Rose Bowl fumble

[SamG]

I don't know how many of you watched the Rose Bowl, but I had a question about a call... Oregon ball, 2nd & 2 at OSU 18. Handoff never gets made, ball drops to the turf, off the RBs foot and goes forward. It crosses into the EZ and out the side of the EZ. OSU (defense) was last team to TOUCH the ball, but never gained possession (even watching the replay, possession wasn't even close).

OSU given the ball 1st & 10 at the 20.

Was OSU given the ball simply because the ball went through the EZ? What would have been the call if the ball went out on the OSU1 with neither team gaining possession?

Thanks