2016 Kentucky Revised Statutes CHAPTER 353 - MINERAL CONSERVATION AND DEVELOPMENT .470 When trustee may convey title in mineral interest to surface owner -- Payment to surface owner -- Final report of trustee -- Termination of trust.
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353.470 When trustee may convey title in mineral interest to surface owner -Payment to surface owner -- Final report of trustee -- Termination of trust.
(1)
(2)
(3)
(4)
If the severed mineral interests which are the subject of a trustee's lease executed
and delivered in accordance with KRS 353.468(3) are produced commercially, and
the owners of the severed mineral interests remain unknown or missing for a period
of seven (7) years from the date of first production under the lease, the trustee shall
file a motion with the court naming the then present surface owners as additional
parties and require the surface owners to appear and present proof to the satisfaction
of the court that they are vested with fee simple title to the surface estate. Upon a
finding by the court that the surface estate is vested in fee simple in the surface
owners, the court shall order the trustee to convey to the surface owners by
recordable instrument the unknown or missing owners' interest in the severed
mineral interests, which conveyance shall be approved by endorsement by the court
on the face thereof.
The trustee shall pay to the surface owners the funds which have accrued to the
credit of the severed mineral interests to the date of his final report after payment of
all allowable fees, expenses and court costs including a fee to be paid to the trustee
in an amount determined by the court.
From and after the date of the conveyance from the trustee to the surface owners
executed and delivered in accordance with subsection (1) of this section, the surface
owners shall be entitled to receive all proceeds of production attributable to the
severed mineral interests.
Upon the delivery of the conveyance directed in subsection (1) of this section, and
after the payment as directed in subsection (2) of this section, the trustee shall make
his final report to the court, and upon approval thereof, the court shall order the trust
terminated and the trustee and his bond discharged.
Effective: July 15, 1982
History: Created 1982 Ky. Acts ch. 165, sec. 6, effective July 15, 1982.
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