About

Funding

The Ohio Natural Energy Institute is funded through an assessment on the production of all natural gas and oil produced in Ohio.

In accordance with OHIO REVISED CODE 1510, the Ohio Natural Energy Institute is funded by Ohio’s natural gas and crude oil producers through an assessment on the production of all natural gas and crude oil produced in Ohio. 

If you are a new Ohio natural gas or crude oil producer, first purchaser or marketer, please contact us for more information regarding this public outreach and education program and funding obligations under state law.

This assessment should not be confused with fees associated with the heat content agreement, severance taxes or any other taxes or fees paid by the industry. It is separate from those charges.

Effective July 1, 2017, the assessment is:

  • Five cents ($.05) per gross barrel of crude oil (including condensate)

  • One-half cent ($.005) per gross Mcf (thousand cubic feet) of natural gas

Under OHIO REVISED CODE 1510, all first purchasers/marketers of natural gas and crude oil are required to collect and remit these assessments within 45 days after each quarter. These assessments are formally audited annually. 

FIRST PURCHASER INFORMATION

OHIO REVISED CODE 1510 defines a “First Purchaser” as:

(1) With regard to crude oil and condensate, the person to whom title first is transferred beyond the gathering tank or tanks, beyond the facility from which the crude oil was produced, or both.

(2) With regard to natural gas, the person to whom title first is transferred beyond the inlet side of the measurement station from which natural gas was first produced.

The First Purchaser’s role, under OHIO REVISED CODE 1510 is to collect the assessment made on the production of crude oil and natural gas in the state of Ohio. Those assessments will be used to fund the collective industry’s education, safety and public outreach programs.

A First Purchaser may deduct the assessment directly from any amounts that the First Purchaser owes to producers. The First Purchaser is then required to remit the assessment amount within forty-five (45) days after each quarter.

First Purchaser Assessment Payment Forms

HORIZONTAL PRODUCER DIRECT ASSESSMENT PAY OPTION

Effective July 1, 2017, in accordance with OHIO REVISED CODE 1510 any horizontal shale producer may elect to participate in a direct assessment pay option instead of the first purchaser/marketer deduction payment. The Horizontal Producer Direct Pay application must be remitted directly to the Ohio Natural Energy Institute and approved by the operating committee board. For questions about the horizontal producer direct pay option, please contact us.

General Q&As

  • No. We are not a state agency and do not utilize any taxpayer dollars.

  • The Ohio Natural Energy Institute, nor its operating committee has the authority to increase the assessment amount without the approval of Ohio producers that vote in a referendum. The assessment rate cannot exceed the rate established in OHIO REVISED CODE 1510.

  • OHIO REVISED CODE 1510 states that a First Purchaser must remit a payment to the Program within forty-five (45) days after each quarter.

  • Yes.

  • Yes.

  • Yes.

    Ohio Revised Code Section 1510.13 states that “no person shall knowingly fail or refuse to withhold or remit any assessment levied under Section 1510.08 of the Revised Code.”

    Ohio Revised Code Section 1510.13(B) states that “before criminal proceedings are instituted pursuant to this Section, the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management’s Technical Advisory Council shall give the alleged violator an opportunity to present the alleged violator’s view concerning why the proceedings should not be instituted.”

  • A receipt or other documentation will be provided to the First Purchaser, if requested. An annual audit is also conducted with all First Purchasers in January of each year. A formal audit is also performed each year and is available to any First Purchaser or Producer upon request. This audit is also provided to the Ohio Department of Natural Resources, Division of Oil and Gas Resources Management, as required under OHIO REVISED CODE 1510.

  • Yes.  As defined in OHIO REVISED CODE 1510 and the Ohio Natural Energy Institute “PROGRAM,“ shall refund the assessment directly to any producer that has been assessed, after they have submitted a “Refund Application” on a form approved and furnished by the Ohio Natural Energy Institute Operating Board.  They must be the owner or operator of the well that was assessed. Ohio Natural Energy Institute may request information to support a refund request and that information shall be treated as confidential.

    Any producer desiring a refund must submit the Refund Application not later than the thirty-first (31) day of March, following the year in which the assessment was made. Ohio Natural Energy Institute shall refund the assessment to the producer no later than the thirteenth (13th) day of June of the year in which the Refund Application is submitted.

  • All producers, first purchasers and oil and gas contractors are encouraged to actively participate in the Ohio Natural Energy Institute’s projects or serve on one of many Committees.  They may also contact the Ohio Natural Energy Institute or any of its Operating Board members with ideas, suggestions, or concerns.

  • Ohio Revised Code 1510, and the amended Ohio Natural Energy Institute “PROGRAM“ require that there are up to thirteen Operating Board members.  Six of those members shall be independent producers and six of the members shall be primarily horizontal well operators.  All producer Board members must have production in Ohio and have at least five years of active experience in the natural gas and oil industry. The thirteenth member must be a member of an organization that represents farmers or landowners.