By Ilya Batikov on Posted in EnergyDeciding an issue of first impression in the state, Ohio’s Seventh District Court of Appeals recently held that oil and gas royalty interests may be abandoned under the Ohio Dormant Mineral Act (ODMA). See Devitis v. Draper (Mar. 20, 2017). In Draper, the court first looked to its prior decision, Pollock v. Mooney, which found… Continue Reading
By Ilya Batikov on Posted in EnergyFollowing up on its recent decision in M&H P’Ship v. Hines, Ohio’s Seventh District Court of Appeals has offered further guidance on the term “holder” as used in the Ohio Dormant Mineral Act (ODMA)—finding that heirs of the record holder of a dormant mineral interest are “holders” for purposes of the statute, even if they… Continue Reading
By Jay Carr on Posted in EnergyOhio’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
By Ilya Batikov on Posted in EnergyOhio’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
By Ilya Batikov on Posted in EnergyEarlier 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
By Jay Carr on Posted in EnergyToday, in its Order List, the Supreme Court of the United States denied certiorari in Jon D. Walker, Jr. v. Patricia J. Shondrick-Nau, Executrix of the Estate of John R. Noon and Successor Trustee of the John R. Noon Trust. Walker involved interpretation and application of the Ohio Dormant Mineral Act (R.C. § 5301.56) (the “DMA“), and was… Continue Reading
By Ilya Batikov on Posted in EnergyOhio 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
By Ilya Batikov on Posted in EnergyOn 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
By Ilya Batikov on Posted in EnergyIn 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
By Ilya Batikov on Posted in EnergyOn 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
By Ilya Batikov on Posted in EnergyOn 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
By Ilya Batikov on Posted in EnergyOn Tuesday, August 16th, the Supreme Court of Ohio will hear oral argument in Tribett v. Shepherd, a case involving the 1989 version of the Ohio Dormant Mineral Act (1989 DMA). The Court is currently considering a number of cases involving the 1989 DMA, many of which are stayed pending the court’s decision in Walker… Continue Reading
By Ilya Batikov on Posted in EnergyRecently, 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
By Ilya Batikov on Posted in EnergyOn 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
By Ilya Batikov on Posted in EnergyAccording 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
By Ilya Batikov on Posted in EnergyThe U.S. Energy Information Administration released revised maps showing the structure, thickness, and geologic setting of the Utica Shale play (including the Utica and Point Pleasant formations) and location of productive wells. You can view the maps here. … Continue Reading
By Ilya Batikov on Posted in EnergyOn March 4, 2016, the Ohio Seventh District Court of Appeals in Summitcrest, Inc. v. Eric Petroleum Corp., et al., addressed several issues concerning oil and gas leases in Ohio. In its decision, the Court held that: (1) a Pugh clause in an oil and gas lease did not operate to terminate the lease prior… Continue Reading
By Ilya Batikov on Posted in EnergyWe 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
By Ilya Batikov on Posted in EnergyOnly 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
By Ilya Batikov on Posted in EnergyWe have summarized two recent Ohio oil and gas cases that may be of interest to you. Mobberly v. Wade (7th Dist.) – Ohio’s Seventh District Court of Appeals granted summary judgment in favor of an oil and gas lessee in a lease forfeiture action. The lessor argued that the lease terminated due to lack… Continue Reading
By Ilya Batikov on Posted in EnergyOn December 15, 2015, the Supreme Court of Ohio heard oral arguments in two consolidated cases: Hupp et al. v. Beck Energy and Claugus Family Farm v. Seventh District Court of Appeals. In Hupp, the plaintiffs leased property in Monroe County under form oil and gas leases with Beck Energy Corporation containing a fairly typical… Continue Reading
By Ilya Batikov on Posted in EnergyOil and gas production in Ohio rose in the third quarter of this year. The Columbus Dispatch reports: The state’s energy producers reported 5.7 million barrels of oil and 245 billion cubic feet of gas from shale in the third quarter, up from 5.6 million barrels and 222 billion cubic feet in the second quarter.… Continue Reading
By Ilya Batikov on Posted in EnergyOn November 5, 2015, the Supreme Court of Ohio answered two questions concerning the Ohio Dormant Mineral Act (DMA). In Chesapeake Exploration, L.L.C. v. Buell, the Court held that under the DMA: (1) a recorded oil and gas lease is a title transaction that serves as a savings event that prevents minerals from being abandoned… Continue Reading
By Ilya Batikov on Posted in EnergyOn October 22, 2015, a General Assembly workgroup issued its report to the Ohio 2020 Tax Policy Study Commission on oil and gas severance taxes. Noting that the industry is facing significant economic challenges, the report does not recommend severance tax legislation at this time so as not to discourage oil and gas activity. It… Continue Reading
