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OH HB493
Bill
Status
3/27/2012
Primary Sponsor
Mike Foley
Click for details
AI Summary
HB 493 Summary
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Establishes a 750-foot setback requirement for new well surface locations and lateral lines from property lines of parcels not in the drilling unit for Marcellus shale wells and deeper formations.
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Caps drilling unit size at 1,280 acres for Marcellus shale wells and requires units to be compact and composed of contiguous land.
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Mandates oil and gas leases for Marcellus shale wells include minimum provisions including ground water testing before and after drilling, lessor indemnification, annual audit rights, minimum $3,000 lump sum payment in lieu of free gas, and written notice requirements for injuries, deaths, and property damage.
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Requires registration of "land professionals" (landmen) with the Division of Oil and Gas Resources Management and mandates they provide standardized disclosure forms to prospective lessors and sellers explaining drilling operations, leasing terms, mineral rights sales, and legal rights before negotiations.
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Establishes 15% minimum royalty rate for Marcellus shale wells calculated on gross revenue with no deductions, requires notarized lease signatures, and creates registration requirements for ground water testing professionals.
Legislative Description
To establish additional requirements governing wells that are drilled into the Marcellus shale formation or a deeper formation, to establish requirements governing oil and gas land professionals, including the registration of such professionals and the creation of disclosure forms that must be presented to a prospective lessor of oil and gas mineral rights and to a prospective seller of mineral rights, and to make other changes in the Oil and Gas Law.
Oil and Gas Law-revisions
Last Action
To Agriculture & Natural Resources
3/27/2012