House Bill 462

AN ACT TO ALLOW OWNERS OF MINERAL RIGHTS IN LAND TO SELL OR LEASE THE RIGHTS TO THE MINERAL INTERESTS, SUBJECT TO A RESERVATION IN THE SALE OR LEASING AGREEMENT PROVIDING THE TERMS BY WHICH THE RIGHTS TO THE MINERAL INTERESTS WILL REVEST IN THE MINERAL OWNER; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The owner of land burdened by a mineral right or rights and the owner of a mineral right, if separate from the owner of land, shall exercise their respective rights with reasonable regard for those of the other. Similarly, the owners of separate mineral rights in the same land shall exercise their respective rights with reasonable regard for the rights of other owners.

(2) The owner of mineral rights shall be allowed to reserve an interest in the mineral rights in land on which the minerals are located by providing in the agreement of sale or lease the terms of the sale or by specifying the period for which the lease will be operable between the parties before the mineral rights will revest in the mineral owner.

(3) (a) A reservation of mineral rights in an instrument transferring ownership of the mineral rights shall include mention of surface rights in the exercise of the mineral rights reserved, if not otherwise expressly provided by the parties.

(b) In the absence of particular provisions in the instrument regulating the extent, location and nature of the rights of the individual purchasing or leasing the mineral rights to conduct operations on the property, the requirements of this paragraph (b) are satisfied by inclusion of the following language in the reservation of mineral rights:

"The purchaser, for the duration specified in this agreement, shall exercise the mineral rights reserved in this agreement by the seller with reasonable regard to the rights of the landowner, and shall use only so much of the land, including the surface, as is reasonably necessary to explore for, mine and produce the minerals. The seller recognizes that by virtue of the mineral reservation made, in this agreement, the purchaser, for the duration specified in this agreement, shall have the right to use so much of the land, including the surface, as is reasonably necessary to conduct his operations."

SECTION 2. This act shall take effect and be in force from and after July 1, 2010.