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: Ohio
Subscribe to Ohio RSS FeedSEC Issues Investor Alert for Private Oil and Gas Offerings
Posted in Ohio, Regulatory, SecuritiesWe previously blogged about securities regulation of interests in oil and gas exploration and development. Industry participants, state and federal securities regulators have recently cautioned investors regarding investing in oil and gas ventures. At the federal level, the U.S. Securities and Exchange Commission (SEC) issued an investor alert aimed at private oil and gas offerings…. Continue Reading
Ownership of Minerals Under Public Roads
Posted in Contracts and Leases, Mineral Interest, Ohio, Real EstateThis is the second post in a two-part series examining ownership of minerals located under bodies of water and roads. See part I discussing the ownership of minerals under adjoining waters. Who owns the minerals underneath public roads in Ohio? This is really two questions: What ownership interest does the state, county, or township have… 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
Gaining Perspective on Ohio’s Oil and Gas Laws
Posted in Mineral Interest, Ohio, Real Estate, RegulatoryOhio’s oil and gas industry has been around for more than 120 years. That means there is plenty of perspective, and precedent, to consider when applying Ohio oil and gas law to the Utica and Marcellus shale plays. We’ve compiled a few Oil & Gas Law Report articles into an eBook to help you build… Continue Reading
Ownership Theory of Oil and Gas Influences Bankruptcy Law in Ohio
Posted in Contracts and Leases, Mineral Interest, Ohio, Real EstateOne of the most fundamental questions in oil and gas law is whether oil and gas in the ground are capable of being “owned.” The answer to this question shapes the law and influences legal analysis in a variety of ways. Different states have answered this question in different ways, and the answer is not… 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
Financing in the Energy Sector: A Primer for Lenders
Posted in Contracts and Leases, Ohio, Real EstateOur colleagues at the Banking & Finance Law Report recently ran a four-part series on energy financing. They compiled those articles into a resource that’s relevant to anyone involved with lending or borrowing in the energy sector. We encourage you to download the Energy Financing eBook to enhance your understanding of lending in the oil… 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
Drilling Deep into Ohio Regulatory and Environmental Matters
Posted in Ohio, RegulatoryThrough the past year, we’ve written numerous articles covering regulatory and environmental issues that affect the Ohio oil and gas industry. We compiled those articles into an eBook so businesses involved in the industry have a go-to resource on topics such as drilling permit appeals, prevailing wage law, RUMAs, waste management, emissions standards and more…. Continue Reading
Oil and Gas Rights — Reserved? A Litigator’s Perspective On The Mong Case
Posted in Contracts and Leases, Ohio, Real EstateA decision out of the Eleventh District Court of Appeals of Ohio, Mong v. Kovach Holdings, LLC, 2013-Ohio-882 (Ohio 11th Dist. March 11, 2013), represents a cautionary reminder that parties should carefully review the language of contracts they enter, especially the essential terms of the document, and especially contracts that convey away property rights. That… 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
Top 5 Construction Cases of 2012
Posted in Ohio, Pipelines2012 saw several major cases decided by Ohio courts that impact Ohio construction law and the way companies do business. Given the industry connection, oil and gas project owners, contractors, and suppliers could be affected by some of these rulings. Here are what we believe to be the Top 5 construction cases of 2012: #1… 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
Life Estates: More Oil and Gas Law Implications
Posted in Contracts and Leases, Ohio, Real EstateWe recently received a question regarding our earlier post Life Estates: Oil and Gas Law Implications, wondering: “What happens to a mineral lease which the life tenant entered into and received renewal payments each year that was never ratified by the remaindermen upon the termination of the life estate and complete possession is realized by… 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
House Bills 59 and 72 Propose Changes to Ohio Oil and Gas Law
Posted in Ohio, Real Estate, Regulatory, Tax issuesThe Ohio 130th General Assembly is considering two new bills, House Bills 59 and 72. Each bill proposes changes to Ohio’s oil and gas law. Following is a summary of the proposed changes relevant to Ohio’s oil and gas law in each bill. House Bill 59 On Feb. 12, 2013, Rep. Amstutz (R-Dist 1) introduced House Bill 59,… 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
Mandatory Pooling and Unitization in Ohio, Part I: History and Constitutionality
Posted in Contracts and Leases, Mineral Interest, Ohio, Real Estate, RegulatoryLandowners, in certain situations, can be compelled by the state to combine their mineral interest with their neighbors for the purpose of producing oil and gas. In Part I of a multi-part series, I explain the history and constitutionality of this practice. What is Compelled Participation? “Compelled participation” is the term I will use throughout… Continue Reading
Who Owns the Mineral Rights on My Property?
Posted in Contracts and Leases, Mineral Interest, Ohio, Real EstateAs oil and gas companies flock to eastern Ohio to take advantage of the Utica shale play, trying to figure out “who owns the mineral rights” continues to be a difficult and increasingly important question. As noted in a recent post, Ohio title insurance companies are excepting from title insurance policies the ownership of the… Continue Reading