Senate Bill 2316 (Proposed)
AN ACT TO CREATE THE MISSISSIPPI MINERAL RIGHTS REFORM ACT OF 2015; TO REQUIRE REGISTRATION OF SEVERED MINERAL INTERESTS IN THE OFFICE OF THE CHANCERY CLERK OF THE COUNTY IN WHICH THE MINERAL INTEREST IS LOCATED; TO PROVIDE FOR FORFEITURE TO THE STATE OF ANY SEVERED MINERAL INTEREST NOT SO REGISTERED; AND FOR RELATED PURPOSES.
Link to complete text of bill:
That should put some landmen and abstractors back to work.
It would addresses the sad state of mineral title in MS but it would result in a lot of minerals leaving the ownership of private citizens and becoming property of the state. That has some potential to create a whole different set of problems.
What do you think the chances are of this passing?
John, I'm not knowledgeable regarding MS politics. That being said, think of this: the industry has been lobbying on this issue for some time and they can bring a lot of clout to bear on legislators. Additionally this is a potential windfall for the state coffers. The bonus and royalty revenue that would flow to the state could be a huge opportunity for politicians to spend it on their pet projects/issues. I'm sure that the State of Mississippi has lots of potential to spend that extra revenue in appropriate ways. The question is, will they? Louisiana pols pitched legalized gaming (gambling) as a way to support public education. However when the legislation passed there was no dedication to funding public education.
If I was a MS mineral owner I could comply with the requirements of the bill so it wouldn't impact me negatively. My concern would be how the new state revenue is spent.
Of course the individuals who are most at risk to loose a mineral ownership are those with very small interests and they are likely perceived as powerless to oppose the legislation.
Skip, I'm out in California. Do you know how I can track the progress of this bill online? From the wording, it appears this has just been submitted but not acted on yet. Thanks.
So Mississippi wants to become another Saudi dictatorship? My god. If people don't fight this, they're making a huge mistake. Talk about too much bad governmental control that favors the big oil companies. Totally crooked.
The MS citizens should have mass protests and stop such a grab ASAP. Horrible. Going down this slipper slope will just be the first dang snowball that'll keep on stealing from rightful landowner/mineral owner rights.
As bad as it gets. Glad my ownership is in Louisiana.
Why not let what mineral interest that is still left, not registered, revert to the current surface owner and have 10 year prescription ???? Why the state ????
I think why the state is getting the mineral interest, is because they think of it as unclaimed property. Just like if you abandoned a bank account or other financial instruments. I question why is it forfeited to the state and not sent to the MS State Treasury Unclaimed Property Division.
The bill didn't make it out of committee.
Description: Mississippi Mineral Rights Reform Act of 2013; create.
Fiscal Note: No fiscal note conducted
Deadline: General Bill/Constitutional Amendment
Vote type required: Majority
Effective date: January 1, 2015
History of Actions:
1 01/19 (S) Referred To Energy
2 02/03 (S) Died In Committee
Senate Committee: Energy*
Title: AN ACT TO CREATE THE MISSISSIPPI MINERAL RIGHTS REFORM ACT OF 2015; TO REQUIRE REGISTRATION OF SEVERED MINERAL INTERESTS IN THE OFFICE OF THE CHANCERY CLERK OF THE COUNTY IN WHICH THE MINERAL INTEREST IS LOCATED; TO PROVIDE FOR FORFEITURE TO THE STATE OF ANY SEVERED MINERAL INTEREST NOT SO REGISTERED; AND FOR RELATED PURPOSES.
Information pertaining to this measure was last updated on 02/03/2015 at 17:33
End Of Document
Wrong solution to facilitate the need to eliminate complex title problems of multiple l owners in tracts held in perpetuity. Arkansas requires a separate tax roll and assessment of severed non-producing minerals. Last time I worked in Arkansas I believe it was ten cents/mineral acre each year. If taxes were not paid the minerals they were then owned by the State and only the owner could buy them from the state. I became friends with the Director of the Arkansas Minerals Leasing Division. He was frustrated by the policy at that time by not leasing state owned minerals even if a surface exclusion clause and pooling only was contained in the lease.
The Arkansas Democrat Newspaper interviewed a senator from Russellville and yours truly on the millions in bonus payments the state was missing out on. Clinton was governor at the time running against Sheffield Nelson. The interview did not put the governor in a good light. About a week after the article was published I was having a late lunch after buying leases at "Kelly's Grill" in Bald Knob. There was only one other customer finishing his lunch and the owner introduced me to Bill Clinton. He asked me to vote for him and I said i was not about to vote for him. When he asked why my reply was I was a native of Mississippi. He asked me what I was doing in his state. I told him spending millions of dollars among his constituents working for an oil company. I explained the problem I was having acquiring state leases. He must have realized who I was and things went down hill from there.
Some states such as Nebraska have a 23 year abandoned mineral statute that may be a better model to encourage and not deter development. Every 23 years in order to maintain ownership of severed minerals, the state requires the owner to either lease the minerals or file an affidavit of record claiming ownership if the minerals are non-producing. Failure to comply can result in the surface owner filing suit against the owner to acquire and there is no recourse if the owner is delinquent after filing the court action. Now that is fair to everyone and as it should be rather than owning minerals until the end of time.