Senate Bill 1048 Summary

• Creates new section 3106 protecting oil and gas lease interests from being affected by mortgage foreclosure actions unless the lease holder is notified by certified mail within 15 days of filing or made a party to the foreclosure action.

• Amends section 3130 to clarify that non-surface-activity oil and gas leases created or recorded after a mortgage lien takes effect have priority over the mortgage, and deed grantees must pay royalty rates of at least 1/8 or the lease rate, whichever is greater.

• Amends section 3208 to require notice of foreclosure be sent by certified mail to holders of oil and gas lease interests within 15 days of first publication, unless the lease holder is made a party to the foreclosure action.

• Amends section 3236 to provide the same protections for oil and gas leases in judicial foreclosure sales, ensuring lease holders receive notice and that non-surface-activity leases created after the mortgage lien retain priority and royalty protections.

• Makes changes applicable only to actions and mortgages entered into after the effective date of this amendatory act.