Ohio HB 397 – Updates to Oil and Gas Statutory Unitization Procedure

Ohio HB 397 – Updates to Oil and Gas Statutory Unitization Procedure

Effective July 21, 2022, Ohio House Bill 397 included a provision that the Ohio Division of Oil and Gas Resources Management is required to process statutory unitization applications submitted under Ohio Revised Code §1509.28 within a new expedited timeline. Pursuant to O. R. C. §1509.28, applicants can request an order for unitization allowing for the inclusion of unleased interests and interests that are leased but that lack sufficient pooling and unitization clauses, into a unit for proposed operation toward the most efficient development of resources.

As part of the Division’s review of applications, the Division holds public hearings prior to issuance of a unitization order. Under the prior version of the statute, there was no established timeline within which the Division was required to schedule a hearing on an application or issue an order. The new version of the statue requires the Chief of the Division to hold a hearing on an application for a unitization order not later than 60 days after receiving a materially complete application. The updated law also requires the Chief to issue a unitization order not later than 60 days after the hearing, unless otherwise denied within that time period.

If you would like additional information about unitization applications in Ohio or other jurisdictions, please contact
Christopher Hall at 412-275-5613 or chall@atenciohall.com.

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