HB5889 - Oil and Gas Leasing Act

• Creates the Oil and Gas Leasing Act to clarify rights of joint owners of oil and gas, promote value of oil and gas reserves, and maximize recovery through orderly development for all joint owners' benefit.

• Allows an oil and gas owner with at least one-half interest (or their lessee) to petition circuit court to appoint a trustee to execute an oil and gas lease on behalf of all joint owners with court-approved terms.

• Requires verified petition to identify plaintiff's interest, defendant interests, land description, and assertion that the unleased mineral interest is detrimental to plaintiff's enjoyment of their interest.

• Directs court to determine lease terms substantially consistent with similar leases in the vicinity, including primary term length, bonus moneys, royalty rates, and delay rentals, and to address surface use compensation if defendants own surface rights.

• Establishes that executed leases are binding on all joint owners and their heirs, successors, and assigns; plaintiff pays all court costs, trustee fees, and attorney fees; and the act takes effect immediately upon becoming law.