2. Why knowledge of the Ohio Dormant Mineral Act
is important:
The 1989 version of the ODMA is self-executing meaning that if
certain events do not happen for a certain period, the minerals
automatically revert to the surface owner as a matter of law.
No recordation necessary
The 2006 version of the ODMA is not self-executing, it requires
notice to be served on determinable mineral interest holders.
Thus, additional procedures are necessary
3. When does the ODMA come into
play?
Any and all oil and gas or mineral reservations.
E.g.
“Excepting and reserving to the Grantors herein listed.”
“Conveying the surface and No. 9 vein of coal only.”
Any and all oil and gas or mineral conveyance.
E.g.
“Conveying an undivided ½ interest of all minerals
underlying…”
“Conveying the No. 8 vein of coal as well as all minerals
beneath the Pittsburg vein of coal.”
4. Do I analyze under 1989 or 2006?
If reservation recorded before March 22,
1969, analyze under 1989 framework. If
after March 22, 1969, analyze under
2006 framework.
5. 6 Savings Events
(1) Subject to a “title transaction”,
(2) actual production or withdrawal of minerals by the holder of
the lands
(3) mineral interest used in underground gas storage operations
(4) a drilling or mining permit has been issued to the holder
(5) a claim to preserve has been filed in accordance with ORC
5301.56(C)
(6) a separate tax parcel has been created for the mineral interest
6. Location of Savings Events
However, savings events can possibly be found in a variety of
places:
Probate inventories
Lease records
Affidavits of Preservations by (random) heirs
E.g. widowed spouse of great-grandchild of reserving
party
ODNR records
Auditor’s Records
A single savings event on an portion of the interest saves the
entire interest!
7. What is a “title transaction”?
“Title Transaction” - is not defined in the Ohio Dormant Mineral Act, it is defined in the Marketable
Title Act as “any transaction affecting title to any interest in land, including title by will or descent,
title by tax deed, or by trustee’s, assignee’s, guardian’s, executor’s, administrator’s, or sheriff’s
deed, or decree of any court, as well as warranty deed, quit-claim deed, or mortgage.
Also includes oil and gas leases (CHK v. Buell).
‘Subject of’ a Title Transaction - in order for the mineral interest to be the ‘subject of’ the title
transaction the grantor must be conveying that [mineral] interest or retaining that [mineral]
interest. Therefore, a reference to a prior mineral severance in a surface conveyance is not a title
transaction savings event (Walker v. Noon).
Even if it is specifically identified (Tribett v. Shepherd)
8. Actual Production/Underground
Storage/Drilling Permit
Search ODNR records for wells around your
reservation.
Keep in mind that the ODNR has an error ratio
of ¼ mile
Create historical map for GIS department
Title map as reservation instrument (e.g. DRV
312.421)
9. A Claim to Preserve
Search all potential mineral interest holders in
Deed Records Index.
10. Mineral Parcel/Tax ID
Go to
http://www.belmontcountyengineer.co
m/dbaseweb/Secquery.exe and search
by township.
Belmont Auditor search
11. What we want to see for mineral
searches (if a person reserves)
New and dated copy of reserving instrument (looking for marginal notations)
Detailed family trees, every potential mineral interest holder searched in Deed Records,
Lease Records, and Probate Records until date of death or present.
If reserving party doesn’t list oil and gas ownership in will or doesn’t have a
residue clause, oil and gas drops into intestacy. If they do, only follow that party
forward.
If probate is outside of Belmont County, try to obtain the probate from that
county’s probate department.
If that doesn’t work, we will request permission from Rice to go to that
county to obtain the probate.
Don’t forget about
Run out all leases to release or present
Search for other savings events.
Use Google!
12. What we want to see for mineral
searches (if a company reserves)
New and dated copy of reserving instrument (looking for marginal notations)
Search Deed Records, Lease Records, and other records forward to present.
Use Ohio Secretary of State as well as other Secretary of States to determine if
entity merged or dissolved.
Run out all leases to release or present
Search for other savings events
Use Google!
13. Writing the memo
Disclaim probates that you couldn’t obtain and
resources used
ancestry.com, familysearch.org, obituaries
No conclusions, just report the facts
It takes legal analysis to know the relevant
facts, just don’t put it in your report
New template available in Larkspur Template
Gallery
14. How to stay up on the law?
Follow @voryshale.
https://twitter.com/vorysshale
Brian and/or I will notify you