MS HB1404

Mineral estates separated from surface estates after January 1, 2014, automatically revert to the surface estate owner if there is no bona fide drilling attempt or mineral production for ten years.

The ten-year nonproduction period can be interrupted by actual or attempted production; the period restarts the day after production or drilling operations cease.

Shut-in rental payments in lieu of production interrupt the ten-year period, which restarts at the end of the period covered by the last rental payment if no actual production occurs.

Oil and gas are not considered in production if the well is not located in the regular governmental quarter-quarter section (oil) or half section (gas) where the severed mineral interest is located.

The act takes effect July 1, 2013.