Unitization requests in Ohio expected to rise as drillers move into more densely populated areas

After not processing a single unitization application under Ohio Revised Code 1509.28 for 15 years, the Ohio Department of Natural Resources approved such an application for Chesapeake Energy during the summer and is currently reviewing a second request from the company, Gongwer reports (See the Jul 30, 2012, blog – “Unitization law makes unwilling landowners’ properties part of drilling units”). Unitization requires buy-in from at least 65% of property owners and is done to maximize the production efficiency of the well, the article said. As the state moves out of “exploration mode,” and into the production phase, larger units will be put together in more densely populated areas, which is expected to lead to more unitization applications, the article said.

Ohio