Bill Text: PA SB445 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for abandonment of mineral rights in real property, for the recording by surface owners of title to mineral rights in their real property after 21 years of nonuse by the subsurface owner; and establishing a right of action to settle title to mineral rights.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced - Dead) 2011-02-07 - Referred to ENVIRONMENTAL RESOURCES AND ENERGY [SB445 Detail]

Download: Pennsylvania-2011-SB445-Introduced.html

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PRINTER'S NO. 429
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 445 Session of2011
INTRODUCED BY YAW, SOLOBAY, FONTANA AND BREWSTER, FEBRUARY 7, 2011
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, FEBRUARY 7, 2011
AN ACT
Providing for abandonment of mineral rights in real property,
for the recording by surface owners of title to mineral
rights in their real property after 21 years of nonuse by the
subsurface owner; and establishing a right of action to
settle title to mineral rights.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Title to
Dormant Rights Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Mineral." Any valuable inert or lifeless substance formed
or deposited in its present position exclusively through natural
forces and which is found either in or beneath the soil of the
earth or in the rocks beneath the soil, including natural gas.
"Mineral rights." The right of a person to take minerals or
receive a royalty from the removal of minerals from real
property, regardless of whether the person is the surface owner.
"Nonuse." With respect to minerals in real property, the
absence of all of the following:
(1) The issuance of a permit to drill a well for
minerals in the real property issued by the Department of
Environmental Protection as to mineral rights for the real
property.
(2) The actual production or withdrawal of minerals from
the real property.
(3) The underground storage of minerals in the real
property.
"Subsurface owner." A person who owns or claims to own the
rights to extract minerals from beneath the surface of real
property owned by another person.
"Surface owner." A person who owns the rights to real
property above the surface.
Section 3. Abandonment of mineral rights which have not been
acquired by a separate deed.
(a) General rule.--Mineral rights in real property shall be
deemed abandoned after a period of 21 years of nonuse of the
mineral rights by a subsurface owner, unless the subsurface
owner shall, within three years of the effective date of this
section or within 21 years from the nonuse, whichever is later,
record a claim of interest that complies with subsection (b).
(b) Claim of interest.--A claim of interest must be filed in
the office of recorder of deeds in the county where the real
property is situate. The claim of interest shall be verified and
contain the following:
(1) A description of the land and the nature of the
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mineral rights claimed.
(2) The name and address of the subsurface owner and a
specific reference to the source of acquisition.
(3) A statement that by recording the claim, the
subsurface owner seeks to preserve the mineral rights and not
to abandon the mineral rights in the real property.
(c) Underground storage of minerals.--A subsurface owner who
uses real property for underground storage of minerals in an
underground storage pool or field may preserve the mineral
rights by recording a single claim of interest that defines the
boundaries of and the formations included in the underground
storage field or pool within which the mineral rights are
located, without describing each separate mineral interest
claimed in the underground storage field or pool by the
subsurface owner.
(d) Effect of recorded claim of interest.--
(1) A claim of interest recorded in compliance with this
section shall operate as a matter of law to preserve the
mineral rights included in the claim of interest from
abandonment under this act for a period of 21 years after the
date of recording.
(2) After the twenty-one-year period in paragraph (1)
expires, the mineral interests shall be deemed abandoned if,
during the twenty-one-year period, there has been nonuse or
no sales agreement, lease, mortgage or transfer of the
mineral rights has been recorded in the office of recorder of
deeds in the county where the real property is situate.
(3) In the absence of prior abandonment, mineral rights
of a subsurface owner may be preserved indefinitely from
abandonment under this act by filing claims of interest as
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provided in this act or other acts evidencing use of the
mineral rights within each twenty-one-year period.
Section 4. Right of surface owner to record claim.
(a) Surface owners.--
(1) A surface owner who acquires or claims to have
acquired title to any mineral rights in real property by a
twenty-one-year period of nonuse of the mineral rights by a
subsurface owner may file, in the Office of Recorder of Deeds
of the county where the real property is situate, a written
statement of the surface owner's claim.
(2) Paragraph (1) shall not apply to mineral rights in
real property for which a claim of interest has been recorded
in compliance with section 3.
(b) Form of written statement.--The written statement
authorized to be recorded under subsection (a) shall be sworn to
and substantially in the following form:
I, (the name of the party claimant) of , in the
county of and State of , do hereby
affirm and declare that I have acquired title in fee to
mineral rights, by a twenty-one-year period of nonuse by a
subsurface owner of the mineral rights, to the following
described land, situate in , in the county of , and
State of Pennsylvania, viz: (Here insert a full and complete
description of the land claimed, by metes and bounds, or
other sufficient designation). Use of the mineral rights on
the land by a subsurface owner commenced on or about the
day of , , and continued until a period of
nonuse commenced about the day of , , (or,
where the possession of the mineral rights is tacked on to
that of others who have preceded the existing subsurface
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owner, it should be stated as follows: Use of the mineral
rights was made upon the lands by on or about the
day of , , who continued until about the
day of , , and was succeeded therein by
, who continued until about the day of
, , and was succeeded therein by the existing
subsurface owner, who continued until a period of nonuse of
the mineral rights commenced about the day of ,
). At the time the use of the mineral rights commenced
(naming some person or persons in the line of the existing
paper or legal title, as nearly as may be the real subsurface
owner of the lands at the time of the use),
was the subsurface owner or reputed subsurface owner of the
mineral rights to the land, and I claim adversely to the
subsurface owner (or them). Witness my hand, this day of
, .
(Signed)
Section 5. Filing of statement of claim.
After a statement of claim under section 4 is filed in the
recorder's office of the proper county, the recorder of deeds
shall record and index the statement of claim as though it were
a deed or conveyance from the person named therein as the
subsurface owner or reputed subsurface owner at the time of the
twenty-one-year period of nonuse ceases, as grantor, to the
claimant or claimants, as grantees; and when so entered for
record and indexed it shall be constructive notice of the claim.
Section 6. Action to settle title to mineral rights.
(a) Right of action.--A person who files a statement of
claim under section 4 may bring an action to settle title to the
mineral rights for the real property identified in the statement
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of claim.
(b) Venue.--The action may be brought only in the county in
which the real property is located.
(c) Commencement of action.--The action must be commenced by
filing with the prothonotary:
(1) a complaint describing the real property; or
(2) an agreement for an amicable action.
(d) Public notice.--
(1) After an action has been commenced under subsection
(c), the court shall order the claimant to publish notice of
the action in a newspaper of general circulation in the
county twice in a period of 60 days.
(2) The claimant shall certify to the court that the
publication under paragraph (1) has occurred prior to a
hearing or trial in the action.
(e) Form of judgment or order.--
(1) The court shall grant appropriate relief:
(i) on affidavit that a complaint containing a
notice to defend has been served and that the defendant
has not filed an answer; or
(ii) after a hearing or trial on the pleadings or
merits.
(2) After granting relief to the plaintiff, the court:
(i) shall order that the defendant be forever barred
from asserting any right, lien, title or interest in the
mineral rights of the real property inconsistent with the
interest or claim of the plaintiff specified in the
complaint, unless the defendant takes such action as the
order directs within 30 days after issuance of the order.
If the action is not taken within the 30-day period, the
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prothonotary on praecipe of the plaintiff shall enter
final judgment; and
(ii) shall enter any other order necessary for the
granting of proper relief.
(f) Trial without jury.--There shall be no right to a trial
by jury for an action brought under this section.
Section 7. Effect of statement of claim.
Unless a statement of claim is made and recorded under this
act and a judgment or order is issued in favor of the surface
owner as provided under section 6, no title to mineral rights in
real property by a 21-year period of nonuse by a subsurface
owner shall avail against any purchaser, mortgagee or judgment
creditor for value, without notice, his heirs and assigns,
except the claimant who is in possession of the real property at
the time of the purchase.
Section 8. Construction.
Nothing in this act shall be construed to give any title to
any mineral rights or real property by a claim of title adverse
to that of the Commonwealth, and no claim of title adverse to
the Commonwealth shall be made or recorded under the provisions
of this act.
Section 20. Effective date.
This act shall take effect in 60 days.
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