Affected Mine

Oil and natural gas must be produced where it is found in nature. The same goes for other minerals, including coal. In southeastern and eastern Ohio, both minerals are present in the same geological area. Here, coal reserves are generally located above hydrocarbon reserves which could lead to a proposed oil or gas well needing to penetrate a coal reserve.

Traditionally, both industries have worked together to resolve issues when conflicts arose. However, recent events have led to this Association having great concern over oil and gas development in coal bearing townships.

When an oil and gas permit is filed with the Ohio Department of Natural Resources (ODNR) Division of Oil and Gas Resources Management (DOGRM), the permit is reviewed for several different reasons. One of those reasons is to make sure a proposed oil or gas well does not impact a coal mine (an “affected mine”). However, there is not a clear definition of affected mine in Ohio law. DOGRM in turn notifies any coal interest in the area regarding the proposed well – whether they are truly an affected mine or not.

As a result, coal interests have been claiming that their operations are in fact an “affected mine” and blocking valid oil and gas permits. The oil and gas producer, who has invested in creating a lease block, paying landowners acreage and/or delayed rental payments, and paid a fee to the state for a permit application, is now out valuable financial resources, time and effort.