2015 Indiana Code TITLE 32. PROPERTY ARTICLE 23. CONVEYANCE OF PROPERTY INTERESTS LESS THAN FEE SIMPLE CHAPTER 13. MINERAL ESTATES OF UNKNOWN OR MISSING OWNERS
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IC 32-23-13
Chapter 13. Mineral Estates of Unknown or Missing Owners
IC 32-23-13-1
"Adjacent mineral producer"
Sec. 1. As used in this chapter, "adjacent mineral producer" means
a person that:
(1) is engaged in the production, development, or future
development of at least one (1) mineral, including coal, oil, gas,
or another mineral in solid, liquid, or gaseous form; and
(2) owns or leases a property interest in:
(A) the mineral estate adjacent to, adjoining, or contiguous
to the mineral interest of an unknown or missing owner;
(B) a portion of the mineral estate adjacent to, adjoining, or
contiguous to the mineral interest of an unknown or missing
owner; or
(C) an area that the person seeks to develop that is within the
boundaries of a proposed production unit established by
spacing regulations of the division of oil and gas.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-2
"Mineral interest of an unknown or missing owner"
Sec. 2. As used in this chapter, "mineral interest of an unknown or
missing owner" means:
(1) the mineral estate in land; or
(2) any portion of the mineral estate in land;
that is owned by an unknown or missing owner.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-3
"Unknown or missing owner"
Sec. 3. (a) As used in this chapter, "unknown or missing owner"
means a person:
(1) vested of record or by operation of IC 32-23-10 with a
property interest in:
(A) a mineral estate in land; or
(B) a portion of a mineral estate in land; and
(2) whose identity or location cannot be determined:
(A) from the records in the chain of title in the county in
which the land is located;
(B) by diligent inquiry in the vicinity of the record owner's
last known place of residence or location; and
(C) from a search of tax records in the county in which the
property is located.
(b) The term includes the person's heirs and devisees and
successors and assigns.
As added by P.L.28-2015, SEC.1.
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IC 32-23-13-4
Mineral interest of an unknown or missing owner; lease to produce
or develop
Sec. 4. An adjacent mineral producer that:
(1) brings an action under; and
(2) meets the requirements of;
this chapter may produce and develop all or part of a mineral interest
of an unknown or missing owner under a lease entered into under this
chapter.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-5
Venue
Sec. 5. An action brought under this chapter by an adjacent
mineral producer must be brought in the circuit court or superior
court of the county:
(1) in which the land that contains the mineral interest of an
unknown or missing owner sought to be affected is entirely
located; or
(2) if the land is located in more than one (1) county:
(A) the county where the largest part of the land is located;
or
(B) if equal parts of the land are in multiple counties, in any
county that contains an equal part of the land.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-6
Action; requirements; guardian ad litem
Sec. 6. (a) An adjacent mineral producer that brings an action
under this chapter must do the following:
(1) Name the following as respondents:
(A) The last owners of record in the chain of title and all
reasonably ascertainable heirs, devisees, successors, and
assigns of the last owners of record.
(B) If record title to the mineral interest of an unknown or
missing owner has been severed of record from ownership of
the overlying surface land, the record owner of the overlying
surface land. Any person named in this subdivision must be
sent notice of the action by certified mail.
(2) File a verified petition with the court that sets forth the
following:
(A) A statement that specifies the mineral that the petitioner
seeks to develop in the subject land.
(B) The petitioner's request that a trustee be appointed to
execute a lease granting the petitioner the right to produce
and develop from the subject mineral interest of the unknown
or missing owner a mineral of the type produced by the
adjacent mineral producer.
(C) The legal description of the mineral interest of the
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unknown or missing owner.
(D) The interest of the petitioner in the land adjacent to,
adjoining the subject land, or within the production unit
established by the division of oil and gas.
(E) The apparent interest of each respondent in the applicable
mineral sought to be produced and developed within the
subject land.
(F) A verified statement that informs the court of the actions
the petitioner has taken to identify and locate the unknown
or missing owner or the owner's heirs, devisees, successors,
and assigns.
(b) The Indiana Rules of Trial Procedure govern an action under
this chapter to make an unknown or missing person a respondent.
Legal service on a respondent who is unknown or missing may be
made by publication.
(c) The court shall appoint a guardian ad litem for any respondent
to the proceeding who is:
(1) a ward of the state or a ward to another person; or
(2) less than eighteen (18) years of age and is not represented by
a parent.
(d) If it appears to the court that a person who is not in being, but,
upon coming into being, is or may be entitled to any interest in the
land sought to be leased, the court shall appoint a guardian ad litem
to appear for and represent the interest in the proceeding and to
defend the proceeding on behalf of the person not in being. A
judgment or order entered by the court in a proceeding under this
chapter is effective against the person not in being.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-7
Court determinations; trustee appointment
Sec. 7. (a) The court shall receive evidence and hear testimony
concerning:
(1) the matters in the adjacent mineral producer's petition; and
(2) the prevailing terms of similar mineral leases of the type
sought by the petitioner obtained in the vicinity of the land in
the petition, including the length of the lease term, bonus
money, delay rentals, royalty rates, and other forms of lease
payments.
(b) If the court determines that the material allegations of the
petition are true and that there has been compliance with the required
notice provisions, the court:
(1) shall enter an order determining the interest of each
respondent in the mineral interest sought to be leased; and
(2) may:
(A) declare a trust in the mineral interest of the unknown or
missing owner;
(B) appoint, without a bond, a trustee for the unknown or
missing owner; and
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(C) authorize the trustee to execute a valid mineral lease:
(i) with the adjacent mineral producer concerning the type
of mineral developed by the adjacent mineral producer on
the mineral interest of the unknown or missing owner; and
(ii) on terms and conditions approved by the court.
(c) The court's judgment appointing a trustee and authorizing the
execution of a lease must specify the minimum terms that may be
accepted by the trustee. The terms must be substantially consistent
with the terms of other similar mineral leases obtained in the vicinity
as determined by the court.
(d) The court shall determine a reasonable fee to be paid to the
trustee. The trustee's fee, including reasonable attorney's fees and
costs of the proceeding, shall be paid by the adjacent mineral
producer petitioner. Any other court costs related to the proceedings
under this chapter shall be paid by the petitioner. However, each
party shall pay its costs associated with issues arising under section
8 of this chapter.
(e) If a trustee:
(1) dies or resigns; or
(2) refuses or is unable to act;
the court, upon the court's motion or the motion of the petitioner,
shall appoint a successor trustee.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-8
Additional court proceedings
Sec. 8. (a) In proceedings under this chapter, the court may do the
following:
(1) Investigate and determine questions of conflicting or
controverted titles.
(2) Remove invalid and inapplicable encumbrances from the
title to the subject land.
(3) Establish and confirm the title to the subject mineral estate
in land or the right to produce and develop the mineral from any
of the subject land.
(b) The court may authorize the execution of a lease under this
chapter before any matters under subsection (a) have been
determined.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-9
Trustee duties; lease
Sec. 9. (a) The trustee shall do the following:
(1) Enter into negotiations with the adjacent mineral producer
petitioner.
(2) Execute a mineral lease in favor of the petitioner covering
the interest of the respondents that reflects the findings and
judgment of the court.
(3) Promptly prepare and file a report of the mineral lease with
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the court that states the terms of the lease and the payments
received for the lease.
(4) Give notice of the report of the mineral lease to all parties
appearing of record.
(b) The court shall review the mineral lease under subsection (a)
to determine if the lease is in accordance with the court's findings and
judgment. If the court approves the mineral lease, the court shall:
(1) issue an order confirming the lease; and
(2) issue an order terminating the trust.
(c) A lease created under this section continues after the
termination of the trust unless the lease expires by its own terms.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-10
Lease payments; distribution of funds
Sec. 10. (a) Any payment that is owed by the adjacent mineral
producer petitioner under a mineral lease executed with the trustee
shall be paid by the petitioner to the clerk of the court.
(b) A person that wishes to claim the funds described in subsection
(a) must file a verified claim with the court setting out the interest of
the claimant and the basis for the claim. A notice of the filing of the
claim shall be served on the adjacent mineral producer or the
producer's successors or assigns and any record owner of the
overlying surface land. The court shall determine any other persons
who shall receive notice of the filing of the claim.
(c) The court:
(1) shall hear evidence and determine whether the claimant is
entitled to the funds and issue an order to the clerk accordingly;
and
(2) may determine whether future payments should be made by
the petitioner directly to the claimant.
(d) If a successful claim is not made under this section for the
funds within seven (7) years from the clerk's first receipt of any
funds, the clerk shall distribute all the funds received and petitioner
shall make any future payments as follows:
(1) If:
(A) record title to the mineral interest has been severed of
record from ownership of the overlying surface land; and
(B) the identity and location of the record owner of the
overlying surface land has been determined;
the clerk shall distribute the funds and the petitioner shall make
any future payments to the record owner of the overlying
surface land.
(2) If:
(A) record title to the mineral interest has been severed of
record from ownership of the overlying surface land; and
(B) the identity and location of the record owner of the
overlying surface land has not been determined;
the clerk shall distribute the funds and the petitioner shall make
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any future payments to the township trustee of the township in
which the subject land is located. If the land is located in more
than one (1) township, the distribution of funds shall be made to
the township trustees based on the amount of land located in
each township. The funds shall be used by the township trustee
for township purposes, including, but not limited to, cemetery
maintenance.
(3) If:
(A) record title to the mineral estate has not been severed of
record from ownership of the overlying surface land; and
(B) the identity and location of the record owner of the
overlying surface land has not been determined;
the clerk shall distribute the funds and the petitioner shall make any
future payments to the township trustee of the township in which the
subject land is located. If the land is located in more than one (1)
township, the distribution of funds shall be made to the township
trustees based on the amount of land located in each township. The
funds shall be used by the township trustees for township purposes,
including, but not limited to, cemetery maintenance.
(e) Thirty (30) days before the record owner of the overlying
surface land may file a petition under subsection (a), the clerk of the
court shall notify the record owner of the overlying surface land by
certified mail that the owner may be entitled to file a petition for the
funds.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-11
Subsequent court proceedings
Sec. 11. (a) After the entry of the initial judgment authorizing a
lease under this chapter, all subsequent proceedings that concern the
land and the mineral interest involved in the initial litigation,
including:
(1) subsequent leasing proceedings;
(2) proceedings by the trustee requesting authority to execute
and deliver additional documents pertaining to a lease; and
(3) proceedings by a claimant of lease payments paid to the
clerk;
must be commenced in the same court as the proceedings for the
initial lease.
(b) The acting trustee at the time of any subsequent proceedings
under subsection (a) shall act as the trustee in the subsequent
proceedings. The court retains continuing jurisdiction over any
subsequent proceedings.
(c) After the entry of the initial judgment authorizing a lease under
this chapter, any record owner of the overlying surface land must be
notified by certified mail not less than thirty (30) days in advance of
all subsequent proceedings that concern the land and the mineral
interest involved in the initial litigation, including:
(1) subsequent leasing proceedings;
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(2) proceedings by the trustee requesting authority to execute
and deliver additional documents pertaining to a lease; and
(3) proceedings by a claimant of lease payments paid to the
clerk.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-12
Application of lease
Sec. 12. (a) The lease of a mineral interest and execution of any
lease under this chapter is binding concerning the interest in the
mineral and the right to produce and develop the mineral owned by
any respondent to the action in the same manner as if the respondent
personally had signed and delivered the lease.
(b) The mineral lease is binding on the heirs, legatees, personal
representatives, successors, and assigns of the respondents.
(c) A person who may have a contingent or future interest in the
mineral interest of an unknown or missing owner is bound by the
judgment entered in the proceedings under this chapter.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-13
Marketable title
Sec. 13. This chapter shall be construed so that any lease issued
under this chapter conveys marketable title.
As added by P.L.28-2015, SEC.1.
IC 32-23-13-14
Additional remedies
Sec. 14. The remedies provided in this chapter are not exclusive
and do not prohibit the initiation of a petition for the integration of oil
and gas interest as provided in IC 14-37-9, including the integration
of interests of missing or unknown owners.
As added by P.L.28-2015, SEC.1.
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