Legislators and state government officials in Ohio, as well as industry groups, are discussing a bill that, if enacted, would require oil and natural gas land agents to register with the state and provide homeowners with several disclosure forms.

HB 493 would require the agents, also known as landmen, to register annually with the Ohio Department of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management. The landmen would also be required to provide homeowners with disclosures that provide details of oil and gas leases and the purchase of mineral rights.

The bill would also empower the division chief to create a registration form, set a fee structure and establish the minimum qualifications for working as a landman in Ohio.

Dennis Ginty, spokesman for the Ohio Department of Commerce, told NGI’s Shale Daily that discussions among his department, the ODNR, Rep. Mark Okey (D-Carrollton) and other stakeholders, including the Ohio Oil and Gas Association (OOGA), have been ongoing. “The department is in discussions with various parties about the best way to provide consumer education and a professional recognition of this group of industry representatives,” Ginty said Thursday.

HB 493 was introduced in the state House of Representatives by Reps. Okey and Teresa Fedor (D-Toledo) on March 27. It is currently under consideration by the House Committee for Agriculture and Natural Resources. Fifteen additional representatives, all Democrats, have signed on as cosponsors.

“There are common sense reforms we can make to the oil and gas leasing process that would be good for both Ohio’s landowners and the companies developing our state’s natural resources,” Okey said in a July 19 letter to Republican Gov. John Kasich. “It is my firm belief that we have not done enough to regulate the drilling industry and to adequately protect the rights and property of Ohio’s landowners.

“Our failure to act means that the industry will continue to face costly lawsuits and allegations of misconduct until we pass reasonable legislation to improve the leasing process in our state…the time to act is now, as more and more landowners face the consequences of unscrupulous leasing practices.”

Fedor, Okey and OOGA Executive Vice President Tom Stewart could not be reached for comment Thursday.

In April 2011, Reps. Okey, Fedor and Dennis Murray (D-Sandusky) urged Ohio Attorney General Mike DeWine to investigate possible deceptive practices by landmen, after a bizarre five-page “talking points” document was allegedly found in a homeowner’s driveway in Greene County (see Shale Daily, April 26, 2011). An investigation by the state Bureau of Criminal Investigation into the “lost landman’s handbook” was inconclusive.

Passage of HB 493 is uncertain because both chambers of the Ohio General Assembly are controlled by Republicans and Kasich could ultimately veto the bill. The legislature convenes for its 2013 session on Jan. 7.

The 15 cosponsors of HB 493 are Reps. Nickie Antonio (D-Lakewood), John Patrick Carney (D-Clintonville), Denise Driehaus (D-Cincinnati), Michael Foley (D-Cleveland), Nancy Garland (D-New Albany), Ron Gerberry (D-Austintown), Jay Goyal (D-Mansfield), Bob Hagan (D-Youngstown), Tracy Maxwell Heard (D-Columbus), Tom Letson (D-Warren), Matt Lundy (D-Elyria), Murray, Debbie Phillips (D-Athens), Sandra Williams (D-Cleveland) and Kenny Yuko (D-Richmond Heights).