2014 Kentucky Revised Statutes CHAPTER 353 - MINERAL CONSERVATION AND DEVELOPMENT 353.470 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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