Implied Covenant to Reasonably Develop – Geologic Formations
In a previous post I wrote about certain terms that are implied in all mineral leases: the covenant to reasonably develop. In that article I described how a judge might cancel a certain area of an oil and gas lease if the producer hadn’t reasonably developed all of it. This same idea can be applied to unused geological formations. Let’s assume an energy company (the...Read More
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Implied Covenant to Reasonably Develop – Acreage
Many of my clients come to me hoping that I can help break their oil and gas lease. As a general proposition, oil and gas leases are hard to terminate. Given that they are drafted by oil and gas companies, it should not be surprising that they often favor the oil and gas companies themselves. Every landowner’s situation will be different, but as long as the lessee to the oil and gas...Read More
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Class Action Landowner Royalty Litigation
Twice I have successfully represented large groups of landowners regarding the proper calculation of landowner royalties. The first case was Charton v. MB Operating Co. Inc., (1990 CV 110417), which involved about two thousand landowners in Tuscarawas County, Ohio; the matter was filed as a class action. In that case, it was alleged that MB Operating was deducting about 25% of...Read More
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Ohio’s Dormant Minerals Act – Ohio’s Courts Weigh In
Below is an excerpt from a presentation I gave on November 8, 2013 for the Ohio Association of Justice Seminar. A broader overview of Ohio’s Dormant Mineral’s Act can be found here. I. Introduction Commencing in the spring of 2010, eastern Ohio experienced an unprecedented oil and gas leasing boom due to the discovery of the Utica Shale. In the recent past, Ohio landowners might...Read More
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Pipeline Negotiations
Since most of the leasing has slowed down in the Utica play here in eastern Ohio, many midstream companies are now approaching landowners about pipeline rights-of-way. Pipeline agreements are typically drafted as a permanent easement, by which the pipeline company is granted a permanent right to access a strip of land on which to install and maintain a pipeline. Because pipeline agreements...Read More
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Mineral Rights, Survivorship, and Probate
I am regularly surprised at how our estate planning practice overlaps with our oil and gas practice. Lately I have helped a number of clients navigate the re-titling of an ancestor’s mineral interest by working through the probate courts. When an individual dies, the probate court takes all of the real property titled in the deceased person’s name and determines the new owner....Read More
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Ohio’s Dormant Minerals Act – Overview
This is the first part of a series of articles about Ohio’s Dormant Minerals Act. Click here for a more detailed description of how Ohio Courts interpret Ohio’s Dormant Minerals Act. Oil and gas companies go to great lengths to determine if the person who signed a lease is in fact the true owner of the minerals. It is not uncommon for a landowner to sign a lease and only be paid...Read More
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Oil and Gas update – October 2013
We have been quite busy since our last update. Most -if not all- of the most valuable lands have already been leased, and energy companies have essentially staked out their positions. An incredible 169 wells are currently producing from the Utica shale in eastern Ohio. Chesapeake Energy is far and away the biggest producer in the region, as they operate 114 of these 169 wells. The...Read More
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