Chervenak Family Trust v. Ascent Resources - Utica, L.L.C.

Summary

The Ohio Fifth District Court of Appeals affirmed summary judgment for Ascent Resources in a dispute concerning whether a 1972 oil and gas lease limited statutory unitization to units of no more than 160 acres. The court held that the lease addressed voluntary unitization but was silent regarding statutory unitization under R.C. 1509.28, so Ascent’s participation in larger statutory production units did not breach the lease.

Holdings

1. The lease did not prohibit Ascent from seeking statutory unitization under R.C. 1509.28 in units larger than 160 acres because the lease provision addressed voluntary and permissive unitization and was silent regarding statutory unitization.
2. Summary judgment for Ascent was proper, and the Trust was not entitled to summary judgment, because the stipulated facts established that Ascent did not breach the lease by pursuing statutory unitization exceeding 160 acres.

Questions Presented

1. Whether the oil and gas lease's provision authorizing consolidation into development units of no more than 160 acres prohibited Ascent from pursuing statutory unitization under R.C. 1509.28 in units exceeding 160 acres.
2. Whether the trial court properly granted Ascent summary judgment and denied the Trust's cross-motion for summary judgment.

Disposition

affirmed