Ohio § 1509.27
Full text of Ohio Ohio Revised Code § 1509.27, with citation guidance and answers to common questions.
§ 1509.27.
If a tract or tracts are of insufficient size or shape to meet the requirements for
drilling a proposed well thereon as provided in section 1509.24 or 1509.25 of the Revised Code , whichever is applicable, and the owner has been unable to form a drilling unit under
agreement as provided in section 1509.26 of the Revised Code , on a just and equitable basis, the owner may make application to the division of
oil and gas resources management for a mandatory pooling order. The application shall include information as shall be reasonably required by the chief
of the division of oil and gas resources management and shall be accompanied by an
application for a permit as required by section 1509.05 of the Revised Code . The chief shall notify all mineral rights owners of tracts within the area proposed
to be pooled by an order and included within the drilling unit of the filing of the
application and of their right to a hearing. After the hearing or after the expiration of thirty days from the date notice of
application was mailed to such owners, the chief, if satisfied that the application
is proper in form and that mandatory pooling is necessary to protect correlative rights
and to provide effective development, use, and conservation of oil and gas, shall
issue a drilling permit and a mandatory pooling order complying with the requirements
for drilling a well as provided in section 1509.24 or 1509.25 of the Revised Code , whichever is applicable. The mandatory pooling order shall: (A) Designate the boundaries of the drilling unit within which the well shall be drilled; (B) Designate the proposed production site; (C) Describe each separately owned tract or part thereof pooled by the order; (D) Allocate on a surface acreage basis a pro rata portion of the production to each
tract pooled by the order. The pro rata portion shall be in the same proportion that the percentage of the
tract's acreage is to the state minimum acreage requirements established in rules
adopted under this chapter for a drilling unit unless the applicant demonstrates to
the chief using geological evidence that the geologic structure containing the oil
or gas is larger than the minimum acreage requirement in which case the pro rata portion
shall be in the same proportion that the percentage of the tract's acreage is to the
geologic structure. (E) Specify the basis upon which each mineral rights owner of a tract pooled by the order
shall share all reasonable costs and expenses of drilling and producing if the mineral
rights owner elects to participate in the drilling and operation of the well; (F) Designate the person to whom the permit shall be issued. A person shall not submit more than five applications for mandatory pooling orders
per year under this section unless otherwise approved by the chief. No surface operations or disturbances to the surface of the land shall occur on a
tract pooled by an order without the written consent of or a written agreement with
the surface rights owner of the tract that approves the operations or disturbances. If a mineral rights owner of a tract pooled by the order does not elect to participate
in the risk and cost of the drilling and operation of a well, the mineral rights owner
shall be designated as a nonparticipating owner in the drilling and operation of the
well on a limited or carried basis and is subject to terms and conditions determined
by the chief to be just and reasonable. In addition, if a mineral rights owner is designated as a nonparticipating owner,
the mineral rights owner is not liable for actions or conditions associated with the
drilling or operation of the well. If the applicant bears the costs of drilling, equipping, and operating a well for
the benefit of a nonparticipating owner, as provided for in the pooling order, then
the applicant shall be entitled to the share of production from the drilling unit
accruing to the interest of that nonparticipating owner, exclusive of the nonparticipating
owner's proportionate share of the royalty interest until there has been received
the share of costs charged to that nonparticipating owner plus such additional percentage
of the share of costs as the chief shall determine. The total amount receivable hereunder shall in no event exceed two hundred per cent
of the share of costs charged to that nonparticipating owner. After receipt of that share of costs by such an applicant, a nonparticipating owner
shall receive a proportionate share of the working interest in the well in addition
to a proportionate share of the royalty interest, if any. If there is a dispute as to costs of drilling, equipping, or operating a well, the
chief shall determine those costs.
Frequently Asked Questions About Ohio § 1509.27
What does Ohio Revised Code § 1509.27 cover?
Section 1509.27 is part of the Ohio Revised Code, the codified statutory law of Ohio. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Ohio § 1509.27?
A common citation format is "Ohio Revised Code § 1509.27" (Ohio). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Ohio law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.
How does Ohio § 1509.27 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Ohio.