Placing a rig on a parcel of land for directional drilling and not including the parcel in the drilling unit

This Ohio law, ORC 1509.022, was included in the  2011 Budget Bill with the legislators barely seeing it and could cause problems to folks with land adjacent to state or other lands where rigs are particularly unwelcome. However, there is hope with the creation of rules that will determine how the law is implemented. ODNR will be updating the rules for horizontal well site construction with comments due by 5 p.m. on  April 13. Any suggestions for rules to mitigate the effects of the law should be sent to Mark Bruce at ODNR by that time.

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Permalink Reply by paleface on April 1, 2021 at 3:10am

You should have had to sign a lease adenium to alloy that.

Permalink Reply by Kathi Albertson on April 1, 2021 at 4:08am

The problem is that the old Appalachian Exploration leases say in Paragraph 10 that another well can be drilled at any time.

Permalink Reply by paleface on April 1, 2021 at 6:14am

If the new well cross's an existing unit the unit members have to sign an agreement. 

Permalink Reply by Kathi Albertson on April 1, 2021 at 6:20am

But the law states that the rig can be placed on a parcel without including it in the drilling unit. I have no background in law but the statement seems pretty clear.

Permalink Reply by paleface on April 1, 2021 at 9:44am

Are you in the drilling unit the well cross's ?

Permalink Reply by Kathi Albertson on April 1, 2021 at 2:21pm

There is no drilling unit at this point. What we are trying to do is establish rules that will keep folks with old leases that give permission for another well to be drilled from having to bear the burden of a well being drilled for directional drilling and all that it entails, on their property without being included in the drilling unit. If the law can’t be changed, perhaps new rules can make it so difficult it might be easier to include the parcel in the drilling unit.

Permalink Reply by Joe C. on April 5, 2021 at 1:03am

If a placement of a well pad is going on a surface location, the E&P company (Drilling company) will have the surface owner sign a surface location agreement. The company has to show well locations and a legal document has to be recorded in the county courthouse. This document will also be added to the DEP permitting documents along with the DPU that is also recorded in the courthouse.

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