Oil and Gas at Your Door? (2005 Edition) - Earthworks

Legal and Regulatory Issues
If a surface owner believes that his or her complaint has not been adequately dealt with by the
government agency, or if there has been negligence on the part of the government agency that
has led to damage of the surface owner’s property (e.g., failure of the agency to enforce laws),
the surface owner has the option of filing a lawsuit against the agency and/or company. Or the
surface owner can attempt to initiate a dispute resolution process, to settle out of court.
Dispute Resolution
Many states have a procedure in place to allow a hearing of a dispute before a public commission
(usually the Oil and Gas Commission). These commissions generally attempt to resolve disputes
in meetings that are open to the public. If parties go through the state dispute resolution
process and are dissatisfied with the outcome, they may still use the court system to settle a
dispute. 422
COUNTY AND MUNICIPAL REGULATIONS
If a private party or parties own the minerals beneath your land, and your property is within city
or county limits, then the oil and gas companies must adhere to both state laws and any county
or municipal ordinances or regulations that apply to oil and gas. In many instances, the
municipal and county regulations are more stringent than those of the federal or state governments;
and quite possibly, they address different aspects of the development than the state
and federal regulations. Consequently, it is worth spending the time to contact the county and
municipality to obtain copies of these regulations, as they may offer the most protection to
landowners.
FIGURE II-10. COMPARISON OF COLORADO STATE AND COUNTY REGULATIONS 423
Under federal and Ohio state laws, permission from surface owners is not required in order to
drill an oil or gas well. In the City of Norton, Ohio, however, there is a city ordinance that states
that, “No permit may be issued until 51% of the owners of the real estate units within 1,000
feet of the wellhead approve (in writing) the drilling of the oil or gas well.” 424
Other requirements in Norton that favor the surface owner include:
• when permit applications are submitted, the City Council holds a public hearing before
granting a drilling authorization; and all property owners and residents within 1,000 feet of
the wellhead are notified of the hearing.
• the company has liability insurance of not less than $500,000 for property damage, and
not less than $1,000,000 for personal injury before a permit to drill is issued. 425
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