Oil and Gas
Oil and gas production has existed in Ohio since the early 20th Century. Indeed, the entire industry as we know it was essentially born in Northwestern Pennsylvania with the famous Drake Well in 1859. The legal documentation that gets this process underway today is largely unchanged for over one hundred years
It is often said that there are only two things inevitable in life: death and taxes. However, if you are a landowner in Ashland County, it seems as if there is a third inevitable in life right now.
Oil and gas production has existed in Ohio since well before World War II. Wooster has been a regional hub for such activities for many decades, thus it is not surprising that CCJ has been engaged in such legal practice for all of those decades.
Ohio courts have long held that a well is producing in paying quantities if the revenues from the well exceed the expenses involved in maintaining the well. Unless production from the leased property has ceased in its entirety, mineral owners face an inherent disadvantage in deciding whether to argue that wells on the property are no longer producing in paying quantities and the lease has therefore terminated.
An Ohio appeals court found that propane and butane are considered "petroleum" and the construction and maintenance of a pipeline across private property to transport propane and butane is necessary and for a public use.
On November 30, 2016, the Federal Energy Regulatory Commission, approved a route for the Nexus Gas Transmission pipeline project that will take it 23.38 miles across Medina County. The approved route will bring the Nexus pipeline into the northern part of the county to the south of State Route 57 in a southeast direction, exiting the county near Wadsworth.
On September 15, 2016, the Ohio Supreme Court issued decisions in twelve cases concerning the proper interpretation of the Dormant Mineral Act of 1989 (the "1989 Act").
Rather than viewing the proposed payment as a final offer, you should consider the initial offer as a starting point in negotiations and bargain for the best deal possible.
The Court held that the ODNR has the sole and exclusive authority to regulate oil and gas drilling in Ohio, and that this exclusive authority prevents local government interference with such development.
There is more than one option for the removal of oil and gas leases encumbering your land. You should consult with an attorney with knowledge of oil and gas law to determine which option makes the most sense for you given the history of your property and your particular situation.