State ex rel. Omni Energy Group, L.L.C. v. Ohio Dept. of Natural Resources, Div. of Oil & Gas Resources Mgt. (Slip Opinion)

2020 Ohio 5581, 173 N.E.3d 1148, 164 Ohio St. 3d 470
CourtOhio Supreme Court
DecidedDecember 9, 2020
Docket2020-0528
StatusPublished
Cited by3 cases

This text of 2020 Ohio 5581 (State ex rel. Omni Energy Group, L.L.C. v. Ohio Dept. of Natural Resources, Div. of Oil & Gas Resources Mgt. (Slip Opinion)) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Omni Energy Group, L.L.C. v. Ohio Dept. of Natural Resources, Div. of Oil & Gas Resources Mgt. (Slip Opinion), 2020 Ohio 5581, 173 N.E.3d 1148, 164 Ohio St. 3d 470 (Ohio 2020).

Opinion

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as State ex rel. Omni Energy Group, L.L.C. v. Ohio Dept. of Natural Resources, Div. of Oil & Gas Resources Mgt., Slip Opinion No. 2020-Ohio-5581.]

NOTICE This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.

SLIP OPINION NO. 2020-OHIO-5581 THE STATE EX REL. OMNI ENERGY GROUP, L.L.C. v. OHIO DEPARTMENT OF NATURAL RESOURCES, DIVISION OF OIL AND GAS RESOURCES MANAGEMENT ET AL.

[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as State ex rel. Omni Energy Group, L.L.C. v. Ohio Dept. of Natural Resources, Div. of Oil & Gas Resources Mgt., Slip Opinion No. 2020-Ohio-5581.] Public utilities—Oil and gas—Salt-water-injection wells—Drilling permits—Ohio Adm.Code 1501:9-3-06—Mandamus—Division chief has clear legal duty to determine, forthwith, whether objections to applications are relevant and/or substantive. (No. 2020-0528—Submitted September 9, 2020—Decided December 9, 2020.) IN MANDAMUS. __________________ Per Curiam. SUPREME COURT OF OHIO

{¶ 1} In this original action, relator, Omni Energy Group, L.L.C., seeks a writ of mandamus against respondents, the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management; department director Mary Mertz; and division chief Eric Vendel, to compel Vendel to render decisions on two saltwater-injection-well-permit applications. We grant a writ of mandamus, but instead of ordering Vendel to immediately render a decision on the applications, we order him to rule upon the validity of the objections that have been submitted concerning Omni’s applications. That ruling will determine whether Vendel must issue the permits or hold a hearing on the applications. We deny the writ as to the division and as to Mertz. Background {¶ 2} In March 2019, Omni filed applications with the division to drill two saltwater-injection wells in Belmont County. Under R.C. 1509.02, the division has exclusive authority to regulate the permitting and operation of saltwater-injection wells in Ohio. Vendel, the chief of the division, is responsible for issuing or denying the permits. See R.C. 1509.06 and 1509.22; Ohio Adm.Code 1501:9-3-06. {¶ 3} Ohio Adm.Code 1501:9-3-06(H) establishes four basic phases in the saltwater-injection-well-application process: first, the division verifies that the application is complete; second, the applicant gives public notice; third, the division receives comments and objections from the public; and fourth, the division chief issues or denies the permit. The first three phases are not at issue here—Omni’s applications were complete as to form, Omni gave public notice, and the division received about 100 comments and objections opposing the applications. {¶ 4} As to the fourth phase, when an objection is timely received, before issuing or denying a permit, the division chief “shall rule upon the validity of the objection.” Ohio Adm.Code 1501:9-3-06(H)(2)(c). If the division chief finds that no objection is “relevant to the issues of public health or safety, or to good conservation practices, or is without substance, a permit shall be issued.” Id. But if

2 January Term, 2020

the division chief finds that an objection is relevant or presents a substantive issue, “a hearing shall be called within thirty days of receipt of the objection.” Id. After a hearing is held, the division chief may either issue or deny the permit. Ohio Adm.Code 1501:9-3-06(H)(2)(d). When no hearing is held, the division chief is required to issue the permit within 21 days after the applicant filed its proof of public notice. Ohio Adm.Code 1501:9-3-06(H)(3). When there is a hearing, the division chief is required to issue or deny the permit within 30 days after the completion of the hearing. Id. {¶ 5} In this case, based on a public comment it had received, the division requested additional information from Omni because the proposed wells would be drilled through an abandoned underground coal mine. By the end of January 2020, Omni had given the division the additional information it had requested—namely, a technical study of the issue certified by a professional engineer. Respondents acknowledge that all issues concerning the abandoned coal mine have been resolved. The division has not asked Omni for any other additional information, nor has it scheduled a hearing on the applications or indicated that one will be necessary. But the division does plan to hold a “public meeting” concerning the applications. Respondents concede that neither the Revised Code nor the Ohio Administrative Code requires a public meeting and that a “meeting” is not a “hearing” under Ohio Adm.Code 1501:9-3-06(H). {¶ 6} After the COVID-19 pandemic made an in-person public meeting impossible, the division announced that it would hold an online public meeting on April 10, 2020. But on April 8, Robert Murray sued the Department of Natural Resources in the Belmont County Court of Common Pleas, seeking a temporary restraining order to prevent the online meeting. Murray’s company, Murray Energy Corporation, had objected to Omni’s applications, and Murray wants the public meeting to be held in-person, not virtually. The common pleas court issued a temporary restraining order enjoining the virtual meeting, and as of the submission

3 SUPREME COURT OF OHIO

of the evidence in this case, an injunction remained in place. In the course of the Belmont County case, the Department of Natural Resources has acknowledged that a public meeting is not a required part of the permitting process. {¶ 7} The division chief has not rendered a decision on Omni’s applications. On April 20, 2020, Omni filed a complaint against the division, Vendel, and Mertz, seeking a writ of mandamus compelling them to either issue or deny the permits. In its complaint, Omni also requested an order staying the Belmont County case and an award of damages, costs, and attorney fees. We granted an alternative writ on July 10. 159 Ohio St.3d 1442, 2020-Ohio-3678, 149 N.E.3d 511. Analysis {¶ 8} To be entitled to a writ of mandamus, Omni must establish by clear and convincing evidence (1) a clear legal right to the requested relief, (2) a clear legal duty on the part of respondents to provide it, and (3) the lack of an adequate remedy in the ordinary course of the law. State ex rel. Waters v. Spaeth, 131 Ohio St.3d 55, 2012-Ohio-69, 960 N.E.2d 452, ¶ 6, 13. Omni has a clear legal right to—and the division chief has a clear legal duty to provide—a ruling on the validity of the objections submitted against the applications {¶ 9} Respondents do not dispute that the division chief ultimately must decide whether or not to issue the permits. They argue, however, that the division chief does not presently have a clear legal duty to make the decision, because he plans to first hold a public meeting. {¶ 10} Respondents contend that in seeking to compel an immediate decision without a public meeting, Omni really is trying to strictly enforce the timeframes established under Ohio Adm.Code 1501:9-3-06(H)—and to force the division chief to issue the permits simply because he did not timely deny them. But respondents mischaracterize Omni’s argument. Contrary to what respondents suggest, Omni does not question the division chief’s continuing discretionary authority over the

4 January Term, 2020

applications. In fact, in its briefs, Omni repeatedly requests an order requiring the division chief to immediately render a decision either issuing or denying the permits.

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Cite This Page — Counsel Stack

Bluebook (online)
2020 Ohio 5581, 173 N.E.3d 1148, 164 Ohio St. 3d 470, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-omni-energy-group-llc-v-ohio-dept-of-natural-resources-ohio-2020.