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Lost Sheep or Abandoned Mineral Interests: A Discussion of the Dormant Mineral Acts of North Dakota and Elsewhere
Table of Contents
Introduction: Purpose of a Dormant Mineral Act…………………………………………………….. 1
History: The North Dakota Dormant Mineral Act…………………………………………………… 1
Current North Dakota Dormant Mineral Act…………………………………………………………. 3
State Dormant Mineral Acts Generally and Its History…………………………………………. 6
Mineral Interest v. Royalty Interest: Why It Matters………………………………………….. 11
Takings and the Dormant Mineral Act……………………………………………………………………. 15
A. The Abhorrence of Forfeiture: Property Rights in America………………………………………. 16
B. The Unlocatable Mineral Interest Holder………………………………………………………………. 17
“Saving Events”…………………………………………………………………………………………………………. 18
Conclusion: Prior Planning Is the Rule……………………………………………………………………. 19
Addenda…………………………………………………………………………………………………………………….. 20
Introduction: Purpose of a Dormant Mineral Act
This article will discuss the value and challenges of a state’s Dormant Mineral Act (DMA). The article will use, as a reference point, the North Dakota Dormant Mineral Act (the Act). The DMA is a modern recovery procedure which gives a real estate surface owner a right of legal reclamation to unused or abandoned mineral interests.
The law allows an owner to sever mineral interests from the surface estate and to subdivide the mineral interests. These rights are well established in the U. S. Deeds, wills, and the intestacy transfer of property dilutes mineral interest ownership in states such as North Dakota, South Dakota and New York. The owners and claimants to mineral interests are often hard to locate and are also often abandoned or dormant. Such problems resulted in the passage of dormant mineral laws is some states but not in others. As with all matters concerning oil and gas interests, parties should consult an experienced oil and gas attorney.
The articles and blog writings on this website should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of David L Ganje.
