In SD, do mineral rights automatically revert to the surface owner should the mineral owner not post a claim to them every 23 years? My father purchased minerals in SD back in the 50's, to the best of my knowledge he never filed any additional documents to claim ownership after the Mineral Deeds were recorded. Now, 60 years later, he is deceased and am looking at passing title to his heirs. I spoke to an attorney, all he would tell me was that "most likely" we have not retained ownership of these mineral properties. thank you
Louise,
As stated in the South Dakota code sections cited below, mineral rights can revert to the landowner if the mineral rights are unused for 23 years. There are several ways of "using" the mineral rights (see section 43-30A-3). Since your mineral rights have been "unused" for more than 23 years, you should do #7 as soon as possible. Read code section 43-30A-5---it's not too late to do this unless you (or your father) received the notifications from the surface rights owner (see section 43-30A-6) and didn't respond. Even then, unless the surface rights owner has proof that he has done what the law requires you should still file a statement of claim according to #7 (it costs practically nothing). Ownership can then be sorted out when (if?) oil company landsmen become interested enough to investigate the title. If the surface rights owner had neglected to provide notice until the internet age (since ~2000), I would expect that "reasonable inquiry" in the phrase "If the address of the mineral interest owner ...can be determined upon reasonable inquiry..." would be interpreted to mean that the surface rights owner would have to track you down using one of the "people finder" sites. By the way, I am not an attorney.
Abandoned Mineral Interests Link: http://legis.state.sd.us/statutes/DisplayStatute.aspx?Statute=43-30...
Link: http://legis.state.sd.us/statutes/DisplayStatute.aspx?Type=Statute&...
43-30A-2. Abandonment by nonuser and failure to file statement--Vesting in surface owner. A mineral interest shall, if unused for twenty-three years, be deemed to be abandoned, unless a statement of claim is recorded in accordance with § 43-30A-4. Title to an abandoned mineral interest shall vest in the owner of the surface estate in the land in, or under, which the mineral interest is located on the date of abandonment.
Source: SL 1985, ch 338, § 2.
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43-30A-3. Acts constituting use of interest. A mineral interest is deemed to be used if:
(1) Minerals are produced under that interest;
(2) Operations are conducted thereon for injection, withdrawal, storage, or disposal of water, gas, or other fluid substances;
(3) In the case of solid minerals, there is production from a common vein or seam by the owners of the mineral interest;
(4) Any conveyance, valid lease, mortgage, assignment, order in an estate settlement proceeding, inheritance tax determination affidavit, termination of life estate affidavit, or any judgment or decree that makes specific reference to the mineral interest is recorded 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 order or an agreement to pool or unitize;
(6) Taxes are paid on the mineral interest on behalf of the owner;
(7) A statement of claim is recorded in compliance with § 43-30A-4;
(8) Its owner or lessee uses the mineral interest in a manner pursuant to, or authorized by, the instrument creating the mineral interest; or
(9) 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.
Source: SL 1985, ch 338, § 3; SL 1987, ch 318, § 1; SL 1995, ch 167, § 185.
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43-30A-4. Statement of claim--Recording--Contents--Effect. A statement of claim shall:
(1) Be recorded for the owner of the mineral interest prior to the end of the twenty-three-year period set forth in § 43-30A-2, or within two years after July 1, 1985, whichever is later. 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 address of the owner of the mineral interest and a legal description of the land on or under which the mineral interest is located;
(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 deemed to be in use on the date of recording if the recording is made within the time provided by this section.
Source: SL 1985, ch 338, § 4.
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43-30A-5. Circumstances where failure to file statement does not extinguish interest. Failure to record the statement of claim within the time period provided in § 43-30A-4 does not cause a mineral interest to be extinguished if the owner of the mineral interest meets all of the following requirements:
(1) Owns one or more mineral interests in the county in which the mineral interest in question is located at the time of the expiration of the time period provided in § 43-30A-4;
(2) Inadvertently failed to preserve the mineral interest in question; and
(3) Within sixty days after completion of the publication of the notice provided for in § 43-30A-6, recorded a statement of claim.
Source: SL 1985, ch 338, § 5.
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43-30A-6. Notice by surface owner required--Contents--Proof of service. In order to succeed to the ownership of a mineral interest upon its lapse, 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. If the address of the mineral interest owner is of record or can be determined upon reasonable inquiry, notice shall also be made by mailing a copy of the notice by registered or certified mail, return receipt requested, to the owner of the mineral interest within ten days after the last publication is made.
The notice shall state the name of the record owner of the mineral interest, a description of the land on or under which the mineral interest involved is located, and the name of the person giving the notice.
A copy of the notice and an affidavit of its service, if recorded in the office of the register of deeds for the county in which the mineral interest is located, is prima facie evidence in any legal proceeding that such notice has been given.
Source: SL 1985, ch 338, § 6.
SD1031BH-Harding County,
thank you.
Thank you for this information.