# Title 38 — Mining and Gas and Oil Production

## Chapter 38-18.1 — Termination of Mineral Interest

### § 38-18.1-01. Mineral interest defined.

In this chapter, unless context or subject matter otherwise requires, "mineral interest"
includes any interest in oil, gas, coal, clay, gravel, uranium, and all other minerals of any kind
and nature, whether created by grant, assignment, reservation, or otherwise owned by a person
other than the owner of the surface estate.
### § 38-18.1-02. Statement of claims - Recording - Reversion.

Any mineral interest is, if unused for a period of twenty years immediately preceding the first
publication of the notice required by section 38-18.1-06, deemed to be abandoned, unless a
statement of claim is recorded in accordance with section 38-18.1-04. Title to the abandoned
mineral interest vests in the owner or owners of the surface estate in the land in or under which
the mineral interest is located on the date of abandonment. The owner of the surface estate in
the land in or under which the mineral interest is located on the date of abandonment may
record a statement of succession in interest indicating that the owner has succeeded to
ownership of the minerals under this chapter.
### § 38-18.1-03. When mineral interest deemed to be used.

1. A mineral interest is deemed to be used when:
a. There are any minerals produced under that interest.
b. Operations are being conducted thereon for injection, withdrawal, storage, or
disposal of water, gas, or other fluid substances.
c. In the case of solid minerals, there is production from a common vein or seam by
the owners of such mineral interest.
d. The mineral interest on any tract is subject to a lease, mortgage, assignment, or
conveyance of the mineral interest recorded in the office of the recorder in the
county in which the mineral interest is located.
e. The mineral interest on any tract is subject to an order or an agreement to pool or
unitize, recorded in the office of the recorder in the county in which the mineral
interest is located.
f. A proper statement of claim is recorded as provided by section 38-18.1-04.
2. The payment of royalties, bonus payments, or any other payment to a named or
unnamed interest-bearing account, trust account, escrow account, or any similar type
of account on behalf of a person who cannot be located does not satisfy the
requirements of this section and the mineral interest is not deemed to be used for
purposes of this section. Interest on such account must be credited to the account and
may not be used for any other purpose. A named or unnamed interest-bearing
account, trust account, escrow account, or any similar type of account that has been in
existence for three years is deemed to be abandoned property and must be treated as
abandoned property under chapter 47-30.2. A lease given by a trustee remains valid.
### § 38-18.1-04. Statement of claim - Recording - Time.

The statement of claim provided for in section 38-18.1-02 must:
1. Be recorded by the owner of the mineral interest or the owner's representative prior to
the end of the twenty-year period set forth in section 38-18.1-02. A joint tenant, but not
a tenant in common, may record a claim on behalf of oneself and other joint tenants.
2. Contain the name and address of the owner of the mineral interest, and a legal
description of the land on, or under which, the mineral interest is located as well as the
type of mineral interest involved.
3. Be recorded in the office of the recorder in the county in which the mineral interest is
located.
The mineral interest is deemed to be in use at the date of recording, if the recording is made
within the time provided by this section. A statement of claim filed after July 31, 2009, by a

person other than the owner of record of the mineral interest is not effective to preserve a
mineral interest unless accompanied by a reference to the name of the record owner under
whom the owner of the mineral interest claims.
### § 38-18.1-05. Failure to record the statement of claim.

Failure to record the statement of claim within the time period provided in section
1. The owner of record of the mineral interest satisfies either one of the following
requirements within sixty days after first publication of the notice provided for in section
38-18.1-06:
a. Files with the county recorder a statement of claim as required in section
38-18.1-04; or
b. Files with the county recorder documentation that at least one of the activities
under subsection 1 of section 38-18.1-03 took place during the twenty-year
period immediately preceding the first publication of notice.
2. A person other than the owner of record of the mineral interest files with the county
recorder within sixty days after first publication of the notice provided for in section
explanation of the factual and legal basis for the person's assertion of title to the
mineral interest. This explanation must be accompanied by documentation supporting
the assertion or an explanation why documentation is unavailable.
### § 38-18.1-06. Notice of lapse of mineral interest - Method.

1. The owner or owners of the surface estate in the land in or under which the mineral
interest is located intending to succeed to the ownership of a mineral interest upon its
lapse shall give notice of the lapse of the mineral interest by publication.
2. The publication provided for in subsection 1 must be made once each week for three
weeks in the official county newspaper of the county in which the mineral interest is
located; however, if the address of the mineral interest owner is shown of record or
can be determined upon reasonable inquiry as defined in subsection 6, notice must
also be made by mailing a copy of the notice to the owner of the mineral interest within
ten days after the last publication is made.
3. The notice must state:
a. The name of the record owner of the mineral interest;
b. A description of the land on which the mineral interest involved is located; and
c. The name of the owner or owners of the surface estate in the land in or under
which the mineral interest is located giving the notice.
4. A copy of the notice and an affidavit of service of the notice must be recorded in the
office of the recorder of the county in which the mineral interest is located and
constitutes prima facie evidence in any legal proceedings that such notice has been
given.
5. The owner or owners of the surface estate in the land in or under which the mineral
interest is located who succeeds to the ownership of a mineral interest upon its lapse
under this chapter is entitled to record a statement of succession in interest indicating
that that owner or owners of the surface estate in the land in or under which the
mineral interest is located has succeeded to the ownership of the mineral interest.
6. To constitute a reasonable inquiry as provided in subsection 2, the owner or owners of
the surface estate or the owner's authorized agent must conduct a search of:
a. The county recorder's records for the existence of any uses as defined in section
b. The clerk of court's records for the existence of any judgments, liens, or probate
records which identify the owner of the mineral interest;
c. The social security death index for the last-known residence of the owner of the
mineral interest, if deceased; and
d. One or more public internet databases to locate or identify the owner of the
mineral interest or any known heirs of the owner. The owner or owners of the

surface estate are not required to conduct internet searches on private fee
internet databases.
### § 38-18.1-06.1. Perfecting title in surface owner.

1. Upon completion of the procedure provided in section 38-18.1-06, the owner or
owners of the surface estate may maintain an action in district court in the county in
which the minerals are located and obtain a judgment in quiet title in the owner or
owners of the surface estate. This action must be brought in the same manner and is
subject to the same procedure as an action to quiet title pursuant to chapter 32-17.
2. In an action brought under this section, the owner or owners of the surface estate shall
submit evidence to the district court establishing that all procedures required by this
chapter were properly completed and that a reasonable inquiry as defined by
subsection 6 of section 38-18.1-06 was conducted. If the district court finds that the
surface owner has complied with all procedures of the chapter and has conducted a
reasonable inquiry, the district court shall issue its findings of fact, conclusions of law,
and enter judgment perfecting title to the mineral interest in the owner or owners of the
surface estate.
3. A judgment obtained by the owner or owners of the surface estate in compliance with
this section is deemed conclusive except for fraud, misrepresentation, or other
misconduct.
4. A mineral lessee that obtains a lease from the owner of the surface estate, which
owner has obtained a judgment to minerals pursuant to this section, is deemed a bona
fide purchaser and its lease remains effective in the event the judgment is
subsequently vacated for any reason. Further, the lessee is not liable to any third party
for lease bonus, royalties, or any other proceeds paid to the surface owner under the
lease before the judgment being vacated.
5. Absent fraud or misrepresentation, the owner or owners of the surface estate which
obtain a judgment under this section and lease minerals to a lessee are entitled to
retain all lease bonus, royalties, or any other proceeds paid to the surface owner under
the lease before the judgment being vacated.
### § 38-18.1-07. Waiver prohibited.

The provisions of this chapter may not be waived at any time prior to the expiration of the
twenty-year period provided in section 38-18.1-02.
### § 38-18.1-08. Applicability.

This chapter does not apply to any mineral interest owned by any governmental body or
agency thereof and this chapter is both prospective and retrospective in its application.
