Energy & Environmental Law Blog

Energy & Environmental Law Blog

VORYS Helping Clients With Their Energy and Environmental Needs

Tag Archives: Ohio

Ohio Court Holds Deed Reserving “All of the Minerals and Coal” Did Not Reserve Oil and Gas

Posted in Energy
In Sheba v. Kautz, 2017-Ohio-7699, Ohio’s Seventh District Court of Appeals held that a deed executed in 1848 reserving “all of the minerals and coal” did not reserve oil and gas. In reaching its decision, the Court applied ordinary principles of contract interpretation, and heavily relied upon the Supreme Court of Ohio’s decision in Detlor… Continue Reading

Ohio Court Elaborates on Paying Quantities Test

Posted in Energy
On June 16, 2017, Ohio’s Seventh District Court of Appeals issued its decision in Paulus v. Beck Energy Corp. 2017-Ohio-5716, which addresses a number of issues concerning Ohio’s standard for determining whether an oil and gas lease is producing in “paying quantities,” a test that must ordinarily be met in order to continue a lease during its… Continue Reading

Appellate Court Holds a Recorded Release of an Oil and Gas Lease is a “Savings Event” under the Ohio Dormant Mineral Act

Posted in Energy
In Davis v. Consolidation Coal Company, 2017-Ohio-5703, Ohio’s Seventh District Court of Appeals held that a recorded release of an oil and gas lease qualifies as a “savings event” under the Ohio Dormant Mineral Act (R.C. 5301.56) (ODMA). One of the six savings events under the ODMA occurs whenever the mineral interest has been the subject… Continue Reading

Bohlen v. Anadarko

Posted in Energy
On June 1, 2017, the Supreme Court of Ohio issued its decision in Bohlen v. Anadarko. We summarized the facts of this case in our earlier post: The Bohlens entered into a lease with Alliance in 2006 for a one year primary term.  Paragraph 3 of the lease contained a delay rental provision: This lease,… Continue Reading

Ohio: Updated Statutory Unitization Guidelines

Posted in Energy
On May 3, 2017, the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management (the Division) issued revised guidelines for statutory unitization applications. The guidance document–largely rewritten from the previous version (issued in May 2014)—contains a number of notable changes, including the following (among others): Unitization applications will now be processed on… Continue Reading

Ohio Court Construes the Term “Holder” under the 2006 DMA to include the Heirs and Devisees of the Record Owner

Posted in Energy
Ohio’s Seventh District Court of Appeals recently interpreted the term “holder” under the 2006 version of the Ohio Dormant Mineral Act (R.C. § 5301.56) (“2006 DMA”) and held that the term should be construed broadly to include the heirs and devisees of the record owner of the severed mineral interest that succeed to the severed… Continue Reading

Ohio Court Rules Landmen Need to be Licensed Real Estate Brokers to Receive Compensation

Posted in Energy
Ohio’s Seventh District Court of Appeals recently held that landmen are subject to the requirements of R.C. Chapter 4735 requiring real estate broker’s licenses in order to be entitled to compensation for brokering deals with landowners on behalf of oil and gas companies. In Dundics v. Eric Petroleum Corp., plaintiff landmen alleged that they were… Continue Reading

Bohlen v. Anadarko

Posted in Energy
Earlier this week, the Supreme Court of Ohio heard oral arguments in Bohlen v. Anadarko.  The Bohlens entered into a lease with Alliance in 2006 for a one year primary term.  Paragraph 3 of the lease contained a delay rental provision: This lease, however, shall become null and void and all rights of either party… Continue Reading

New Pipelines to Increase Ohio Natural Gas Takeaway Capacity

Posted in Energy
Ohio producers will soon be able to transport more natural gas out of the state.  In a recent article, the U.S. Energy Information Administration (EIA) summarized several pipeline projects that are in various stages of development.  According to the EIA, these projects could add an additional 6.8 billion cubic feet per day (Bcf/d) of takeaway… Continue Reading

Supreme Court of Ohio Declines to Answer Certified Questions on Whether Ohio Follows the ‘At The Well’ Rule for Post-Production Costs

Posted in Energy
On November 2nd, the Supreme Court of Ohio issued its decision in Lutz v. Chesapeake Appalachia, L.L.C.   In its opinion, the Court declined to answer a certified question from the Northern District of Ohio regarding whether Ohio follows the “at the well” rule or the “marketable product” theory with respect to post-production costs, leaving it up to… Continue Reading

Ohio Appellate Court Rejects Landowner’s Challenge to Pipeline

Posted in Energy
In Sunoco Pipeline L.P. v. Teter, Ohio’s Seventh District Court of Appeals rejected a landowner challenge to Sunoco’s acquisition of an easement through eminent domain to construct its Mariner East 2 Pipeline.  The landowner contested Sunoco’s exercise of eminent domain on the basis that pure propane and pure butane (i.e., the liquids to be transported… Continue Reading

Supreme Court of Ohio Holds 1989 DMA Is Not Self Executing

Posted in Energy
On September 15, 2016, the Supreme Court of Ohio issued a number of decisions concerning the application of the Ohio Dormant Mineral Act (R.C. 5301.56) (DMA). In the lead case, Corban v. Chesapeake Exploration, L.L.C., et al., 2016-Ohio-5796 , the Court held that:  The 1989 version of the DMA was not self-executing (i.e., did not automatically transfer ownership… Continue Reading

Ohio Oil Production Falls While Gas Production Rises

Posted in Energy
On September 1st, the Ohio Department of Natural Resources (ODNR) released production totals for the second quarter of 2016. The report shows that natural gas production from shale wells increased by over 50% from the second quarter of 2015, while oil production fell over 18% from that same period. Click here to access ODNR’s second… Continue Reading

Division Is Issuing State Lands Unitization Orders

Posted in Energy
Recently, Ohio’s Division of Oil and Gas Resources Management (Division) has issued several unitization orders that include unleased lands owned by the State of Ohio, including lands owned by the Department of Transportation (see here), the Ohio Rail Development Commission (see here), and the Department of Information Technology (see here).  The orders are on terms… Continue Reading

H.B. 390 Clarifies Ohio Unitization Program

Posted in Energy
On June 28, 2016, Ohio Governor Kasich signed into law House Bill 390, which, among other matters, clarifies the status of pending applications for unit operations concerning mineral rights owned by the Ohio Department of Transportation.  In particular, it requires the chief of the Division of Oil and Gas Resources Management to issue unit orders… Continue Reading

Ohio’s Utica Oil Production Dips, Gas Production Grows

Posted in Energy
According to quarterly production data released by the Ohio Department of Natural Resources, oil production in the state from Utica shale wells dipped since the fourth quarter of 2015, reports the Akron Beacon Journal: The oil data is new evidence of the continuing industry downturn from low commodity prices hitting Ohio. That downturn has forced… Continue Reading

Recent Oil, Gas, and Energy Decisions

Posted in Energy
We wanted to make you aware of several recent oil, gas, and energy decisions: FERC v. Elec. Power Supply Ass’n, ___ U.S. ___, 2016 U.S. LEXIS 853 (Jan. 25, 2016)—The United States Supreme Court held that the Federal Energy Regulatory Commission (FERC) had authority to regulate wholesale market operators’ compensation of demand response bids, and… Continue Reading

Ohio Supreme Court Decides Perpetual Lease Issue

Posted in Energy
Only one month after oral argument, the Supreme Court of Ohio issued its decision in the consolidated cases of Hupp v. Beck Energy Corporation (renamed on appeal as Hustack v. Beck Energy Corporation) and Claugus Family Farm L.P. v. Seventh District Court of Appeals, affirming the holding of the Seventh District Court of Appeals that… Continue Reading