MS HB225

Mineral estates separated from surface estates after January 1, 2015, automatically revert to the surface estate owner after 10 years of nonproduction or no bona fide drilling attempt.

The 10-year nonproduction period may be interrupted and restarted if drilling or production activities occur; the period restarts on the day after production ends or drilling operations cease.

Shut-in rental payments can interrupt the 10-year period, but it restarts at the end of the period for which the last rental payment was made if no actual production follows.

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

The act takes effect July 1, 2014, and applies only to mineral estates separated after January 1, 2015.