OH: DMA Case Certified to Ohio Supreme Court

On January 2, 2014, the U.S. District Court for the Southern District of Ohio considered whether the recording of an oil and gas lease and the expiration of the lease at the end of its term are events that prevent the abandonment of severed oil and gas rights under the Ohio Dormant Mineral Act. (See Chesapeake Exploration, L.L.C v. Buell). Noting the “dearth of Ohio authority,” the Court deferred its ruling and certified two questions of law to the Ohio Supreme Court:

1. “Is the recorded lease of a severed subsurface mineral estate a title transaction under the ODMA, Ohio Revised Code § 5301.56(B)(3)(a)?”
2. “Is the expiration of a recorded lease and the reversion of rights granted under that lease a title transaction that restarts the twenty-year forfeiture clock under the ODMA at the time of the reversion?”

We continue to monitor this suit and will keep you posted.

(For more, see here.)

[Update:  The Ohio Supreme Court has accepted review.  See here.]