September 5, 2006, Introduced by Senators BIRKHOLZ, BRATER and JELINEK and referred to the Committee on Natural Resources and Environmental Affairs.
A bill to amend 1963 PA 42, entitled
"An act to provide for the termination of dormant oil and gas
interests in land owned by persons other than the owners of the
surface and for the vesting of title to same in the surface owners
in the absence of the filing of a notice of claim of interest
within a specified period of time,"
by amending sections 1, 2, and 4 (MCL 554.291, 554.292, and
554.294).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. (1) Any interest in oil or gas in any land owned by
any person other than the owner of the surface, which has not been
sold, leased, mortgaged, or transferred by instrument recorded in
the
register of deeds office for the county where such that
interest in oil or gas is located for a period of 20 years shall,
in
the absence of the issuance of a drilling permit to drill an
oil or gas well issued by the department of environmental quality,
or
its successor, as to such
that interest in
oil or gas or the
actual production or withdrawal of oil or gas from said lands, or
from
lands covered by a lease to which
such that interest
in oil
or gas is subject, or from lands pooled, unitized, or included in
unit
operations therewith, or the use of
such that interest
in
underground gas storage operations, during such period of 20 years,
be deemed abandoned, unless the owner thereof shall, within 3 years
after the
effective date of this act September 6, 1963 or within
20 years after the last sale, lease, mortgage, or transfer of
record
of such that
interest in oil or gas or within 20
years
after
the last issuance of a drilling permit as to such that
interest in oil or gas or actual production or withdrawal of oil or
gas,
from said lands, or from lands covered by a lease to which
such
that interest in
oil or gas is subject, or from lands
pooled,
unitized,
or included in unit operations therewith, or the use of
such
that interest in
oil or gas in underground gas storage
operations,
whichever is later, record a claim of interest as
hereinafter
provided
in section 2.
(2) Any interest in oil or gas deemed abandoned as herein
provided in subsection (1) shall vest as of the date of such
abandonment in the owner or owners of the surface in keeping with
the character of the surface ownership.
The
phrase "drilling permit" shall mean a permit to drill an
oil
or gas well issued by the conservation department or its
successor.
(3) Notwithstanding any other provision of this act to the
contrary, if a judgment of foreclosure is entered under section 78k
of the general property tax act, 1893 PA 206, MCL 211.78k, for the
nonpayment of delinquent taxes levied on property, an oil or gas
interest in the property held by a person other than the owner of
the surface shall not be preserved from foreclosure under section
78k of the general property tax act, 1893 PA 206, MCL 211.78k,
unless that interest is sold, leased, mortgaged, transferred,
reserved, or subject to a claim of interest under section 2 and an
instrument evidencing the sale, lease, mortgage, transfer,
reservation, or claim of interest is recorded in the office of the
register of deeds in the county in which the property is located
during the 20-year period immediately preceding the date of filing
a petition for foreclosure under section 78h.
Sec. 2. (1) Any interest in oil or gas referred to in this act
may
be preserved by the recording within the period specified in
this act a written notice in the register of deeds office for the
county where
such interest in which the
land is located. ,
which
The
notice shall be verified by oath ,
and shall describe the
land and the nature of the interest claimed, give the name and
address of the person or persons claiming the interest, and state
that such
the person or persons desire to preserve the interest
and
do not intend to abandon same: Provided, however, That any
the interest.
(2)
A person other than the owner of the surface holding such
interests in oil or gas in any land for use in underground gas
storage
operations may preserve his the
oil or gas interests, and
the interests
rights of any lessor thereof of the oil or gas
interests, by recording a single such
written notice , defining
the boundaries of and the formations included in the underground
gas
storage field or pool , and the formations included therein,
within
which said the
oil or gas interests are located,
without
the
necessity of describing each separate
interest claim therein
by
said oil or gas interest
claimed in that underground gas
storage
field or pool by that person. The
recording of such notice
(3) Recording a written notice under this section shall
operate
to preserve such interest from the operation of the oil
or gas interest included in the written notice from abandonment
under
this act for a period of 20 years thereafter
when, if after
recording. At the conclusion of that 20-year period, that interest
in oil or gas shall be deemed abandoned if, during that 20-year
period, the nondormant character of the oil or gas interest has not
been evidenced by sale, lease, mortgage, or transfer by instrument
recorded
in the register of deeds office for the county where such
in which that oil or gas interest is located, a drilling permit
issued, oil or gas actually produced or withdrawn from said lands,
or
from lands covered by a lease to which
such that interest
in
oil or gas is subject, or from lands pooled, unitized, or included
in
unit operations therewith, or the use of such that interest
in
oil or gas in underground gas storage operations, or a like notice
filed. ,
such interest shall be deemed abandoned.
(4) In the absence of prior abandonment, such
interests an
interest in oil or gas in any land owned by any person other than
the
owner of the surface may be preserved
indefinitely from the
operation
of abandonment under this act by
the filing of
the
written
notices as herein
provided in
this act or the performance
of
any of the acts specified herein in
this act evidencing
nondormancy of the interest in oil or gas within each succeeding
20-year period.
(5) This act shall not apply to any interest in oil or gas
owned
by any governmental body or agency.
thereof.
Sec.
4. The word "person" shall be deemed to
include natural
persons,
corporations, co-partnerships, associations and
organizations
and the singular thereof shall be deemed to include
the
plural. As used in this act,
"person" means an individual,
partnership, corporation, association, or other legal entity.