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Babst Calland: Ohio House Of Representatives Proposes Increase In Severance Tax

By Benjamin J. Bolinger A bill to increase the severance tax on oil and gas drilling has been proposed in the Ohio House of Representatives. House Bill 375 would increase the severance tax for horizontal shale wells to 1% for the first five years of production, and to 2% after five years, if production...

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...

Babst Calland: Ohio Supreme Court Accepts Jurisdiction in Dormant Mineral Act Case

By Michael T. Altvater The Ohio Supreme Court has accepted jurisdiction of a discretionary appeal in Dodd v. Croskey , which involves Ohio’s Dormant Mineral Act (“DMA”). Under the DMA there are several “savings events” which may occur in the previous twenty years that...

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...

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: 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 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 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...

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 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...

Babst Calland: Ohio’s 5th District Court of Appeals Weighs in on Dormant Mineral Act Issue

By Michael T. Altvater Ohio’s Fifth District Court of Appeals recently held that the 1989 version of Ohio’s Dormant Mineral Act applies to current disputes concerning ownership of severed mineral estates. The court in Wendt v. Dickerson followed previous rulings from the Seventh District...

Babst Calland: Sunoco Moves Forward With Marcellus/Utica Pipeline

By Elena L. Rorabaugh Fox Business reported that Sunoco Logistics Partners will invest $2.5 billion in the Mariner East 2 pipeline, which will carry natural gas liquids from the Marcellus and Utica Shale plays to an East Coast port. Mariner East 2 will connect processing plants in Pennsylvania, West...

Babst Calland: Ohio Supreme Court Accepts Major Oil and Gas Lease Busting Case for Review

By Michael T. Altvater The Ohio Supreme Court accepted jurisdiction over Hupp v. Beck Energy , an important Ohio case involving the interpretation of oil and gas leases. The case involves a challenge by landowners in Monroe County to a standard form oil and gas lease. The landowners argued that the...

Babst Calland: Ohio Supreme Court Schedules Oral Argument in Dormant Mineral Act Cases

By Michael T. Altvater The Ohio Supreme Court scheduled oral argument in two significant Dormant Mineral Act (“DMA”) cases. Oral argument has been scheduled on Corban v. Chesapeake Exploration, L.L.C. for May 6, 2015. As previously reported on ShaleEnergyLawBlog, the Corban case is likely...

Babst Calland: Ohio Appeals Court Reaffirms Decision in Hupp v. Beck Energy Corp.

By Michael T. Altvater The Seventh District Court of Appeals has reaffirmed its prior decision in Hupp v. Beck Energy Corp . [ enhanced opinion available to lexis subscribers ]. In Belmont Hills Country Club v. Beck Energy Corp. [ enhanced opinion ] and Bentley v. Beck Energy Corp [ enhanced opinion...

Babst Calland: Ohio Adopts Oil And Gas Regulatory Changes In Its Biennial Budget Legislation

By David E. Northrop Ohio’s biennial budget legislation, House Bill 64 , signed by the Governor on June 30, 2015, includes changes and additions to Ohio’s oil and gas regulatory program appearing in Chapter 1509 of the Revised Code. The changes and additions take effect on September 29...

Babst Calland: Ohio Adopts Horizontal Well Site Construction Rules

By David E. Northrop The Ohio Department of Natural Resources (ODNR), Division of Oil and Gas Resources Management has adopted rules requiring the approval of plans for horizontal well sites prior to the construction or material modification of the sites. The rules, codified at OAC 1501:9-2-01, 1501...

Babst Calland: Ohio Oil And Gas Commission Affirms Orders Suspending Operation Of An Injection Well Due To Low-Level Seismic Events

By David E. Northrop The Ohio Oil and Gas Commission rendered a decision on August 12, 2015, affirming two orders of the Chief of the Division of Oil and Gas Resources Management that suspended operation of an injection well operated by American Water Management Services in Trumbull County, Ohio....