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H.B. 390 Clarifies Ohio Unitization Program

By Ilya Batikov

On June 28, 2016, Ohio Governor Kasich signed into law House Bill 390, which, among other matters, clarifies the status of pending applications for unit operations concerning mineral rights owned by the Ohio Department of Transportation.  In particular, it requires the chief of the Division of Oil and Gas Resources Management to issue unit orders with respect to such applications within forty-five days of the law’s effective date (i.e., 90 days after signing) (where some applications had been pending for nearly two years).  Importantly, given the change in market circumstances, it also provides that if approved, the applicant is not required to commence unit operations for a period of two years from the order’s effective date.

You can read the full text of the new law after the break.

SECTION 715.10. For each application submitted under section 1509.28 of the Revised Code that encompasses a unit area for which all or a portion of the mineral rights are owned by the Department of Transportation and for which the Chief of the Division of Oil and Gas Resources Management has held a hearing before the effective date of this section, the Chief, not later than forty-five days after the effective date of this section, shall either issue an order denying or providing for the unit operation of a pool or part of a pool. However, the applicant is not required to commence any unit operations within twenty-four months of the effective date of any order issued in accordance with this section.

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Tags: Ohio, Oil and Gas, Energy

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