MS HB973

Mineral estates separated from surface estates after January 1, 2023, revert to the surface estate owner if no bona fide drilling attempt or mineral production occurs within ten years.

The ten-year nonproduction period runs continuously but resets to zero if drilling or production activities occur, restarting the count the day after such activities cease.

For shut-in rental payment contracts, the ten-year period restarts at the end of the final rental payment period if no actual production follows.

Oil wells must be located within the regular governmental quarter-quarter section, and gas wells within the regular governmental half section of the severed mineral estate to qualify as producing, otherwise deemed nonproductive.

The act takes effect July 1, 2022, and applies only to mineral estates separated on or after January 1, 2023.