CHAPTER 38-18.1
TERMINATION OF MINERAL INTEREST
38-18.1-01. Mineral interest defined. In this chapter, unless context or subject matter
otherwise requires, "mineral interest" includes any interest in oil, gas, coal, clay, gravel, uranium,<br>and all other minerals of any kind and nature, whether created by grant, assignment, reservation,<br>or otherwise owned by a person other than the owner of the surface estate.
38-18.1-02. Statement of claims - Recording - Reversion. Any mineral interest is, if
unused for a period of twenty years immediately preceding the first publication of the notice<br>required by section 38-18.1-06, deemed to be abandoned, unless a statement of claim is<br>recorded in accordance with section 38-18.1-04. Title to the abandoned mineral interest vests in<br>the owner or owners of the surface estate in the land in or under which the mineral interest is<br>located on the date of abandonment. The owner of the surface estate in the land in or under<br>which the mineral interest is located on the date of abandonment may record a statement of<br>succession in interest indicating that the owner has succeeded to ownership of the minerals<br>under this chapter.
38-18.1-03. When mineral interest deemed to be used.
1.
A mineral interest is deemed to be used when:
a.
There are any minerals produced under that interest.
b.
Operations are being conducted thereon for injection, withdrawal, storage, or<br>disposal of water, gas, or other fluid substances.
c.
In the case of solid minerals, there is production from a common vein or seam<br>by the owners of such mineral interest.
d.
The mineral interest on any tract is subject to a lease, mortgage, assignment,<br>or conveyance of the mineral interest recorded in the office of the recorder in<br>the county in which the mineral interest is located.
e.
The mineral interest on any tract is subject to an order or an agreement to pool<br>or unitize, recorded in the office of the recorder in the county in which the<br>mineral interest is located.
f.
Taxes are paid on the mineral interest by the owner or the owner's agent.
g.
A proper statement of claim is recorded as provided by section 38-18.1-04.
2.
The payment of royalties, bonus payments, or any other payment to a named or<br>unnamed interest-bearing account, trust account, escrow account, or any similar<br>type of account on behalf of a person who cannot be located does not satisfy the<br>requirements of this section and the mineral interest is not deemed to be used for<br>purposes of this section. Interest on such account must be credited to the account<br>and may not be used for any other purpose. A named or unnamed interest-bearing<br>account, trust account, escrow account, or any similar type of account that has been<br>in existence for three years is deemed to be abandoned property and must be<br>treated as abandoned property under chapter 47-30.1. A lease given by a trustee<br>remains valid.
38-18.1-04. Statement of claim - Recording - Time. The statement of claim provided
for in section 38-18.1-02 must:
1.
Be recorded by the owner of the mineral interest or the owner's representative prior<br>to the end of the twenty-year period set forth in section 38-18.1-02. A joint tenant,
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but not a tenant in common, may record a claim on behalf of oneself and other joint<br>tenants.
2.
Contain the name and address of the owner of the mineral interest, and a legal<br>description of the land on, or under which, the mineral interest is located as well as<br>the type of mineral interest involved.
3.
Be recorded in the office of the recorder in the county in which the mineral interest is<br>located.
The mineral interest is deemed to be in use at the date of recording, if the recording is made<br>within the time provided by this section. A statement of claim filed after July 31, 2009, by a<br>person other than the owner of record of the mineral interest is not effective to preserve a mineral<br>interest unless accompanied by a reference to the name of the record owner under whom the<br>owner of the mineral interest claims.
38-18.1-05. Failure to record the statement of claim. Failure to record the statement
of claim within the time period provided in section 38-18.1-04 will not cause a mineral interest to<br>be extinguished if:
1.
The owner of record of the mineral interest satisfies either one of the following<br>requirements within sixty days after first publication of the notice provided for in<br>section 38-18.1-06:
a.
Files with the county recorder a statement of claim as required in section<br>38-18.1-04; or
b.
Files with the county recorder documentation that at least one of the activities<br>under subsection 1 of section 38-18.1-03 took place during the twenty-year<br>period immediately preceding the first publication of notice.
2.
A person other than the owner of record of the mineral interest files with the county<br>recorder within sixty days after first publication of the notice provided for in section<br>38-18.1-06 an affidavit under oath or a declaration under oath which includes an<br>explanation of the factual and legal basis for the person's assertion of title to the<br>mineral interest.
This explanation must be accompanied by documentation
supporting the assertion or an explanation why documentation is unavailable.
38-18.1-06. Notice of lapse of mineral interest - Method.
1.
The owner or owners of the surface estate in the land in or under which the mineral<br>interest is located intending to succeed to the ownership of a mineral interest upon<br>its lapse shall give notice of the lapse of the mineral interest by publication.
2.
The publication provided for in subsection 1 must be made once each week for three<br>weeks in the official county newspaper of the county in which the mineral interest is<br>located; however, if the address of the mineral interest owner is shown of record or<br>can be determined upon reasonable inquiry as defined in subsection 6, notice must<br>also be made by mailing a copy of the notice to the owner of the mineral interest<br>within ten days after the last publication is made.
3.
The notice must state:
a.
The name of the record owner of the mineral interest;
b.
A description of the land on which the mineral interest involved is located; and
c.
The name of the owner or owners of the surface estate in the land in or under<br>which the mineral interest is located giving the notice.
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4.
A copy of the notice and an affidavit of service of the notice must be recorded in the<br>office of the recorder of the county in which the mineral interest is located and<br>constitutes prima facie evidence in any legal proceedings that such notice has been<br>given.
5.
The owner or owners of the surface estate in the land in or under which the mineral<br>interest is located who succeeds to the ownership of a mineral interest upon its<br>lapse under this chapter is entitled to record a statement of succession in interest<br>indicating that that owner or owners of the surface estate in the land in or under<br>which the mineral interest is located has succeeded to the ownership of the mineral<br>interest.
6.
To constitute a reasonable inquiry as provided in subsection 2, the owner or owners<br>of the surface estate or the owner's authorized agent must conduct a search of:
a.
The county recorder's records for the existence of any uses as defined in<br>section 38-18.1-03 by the owner of the mineral interest;
b.
The clerk of court's records for the existence of any judgments, liens, or probate<br>records which identify the owner of the mineral interest;
c.
The social security death index for the last-known residence of the owner of the<br>mineral interest, if deceased; and
d.
One or more public internet databases to locate or identify the owner of the<br>mineral interest or any known heirs of the owner. The owner or owners of the<br>surface estate are not required to conduct internet searches on private fee<br>internet databases.
38-18.1-06.1. Perfecting title in surface owner.
1.
Upon completion of the procedure provided in section 38-18.1-06, the owner or<br>owners of the surface estate may maintain an action in district court in the county in<br>which the minerals are located and obtain a judgment in quiet title in the owner or<br>owners of the surface estate. This action must be brought in the same manner and<br>is subject to the same procedure as an action to quiet title pursuant to chapter<br>32-17.
2.
In an action brought under this section, the owner or owners of the surface estate<br>shall submit evidence to the district court establishing that all procedures required by<br>this chapter were properly completed and that a reasonable inquiry as defined by<br>subsection 6 of section 38-18.1-06 was conducted. If the district court finds that the<br>surface owner has complied with all procedures of the chapter and has conducted a<br>reasonable inquiry, the district court shall issue its findings of fact, conclusions of<br>law, and enter judgment perfecting title to the mineral interest in the owner or owners<br>of the surface estate.
3.
A judgment obtained by the owner or owners of the surface estate in compliance<br>with this section is deemed conclusive except for fraud, misrepresentation, or other<br>misconduct.
4.
A mineral lessee that obtains a lease from the owner of the surface estate, which<br>owner has obtained a judgment to minerals pursuant to this section, is deemed a<br>bona fide purchaser and its lease remains effective in the event the judgment is<br>subsequently vacated for any reason. Further, the lessee is not liable to any third<br>party for lease bonus, royalties, or any other proceeds paid to the surface owner<br>under the lease before the judgment being vacated.
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5.
Absent fraud or misrepresentation, the owner or owners of the surface estate which<br>obtain a judgment under this section and lease minerals to a lessee are entitled to<br>retain all lease bonus, royalties, or any other proceeds paid to the surface owner<br>under the lease before the judgment being vacated.
38-18.1-07. Waiver prohibited. The provisions of this chapter may not be waived at any
time prior to the expiration of the twenty-year period provided in section 38-18.1-02.
38-18.1-08. Applicability. This chapter does not apply to any mineral interest owned by
any governmental body or agency thereof and this chapter is both prospective and retrospective<br>in its application.
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Document Outline
chapter 38-18.1 termination of mineral interest
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