Ohio Supreme Court accepts oil and gas appeal involving implied covenants

The Ohio Supreme Court has accepted a landowner’s appeal in Alford v. Collins-McGregor Operating Co., which seeks to expand Ohio’s implied covenants for reasonable development to include deeper and unexplored formations. The case itself involves approximately 74 acres in Washington County, Ohio that were leased in 1980 and have been held by production by one conventional well. The landowner did not dispute the production from that well, but rather argued that the oil and gas company was not capable of developing any formations deeper than the Gordon Sands Formation. As a result, the landowner requested that all geologic formations below the Gordon Sands be released based on the implied covenant for reasonable development. The 4th District Court of Appeals (Washington County) rejected the landowner’s arguments. Click here for the District Court of Appeals decision.

Ohio, Oil & Gas Litigation