Bill Text: IA HSB599 | 2013-2014 | 85th General Assembly | Introduced


Bill Title: A study bill for requiring recording of claims involving mineral rights in real estate owned by another person and providing for loss of mineral rights if a claim is not timely recorded.

Spectrum: Unknown

Status: (N/A - Dead) 0000-00-00 - In Judiciary [HSB599 Detail]

Download: Iowa-2013-HSB599-Introduced.html
House Study Bill 599 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON BALTIMORE) A BILL FOR An Act requiring recording of claims involving mineral rights 1 in real estate owned by another person and providing for 2 loss of mineral rights if a claim is not timely recorded. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5476YC (3) 85 da/sc
H.F. _____ DIVISION I 1 GENERAL 2 Section 1. NEW SECTION . 614.24A Requirement for recording 3 interest in minerals —— timely recording. 4 1. As used in this section, unless the context otherwise 5 requires: 6 a. “Interest in minerals” means a perpetual interest in real 7 estate granting ownership of one or more minerals in the real 8 estate to a person other than the person who owns the remainder 9 of the real estate in which the minerals are located. “Interest 10 in minerals” does not include a lease of real estate that allows 11 the tenant to remove minerals from the real estate. 12 b. “Mineral” means coal, gas, oil or other gaseous, liquid, 13 or solid hydrocarbons; oil shale; gemstones; fissionable or 14 nonfissionable ore; and steam or other geothermal resources. 15 2. a. An action based upon any claim by a person to an 16 interest in minerals in real estate owned by another person, 17 which interest in minerals was created prior to July 1, 1994, 18 shall not be maintained either at law or in equity in any court 19 to enforce or recover such interest in minerals against the 20 holder of the record title to such real estate in possession, 21 unless the person claiming the interest in minerals files a 22 verified claim with the recorder of the county where the real 23 estate is located not later than June 30, 2015. 24 b. An action based upon any claim by a person to an interest 25 in minerals in real estate owned by another person, which 26 interest in minerals was created on or after July 1, 1994, 27 shall not be maintained either at law or in equity in any court 28 to enforce or recover such interest in minerals against the 29 holder of the record title to such real estate in possession 30 after twenty-one years from the recording of the instrument 31 creating the interest in minerals or within twenty-one years 32 after filing the last verified claim, unless the person 33 claiming the interest in minerals files a verified claim with 34 the recorder of the county where the real estate is located 35 -1- LSB 5476YC (3) 85 da/sc 1/ 5
H.F. _____ within that twenty-one year period. 1 c. If the interest in minerals is separately listed and 2 assessed by an assessor for property taxation purposes, the 3 provisions of paragraph “a” or “b” requiring the filing of a 4 verified claim shall not apply to the interest in minerals so 5 listed and assessed for so long as the interest in minerals 6 remains listed and assessed as a separate tax parcel. At such 7 time as the assessor may cease to separately list and assess 8 the interest in minerals, the person claiming such interest in 9 the minerals must file a verified claim by not later than the 10 latest of the following: 11 (1) Twenty-one years after the date of recording of the 12 instrument creating the interest in minerals. 13 (2) Twenty-one years after the date of filing the last 14 verified claim. 15 (3) December 31 of the year after the year the interest in 16 minerals is no longer listed and assessed as a separate tax 17 parcel. 18 3. The claimant may be any person claiming an interest in 19 minerals, regardless of whether that interest in minerals is a 20 present interest or an interest that would come into existence 21 if the happening or contingency provided in the instrument 22 creating the interest in minerals were to happen at once. A 23 claimant also may be any member of a class of persons entitled 24 to claim such interest. 25 4. A verified claim must comply with all of the following: 26 a. Be filed by the claimant personally or by the claimant’s 27 attorney or agent. However, if the claimant is a minor or 28 under legal disability, the verified claim may be filed by the 29 claimant’s guardian, custodian, parent, or next friend. 30 b. Identify the name and address of the person claiming 31 the interest in minerals, the nature of the interest, the 32 instrument creating the interest, together with dates of 33 execution and recording of the instrument, the instrument 34 number provided in the records of the recorder as provided in 35 -2- LSB 5476YC (3) 85 da/sc 2/ 5
H.F. _____ section 331.606B, and the legal description of the real estate 1 subject to the interest in minerals. 2 c. Certify that the verified claim was delivered by 3 certified mail or personal delivery to the record owner of the 4 real estate where the minerals are located. If the verified 5 claim is sent by certified mail it will be sufficient if it is 6 mailed to the address of the record owner of the real estate 7 where the minerals are located that is shown in the records of 8 the assessor who assesses such real estate for taxation. 9 5. This section shall not be construed to do any of the 10 following: 11 a. Revive or extinguish an interest in coal, including 12 but not limited to a mineral interest in coal as provided in 13 chapter 557C. 14 b. Impair the validity of an environmental covenant 15 established pursuant to chapter 455I. 16 c. Revive an interest in minerals that has expired or been 17 terminated under the terms of the instrument creating such 18 interest in minerals. 19 d. Bar or extinguish any right to remove gravel, limestone, 20 or sand of such right. 21 DIVISION II 22 CONFORMING AMENDMENTS 23 Sec. 2. Section 614.25, Code 2014, is amended to read as 24 follows: 25 614.25 Effect of filing claim. 26 The filing of such a claim under section 614.24 or 614.24A 27 shall extend for a further period of twenty-one years the 28 time within which such an action may be brought by any person 29 entitled thereto to bring such action , and successive claims 30 for further like extensions may be filed. 31 Sec. 3. Section 614.26, Code 2014, is amended to read as 32 follows: 33 614.26 Indexing. 34 The provisions of section 614.18 are made applicable to the 35 -3- LSB 5476YC (3) 85 da/sc 3/ 5
H.F. _____ provisions of sections 614.24 to through 614.28 . 1 Sec. 4. Section 614.27, Code 2014, is amended to read as 2 follows: 3 614.27 Persons under disability. 4 The provisions of section 614.8 as to the rights of minors 5 and persons with mental illness shall not be applicable against 6 the provisions of sections 614.24 to through 614.28 . 7 Sec. 5. Section 614.28, Code 2014, is amended to read as 8 follows: 9 614.28 Barred claims. 10 The provisions of sections 614.24 to through 614.27 , 11 inclusive, or the filing of a claim or claims, hereunder under 12 those sections , shall not revive or permit an action to be 13 brought or maintained upon any claim or cause of action which 14 that is barred by any other statute. Provided further, that 15 nothing contained in these sections shall affect litigation 16 pending on July 4, 1965. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 GENERAL. This bill provides for the reservation of a right 21 to bring a claim in district court involving an interest in 22 one or more minerals underlying the surface of real estate to 23 which another person holds record title. The bill does not 24 revive or extinguish an interest in coal (Code chapter 557C), 25 impair the validity of an environmental covenant (Code chapter 26 455I), revive an interest in minerals that has expired or been 27 terminated, or bar a right to remove gravel, limestone, or sand 28 in some circumstances. 29 RIGHTS BASED ON WHEN INTEREST WAS CREATED. The bill provides 30 for two different circumstances: (1) an interest in minerals 31 created prior to July 1, 1994, or (2) an interest in minerals 32 created on or after that date. In the first circumstance, 33 the person must file a verified claim with the appropriate 34 county recorder by June 30, 2015. In the second circumstance, 35 -4- LSB 5476YC (3) 85 da/sc 4/ 5
H.F. _____ the person must file a verified claim with the appropriate 1 county recorder within 21 years from the recording of the 2 instrument creating the interest in minerals or within 21 years 3 after filing the last verified claim. However, one exception 4 applies in both circumstances: when an interest in minerals 5 is separately listed and assessed by an assessor for property 6 taxation purposes. A verified claim is not required to be 7 filed until the assessor ceases to separately list and assess 8 the interest in minerals. In that case, the person must file 9 the verified claim by the later of 21 years after the date of 10 recording of the instrument, 21 years after the date of filing 11 the last verified claim, or December 31 of the year after the 12 year the interest in minerals is no longer listed and assessed 13 as a separate tax parcel. 14 -5- LSB 5476YC (3) 85 da/sc 5/ 5
feedback