South Dakota House Bill 1058: Revise the procedure for recovery of abandoned mineral interests

South Dakota House Bill 1058: Revise the procedure for recovery of abandoned mineral interests
        FOR AN ACT ENTITLED, An Act to revise the procedure for recovery of abandoned mineral interests.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 43-30A-2 be amended to read as follows:
43-30A-2. A mineral interest is abandoned if it has not been used for a period of twenty-three years or more. Title to an abandoned mineral interest vests in the owner of the surface estate in the land in, or under, which the mineral interest is located on the date of abandonment.
Section 2. That § 43-30A-3 be amended to read as follows:
43-30A-3. A mineral interest is  used if:
            (1)    Minerals are produced  by or with the express permission of the record owner of the mineral interest;
            (2)    Operations are conducted for injection, withdrawal, storage, or disposal of water, gas, or other fluid substances to produce or enhance the production of mineralsby or with the express permission of the record holder of the mineral interest;

            (3)    For solid minerals, there is production from a common vein or seam by or with the express permission of the record owner of the mineral interest;
            (4)    Any valid conveyance, lease, mortgage, assignment, probate distribution, termination of joint tenancy interest affidavit, termination of life estate affidavit, transfer on death deed, or any judgment or decree that makes specific reference to the record owner’s mineral interest is recorded within the last twenty-three years in the office of the register of deeds for the county in which the mineral interest is located;
            (5)    The mineral interest is subject to an agreement to pool or unitize;
            (6)    A statement of claim is recorded in compliance with § 43-30A-4; or
            (7)    A proper instrument describing the mineral interest has been recorded prior to an affidavit recorded under prior law pursuant to § 43-30-7, in the office of the register of deeds for the county in which the mineral interest is located.
Section 3. That § 43-30A-4 be amended to read:
43-30A-4. A statement of claim shall:
            (1)    Be recorded for the record owner of the mineral interest prior to the end of the twenty-three-year period set forth in § 43-30A-2. A joint tenant, but not a tenant in common, may record a claim on behalf of himself and other joint tenants;
            (2)    Contain the name and mailing address of the record owner of the mineral interest and a legal description of the land on or under which the mineral interest is located; and
            (3)    Be recorded in the office of the register of deeds for the county in which the mineral interest is located.
    A mineral interest is in use on the date of recording if the recording is made within the time provided by this section.
Section 4. That § 43-30A-5 be amended to read as follows:
43-30A-5. Failure to record the statement of claim within the time period provided in § 43-30A-4 does not cause a mineral interest to be abandoned if the record owner of the mineral interest records a statement of claim pursuant to § 43-30A-4 within sixty days after completion of the publication of the notice of lapse pursuant to § 43-30A-6:
            (a)    Files with the county register of deeds a statement of claim as required in § 43-30A-4; or
            (b)    Files with the county register of deeds documentation that at least one of the activities under § 43-30A-3 took place during the twenty-year period immediately preceding the first publication of notice;


Section 5. That § 43-30A-6 be amended to read as follows:
43-30A-6. In order to succeed to the ownership of an abandoned mineral interest, a surface owner shall give notice of the lapse of the mineral interest by publication. The publication shall be made once each week for three weeks in the official newspaper of the county in which the mineral interest is located.  Notice shall also be given by mailing a copy of the notice by registered or certified mail, to the record owner of the mineral interest at the record owner’s address of record no later than ten days after the last publication.

    The surface owner may rely upon the record mineral owner’s last address of record in the office of county register of deeds in which the mineral interest is located. It is the record mineral owner’s obligation to maintain an address of record in the office of the register of deeds in the county in which their mineral interest is located. Failure to maintain an address of record is a waiver by the record mineral owner of the requirement to mail a copy of the notice of lapse to the record mineral owner.
    The notice shall state the name of the record owner of the mineral interest, the legal description of the land on or under which the mineral interest involved is located, and the name of the person giving the notice.
    Recording a copy of the notice and an affidavit of its  publication and any mailing in the office of the register of deeds for the county in which the mineral interest is located, is prima facie evidence that the notice has been properly given.
Section 6. That § 43-30A-6.1 be repealed.
or the owner’s authorized agent shall conduct a search of:

            (1)    The county register of deed’s records for the existence of any uses as defined in § 43-30A-3 by the owner of the mineral interest;
            (2)    The Unified Judicial System’s records for the existence of any judgments, liens, or probate records which identify the owner of the mineral interest;
            (3)    The social security death index for the last-known residence of the owner of the mineral interest, if deceased; and
Section 7. That § 43-30A-11 be repealed.
Section 8. That § 43-30A-12 be repealed.

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