State Lands Leasing

Originally published on 6/30/11

Access to the resource base is the number one priority issue confronting the domestic oil and gas exploration and production industry. Ohio reflects the nation. Recently, the focus of this issue in Ohio has been unlocking the oil and gas potential under state lands. There are a variety of state parks, wildlife areas and forest lands that lie within areas of known oil and gas development. Currently, the ODNR owns and manages more than 590,000 acres of land in 74 state parks, 20 state forests, 127 nature preserves and 120 wildlife areas.

A recent petroleum engineering review of Salt Fork Park suggests that a tremendous natural gas potential exists. Salt Fork is totally surrounded by natural gas wells that have existed in the Guernsey County region for decades.

In 2011, the Ohio General Assembly passed House Bill 133, sponsored by State Representative John Adams, which provides Ohio with a rational process to access state-owned properties for oil and gas production. The bill creates the Oil and Gas Leasing Commission to oversee and facilitate the leasing of land that is owned or controlled by a state agency, including a state university, for the purpose of the exploration for, development of, and production of oil and natural gas resources. These lands are classified into four distinct classes in an effort to alleviate potential encumbrances to the land.