House Bill 130

AN ACT TO PROVIDE THAT THE TITLE TO ANY MINERAL ESTATE THAT IS DEEMED TO BE NONPRODUCING SHALL REVERT TO THE STATE OF MISSISSIPPI AT THE END OF THE TEN-YEAR PERIOD OF NONPRODUCTION; TO PROVIDE THAT THE OWNER OF THE SURFACE RIGHTS TO THE LAND MAY REDEEM THE NONPRODUCING MINERAL ESTATE; TO PROVIDE THE PROCEDURE FOR NOTICE AND REDEMPTION OF THE NONPRODUCING MINERAL ESTATE; AND FOR RELATED PURPOSES.

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

SECTION 1. The title to, and interest in, any mineral estate that is deemed to be nonproducing as described herein shall revert to the State of Mississippi at the end of the ten-year period and, in accordance with Section 2 of this act, the surface owner may redeem such nonproducing mineral estate. For purposes of this section, the mineral estate is deemed to be nonproducing if there have been no bona fide drilling or production operations for minerals or no actual production of minerals for a period of ten (10) years. The period of ten (10) years may run continuously or be interrupted. If there are bona fide drilling or production operations for minerals or actual production of minerals, the period shall be interrupted and shall begin to run again on the last day that drilling or production operations are conducted or the last day of actual production. The period shall be interrupted in the case of contracts providing for shut-in rental payments in lieu of production, but if there is no production, the period shall begin to run again at the end of the period for which the last such rental payment was made. For purposes of this section, oil and gas are deemed to be not in production if, in the case of oil production, the well is not located on the regular governmental quarter-quarter section of surface estate where the severed mineral estate lies, or in the case of gas production, if the gas well is not located in the regular governmental one-half (1/2) section wherein the mineral estate lies.

SECTION 2. (1) In order to effectuate the redemption provided for in Section 1 of this act, the owner or owners of the surface estate each shall file a statement of claim with the chancery clerk of the county or counties in which the land within which the nonproducing mineral estate is located after the period of ten (10) years has elapsed and the title to the mineral estate has reverted to the State of Mississippi. The owner or owners of the surface estate shall notify the owner or owners of the nonproducing mineral estate by personal service, if they can be found upon reasonable search and inquiry, that the nonproducing mineral estate is subject to redemption by the surface owner or owners. If the owner or owners of the nonproducing mineral estate cannot be found upon reasonable search and inquiry, the owner or owners of the surface estate shall give notice by publication for three (3) consecutive weeks in a newspaper having general circulation in the county or counties in which the land within which the nonproducing mineral estate is located, and, if the address of the owner or owners of the mineral estate is shown of record or can be determined upon reasonable inquiry, by mailing a copy of such notice to the owner or owners of the mineral estate not later than ten (10) days after the first publication. The notice shall state the name of the owner or owners of the mineral estate as shown of record, if known, a description of the land and the name of the person or persons giving such notice. If a copy of such notice, together with an affidavit of service thereof, is promptly filed with the chancery clerk of the county or counties in which the land within which the mineral estate is located, the record thereof shall be prima facie evidence in any legal proceeding that such notice was given.

(2) If, within thirty (30) days after personal service or the last publication of notice, no conclusive written evidence is presented to the chancery clerk that there have been bona fide drilling or production operations for minerals or actual production of minerals for a period of ten (10) years, the nonproducing mineral estate may be redeemed by the owner or owners of the surface estate, and the chancery clerk shall record the statement of claim and the redemption of the nonproducing mineral estate and shall indicate the redemption of the nonproducing mineral estate by marginal notation on the instrument creating the original mineral estate. If conclusive written evidence is presented to the chancery clerk within the stated period of time that there have been bona fide drilling or production operations for minerals or actual production of minerals within the period of ten (10) years, then the reverter to the State of Mississippi and the right of redemption by the surface owner or owners shall not take effect and the chancery clerk shall record the statement of claim but shall not record or indicate on the instrument creating the original mineral estate that there has been a reversion or redemption of the mineral estate.

SECTION 3. This act shall take effect and be in force from and after July 1, 2002.