Update on Leasing of State-Owned Land in Ohio

Update on Leasing of State-Owned Land in Ohio

Ohio HB 507 Signed by Governor on January 6, 2023

 

On Friday January 6, 2023, Ohio Governor Mike DeWine signed HB 507, which among various items, changed the language of O.R.C. 155.33 to provide a directive that a state agency “shall lease, in good faith,…” its oil and gas rights underlying state owned lands, including parks and highways.  The previous version of the law provided state agencies with the option that they “may” lease their oil and gas rights.  To date, the State and its agencies have not actively leased state-owned mineral rights, which is now set to change course due to the new legislation.  In line with this new legislation, the Oil and Gas Land Management Commission updated their standard lease form, and those proposed changes remain open to public comment through January 13, 2023. Following the recent activity within the Commission along with the approval of HB 507, oil and gas underlying state lands will be more readily accessible to operators in 2023.

 

If you would like additional information about leasing of state-owned minerals in Ohio, please contact:

 

Christopher Hall at 412-275-5613 or chall@atenciohall.com.

 

#energylaw

#oilandgas