Counties and cities must convey certain mineral interests to landowners

Counties and cities must convey covered mineral interests to the surface owner of the related land. The rule covers interests in coal, oil, gas, hydrocarbons, oil shale, gemstones, metals, ores, and geothermal resources. It does not apply when the county or city owns the surface land. The conveyance must be free to the surface owner. A county must follow a separate deadline when the interest is handled through the mineral-tax process. Required conveyances must be completed within five years after enactment. Interests acquired after enactment must be conveyed within 90 days. County conveyances under the mineral-tax process must be completed within 150 days after the required notice is served.

A county treasurer must notify the mineral-rights owner after a tax sale, and the county may convey the interest to the surface owner if the debt is not paid. This applies to mineral rights or interests owned by someone other than the surface landowner when the related taxes are delinquent and sold at a tax sale. The owner may redeem the interest by paying the delinquent taxes, interest, and costs under the state's redemption rules. Notice must be sent by regular first-class mail to the person's last known address and, when applicable, to the registered agent's address. If the debt remains unpaid, the conveyance ends the mineral-rights owner's redemption right. The county may seek a personal judgment for the debt. If collection is impractical, the treasurer must recommend an abatement and the county board must act by resolution. The mineral-rights owner has 90 days after the tax-sale notice is served to pay the total amount due and redeem the interest.

A severed mineral interest remains active when production, authorized mineral operations, qualifying recorded documents, a written agreement, a pooling order, or a timely claim applies. These rules cover severed interests in coal and other listed minerals, including oil, gas, hydrocarbons, oil shale, gemstones, metals, ores, and geothermal resources. A separate tax-payment exemption applies to some coal interests. A coal interest that is not active for 20 years may be abandoned, causing ownership to vest in the surface owner. An owner may preserve an interest by filing a statement of claim with the county recorder before the 20-year period ends. A statement of claim must identify the owner, the owner's address, and the affected real estate. A claim is not required for a separately taxed interest if the tax was paid, there was no tax sale, and the interest was not conveyed to the surface owner under the listed provisions. The 20-year period runs from the interest's creation, transfer, or preservation. A timely claim preserves the interest for another 20 years, or for a shorter period stated in the creating document.