New legislation provides clarity on the question of whether an oil and gas lease conveys a real estate interest under Ohio law. While the oil and gas industry has long regarded an oil and gas lease as conveying a real estate interest, a few decisions have called this view into question. Substitute House Bill 9, which goes into effect on or about March 20, 2015, clarifies the status of oil and gas leases in Ohio. The bill amends Ohio’s oil and gas lease recording statute, Ohio Revised Code § 5301.09, to state:
All In recognition that such leases and licenses create an interest in real estate, all leases, licenses, and assignments thereof, or of any interest therein, given or made concerning lands or tenements in this state, by which any right is granted to operate or to sink or drill wells thereon for natural gas and petroleum or either, or pertaining thereto, shall be filed for record and recorded in such lease record without delay, and shall not be removed until recorded * * *.
You can find a complete copy of the bill here.