Amy Hull-Wright, Michael Hull, Betty Garrett Schmidt, Trustee of the Betty Schmidt Revokable Trust, Susan Schwartz, and Mitchell Garrett v. Arsenal Resources, LLC
CourtIntermediate Court of Appeals of West Virginia
Date FiledNovember 10, 2026
Docket26-ICA-209
StatusUnpublished
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Full Opinion
IN THE INTERMEDIATE COURT OF APPEALS OF WEST VIRGINIA
FILED
AMY HULL-WRIGHT, MICHAEL HULL, November 10, 2026
BETTY GARRETT SCHMIDT, ASHLEY N. DEEM, CHIEF DEPUTY CLERK
Trustee of the Betty Schmidt Revokable Trust, INTERMEDIATE COURT OF APPEALS
OF WEST VIRGINIA
SUSAN SCHWARTZ, and MITCHELL GARRETT,
Interested Parties Below, Petitioners
v.) No. 26-ICA-209 (Oil and Gas Conservation Commân Docket No. 412, Cause
No. 508, Order No. 2)
ARSENAL RESOURCES, LLC,
Applicant Below, Respondent
MEMORANDUM DECISION
Petitioners Amy Hull-Wright, Michael Hull, Betty Garrett Schmidt, Trustee of the
Betty Schmidt Revokable Trust, Susan Schwartz, and Mitchell Garrett appeal the May 7,
2026, amended order from the Oil and Gas Conservation Commission of West Virginia
(âCommissionâ). The amended order granted the application filed by Respondent Arsenal
Resources, LLC (âArsenalâ) to form a Marcellus shale formation horizontal drilling unit
under provisions of the Oil and Gas Conservation Act (the âActâ) which provide for the
forced pooling of mineral interests through a process known as unitization. Arsenal filed a
response.1 Petitioners filed a reply.
This Court has jurisdiction over this appeal pursuant to West Virginia Code § 51-
11-4 (2026). After considering the partiesâ arguments, the record on appeal, and the
applicable law, this Court finds no substantial question of law and no prejudicial error. For
these reasons, a memorandum decision affirming the Commissionâs order is appropriate
under Rule 21 of the West Virginia Rules of Appellate Procedure.
At the outset, the Court notes that this case was originally before it in Hull-Wright
v. Arsenal Res., LLC, No. 25-ICA-410, 2026 WL 1718334 (W. Va. Ct. App. May 1, 2026)
(memorandum decision) (âArsenal IIâ). In that appeal, we determined that the
Commissionâs order lacked sufficient findings and analysis to permit proper appellate
1
Petitioners are represented by Edmund L. Wagoner, Esq., and Matthew B.
Hansberry, Esq. Arsenal is represented by Max C. Gottlieb, Esq., J. Zak Ritchie, Esq., and
Maureen F. Gleason, Esq.
1
review, and as a result, vacated the Commissionâs decision and remanded the matter to the
Commission for entry of a new, more detailed order that was appropriate for our review of
the merits. Arsenal II, 2026 WL 1718334, at *5. The present appeal stems from the
amended order entered by the Commission upon remand.
Arsenal filed an application on July 24, 2025, to unitize the oil and gas tracts within
a target formation to create the JOsborn 214 Unit, consisting of 368.41 acres. See W. Va.
Code § 22C-9-7a (2022). At the time of filing, the application stated that Arsenal had
obtained consent from enough royalty interest owners and oil and gas operators to satisfy
that statutory threshold under the Act.2 Arsenal further asserted that it made good faith
efforts to obtain consent from all locatable interest holders. See W. Va. Code § 22C-9-
7a(c)(2)(C)(i).3 The application included an affidavit by T.J. Baldwin, a landman for
Arsenal, wherein he attested that Arsenal made good faith offers and efforts to obtain leases
or consent to pool from all locatable interest owners. Petitioners own oil and gas interests
within the JOsborn 214 Unit. They objected to Arsenalâs application, alleging that Arsenal
failed to negotiate with them in good faith. The Commission set an evidentiary hearing on
Arsenalâs application for August 21, 2025.
Prior to the hearing and in compliance with the Act, Mr. Baldwin submitted a
confidential summary containing Arsenalâs data and information regarding the unit to an
independent thirdâparty reviewer selected by the Commission. The reviewer used the
information to prepare an economic report dated August 15, 2025, which was submitted to
the Commission prior to the evidentiary hearing to assist in its evaluation of Arsenalâs
application. The report contained the calculation of certain weighted averages based on
information from the leases controlled by Arsenal within the subject unit, which the
Commission was required to incorporate into the unit orders. See W. Va. Code § 22C-9-
2
See W. Va. Code § 22C-9-7a(c)(2)(A) (requiring pre-application consent from
royalty owners totaling 75% or more of the net acreage); W. Va. Code § 22C-9-
7a(c)(2)(B)(i) (requiring pre-application consent from the oil and gas operators equal to
55% or more of the net acreage owned, leased, or operated by operators and the applicant).
3
As a prerequisite, this statute states that an applicant must have:
Made good-faith offers to consent or agree to pool or unitize, and has
negotiated in good faith with, all known and locatable royalty owners having
executory interests in the oil and gas in the target formation within the
acreage to be included in the proposed horizontal well unit who have not
previously consented or agreed to the pooling or unitization of the interests
and whose interests are not subject to development under § 37B-1-1, et seq.
of this code[.]
2
7a(g)(4) (2022).4 To that end, the report stated that the weighted average monetary bonus
paid for the leases was $1,300.59 per net mineral acre; the weighted average royalty
percentage for all of Arsenalâs leases within the unit was 12.88%, with the highest royalty
percentage being 16%; and that the highest royalty percentage for the unitâs leases executed
within twenty-four months of the application date was 12.5%. The report was entered into
the record at the evidentiary hearing.
During the August 21, 2025, evidentiary hearing, the Commission heard testimony
from Mr. Baldwin about the partiesâ negotiations and their respective positions on the issue
of good faith, and several exhibits were admitted into the record regarding those
negotiations.5 He was subject to cross-examination. The record shows that petitioners
called no witnesses.
Mr. Baldwin testified that Arsenal initiates negotiations by mailing a lease offer to
the owner and, if no response is received, he makes additional efforts to contact the owner
by phone or in person in hopes of reaching an agreement. He indicated that as part of this
process, he maintains logs documenting communications he has with interest owners
during negotiations. A copy of that log was included with Arsenalâs application and
admitted into the record. It reflects that Arsenalâs negotiations with petitioners began in
2022 and continued up until Arsenalâs filing of its application in July 2025.
Based upon Mr. Baldwinâs testimony and the exhibits admitted at the evidentiary
hearing regarding the partiesâ negotiations and the issue of good faith, the Commission
made several factual determinations which it included in the order now on appeal.
On September 28, 2022, Arsenal offered all petitioners a lease with a royalty rate of
12.5%, bonus payment of $660 per net acre, and an annual rental payment of $660 per net
acre.
4
This statute requires an applicant to submit a summary of certain economic data
regarding leases and payments within the proposed unit to an attorney or accountant
selected by the Commissionâs chairman who is designated as an âindependent, third party.â
Their role is to review the summary for accuracy and prepare a report for the Commission
containing the calculation of certain averages related to the proposed unit, which the
Commission is required to include in its order. The statute also provides for the independent
reviewer to be paid for their services and permits an applicant to designate the summary it
provides as confidential.
5
Arsenal also called a geologist and reservoir engineer as witnesses. However, as
set forth by the order on appeal, their testimony was scientific in nature, and did not relate
to the negotiations between the parties. Their testimony is not challenged in this appeal.
3
Later, on November 12, 2024, Arsenal offered Petitioner Mitchell Garrett an
extension of his prior lease with a 14.25% royalty. Mr. Garrett declined the offer. The
November 2024 letter proposed extending Mr. Garrettâs 14.25% lease, paying a $170,000
upfront bonus, and shortening the lease term to two years. The letter also stated that Arsenal
would extend the same offer to Petitioner Betty Garrett Schmidt. Mr. Baldwin testified
earlier that he did not offer extensions to the remaining petitioners because their existing
leases were ânetâ leases rather than âgrossâ leases and therefore did not benefit their
mineral interests.
Arsenal made a subsequent lease offer to all petitioners on February 10, 2025. It
offered a fiveâyear lease with a $750 per acre bonus, a $160 per acre annual rental, and a
12.5% royalty. This offer also provided for payment of the rental fees upfront. On May 7,
2025, Arsenal sent another offer letter to all petitioners proposing a 12.5% royalty, a
twoâyear lease, a $1,000 per acre bonus, and a $600 per acre annual rental, totaling $2,200
per acre. This offer likewise provided an upfront rental payment. Mr. Baldwin stated that
Arsenal could not offer more than a 12.5% royalty because production data from the unit
over the prior six years was unfavorable. Specifically, the expected production from this
unitâs well is half that of wells in other units. He further explained that, absent the benefit
of pre-existing infrastructure such as the well pad, roads, and pipelines, Arsenal could not
prudently drill the unit.
During the August 2025 hearing, the Commission also heard Mr. Baldwinâs
testimony about Arsenalâs additional efforts to negotiate a lease for JOsborn 214 between
May 16, 2025, and August 19, 2025. He presented supporting documentation showing his
communications with petitionersâ counsel and with Mr. Garrett. Mr. Baldwin testified that
Arsenalâs final offer provided petitioners with a 12.5% royalty and a payment of $900 more
per acre than they would receive under the Act. He further explained that petitionersâ leases
had a Most Favorable Nations (MFN) clause, which would supersede the less favorable
terms available through a forcedâpooling order. Despite these terms, Arsenalâs efforts were
unsuccessful because petitioners refused to accept a 12.5% royalty rate. It is undisputed
that this issue has stalled all negotiations between the parties. It is also undisputed that
Arsenal has not offered any mineral owner within the subject unit a new lease with a royalty
higher than 12.5% during the past two years. Mr. Baldwin testified that he believed that
Arsenalâs efforts satisfy the statutory requirement of good faith.
At the close of evidence, the Commission voted to approve the application and
memorialized its ruling in its original order. As previously noted, this Court vacated that
order in Arsenal II. Upon remand, the Commission entered an amended order dated May
7, 2026. The Commissionâs order contains several findings regarding the evidence
presented at the August 2025 hearing. This includes factual findings squarely addressing
the testimony of Mr. Baldwin and delineating the partiesâ communications and negotiations
between 2022 through 2025.
4
The Commission concluded that the full record supported a finding that Arsenal had
satisfied its statutory obligation of negotiating with petitioners in good faith. The
Commission found that the evidence showed that the parties engaged in extensive
negotiations for several years, including Arsenal revising its offers to several terms
requested by petitioners. As an example of Arsenalâs concessions, the Commission
specifically noted Arsenalâs revisions to reflect substantially increased upfront royalty
payment to petitioners.
The Commission noted that petitionersâ refusal to accept a 12.5% royalty created an
impasse in the partiesâ negotiations. It further observed that the independent reviewerâs
report confirmed that Arsenal has not paid a royalty above 12.5% in the past two years.
The Commission also found credible Mr. Baldwinâs testimony that Arsenalâs feasibility
concerns with the unitâs well prevented it from offering a royalty higher than 12.5%. As
such, the Commission squarely rejected petitionersâ contention that Arsenal was required
to offer more than 12.5% to satisfy the statutory requirement of good faith.
In support, the Commission cited its statutory duty to determine good faith and this
Courtâs prior explanation of that duty in Haughtland Res., LLC v. SWN Prod. Co., LLC,
No. 25âICAâ84, 2025 WL 3162008, at *5 (W. Va. Ct. App. Nov. 12, 2025) (memorandum
decision) (citation modified) (referencing the Supreme Court of Appeals of West Virginiaâs
reliance on a Blackâs Law Dictionary definition: âGood faith is an intangible and abstract
quality with no technical meaning or statutory definition, and it encompasses, among other
things, an honest belief, the absence of malice and the absence of design to defraud or to
seek an unconscionable advantage.â). Based on those authorities, the Commission noted
that under the Act, good faith does not require an applicant, such as Arsenal, to accede to
every demand made by a mineral owner during negotiations. As such, the Commission
concluded that the record supported the finding that Arsenal had satisfied its statutory
obligation of good faith. The Commissionâs order ultimately concluded that Arsenalâs
application satisfied the statutory requirements for approval under West Virginia Code §
22C-9-7a(e)(1).6 Petitionersâ present appeal followed.7
6
West Virginia Code § 22C-9-7a(e)(1) mandates that the Commission consider a
specific set of factors when evaluating applications. Among those factors is whether the
applicant complies with requirements of West Virginia Code § 22C-9-7a(c).
7
During the pendency of this appeal, Arsenal filed various motions with this Court,
which prolonged resolution of the matter. Relevant here is a motion to dismiss filed on
June 14, 2026, in which Arsenal asserted that petitionersâ subsequent actions after the
evidentiary hearing and entry of the Commissionâs final order rendered this appeal moot.
We refused that motion by order entered July 24, 2026. Arsenal now attempts to revive the
argument on appeal, and we decline to revisit the issue. It is readily apparent that
considering Arsenalâs argument would require the Court to examine facts outside the
5
In this appeal, our review is governed by the State Administrative Procedures Act,
which states:
The court may affirm the order or decision of the agency or remand the case
for further proceedings. It shall reverse, vacate, or modify the order or
decision of the agency if the substantial rights of the petitioner or petitioners
have been prejudiced because the administrative findings, inferences,
conclusions, decision, or order are:
(1) In violation of constitutional or statutory provisions;
(2) In excess of the statutory authority or jurisdiction of the agency;
(3) Made upon unlawful procedures;
(4) Affected by other error of law;
(5) Clearly wrong in view of the reliable, probative, and substantial evidence
on the whole record; or
(6) Arbitrary or capricious or characterized by abuse of discretion or clearly
unwarranted exercise of discretion.
W. Va. Code § 29A-5-4(g) (2021); accord W. Va. Code § 22C-9-11(a) (1998) (stating that
West Virginia Code § 29A-5-4 governs judicial review of Commission orders).
On appeal, petitioners assert various arguments to support their position that the
Commission committed reversible error. We will address these arguments in turn.
To begin, we address petitionersâ two arguments concerning the alleged procedural
errors committed by the Commission. They contend that the Commission erred by failing
to hold a new evidentiary hearing following this Courtâs remand in Arsenal II and further
assert that, without such a hearing, one in which they may present all of their evidence,
including evidence they claim they were previously prevented from offering, the
Commission cannot comply with this Courtâs mandate. We find no merit in this argument.
Here, petitioners extrapolate selective language from our decision in Arsenal II to
support their argument. They rely on a fragment taken from a single sentence in which we
appellate record and would impermissibly place us in the role of fact-finder. Moreover,
West Virginia Code § 22C-9-7a(e) expressly contemplates that the Commissionâs ruling is
limited to the facts existing when the application is filed and those presented at the
evidentiary hearing; our review on appeal is similarly confined. Because neither party has
requested that we vacate the order on appeal and remand the matter to the Commission to
reopen the record for consideration of this specific issue followed by the entry of a new
order, the matter lies outside the scope of this Courtâs review of the merits.
6
noted the Commissionâs statutory obligation to consider all evidence of record in making
its decision. See Arsenal II, 2026 WL 1718334, at *4 (âthe Commission is expressly
obligated to consider all the evidence and determine whether an applicant negotiated in
good faithâ). Petitioners interpret this language as a directive from this Court requiring a
new hearing on remand. That conclusion is incorrect because nothing in our decision
imposes such an obligation. Indeed, while Arsenal II remanded this matter to the
Commission âfor further proceedings, consistent with this decision,â id. at *5, we clarified
in a footnote that âthis includes holding further hearings as necessary.â Id. at *5 n.13
(emphasis added). This explicitly conditional language was not intended to mandate
another hearing. Rather, as the four corners of Arsenal II make clear, this Court did not
reach the merits of the proceeding, including the sufficiency of the evidence. See Arsenal
II, 2026 WL 1718334, at *4 n.14, in part (âLikewise, we reiterate our observation in
Arsenal I that this decision does not address the merits of the underlying decision and
should not be interpreted as suggesting the outcome the Commission should reach upon
remand.â).8 Instead, we concluded that the Commissionâs original order lacked the robust
development necessary to allow meaningful appellate review.
Petitioners further suggest that our use of the term âall the evidenceâ means any
evidence either party wishes to present. That deduction is flawed. Petitioners fail to
recognize that this language appears with a citation indicating that our statement derives
from controlling statutory text, West Virginia Code § 22C-9-10(e) (1998), which provides:
âAfter any hearing and consideration of all of the testimony, evidence and record in the
case, the commission shall render a decision in writing.â Arsenal II, 2026 WL 1718334, at
*4 n.9 (quoting W. Va. Code § 22C-9-10(e)). Thus, Arsenal IIâs directive that the
Commission consider âall the evidenceâ on remand refers only to its duty to evaluate all
evidence already in the record when issuing its new decision. Contrary to petitionersâ
position, the phrase neither includes nor contemplates additional evidence a party may wish
to introduce. As such, while our remand in Arsenal II permitted the Commission to hold
additional hearings to the extent it found them necessary, it required only the Commissionâs
8
In Arsenal I, we noted:
Our decision herein does not address the merits and should not [be]
interpreted as suggesting the outcome the Commission should reach upon
remand. Rather, this decision is predicated upon the necessity of a proper
order, containing sufficient findings of facts (including an analysis of
conflicting factual contentions in the record) and conclusions of law, from
which this Court may afford the Commission's decision, whatever it may be,
a meaningful appellate review.
Hull-Wright v. Arsenal Res., LLC, No. 25-ICA-304, 2026 WL 125974, at *5 n.12 (W. Va.
Ct. App. Jan. 16, 2026) (memorandum decision).
7
preparation of a sufficient order based upon the record as it existed at the close of the
August 2025 hearing, so that this Court could review that ruling on the merits if the new
order were appealed. The Commission therefore fulfilled its obligation under this Courtâs
mandate.
Similarly, we find no merit in petitionersâ reliance on certain language from a
footnote in Arsenal II to support their claim that a new hearing was required on remand. In
that footnote, we observed that because the record suggested that Arsenalâs counsel
âopened the doorâ on an issue during direct examination of Mr. Baldwin, petitionersâ
counsel âshouldâ have been permitted to develop the issue fully through
cross-examination. See Arsenal II, 2026 WL 1718334, at *5 n.12. However, this comment
is merely obiter dicta; it holds no precedential value in this case and does not expand the
scope of the remand beyond directing the Commission to prepare an adequate order from
the existing record. See Frank A. v. Ames, 246 W. Va. 145, 161 n.17, 866 S.E.2d 210, 226
n.17 (2021) (âIt is well settled in our jurisprudence that language in a footnote generally
should be considered obiter dicta which, by definition, is language unnecessary to the
decision in the case and therefore not precedential.â (citation modified)).
Moreover, as we previously explained, the deficiencies in the Commissionâs
original order prevented us from evaluating the case on the merits. In other words, because
the order was insufficient, we could not address petitionersâ substantive arguments in the
initial appeal. Petitionersâ opportunity to establish reversible error and to demonstrate that
a new hearing was necessary arose in this appeal. Yet they do not advance any such
cognizable arguments.
We also find additional flaws in petitionersâ argument that Arsenal II required a new
hearing to allow them to present evidence they claim they were unable to introduce below.
Notably, petitioners did not call a single witness at the administrative hearing and did not
direct this Court to any place in the record where they vouched the evidence they now
assert was improperly excluded. See W. Va. Code § 29A-5-2(a) (permitting a party to
vouch the record as to excluded testimony or evidence). They likewise fail to identify the
specific portions of the record on which they base their argument. See W. Va. R. App. P.
10(c)(7). Further, petitioners did not file a written request for a hearing with the
Commission on remand. See W. Va. Code § 22C-9-7a(g)(3) (âUpon request of any
interested party or the commission, the commission shall conduct a hearing and receive
evidence regarding the application.â). As such, we conclude that petitioners did not take
the steps necessary even to preserve these issues for appellate review.9
9
This does not mean the Court would have found merit in those arguments; rather,
we simply note that preservation of the error is the first step in placing an issue in the proper
posture for appellate review. After that, a party still bears the burden of establishing
8
Petitionersâ second procedural argument contends that the Commission committed
reversible error by violating West Virginia Code § 29A-5-3 (1964)10 when it entered the
order on appeal without first affording them an opportunity to file exceptions to the
Commissionâs proposed ruling. Petitioners generally contend that they would have noted
their exceptions to the Commissionâs evaluation of the evidence on the issue of good faith.
Although the circumstances surrounding the Commissionâs entry of the order may amount
to a technical violation of the statute, we conclude that, in this case, any such error is
harmless. âError is harmless when it is trivial, formal, or merely academic, and not
prejudicial to the substantial rights of the party assigning it, and where it in no ways affects
the outcome of the trial.â Reed v. Wimmer, 195 W. Va. 199, 209, 465 S.E.2d 199, 209
(1995). In this appeal, petitionersâ argument is discounted by the fact that they have failed
to show any prejudice they suffered because of the alleged procedural error. Instead, they
simply question the Commissionâs view of the evidence. The absence of prejudice is
further compounded by the fact that petitioners appealed the decision to this Court and,
thus, were not denied the opportunity to challenge the merits of the Commissionâs decision.
Accordingly, petitioners have not demonstrated reversible error on these grounds.
Petitionersâ final argument targets the Commissionâs substantive findings related to
the evidence and Arsenalâs statutory obligation of good faith. The crux of petitionersâ
argument is that this Courtâs decision in Haughtland imposes a subjective and unworkable
standard, and as a result, the Commissionâs decision is erroneous because it is not based
upon application of an objective good faith standard. Therefore, they maintain the evidence
does not support the Commissionâs decision. However, instead of providing the Court with
proper argument, petitioners inappropriately state that they are incorporating their
reversible error through the presentation of a properly articulated argument supported by
appropriate citation and analysis.
10
This statute provides:
Every final order or decision rendered by any agency in a contested case shall
be in writing or stated in the record and shall be accompanied by findings of
fact and conclusions of law. Prior to the rendering of any final order or
decision, any party may propose findings of fact and conclusions of law. If
proposed, all other parties shall be given an opportunity to except to such
proposed findings and conclusions, and the final order or decision shall
include a ruling on each proposed finding. Findings of fact, if set forth in
statutory language, shall be accompanied by a concise and explicit statement
of the underlying facts supporting the findings. A copy of the order or
decision and accompanying findings and conclusions shall be served upon
each party and his attorney of record, if any, in person or by registered or
certified mail.
9
arguments from their appellate brief from Arsenal II. They then proceed to offer the general
assertion that Haughtland is bad law, and this Court is required to replace it with a bright-
line rule to govern the Commissionâs good faith determination in these cases.
As an initial matter, we do not endorse petitionersâ attempt to incorporate arguments
from briefing in a prior case. Rule 10(c)(7) of the West Virginia Rules of Appellate
Procedure states that the brief âmust contain an argument clearly exhibiting the points of
fact and law presented . . . citing to the authorities relied on.â It further provides that âthe
argument must contain appropriate and specific citations to the record on appeal, including
citations that pinpoint when and how the issues in the assignments of error were presented
to the lower tribunal,â and that this Court âmay disregard errors not adequately supported
by specific references to the record on appeal.â Id. (citation modified). Relying on this
principle, the Supreme Court of Appeals of West Virginia has declined to consider a
petitionerâs attempt to incorporate by reference arguments from one part of the same brief
in support of other arguments in the brief. See E.B. v. W. Va. Regâl Jail, No. 16-0090, 2017
WL 383779, at *5 (W. Va. Jan. 27, 2017) (memorandum decision). However, even to the
extent the Court considers the arguments related to good faith raised in petitionersâ brief in
Arsenal II, we find no error.
As an initial matter, we decline petitionersâ invitation to revise the understanding of
good faith set out in Haughtland. Petitioners first argue that reliance on the definition of
good faith cited in that caseâthe absence of malice and a design to defraud or seek an
unconscionable advantageârenders the âgood faithâ language in West Virginia Code §
22C-9-7a(c)(2)(C)(i) surplusage. In support, petitioners assert that fraud is already
actionable under West Virginia law. However, petitioners fail to explain why the existence
of fraud claims renders the use of âgood faithâ in West Virginia Code § 22C-9-7a
superfluous. Of course, a party to a contract can attempt to void that contract by claiming
fraudulent inducement. See Syl. Pt. 6, Chesapeake Appalachia, L.L.C. v. Hickman, 236 W.
Va. 421, 781 S.E.2d 198 (2015) (âFraud in the procurement of a deed or contract always
renders it voidable.â (citation modified)). However, the good faith requirement in West
Virginia Code § 22C-9-7a(c)(2)(C)(i) requires the Commission to consider an applicantâs
conduct, including the absence of the intent to defraud, in negotiations that have not
resulted in a contract. Therefore, we find no merit in petitionersâ assertion that the use of
Haughtlandâs understanding of good faith renders the reference to good faith in West
Virginia Code § 22C-9-7a(c)(2)(C)(i) superfluous.
Petitioners also argue that the Court should abandon Haughtlandâs understanding
of good faith in favor of requirements imposed by other statesâ unitization acts.
Particularly, petitioners point to appellate court decisions from Texas and Oklahoma
interpreting their respective unitization statutes, and argue that we should reinterpret âgood
faithâ in line with those decisions. Specifically, they ask the Court to incorporate a
requirement of fair market value into the definition of good faith. However, we rejected
10
almost this exact argument in Haughtland itself, recognizing that âthese states have
different legal requirements for offers to non-consenting interest owners within a proposed
unit.â Haughtland, 2025 WL 3162008, at *5 n.10. As we recognized in that case, in the
absence of a statute or regulation requiring the Commission to evaluate proposed leases
against fair market value, it is not this Courtâs place to impose that requirement. See Syl.
Pt. 2, Huffman v. Goals Coal Co., 223 W. Va. 724, 679 S.E.2d 323 (2009) (âThis Court
does not sit as a superlegislature, commissioned to pass upon the political, social, economic
or scientific merits of statutes pertaining to proper subjects of legislation.â). Accordingly,
we find no basis to revisit Haughtland.
We also find no merit in petitionersâ argument that the record does not support the
Commissionâs finding of good faith. As detailed above, Mr. Baldwin testified at the hearing
to the detailed lease negotiations between Arsenal and petitioners, in which Arsenal made
multiple increasing offers to petitioners. Exhibits introduced at the hearing provided further
detail on Arsenalâs extensive, multi-year negotiation effort. While Mr. Baldwin conceded
that Arsenal was unwilling to increase its royalty offer above 12.5%, he also testified that
it was not economically feasible to offer a higher rate. While Petitioners maintain that
Arsenal should have offered a higher royalty, based on the extensive evidence in the record
regarding Arsenalâs negotiation efforts, we cannot say that the Commissionâs finding of
good faith is clearly wrong. See Williamson v. W. Va. Bd. of Reg. Nurses, No. 23-ICA-172,
2024 WL 1729976, at *6 (W. Va. Ct. App. Apr. 22, 2024) (memorandum decision)
(citation modified) (âan appellate court does not reweigh the evidence.â).
Accordingly, we affirm. The Clerk of this Court is hereby directed to issue the
mandate contemporaneously herewith.
Affirmed.
ISSUED: November 10, 2026
CONCURRED IN BY:
Chief Judge Daniel W. Greear
Judge Charles O. Lorensen
Judge S. Ryan White
11