By Ilya Batikov on Posted in EnergyOn November 26, 2019, the Supreme Court of Ohio clarified that a declaratory judgment claim that an oil and gas lease terminated for lack of production is subject to the 21-year statute of limitations for recovery of title to or possession of real property in R.C. 2305.04. See Browne v. Artex Oil Co., Slip Op.… Continue Reading
By Ilya Batikov on Posted in EnergyIn July, we wrote about Gerrity v. Chervenak (5th Dist., Guernsey County), involving the level of due diligence that the Ohio Dormant Mineral Act requires surface owners to use when notifying mineral holders of abandonment proceedings. On October 15, 2019, the Supreme Court of Ohio agreed to hear Gerrity. The Court will consider the following… Continue Reading
By Jay Carr on Posted in EnergyThe Seventh District Court of Appeals reaffirmed that claimants can use both Ohio’s Marketable Title Act (“MTA”) and Dormant Mineral Act (“DMA”) to extinguish and abandon, respectively, mineral interests. In West v. Bode, 2019-Ohio-4092, the appellant-surface owners attempted to extinguish a severed oil and gas royalty interest under the MTA. The holders of the royalty interest… Continue Reading
By Jay Carr on Posted in EnergyThe Division of Real Estate & Professional Licensing issued new guidance for Ohio’s Oil and Gas Land Professionals (“Land Professionals”). First, the Division updated its Land Professional Disclosure Form. Ohio law requires Land Professionals to provide this disclosure form to landowners prior to or at its first meeting with landowners. Second, the Division is requesting… Continue Reading
By Jay Carr on Posted in EnergyThe Fifth Appellate District recently addressed whether an internet search to identify / locate the holders of severed mineral interests is always required under Ohio’s Dormant Mineral Act (“ODMA”). See, Gerrity v. Chervenak, 2019-Ohio-2687. In 1965, Jane Richards obtained title to certain severed mineral interests located in Guernsey County, Ohio (“Gerrity Minerals”). In 1997, Ms.… Continue Reading
By Ilya Batikov on Posted in EnergyOn June 19, 2019, Ohio’s Seventh District Court of Appeals decided a case involving the interplay of a private oil and gas lease and Ohio’s statutory unitization law. See Paczewski v. Antero Resources Corp., 18 MO 0016. When signing an oil and gas lease, the original contracting parties struck a voluntary unitization clause. Unable to… Continue Reading
By Jay Carr on Posted in EnergyOhio’s Seventh District Court of Appeals recently held once again that fee oil and gas interests are subject to possible extinguishment under Ohio’s Marketable Title Act (MTA). See Stalder v. Bucher, 2019-Ohio-936. In Stalder, the mineral owners advanced two arguments against extinguishment. First, they claimed that the MTA no longer applies to mineral interests. In… Continue Reading
By Jay Carr on Posted in EnergyOhio’s Seventh District Court of Appeals was recently asked to analyze whether a fee oil and gas reservation can be extinguished under Ohio’s Marketable Title Act (the “MTA”). In Miller v. Mellott, 2019-Ohio-504, two different groups claimed ownership over the oil and gas. The surface owners claimed title under the MTA. The mineral owners claimed… Continue Reading
By Ilya Batikov on Posted in EnergyLast week, the Sixth Circuit Court of Appeals affirmed a lower court decision upholding the constitutionality of Ohio’s statutory unitization procedures. See Kerns v. Chesapeake Exploration, L.L.C., 6th Cir. No. 18-3636 (Feb. 4, 2019). Read more about that decision in our Client Alert.… Continue Reading
By Jay Carr on Posted in EnergyEarlier this week, Ohio’s 7th District Court of Appeals again addressed the amount of diligence required to identify the holders of severed mineral interests under the 2006 version of Ohio’s Dormant Mineral Act (2006 DMA). In Sharp v. Miller, 2018-Ohio-4740, the Court reaffirmed its earlier ruling in Shilts v. Beardmore that the 2006 DMA only… Continue Reading
By Jay Carr on Posted in EnergyYesterday, September 25, 2018, the Supreme Court of Ohio issued the decision of Dundics v. Eric Petroleum Corporation, 2018-Ohio-3826, which could have broad implications for third-party landmen, land companies and oil and gas producers in Ohio. In that decision, the Court held that the Ohio Real Estate Brokers’ statute, R.C. Chapter 4735, applies to transactions… Continue Reading
By Jay Carr on Posted in EnergyThe Supreme Court of Ohio held last week that a proposed voter initiative creating a Community Bill of Rights for the City of Columbus was properly excluded from the upcoming November 2018 ballot. State ex rel. Bolzenius v. Preisse, Slip Opinion No. 2018-Ohio-3708. The initiative, had it been included on the ballot and enacted into law,… Continue Reading
By Ilya Batikov on Posted in EnergyIn Browne v. Artex Oil Co., Case No. 17 CA 20, the Fifth District recently determined that an action to declare an oil and gas lease terminated due to a lack of production was subject to a breach of contract statute of limitations period of either eight or fifteen years (for more, see here). On… Continue Reading
By Ilya Batikov on Posted in EnergyOn June 13, 2018, a federal district court rejected a takings challenge to a unit order issued by the Ohio Division of Oil and Gas Resources Management under the state’s statutory unitization law, R.C. 1509.28 The court found that “the statutory unitization procedure set forth in R.C. § 1509.28 operates to protect the correlative rights… Continue Reading
By Ilya Batikov on Posted in EnergyIn Browne v. Artex (May 31, 2018), Ohio’s Fifth District Court of Appeals held that a claim that an oil and gas lease expired for lack of production is governed by Ohio’s statute of limitation for contract claims—not the state’s longer statute of limitations for recovery of possession of real property. In Browne, the plaintiffs… Continue Reading
By Jay Carr on Posted in EnergyThe Supreme Court of Ohio ruled yesterday that the Mahoning County Board of Elections must place a proposed city charter amendment—the so-called “Youngstown Drinking Water Protection Bill of Rights”—on the May 2018 ballot, which includes several anti-fracking provisions. State ex rel. Khumprakob v. Mahoning Cty. Bd. of Elections, Slip Opinion No. 2018-Ohio-1602. According to the Court, “[t]he… Continue Reading
By Ilya Batikov on Posted in EnergyToday, the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management invited comments on a draft rule package that would amend the Division’s existing well spacing rules for conventional and horizontal wells. As the Division explains in its Statement of Intent: The DOGRM intends to amend the existing well spacing rule by revising… Continue Reading
By Jay Carr on Posted in EnergyRecently, 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
By Jay Carr on Posted in EnergyOn 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
By Ilya Batikov on Posted in EnergyOn January 30, 2018, the Supreme Court of Ohio rejected a constitutional challenge to a statutory unitization order issued by the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management. In State ex rel. Kerns v. Simmers, the Division issued an order under Ohio’s unitization statute, R.C. 1509.28, that consolidated the relators-landowners’… Continue Reading
By Ilya Batikov on Posted in EnergyIn a January 3, 2018 decision, the Supreme Court of Ohio held that Ohio does not recognize an implied covenant to explore further as a distinct implied covenant in oil and gas leases. See Alford v. Collins-McGregor Operating Co., Slip Opinion No. 2018-Ohio-8. Read more about this case in our Client Alert.… Continue Reading
By Jay Carr on Posted in EnergyIn 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
By Ilya Batikov on Posted in EnergyOver the last several weeks, Ohio courts issued a few decisions involving oil and gas issues that we wanted to briefly mention: Schillo v. Chesapeake Exploration, LLC (Harrison Cty. C.P., Oct. 16, 2017) – Here, the dispute was whether the lessee properly extended an oil and gas lease through the tender of delay rental payments. … Continue Reading
By Ilya Batikov on Posted in EnergyLast week, the United States Sixth Circuit Court of Appeals issued its decision in Eclipse Res.—Ohio, LLC v. Madzia, concerning a dispute between a landowner and a lessee regarding the latter’s drilling rights. Among other things, the court found: The lease, which conveyed to the lessee a broad grant of rights to use the landowner’s… Continue Reading
