Mineral Rights in the State of Ohio
Minerals include not only gas and oil but also industrial minerals such as salt, limestone and gravel located beneath the ground. The first commercial oil production took place in Ohio in 1860, and natural gas was discovered in 1884. The Division of Mineral Resources Management of the Ohio Department of Natural Resources regulates the mining of minerals in the state. Mineral rights in Ohio may belong to either the owner of the land under which they lie, an alternative owner or the state.
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Severance
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The minerals lying below a piece of land may be owned as part of the land and will therefore be transferred when the land is sold. In some cases, however, the right to the minerals is severed from the right to the land and therefore the minerals are owned independently of the land under which they lie. The title deeds usually clarify whether title to the minerals is included with the land. If not, the owner of the mineral rights is entitled to enter the land to explore or mine, provided that he compensates the owner of the land for any damage.
Abandoned Mineral Rights
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In some situations it can be difficult to locate the owners of the mineral rights, if the land has passed through many hands or has been subdivided. Section 5301.56 of the Ohio Revised Code provides that a mineral interest held by someone other that the owner of the land shall be deemed to be abandoned in certain circumstances. The owner of the land must serve notice to all interested parties or alternatively publish a notice in local newspapers of his intent to declare the mineral interest abandoned. If, after investigation, the county recorder declares that the mineral interest is abandoned, the rights to the minerals vest in the owner of the land. The provisions do not apply if the mineral rights belong to the state or U.S. government.
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Applying to the State for Mineral Rights
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Section 155.011 of the Ohio Revised Code provides that the owner of any land under which the state has retained the mineral rights may purchase the rights. The owner must provide evidence of his title and pay a deposit. The proceeds of sale must be credited to the general revenue fund, unless they have already been entrusted to the state for religious or school purposes.
Valuation
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Under section 5713.05, the county auditor must make a list of all wells, mines, quarries and works designed for the production of minerals on an annual basis. If the value of the land has increased or decreased in value by more than $100, the auditor shall increase or decrease the assessment of the land to take into account the value of the mineral rights.
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