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
By Ilya Batikov on Posted in EnergyIn March, we posted about Dundics v. Eric Petroleum Corp., a decision by Ohio’s Seventh District Court of Appeals ruling that landmen were required to obtain real estate broker’s licenses in order to sue for compensation for brokering deals between landowners and oil and gas companies. Today, the Supreme Court of Ohio agreed to review… Continue Reading
By Ilya Batikov on Posted in EnergyIn a decision released yesterday, the United States District Court for the Northern District of Ohio concluded that Ohio would adopt the “at the well” rule regarding the deduction of post-production costs, the first time the issue has been squarely addressed under Ohio law. Lutz v. Chesapeake Appalachia, L.L.C., N.D.Ohio No. 4:09-cv-2256 (Oct. 25, 2017).… Continue Reading
By Jay Carr on Posted in EnergyIn 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
By Ilya Batikov on Posted in EnergyOn 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
By Jay Carr on Posted in EnergyIn 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
By Ilya Batikov on Posted in EnergyOn 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
By Ilya Batikov on Posted in EnergyOn 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
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
