State Net Capitol Journal Legislative Updates: Ohio Governor Continues to Push for Shale Fracking Tax

KASICH CONTINUES PUSH FOR DRILLING TAX: Ohio Gov. John Kasich (R) renewed his call to impose steeper oil and gas drilling taxes on out-of-state oil companies in order to pay for an income tax cut for Buckeye State residents, telling reporters, "The point is for out-of-state oil companies to pay...

William A. Ruskin on State Fracking Disclosure Requirements

By William A. Ruskin Opponents of fracking argue that it is necessary for the public, and health and safety professionals, to have full access to information on the constituents of hydraulic fracturing fluids and waste. In a report released on July 26, 2012 titled, " State Hydraulic Fracturing...

Fulbright & Jaworski LLP: Summit Petroleum: EPA's Aggregation of Oil and Gas Emissions Based on 'Mere Functional Relatedness' is Unreasonable

A three-judge panel of the U.S. Court of Appeals for the Sixth Circuit* in Summit Petroleum Corporation v. U.S. Environmental Protection Agency (Nos. 09-4348; 10-4572) [ enhanced version available to lexis.com subscribers ] vacated EPA's order aggregating Summit's sour gas wells and sweetening...

Steptoe & Johnson PLLC: Regulatory Lead Time an Important Consideration in Development of Ohio Drilling Units

By Kathy Milenkovski and Neal Pierce During the past year, the Ohio Department of Natural Resources has conducted hearings on three applications for unitized operation under Ohio Revised Code 1509.28. Additional hearings are on the schedule for January 2013. This statutory provision, part of the oil...

State Net Capitol Journal: Ohio's $500 Billion Oil Resource Frustrating Drillers

The Utica Shale formation in eastern Ohio grabbed the national spotlight two years ago when the state's Department of Natural Resources estimated it held 5.5 billion barrels of recoverable oil, more than twice Yemen's oil resource and worth nearly $500 billion. But U.S. drillers that set up rigs...

Steptoe & Johnson PLLC: Ohio Attorney General Rules Counties May Sell Water to Oil and Gas Operators

The Ohio Attorney General's office was recently asked to give its opinion on a county's authority to sell water that is available to oil and gas drillers in need of large quantities of water for hydraulic fracturing purposes. Specifically, Harrison County had inquired about the legality of entering...

Babst Calland: Ohio Considers New Rules for Oil, Gas Wastewater Storage

State officials are considering new rules to regulate storage of wastewater used to stimulate wells for the production of oil and gas. The new rules would potentially create new options for shale well producers to store millions of gallons of water in lagoons so that it can be cleaned and re-used in...

Babst Calland: Ohio Trial Courts Issue Additional Rulings on the Dormant Mineral Act

By Michael T. Altvater | Two Ohio trial courts issued new decisions on Ohio’s Dormant Mineral Act (“DMA”) addressing an unsettled issue of law concerning whether the 1989 or 2006 version of the DMA should apply to current disputes over the ownership of severed mineral rights. Both...

Babst Calland: Updates to Ohio’s Proposed Increase of Severance Tax on Natural Resources

By Michael T. Altvater The Ohio House Ways and Means Committee updated House Bill 375, which proposes changes to the severance tax on natural resources. Among the updates are an increase in the proposed severance tax to 2.25% from 2% for horizontal wells, a reduction in the period of time for the...

Babst Calland: Advocates From Pa., Ohio, West Virginia Urge Common Approach To Shale Gas Taxation

By Joshua F. Hall As reported by Pittsburgh’s NPR News Station, 90.5 WESA, three advocacy groups, Leaders of Policy Matters Ohio, the Pennsylvania Budget and Policy Center, and the West Virginia Center on Budget & Policy, sent a letter to the governors of Ohio, Pennsylvania and West Virginia...

Steptoe & Johnson PLLC: Court Ruling a Victory for Kentucky Pipeline Eminent Domain Opponents

By J. Kevin West On March 25, 2014, a Circuit Court in Kentucky ruled in favor of those opposed to an interstate natural gas liquids (“NGLs”) pipeline’s potential use of eminent domain under the laws of the Commonwealth of Kentucky. The interstate pipeline is not subject to regulation...

Babst Calland: Ohio Decision Results in Victory for Oil and Gas Producers

By Jason M. Zoeller An Ohio trial court issued a decision in Marshall v. Beekay Company . The case involved an action seeking declaratory judgment as to leasehold rights for formations below the Germantown Sand Formation. The court ruled that there was no breach of the implied covenant to reasonably...

Babst Calland: Ohio Appellate Court Enforces Change In Ownership Clause in Lease

By Jessica L. Henry The Fifth District Court of Appeals affirmed the trial court’s decision in Trico Land Company, LLC v. Kenoil Producing LLC , upholding the right to have and enforce a change of ownership clause in an oil and gas lease. The case involved a property subject to a 2008 oil and...

Babst Calland: Ohio Trial Court Issues Dormant Mineral Act Decision

By Michael T. Altvater A Harrison County trial court issued a decision in a Dormant Mineral Act case addressing the issue of whether a release of an oil and gas lease is a title transaction affecting and preserving a severed mineral interest from being abandoned. The trial court in Schucht v. Bedway...

Babst Calland: Ohio Oil and Gas Production Soars

By Michael T. Altvater Oil and gas production increased by 640% from 2012 to 2013 according to a report published by the Ohio Department of Natural Resources. The one year increase was the largest in Ohio history and is the most natural gas that Ohio has produced since 1982. Much of the increase is...