The Ohio Court of Appeals for the Seventh District recently affirmed the entry of default judgment on a Marketable Title Act claim in 4 Quarters, LLC v. Hunter, finding that the due diligence to locate heirs was sufficient and service by publication was appropriate.
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Religious Freedom Restoration Act claims against FERC-regulated pipeline must be presented initially to FERC, regardless of damages sought
Relying on a 2018 decision from the United States Court of Appeals for the Third Circuit, a Pennsylvania district court reaffirmed that Religious Freedom Restoration Act (RFRA) claims against a Federal Energy Regulatory Commission (FERC)-regulated pipeline must be made initially to FERC. Adorers of the Blood of Christ v. Transco. Gas Pipe Line Co.…
Plaintiff lessors bear burden of proof in royalty breach claim
In the Tennant v. Range Res. Appalachia decision issued on Sept. 21, 2021, Judge Hardy of the Western District of Pennsylvania determined that unless an oil and gas lease expressly shifted the burden to the defendant lessee, the plaintiff lessors bore the burden of proof on their claim of underpaid royalties.…
Pennsylvania Supreme Court holds abandonment analysis improper where oil and gas lease provided remedies for conduct at issue
In a six-to-one decision, the Pennsylvania Supreme Court reversed the lower courts and held that a decision finding an oil and gas lease to be abandoned pursuant to the equitable doctrine of abandonment was improper where the lease provided remedies for the allegedly-wrongful conduct of the lessee.…
Reference to oil & gas royalty interest deemed sufficient under the Marketable Title Act
The Ohio Supreme Court recently settled an open question under Ohio’s Marketable Title Act (MTA), determining that a reference to the type of interest created and to whom it was granted is all that is necessary under the MTA to preserve the interest. And interestingly, despite the existence of the Dormant Mineral Act (DMA), the…
New Ohio tax law clarifies and expands sales and use tax exemptions for the oil and gas industry
Many thanks to Kevin Scott for his assistance in preparing this post.
On June 14, 2018, Governor Kasich signed into law H.B. 430 which will go into effect in September of 2018. The bill clarifies the language covering sales and use tax exemptions for certain oil and gas industry participants. Specifically, the new law modifies…
West Virginia joins majority view on oil and gas leasing with new cotenancy statute
On March 5, 2018, the West Virginia Legislature passed new legislation known as the Cotenancy Modernization and Majority Protection Act, W. Va. Code § 37B-1-1 et seq. (Cotenancy Statute). This new Cotenancy Statute, which became effective June 3, 2018, is intended to facilitate oil and gas development of West Virginia properties that have numerous fractional…
2015-2016 Ohio budget bill proposes severance tax increase
On Feb. 11, 2015, the biennial budget bill appropriating money for 2015 and 2016 was introduced in the Ohio House of Representatives. The bill incorporates Gov. Kasich’s proposals, which were released earlier this month in his Blueprint for a New Ohio. Generally, if enacted in its current form, there would be an overall reduction in…
Ohio severance tax is a point of ongoing negotiation
Ohio Gov. John Kasich’s mid-biennium review plan calls for an increase in Ohio oil and gas severance taxes, as proposed in House Bill 472. These increased taxes would fund certain local governmental initiatives and the Ohio Department of Natural Resources. They also would help offset personal income tax cuts outlined in the mid-biennium plan.…
How Ohio Stacks up on Taxation of Oil and Gas Operations
This is the first in a series of blog entries regarding Ohio state and local taxes imposed on oil and gas operations.
Oil and gas operators in Ohio currently pay a variety of state and local taxes:
- Commercial activity tax (CAT) which is a 0.26% excise tax on all Ohio-based gross receipts. The tax is
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