Recently, the Ohio Supreme Court ruled that, absent certain statutory exceptions, a real estate broker’s license is required in the oil & gas lease negotiating business. As a result, outside lease negotiators, landsmen, and associated professionals must obtain a real estate broker’s license to engage in the for-profit practice of oil & gas lease negotiation. Historically, the oil & gas industry in Ohio has not mandated oil & gas professionals to have a real estate broker’s license when negotiating leases for mineral rights. However, in Dundics et. al. v. Eric Petroleum Corporation et. al., the Ohio Supreme Court held that the activities involved in the negotiation of an oil & gas lease are within the nature of activities that require a real estate broker’s license pursuant to Ohio Revised Code §4735.01 and .02. This decision has significant impact on oil & gas lease negotiators, landsmen, and oil & gas professionals. Please contact us with questions about whether you need to obtain a real estate broker’s license, compliance related issues, and your oil & gas related legal needs.
More information can be found at: Oil & Gas Practice Group.