Responding to a surge in applications, the Ohio Department of Natural Resources (ODNR) has issued rules for new applications. After being relatively unused for decades, the unitization statute (R.C. 1509.28) has found new life in the current shale play and the state agency overseeing the process decided it was time to lay down some groundrules…. Continue Reading
Category Archives: Exploration & Production
Subscribe to Exploration & Production RSS FeedFifth Circuit Affirms $44.4 Million Jury Award for Trade Secret Misappropriation of Software Developed for Oil and Gas Industry
Posted in Exploration & ProductionThe Fifth Circuit Court of Appeals recently affirmed a jury verdict awarding $26.2 million in compensatory damages and $18.2 million in punitive damages for trade secret misappropriation of software that enabled oil and gas companies to “plan, procure and pay for complex services” online. See Wellogix, Inc. v. Accenture, LLP, Case No. 11-20816 (5th Cir…. Continue Reading
ODNR Releases 2012 Utica Shale Production Results
Posted in Exploration & Production, Ohio, ShaleOhio law requires oil and gas operators to report prior year production from oil and gas wells on an annual basis — by March 31 of the following year. The Ohio Department of Natural Resources (ODNR) recently unveiled the 2012 production results from Ohio’s Utica shale play. These figures have been much anticipated by investors,… Continue Reading
Common Oil and Gas Lease Conundrums
Posted in Contracts and Leases, Exploration & Production, Mineral Interest, Ohio, RegulatoryUnderstanding rights and obligations associated with oil and gas leases can be challenging. Imprecise lease language, implied legal duties, formulaic statutes and evolving case law all affect oil and gas leases in different ways. We’ve written several articles on these topics during the past several months and have compiled them into an eBook to help… Continue Reading
Ownership of Minerals Under Adjoining Waters
Posted in Contracts and Leases, Exploration & Production, Mineral Interest, Ohio, Real EstateThis post is the first of two articles examining ownership of minerals located under bodies of water and roads. Who owns the minerals under bodies of water? When oil and gas were being produced in meager quantities, not many people cared. But the story is different when lease bonuses are thousands of dollars per acre… Continue Reading
Unitization in Ohio: Compelled Participation in the New Context of the Utica Shale
Posted in Contracts and Leases, Exploration & Production, Ohio, Real Estate, RegulatoryIn many ways, the Utica Shale play caught Ohio off guard. The state became a main focus of the oil and gas industry almost overnight. Ohio responded by updating its oil and gas laws, including major overhauls resulting from Senate bills 165 in 2010 and 315 in 2012. But in some cases, operators and regulatory… Continue Reading
ODNR Issues Two More Unitization Orders for Horizontal Utica Shale Wells
Posted in Exploration & Production, Mineral Interest, Ohio, RegulatoryThe Ohio Department of Natural Resources (ODNR) recently issued two more unitization orders pursuant to R.C. 1509.28. These two orders bring the total number to four since the beginning of the Utica Shale play. As we discussed after the last order was released, this statute is becoming a valuable tool for operators as they cobble… Continue Reading
Exploring the Disposal of Fracking Waste Water — UIC Class II Wells in Ohio
Posted in Exploration & Production, Ohio, RegulatoryAs discussed in an earlier post about the management of oil field wastes, most exploration and production waste is not regulated as a hazardous waste. Instead, it is regulated as a solid waste. Even so, as discussed in a recent article by Stephen Ellis: “One of the biggest problems in the oil and gas industry… Continue Reading
Management of Oil Field Wastes
Posted in Exploration & Production, Ohio, Regulatory, ShaleThe disposal of wastes associated with oil and gas production continues to draw the attention of regulators and concerned citizens. In a series of articles we will examine the waste issue from the characterization of these wastes (discussed below) and their ultimate disposal in underground injection wells. A Brief History of Waste Management and RCRA… Continue Reading
ODNR Issues Second Unitization Order for Horizontal Utica Shale Wells
Posted in Contracts and Leases, Exploration & Production, Ohio, RegulatoryThe chief of the Division of Oil and Gas Resources Management (DOGRM) recently issued a new unitization order pursuant to R.C. §1509.28. This is only the second such order since the beginning of Ohio’s shale drilling boom. The unitization statute has become an increasingly important legal tool for oil and gas operators. We are seeing… Continue Reading
A Tool of Last Resort: Mandatory Pooling in Ohio
Posted in Contracts and Leases, Exploration & Production, Ohio, Real Estate, RegulatoryThis is the second in a multi-part series on the practice of compelled participation – forcing unwilling mineral rights owners to participate in oil and gas production from their property. Part I discussed the history and constitutionality of this practice in the U.S. Every day, crowds of title researchers and landmen pack county offices in… Continue Reading
When Is an Assignment of a Lease not an Assignment of Obligations?
Posted in Contracts and Leases, Exploration & Production, Mineral Interest, Real EstateWhen oil companies transfer oil property among themselves, they frequently do so by an assignment of lease rights. Sometimes they assign all their interest under a lease, but they often assign just a portion of the lease, or reserve some interest in the property. In the event of multiple assignments — such as when party… Continue Reading
Ohio EPA Accepting Comments on Revisions to Model General Air Permits
Posted in Exploration & Production, Ohio, RegulatoryOhio law authorizes the Ohio Environmental Protection Agency (Ohio EPA) to “develop a model general permit for any category of air contaminant sources, or specific portions of any category of air contaminant sources,” subject to certain specified conditions. Ohio law also permits certain categories of air pollution sources to avoid the Permit-To-Install and Operate (“PTIO”)… Continue Reading
ODNR’s Preemption of Oil & Gas Regulation Upheld
Posted in Exploration & Production, Ohio, RegulatoryAs we discussed in an earlier post about regulatory structures, the question of who is authorized to regulate oil and gas operations in Ohio pits local governments against the state government. The state won the first round earlier this week — and it may have landed a knock-out punch. In State ex rel. Morrison v…. Continue Reading
Ohio Oil and Gas Association Joins Ranks of Those Opposed to New Air Quality Regulations on the Oil and Gas Industry
Posted in Exploration & Production, RegulatoryAs we reported in the Oil & Gas Law Report on August 29, the U.S. Environmental Protection Agency issued new air regulations for the oil and gas industry on April 17, 2012. As summarized by the EPA: The newly established NSPS for the Crude Oil and Natural Gas Production source category regulate volatile organic compound… Continue Reading
Reserving Fractional Mineral Interests – A Trap for the Unwary
Posted in Contracts and Leases, Exploration & Production, Ohio, Real EstateIn a past life, this author was a “pipeline lawyer” who represented the crude oil purchaser (the company that typically owns the pipeline where the oil is delivered). As a pipeline lawyer, I was called upon to interpret deeds, wills, assignments, and other documents whereby a grantor purported to convey or reserve some interest in… Continue Reading
Oil and Gas Pipeline Companies Can Condemn Private Property in Ohio
Posted in Exploration & Production, Mineral Interest, Ohio, Pipelines, Real Estate, RegulatoryIn Ohio, private pipeline companies regulated as common carriers or public utilities have the power of eminent domain to “condemn” or “appropriate” private property in certain situations. It is well known that the power of eminent domain is available to government authorities. But, the reality of modern America is that carefully regulated private companies, not… Continue Reading
Employment Relations Seminar – Columbus
Posted in Exploration & Production, Labor, OhioPorter Wright’s Labor and Employment Practice will host their Fall Employment Relations Seminar in Columbus on Tuesday, October 30. As some of the topics may be of interest, we wanted to share the information with you. “What Lurks In the Shadows? Facing What Haunts Your Workplace” will focus on the following topics: Trick or Treat? The… Continue Reading
USGS Confirms Potential of the Utica Shale; Finds Ohio Shale Oil “Sweet Spot”
Posted in Exploration & Production, Mineral Interest, Ohio, Regulatory, ShalePart of the mission of the Energy Resources Program of the United States Geological Survey (“USGS”) is to determine the location, quantity, and quality of U.S. mineral and energy resources. In pursuit of that mission, the USGS recently conducted a survey of the potential of the Utica shale across the Appalachian Basin. The results of… Continue Reading
Oil and Gas Surge Impacts Title Searches and Policies of Title Insurance – Part Two of a Two Part Series
Posted in Contracts and Leases, Exploration & Production, Mineral Interest, Real EstateAs I touched on in a recent post, the surge in oil and gas exploration and the accompanying concern with mineral rights and interests have created significant challenges for county recorders and title insurance companies across the state. The strong demand on county offices (often in counties still feeling effects from the recession) for time… Continue Reading
EPA’s Clean Air Act New Source Performance Standards for the Oil and Gas Sector Finally Appear in the Federal Register
Posted in Exploration & Production, Mineral Interest, RegulatoryOn April 17, 2012, the United States Environmental Protection Agency (EPA) issued final revised New Source Performance Standards (NSPS) and National Emission Standards for Hazardous Air Pollutants (NESHAPs) for the oil and natural gas industry. Four months later, EPA published those rules in the Federal Register. EPA’s website provides summaries of the new rules’ requirements… Continue Reading
Ownership of Oil and Gas in Ohio
Posted in Contracts and Leases, Exploration & Production, Real Estate, Regulatory“The basic underlying theme of oil and gas law is still undeniably rooted in property concepts developed over the past 1000 years.” Bruce Kramer, “The Mangling of Common Law Property Concepts”, 33 Washburn Law Journal 540, 568 (1994) If you own land in Ohio, do you own the oil and gas under your feet? We… Continue Reading
Ohio’s Oil Boom – Why It Will Be Different This Time
Posted in Exploration & Production, Mineral Interest, Ohio, Real Estate, Regulatory, Tax issuesThis is not Ohio’s first oil and gas boom. There has been a series of them. I think it is fair to say that in the past the oil and gas business had a freer rein (some would say reign). But this time things are likely to be different. With the internet, higher land prices,… Continue Reading
Waterless Alternatives to Fracking Attract Attention
Posted in Exploration & Production, Mineral Interest, Regulatory, ShaleAs public concern about hydraulic fracturing (“fracking” or “fracing”) grows and historic drought conditions parch most of the country, the limelight is focused on technologies that offer alternatives to traditional hydraulic fracturing, which uses large volumes of water. One of the more established technologies in this emerging market is a process that uses liquid petroleum… Continue Reading