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As Ohio enjoys its latest boom in oil and gas exploration, it is important to understand how oil and gas leases are treated in bankruptcy. Unsettled Ohio law regarding whether a debtor owns unextracted oil and gas as part of the debtor’s real property can make this a difficult issue.
In In re Loveday, No. 10-64110,…
The 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…
You are interested in acquiring a gas lease on certain parcel. When you look at the real property records, however, you discover the record owner is deceased. Now what do you do? Who owns the interests? How do you evidence this ownership?
This issue might be best discussed in the context of an example. Roger…
This is the first in a series of blog entries regarding Ohio state and local taxes imposed on oil and gas operations.
Oil and gas operators in Ohio currently pay a variety of state and local taxes:
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The 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…
In 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…
In 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…
Part 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…
A 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…
Inconsistencies and ambiguities in the Ohio Dormant Minerals Act, Ohio Revised Code § 5301.56 (the “ODMA”), set the stage for legal battles that are just beginning. Oil and gas operators may get caught in the crossfire.
Operators need to be aware of at least one glaring inconsistency in the current version[1] of the ODMA that…
