MS HB742

Mineral estates separated from surface estates after January 1, 2024, revert to the surface estate owner if no bona fide drilling attempt or mineral production occurs within ten years.

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

Shut-in rental payments can interrupt the ten-year period but the period restarts at the end of the payment period if no production occurs.

Oil and gas are deemed not in production if wells are not located within the regular governmental quarter-quarter section (oil) or one-half section (gas) where the mineral estate lies.

The act takes effect July 1, 2023.