MS HB106

Mineral estates separated from surface estates revert to the surface estate owner after ten years of nonproduction, with the ten-year period beginning after July 1, 2019.

Nonproduction is defined as the absence of bona fide drilling attempts or actual mineral production; the ten-year period can be interrupted and restarted by production activities or attempted production.

For contracts with shut-in rental payments in lieu of production, the ten-year period restarts at the end of the period covered by the last rental payment if no production occurs.

Oil wells must be located on the regular governmental quarter-quarter section where the mineral estate lies, and gas wells must be located in the regular governmental half-section where the mineral interest lies, to count as production.

If the ten-year period restarts with fewer than 180 days remaining, it shall run for at least 180 days from the restart date; the act takes effect July 1, 2019.