MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Oil, Gas and Other Minerals

By: Senator(s) Dearing

AN ACT TO AMEND SECTION 53-3-11, MISSISSIPPI CODE OF 1972, TO REQUIRE NOTICE TO A SURFACE OWNER UNDER CERTAIN CIRCUMSTANCES PRIOR TO EXPLORATION OR DRILLING FOR OIL OR GAS; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 53-3-11, Mississippi Code of 1972, is amended as follows:

53-3-11. (1) Any person desiring or proposing to drill any well in search of oil or gas, before commencing the drilling of any such well, shall notify the oil and gas supervisor upon such form as the board may prescribe. The drilling of any well for oil or gas is hereby prohibited until such notice is given and a permit therefor is issued.

(2) (a) Before any nonresident not qualified to do business in this state is issued a permit pursuant to subsection (1) of this section, such nonresident shall file with the Secretary of State, on a form prescribed by him, a surety or cash bond in a sum of not less than Ten Thousand Dollars ($10,000.00), or in a greater amount if so approved by the Secretary of State, conditioned that such sum be paid to the State of Mississippi for the benefit of all persons interested, their legal representatives, attorneys or assigns, in the event the operator of such well shall fail to reasonably restore the land and improvements of the surface estate as a result of mineral exploration and/or production, or in the event the operator shall fail to properly plug a dry or abandoned well in the manner prescribed by the rules of the board. Such bond shall be executed by the operator listed in the drilling permit and, in case of a surety bond, by a corporate surety licensed to do business in the State of Mississippi. Such bond shall cover all subsequent drilling permits issued to such nonresident operator and shall be for a term co-extensive with the terms of the permits.

(b) The Secretary of State is hereby designated as the agent upon whom process may be served in any action against such nonresident operator to recover damages to the surface estate arising from mineral exploration and/or production. Any such action for damages shall be commenced within six (6) years next after the closing of the well.

(3) (a) No later than the filing of the application with the board for a permit to drill and prior to initiating any site preparation, and before any person is issued a permit pursuant to subsection (1) of this section, the applicant shall make a good faith effort to give to the surface owner written notice of his intent of exploration or undertaking drilling operations on the premises owned by the surface owner. The property owner or owners to be notified under this subsection (3) shall be any property owner of record in the tax collector's office in the county where the property is located.

(b) The notice shall be given in writing to the surface owner, by certified United States mail or personal delivery, at the address of the surface owner as is reflected in the records of the tax collector of the county in which the land is located, and shall contain the proposed location and the approximate date that the operator proposes to commence exploration or drilling operations.

(c) The operator may be relieved of the duty to notify imposed by this subsection (3) only upon the making of an affidavit to the state oil and gas supervisor that the operator has conducted a search with reasonable diligence and the whereabouts of the surface owner cannot be ascertained or the required notice cannot be delivered for reasons beyond the operator's control.

(4) The drilling of any well, which is not in accordance with a spacing pattern fixed by the board, is hereby prohibited until and unless a permit is issued by the board after notice and hearing.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.