Ohio § 1509.31

§ 1509.31.

(A)(1) No person shall operate a well in this state unless the person first registers with

and obtains an identification number from the chief of the division of oil and gas

resources management. (2) Whenever the entire interest of an oil and gas lease is assigned or otherwise transferred,

the assignor or transferor shall notify the holders of the royalty interests, and,

if a well or wells exist on the lease, the division of oil and gas resources management,

of the name and address of the assignee or transferee by certified mail, return receipt

requested, not later than thirty days after the date of the assignment or transfer.  When notice of any such assignment or transfer is required to be provided to the

division, it shall be provided on a form prescribed and provided by the division and

verified by both the assignor or transferor and by the assignee or transferee.  The notice form applicable to assignments or transfers of a well to the owner of

the surface estate of the tract on which the well is located shall contain a statement

informing the landowner that the well may require periodic servicing to maintain its

productivity;  that, upon assignment or transfer of the well to the landowner, the

landowner becomes responsible for compliance with the requirements of this chapter

and rules adopted under it, including, without limitation, the proper disposal of

brine obtained from the well, the plugging of the well when it becomes incapable of

producing oil or gas, and the restoration of the well site;  and that, upon assignment

or transfer of the well to the landowner, the landowner becomes responsible for the

costs of compliance with the requirements of this chapter and rules adopted under

it and the costs for operating and servicing the well. (3) Notwithstanding division (A)(2) of this section, the assignee or transferee shall

notify the division of oil and gas resources management of the assignment or transfer

if both of the following apply: (a) The assignor or transferor failed to notify the division of the assignment or transfer

as required by division (A)(2) of this section; (b) The assignor or transferor is deceased, dissolved, cannot be located, or is otherwise

incapable of complying with the notification requirement. The assignee or transferee shall notify the division of the assignment or transfer

on a form prescribed and provided by the division.  At a minimum, the form shall require the assignee or transferee to attest that the

assignee or transferee is the owner.  The division shall not charge a fee for such assignment or transfer when notice

is provided in accordance with division (A)(3) of this section. (B) When the entire interest of a well is proposed to be assigned or otherwise transferred

to the landowner for use as an exempt domestic well, the owner who has been issued

a permit under this chapter for the well shall submit to the chief of the division

of oil and gas resources management an application for the assignment or transfer

that contains all documents that the chief requires.  The application for such an assignment or transfer shall be prescribed and provided

by the chief.  The chief may approve the application if the application is accompanied by a release

of all of the oil and gas leases that are included in the applicable formation of

the drilling unit, the release is in a form such that the well ownership merges with

the fee simple interest of the surface tract, and the release is in a form that may

be recorded.  However, if the owner of the well does not release the oil and gas leases associated

with the well that is proposed to be assigned or otherwise transferred or if the fee

simple tract that results from the merger of the well ownership with the fee simple

interest of the surface tract is less than five acres, the proposed exempt domestic

well owner shall post a five thousand dollar bond with the division prior to the assignment

or transfer of the well to ensure that the well will be properly plugged.  The chief, for good cause, may modify the requirements of this section governing

the assignment or transfer of the interests of a well to the landowner.  Upon the assignment or transfer of the well, the owner of an exempt domestic well

is not subject to the severance tax levied under section 5749.02 of the Revised Code , but is subject to all applicable fees established in this chapter. (C) The owner holding a permit under section 1509.05 of the Revised Code is responsible for all obligations and liabilities imposed by this chapter and any

rules, orders, and terms and conditions of a permit adopted or issued under it, and

no assignment or transfer by the owner relieves the owner of the obligations and liabilities

until and unless the assignee or transferee files with the division the information

described in divisions (A)(1), (2), (3), (4), (5), (10), (11), and (12) of section

1509.06 of the Revised Code;  obtains liability insurance coverage required by section 1509.07 of the Revised Code , except when none is required by that section;  and executes and files a surety bond,

negotiable certificates of deposit or irrevocable letters of credit, or cash, as described

in that section.  Instead of a bond, but only upon acceptance by the chief, the assignee or transferee

may file proof of financial responsibility, described in section 1509.07 of the Revised Code . Section 1509.071 of the Revised Code applies to the surety bond, cash, and negotiable certificates of deposit and irrevocable

letters of credit described in this section.  Unless the chief approves a modification, each assignee or transferee shall operate

in accordance with the plans and information filed by the permit holder pursuant to section 1509.06 of the Revised Code . (D) If a mortgaged property that is being foreclosed is subject to an oil or gas lease,

pipeline agreement, or other instrument related to the production or sale of oil or

natural gas and the lease, agreement, or other instrument was recorded subsequent

to the mortgage, and if the lease, agreement, or other instrument is not in default,

the oil or gas lease, pipeline agreement, or other instrument, as applicable, has

priority over all other liens, claims, or encumbrances on the property so that the

oil or gas lease, pipeline agreement, or other instrument is not terminated or extinguished

upon the foreclosure sale of the mortgaged property.  If the owner of the mortgaged property was entitled to oil and gas royalties before

the foreclosure sale, the oil or gas royalties shall be paid to the purchaser of the

foreclosed property.