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Tag Archives: Energy

Court of Appeals Addresses Notice Requirement Under 2006 DMA

Posted in Energy
Recently, in Shilts v. Beardmore (2018-Ohio-863), the Seventh District Court of Appeals analyzed whether a surface owner complied with the notice requirement of the 2006 version of the Ohio Dormant Mineral Act (Revised Code 5305.56) (the “2006 DMA”). Under the 2006 DMA, in order to abandon a dormant mineral interest, a surface owner must first serve a notice of… Continue Reading

Supreme Court of Ohio Takes Up Marketable Title Act

Posted in Energy
On February 28, 2018, the Supreme Court of Ohio announced that it has accepted an appeal of Blackstone v. Moore (2017-Ohio-1639).  Blackstone is a Seventh District Court of Appeals decision that analyzed the Ohio Marketable Title Act (R.C. 5301.47 et seq.) (the “OMTA”) and adopted a four factor test to determine whether a reference to an… Continue Reading

Ohio Appellate Court Finds The Duhig Rule Persuasive

Posted in Energy
In Talbot v. Ward (2017-Ohio-9213), Ohio’s Seventh District Court of Appeals found the Duhig rule “persuasive” in interpreting a deed containing an exception for royalties, bonuses, and rentals. The Duhig rule, first enacted in Texas in 1940, bars a grantor and his successors and assigns from claiming title in a reserved fractional mineral interest when doing so would, in effect,… Continue Reading

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

Court Clarifies which References are “Specific” for Purposes of Applying the Ohio Marketable Title Act

Posted in Energy
Ohio’s Seventh District Court of Appeals recently interpreted a statutory exception to “marketable record title” under Ohio’s Marketable Title Act (R.C. 5301.47 et seq.) (OMTA). In Blackstone v. Moore, 2017-Ohio-5704, the court held that whether a reference to an interest inherent in the muniments of the chain of record title is “specific” – and thus… 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

West Virginia Supreme Court of Appeals Holds Certain Lessees May Deduct Post-Production Costs

Posted in Energy
On Friday, May 26, 2017, the West Virginia Supreme Court of Appeals released its decision in Patrick D. Leggett, et al. v. EQT Production Company, et al. and held that lessees subject to West Virginia Code § 22-6-8 may deduct post-production costs actually incurred from the lessor’s royalty.  The reasonableness of post-production expenses, however, is a question of fact.… Continue Reading

White House Approves Keystone XL Pipeline

Posted in Energy, Environment
The White House issued a permit today approving Keystone XL, “bringing the mammoth oil pipeline a step closer to fruition more than a year after former President Barack Obama blocked its construction,” writes The Wall Street Journal. The paper notes that the pipeline, which will carry up to 830,000 barrels of oil a day once completed,… 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

Changes Coming to Taxation of Oil and Gas Reserves in Ohio

Posted in Energy
The Ohio Tax Commissioner recently issued a memorandum to county auditors regarding significant changes to the taxation of oil and gas reserves starting in tax year 2016.  These significant changes include: Elimination of filing forms 6 and 6A. Values will now be based upon production volumes reported to the Ohio Department of Natural Resources (ODNR). … 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

Federal Court Rejects Challenge to Colorado’s Renewable Energy Mandate

Posted in Energy, Environment
In Energy and Env’t Legal Inst. v. Epel, 10th Cir. No. 14-1216 (July 13, 2015), the 10th Circuit Court of Appeals rejected a challenge to Colorado’s renewable energy mandate, which required electricity generators to ensure that 20% of the electricity they sold to Colorado consumers came from renewable sources. The appellants argued that given the… Continue Reading

2015 API State of American Energy Report

Posted in Energy
Last week, the American Petroleum Institute issued its annual report, the State of American Energy. The report is buoyant on the growth of America’s oil and natural gas industries: Since 2008, America’s crude oil production has surged by 70 percent, rising from an average of 5 million barrels per day in 2008 to 8.6 million… Continue Reading

Environmental Groups Sue State of Ohio Over Drilling Waste Permits

Posted in Energy
The Columbus Dispatch reports that two environmental groups have sued the State of Ohio, alleging that ODNR wrongfully issued 30 permits allowing the storage and treatment of waste associated with oil and gas drilling: The lawsuit asks the Franklin County Court of Appeals to revoke the permits, thus closing the waste-handling sites, and order the Department… Continue Reading

A Moral Defense of Fossil Fuels

Posted in Energy
In the Pittsburgh Tribune-Review, author Alex Epstein makes a compelling argument for fossil fuels. Epstein argues that fossil fuels were "used to create the technological and economic advances that took us from no indoor plumbing to landing on the moon in less than 200 years": The trend is striking: Increased fossil fuel use correlates with… Continue Reading

Coal Plants Get New Lease on Life with Natural Gas

Posted in Energy
National Geographic reports on the growing number of coal power plants converted to run on natural gas: In the past four years, at least 29 coal units in 10 states have switched to natural gas or biomass, according to SNL Financial, a market data firm. Another 54 units, mostly in the U.S. Northeast and Midwest, are… Continue Reading

Sunoco to Build 2.4 Million Barrel NGL Storage Facility Outside of Philadelphia

Posted in Energy
Reuters reports that Sunoco Logistics Partners is seeking Pennsylvania’s approval to build cryogenic tanks at a site outside of Philadelphia. The tanks will be capable of storing up to 2.4 million barrels of natural gas liquids. Earlier this month, Sunoco announced it was proceeding with a $2.5 billion pipeline project—dubbed Mariner East 2—which will bring… Continue Reading

Supreme Court of Ohio Accepts Appeal in Two DMA Cases

Posted in Energy
As a follow-up to our post from June, the Supreme Court of Ohio accepted the appeal in Swartz v. Householder and Shannon v. Householder, two related cases involving the 1989 version and the 2006 version of the Ohio Dormant Mineral Act (DMA). The Court will consider the following issues: (1)  whether the 1989 DMA is… Continue Reading