel of the mineral interests at the time of the report, watershed and stream information, American Petroleum Institute number for the well or wells, and division orders;

5.4.2. a designation of the reserved interest as belonging to an owner and all information known about the owner, including, without limitation, any names, addresses, social security number or taxpayer identification number, date of birth, date of death, driver's license number, telephone numbers and e-mail addresses; and

5.4.3. date or dates which the reserved interest became payable under the Act.

5.5. After the initial report is filed, holders shall file a subsequent report each calendar quarter with the administrator by the first day of the month following that calendar quarter with any additional information that identifies the reserved interest and owner that may be available to the holder.

5.6. Safe Harbor for Reporting - Holders have until the first day of the second month following each calendar quarter to report before penalties and interest are assessable.

5.7. Holders shall remit the amount of any reportable property concurrently with the filing of the associated report.

5.8. A report is not considered an adequate report if the administrator determines the report is incomplete or missing information or the remittance does not match the report. If the administrator determines the report is not adequate, the administrator shall notify the holder and the holder shall file a corrected report or remittance, or the holder shall file an explanation for the absence of information or any inconsistency identified by the administrator, with the administrator within twenty calendar days after the administrator returned the report or remittance to the holder.

5.9. The administrator shall create an account for each owner of property reported after determining the report and remittance appear correct.

5.10. If the administrator is unable to locate an owner within one year of receiving the report, the administrator may contact the holder and obtain any other information from the holder that the holder may have pertaining to the property. The holder shall provide any information requested by the administrator if known or available to the holder, including, without limitation, any prior payments to the owner, information about the lease under which the reserved interest was created, permits, title opinions, and filings with any governmental entity. In addition, the holder shall provide the names and any other available information for or pertaining to family members, guardians, conservators, joint owners, co-owners, co-tenants, beneficiaries, and surface owners, including, without limitation, any names, addresses, social security number or taxpayer identification number, date of birth, date of death, driver's license number, telephone numbers and e-mail addresses.

5.11. Records relating to the property of a holder failing to submit an adequate report or remittance within the time required by the Act are subject to examination. This includes records of another person or entity with records relating to the property created or held for or on behalf of the holder.

5.12. The administrator may assess interest and penalties in accordance with W. Va. Code § 36-8-24 against a holder failing to file a report and remittance on or before the time specified in the Act or as authorized by the administrator.

5.13. A holder discovering unreported property shall file a report immediately upon discovery of the omission. The holder shall identify the property as being reported late and the reason for the omission.

5.14. A holder does not have to file a negative report, but may choose to do so for recordkeeping purposes.

5.15. A holder seeking an extension of time in which to report or remit shall file a request with the administrator for receipt by the administrator a minimum of thirty (30) calendar days prior to the due date using the extension form provided by the administrator.

5.15.1. A request by a holder for an extension of time to report or remit the amount due shall include a reasonable cause for delaying the report or remittance. Reasonable cause includes, but is not limited to, a natural disaster, criminal activity related to the holder's books and records, or a recent change in the form of ownership of the holder through merger, acquisition or reorganization. Reasonable cause does not include the failure of a holder to perform the due diligence required under subsection 5.1. of this rule.

5.15.2. The administrator shall respond to each request for extension within twenty (20) days after receipt of the request.

5.15.3. Unless otherwise authorized by the administrator, the holder shall submit a payment of 80% of the estimated amount due upon receipt of the extension.

5.15.4. The administrator may grant the holder an extension of not less than thirty (30) days and no more than ninety (90) days from the date the report and/or remittance are due.

Notes

W. Va. Code R. § 112-16-5