Understanding 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
Category Archives: Regulatory
Subscribe to Regulatory RSS FeedGaining 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
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
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
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
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
What Does 2012 Portend for the Oil and Gas Industry in Ohio?
Posted in Ohio, Regulatory, Tax issuesThe start of a new year leads to annual reflection, prediction and resolution. Let’s do some of it. Public Relations The oil business finds itself in a public relations battle because, after all, perception is reality. This is remarkably reminiscent of the impact of nascent environmental laws on the business in the early 1980s. Fracking,… Continue Reading
Lawsuits Over “Fraudulent” Oil & Gas Leases Often Lack Merit
Posted in Contracts and Leases, Real Estate, Regulatory, Shale, UncategorizedThe Ohio shale boom started slowly when a few small companies quietly began acquiring mineral leases for as little as $25 per acre. This soon gave way to a full blown land rush in the fall of 2010. But as lease prices skyrocketed through the Fall of 2011, disillusioned lessors who signed before the peak… Continue Reading
Ohio Attorney General Issues Guidance on Road Use Maintenance Agreements (RUMA’s)
Posted in Contracts and Leases, Ohio, RegulatoryIn response to questions posed by the Richland County Prosecuting Attorney, the Ohio Attorney General recently provided guidance to public authorities about entering into Road Use Maintenance Agreements (“RUMA’s”) with oil and gas operators. This is a distillation of the 20-page Attorney General Opinion No. 2012-029, which addressed three primary questions. I. May a county… Continue Reading
Ohio House Considers Proposed Legislation To Change Ohio’s Oil and Gas Regulations [UPDATE]
Posted in Mineral Interest, Ohio, Real Estate, RegulatoryThis week the Ohio legislature takes on a busy legislative schedule after the holiday break. Among the many pieces of legislation getting attention are five bills pertaining to the oil and gas industry. These bills, all of them Democrat-sponsored, are up for hearing before the House Agriculture and Natural Resources Committee this week. While no… Continue Reading
Oil & Gas Terms… Confused? You aren’t the only one
Posted in Mineral Interest, Ohio, Real Estate, Regulatory, ShaleThe terms “pooling” and “unitization” are often used interchangeably. To confuse the matter further, in Ohio, there are statutory definitions for a “pool” and a “drilling unit” and neither is related to a “unit.” Hopefully, this will provide some clarification. Pooling and Unitization, Generally To “pool” [the verb] is to combine multiples into a common… 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
Is There a Right To Appeal an Oil and Gas Drilling Permit in Ohio? [UPDATE]
Posted in Contracts and Leases, Ohio, Real Estate, RegulatorySurface owners, neighbors and others indirectly affected by the issuance of an oil and gas well drilling permit might be surprised to learn that they do not have a clear right to challenge the terms contained in that permit. But, recent cases in Ohio and West Virginia have forced courts to more clearly define who… 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
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
Fracking (Fracing) Fluid Not Allowed on Ohio Roads
Posted in Ohio, RegulatoryA common misunderstanding of Ohio oil and gas law is that it allows oil and gas operators to spread drilling fluid on Ohio roads. The Ohio Revised Code authorizes local governments to spread “brine” produced from oil and gas wells on roads. Ohio law does not allow drilling fluid (aka “frac” or “frack” fluid) to… Continue Reading
Who Should Regulate Oil and Gas Operations, National, State or Local Government?
Posted in Mineral Interest, Ohio, Pipelines, Real Estate, RegulatoryLaws and regulations are adopted at all levels of government. The scope of coverage and the need for uniformity normally dictate the jurisdictional level of regulation. But, when the objectives of federal, state, and local governments conflict, legal battles erupt under the rally cries of “federalism,” “states rights,” “home rule,” “preemption,” and “constitutional rights.” Some… Continue Reading