Yesterday, 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
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Columbus’ Proposed Community Bill of Rights Exceeds the City’s Legislative Power
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
Supreme Court of Ohio One Step Closer to Addressing Statute of Limitations Case
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
Federal Court Rejects Takings Challenge to Ohio’s Statutory Unitization Law
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
Ohio Appellate Court: Oil and Gas Lease Expiration Claims Governed by 15-Year Contract Statute of Limitations
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
Supreme Court of Ohio Rules Youngstown Anti-Fracking Measure Must Be Placed on the May 2018 Ballot
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
EMLF’s Special Institute on Petrochemicals
Posted in EnergyOn April 10th-11th, the Energy and Mineral Law Foundation (EMLF) will be hosting a Special Institute on Petrochemicals in Pittsburgh, PA. Among the speakers are Vorys’ own Allen Rutz and Dick Schwartz. To learn more or to register, click here.… Continue Reading
Ohio Division of Oil and Gas Invites Comments on Revised Well Spacing Rules
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
Court of Appeals Addresses Notice Requirement Under 2006 DMA
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
Supreme Court of Ohio Takes Up Marketable Title Act
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
Supreme Court of Ohio Rejects Constitutional Challenge to Unitization Order
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
Recent Ohio Oil and Gas Decisions
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
Eclipse Res.—Ohio, LLC v. Madzia
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
Supreme Court of Ohio to Hear Landman Licensing Case
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
Ohio Court Elaborates on Paying Quantities Test
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
Court Clarifies which References are “Specific” for Purposes of Applying the Ohio Marketable Title Act
Posted in EnergyOhio’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 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
Bohlen v. Anadarko
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
Ohio Court Rules Landmen Need to be Licensed Real Estate Brokers to Receive Compensation
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
Bohlen v. Anadarko
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
New Pipelines to Increase Ohio Natural Gas Takeaway Capacity
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
Sixth Circuit Dismisses Oil and Gas Leasing Complaint against MWCD
Posted in EnergyIn a recent decision, Harper v. Muskingum Watershed Conservancy Dist., the Sixth Circuit Court of Appeals dismissed a qui tam action brought under the False Claims Act (FCA), 31 U.S.C. 3729, against the Muskingum Watershed Conservancy District (MWCD). MWCD received property through a deed from the United States government. The deed contained restrictions providing that the… Continue Reading
USEIA Releases New Maps of Utica Shale Play
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
Ohio General Assembly Workgroup Report on Oil and Gas Severance Taxes
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