Steptoe & Johnson PLLC: Know How: Oil and Gas Regulation Sole Domain of State of Ohio

By Katerina E. Milenkovski, Of Counsel (Originally printed in the ABA Litigation News) The state of Ohio has the exclusive authority to regulate oil and gas drilling, according to an Ohio appellate court that rejected attempts by a city to impose additional requirements as a matter of “home...

Steptoe & Johnson PLLC: Implied Covenant to Develop in Ohio Negated by Express Language in Lease: Bilbaran Farm Inc. v. Bakerwell Inc., et al.

By Timothy M. McKeen and Jason Lucas On June 12, 2013, Ohio's Fifth District Court of Appeals held that a general waiver of implied covenants in an oil and gas lease negates the lessee’s duty to develop other formations and acreage ( Bilbaran Farm, Inc. v. Bakerwell, Inc., et al. , No. 12...

Babst Calland: Lawsuit Filed Against Ohio Water District for Leasing and Water Sales

Two Ohio groups recently issued a press release regarding a lawsuit which has been filed against the Muskingum Watershed Conservancy District over its oil and gas leasing practices and its sale of water for hydraulic fracturing. The MWCD, tasked with reducing flooding, conservation and providing recreational...

Norton Rose Fulbright Fracking Blog: House Democrats Request Hearing On Induced Seismicity

By Barclay Nicholson Reps. Henry Waxman (D-Calif.), ranking member of the House Energy and Commerce Committee, and Peter DeFazio (D-Ore.), ranking member of the House Committee on Natural Resources, issued a letter to their Republican counterparts requesting a joint hearing on the issue of seismic...

Babst Calland: Utica Shale Gas Production Surges in Quarterly Update

By Michael T. Altvater The Ohio Department of Natural Resources released its first quarterly production update thanks to a new law that requires production to be reported on a quarterly versus annual basis. The report showed that Ohio’s 245 horizontal wells produced a total of 1,332,477 barrels...

Babst Calland: ODNR Releases Draft Rules on Horizontal Well Site Construction

By Michael T. Altvater The Ohio Department of Natural Resources, on February 21, 2014, published several draft rules concerning horizontal well site construction and an update to the industry standards referenced in its rules on oil and gas well drilling, permitting and safety. The public comment...

Babst Calland: Gateway Royalty to Pay Utica Shale Landowners for Rights to Future Royalties

By Jason M. Zoeller Gateway Royalty, LLC , a royalty acquisition company based in Carrollton, Ohio, has raised $58.5 million to pay Utica shale play landowners for rights to their future royalty payments. Gateway’s goal is to invest in a broad range of oil and gas royalties across the eastern...

Babst Calland: Utica and Marcellus Formations to Provide Gas to TransCanada’s ANR Pipeline

By Leah R. LaFramboise TransCanada Corporation’s ANR Pipeline system has secured nearly 2.0 billion cubic feet per day of natural gas transportation commitments for the movement of oil and gas produced from the Utica and Marcellus formations through its Southeast Main Line. These contracts involve...

Babst Calland: Ohio EPA Issues Revised General Air Permits For Horizontal Drilling Sites Requiring More Aggressive Methane Leak Detection and Repair

By Joshua F. Hall As reported by the Akron Beacon Journal Online on April 4, 2014, the Ohio Environmental Protection Agency issued revised general permits for the installation and operation of air contaminant sources at oil and gas horizontal well sites to address methane gas released from valves...

McNees Insights: Post-Production Issues and Oil & Gas Leases

By J. Corey Reeder So your oil and gas lease has now converted from the primary term to the secondary term – now what? There are several issues that a landowner or mineral interest owner should be aware of at this stage of the lease. Specifically, you should analyze the Declaration of Pooling...

Babst Calland: Ohio Appeals Court Issues Dormant Mineral Act Ruling

By Michael T. Altvater The Seventh District Court of Appeals issued a ruling concerning application of the Ohio Dormant Mineral Act. In Walker v. Noon , the appeals court upheld the ruling of a Noble County trial court finding that the 1989 version of the Dormant Mineral Act applied and that a severed...

Babst Calland: Legislation Proposed to Strengthen Penalties for Oil and Gas Violations in Ohio

By Benjamin J. Bolinger Ohio House Bill 490 , which would strengthen penalties for violating Ohio’s oil and gas regulations, is now pending before the Ohio House agriculture committee. The bill was introduced in response to illegal dumping of oil field waste. Industry officials have so far indicated...

Ohio Announces Additional Permitting Requirements For Horizontal Drilling

By Michael T. Altvater The Ohio Department of Natural Resources has changed permitting requirements after finding a probable connection between horizontal drilling activity near a previously unknown microfault and recent seismic activity in the Mahoning County area. Moving forward, any new permits...

Babst Calland: Another Ohio Trial Court Issues Dormant Mineral Act Ruling

By Michael T. Altvater The Belmont County Court of Common Pleas ruled that a recorded will is a title transaction for purposes of Ohio’s Dormant Mineral Act. In Albanese v. Batman the trial court held that a will recorded in the county recorder’s office qualifies as title transaction and...

Babst Calland: Ohio Shale Jobs Report Shows 79% Increase Since 2011

By Meredith L. Calfe The Ohio Department of Jobs and Family Services released its quarterly report on the shale industry last Friday. The report shows a 79% increase in core shale-related industry employment in Ohio over the last two years, with an additional 1.5% increase in ancillary jobs, such...

Babst Calland: Ohio Supreme Court Accepts Dormant Mineral Act Case

By Michael T. Altvater The Ohio Supreme Court will review a key question of state law concerning application of the Dormant Mineral Act (“DMA”). In Corban v. Chesapeake Exploration, LLC , the United States District Court for the Southern District of Ohio certified the following questions...

Babst Calland: Ohio Governor Vows to Hike Drilling Tax

By Michael T. Altvater Ohio Governor John Kasich increased his rhetoric regarding a new severance tax on shale oil and gas production. So far, the legislature has opposed any additional increase in the severance tax that was passed in House Bill 375 in May of this year. Governor Kasich describes the...

Babst Calland: Ohio DNR Opens Comment Period for Draft Rules on Well Pad Construction

By Michael T. Altvater The Ohio Department of Natural Resources has opened the comment period on its draft rules for the construction of horizontal well sites. All interested parties may submit comments in writing by the close-of-business on Monday, October 06, 2014 to dogrm.rules@dnr.ohio.gov . ...

Babst Calland: Ohio Appeals Court Overturns Trial Court in Perpetual Lease Case

By Michael T. Altvater The Seventh District Court of Appeals overturned the Monroe County trial court’s decision in Hupp v. Beck Energy Corporation finding that a standard oil and gas lease form was void as against public policy [ enhanced opinion available to lexis.com subscribers ]. The appeals...

Steptoe & Johnson PLLC: Ohio Appeals Court Overturns Ruling That Held Certain Oil And Gas Leases Were Void

In Hupp v. Beck , Ohio’s 7th District Court of Appeals overturned the trial court’s decision that certain oil and gas leases were void ab initio (i.e. at their inception) because the trial court considered them to be a “no term or perpetual lease” due to the delay rental provisions...