House File 2531 H-8033 Amend House File 2531 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 331.310 Mineral interests. 4 1. For purposes of this section: 5 a. “Mineral interests” means any real property interest 6 in one or more natural resources or minerals underlying the 7 surface of a tract of land, which can be owned separately from 8 the surface estate. 9 b. “Minerals” means coal, any naturally occurring gas, oil, 10 or other gaseous, liquid, or solid hydrocarbons; oil shale; 11 gemstones; metals; fissionable or nonfissionable ore; or steam 12 or other geothermal resources. 13 2. A county shall divest itself of any mineral interest 14 owned or controlled by the county and shall convey such mineral 15 interest to the surface owner of the land to which the mineral 16 interest pertains except when the county is the fee simple 17 surface owner of the land. A conveyance under this section 18 shall be made without consideration and shall be without cost 19 to the surface owner of the land. 20 3. A county shall complete all conveyances required under 21 this section no later than five years after the effective date 22 of this Act. Conveyances pursuant to section 458A.20 shall 23 be completed within one hundred fifty days of service of the 24 required notice. Any interest in minerals acquired by the 25 county after the effective date of this Act shall be conveyed 26 as required under this section within ninety days. 27 Sec. 2. NEW SECTION . 364.26 Mineral interests. 28 1. For purposes of this section: 29 a. “Mineral interests” means any real property interest 30 in one or more natural resources or minerals underlying the 31 surface of a tract of land, which can be owned separately from 32 the surface estate. 33 b. “Minerals” means coal, any naturally occurring gas, oil, 34 or other gaseous, liquid, or solid hydrocarbons; oil shale; 35 -1- HF 2531.2866 (1) 91 ms/js 1/ 7 #1.
gemstones; metals; fissionable or nonfissionable ore; or steam 1 or other geothermal resources. 2 2. A city shall divest itself of any mineral interests 3 owned or controlled by the city and shall convey such mineral 4 interests to the surface owner of the land to which the mineral 5 interest pertains except when the city is the surface owner 6 of the land. A conveyance under this section shall be made 7 without consideration and shall be without cost to the surface 8 owner of the land. 9 3. A city shall complete all conveyances required under this 10 section no later than five years after the effective date of 11 this Act. Any mineral interest acquired by the city after the 12 effective date of this Act shall be conveyed as required under 13 this section within ninety days. 14 Sec. 3. Section 446.7, Code 2026, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 3. The county shall not offer mineral 17 interests, as defined in section 331.310, for sale. If the 18 taxes on any mineral interests not owned by the owner of the 19 land are delinquent, the county shall proceed in accordance 20 with section 458A.20. 21 Sec. 4. Section 458A.18, Code 2026, is amended to read as 22 follows: 23 458A.18 Mineral rights taxed separately. 24 All rights and interests in or to oil, gas, or other minerals 25 underlying land, whether created by or arising under deed, 26 lease, reservation of rights, or otherwise, which rights or 27 interests are owned by any person other than the surface owner 28 of the land, shall be assessed and taxed separately to the 29 owner of such rights or interests in the same manner as other 30 real estate. The taxes on such rights or interests that are 31 not owned by the surface owner of the land shall not be a lien 32 on the land. 33 Sec. 5. Section 458A.19, Code 2026, is amended to read as 34 follows: 35 -2- HF 2531.2866 (1) 91 ms/js 2/ 7
458A.19 Rate. 1 In order to pay the costs of assessment and collection and 2 provide a reasonable minimum standard of taxation, the taxes on 3 any mineral rights or interests not owned by the surface owner 4 of the land shall be not less than five cents per acre. 5 Sec. 6. Section 458A.20, Code 2026, is amended to read as 6 follows: 7 458A.20 Tax sale —— redemption by owner. 8 1. When If the taxes on any mineral rights or interests 9 not owned by the surface owner of the land are sold at tax 10 sale, and when delinquent, the county treasurer shall send a 11 statement of delinquent taxes and a notice that the mineral 12 rights or interests will be conveyed to the owner of the 13 associated surface tract unless the owner of those mineral 14 rights or interests does not redeem under the provisions of 15 chapter 447 pays the total amount of the delinquent taxes, 16 interest, and costs to the county treasurer within ninety days 17 after the tax sale, the owner of the land shall thereafter have 18 the same right of redemption as the owner of the mineral rights 19 or interests has, and redemption by the notice is served. 20 The county treasurer shall serve the notice by sending it by 21 regular first class mail to the person’s last known address and 22 to the address of the person’s registered agent listed with the 23 secretary of state, applicable. 24 2. When the owner of those mineral rights or interests does 25 not pay the total amount due by the deadline, the county shall 26 convey the mineral rights or interests pursuant to section 27 331.310 to the surface owner of the land . Such conveyance 28 shall terminate any right of redemption of the owner of the 29 mineral rights or interests. 30 3. a. The county may collect the total amount due by 31 converting the amount due to a personal judgment against the 32 owner of the delinquent mineral interest pursuant to sections 33 445.3 and 446.20, notwithstanding the absence of a tax sale or 34 tax sale certificate. 35 -3- HF 2531.2866 (1) 91 ms/js 3/ 7
b. If the treasurer determines that it is impractical to 1 pursue collection of the total amount due and the personal 2 judgment remedies, the treasurer shall make a written 3 recommendation to the board of supervisors to abate the amount 4 due. The board of supervisors shall abate, by resolution, the 5 amount due and direct the treasurer to strike the amount due 6 from the county system. 7 Sec. 7. Section 557C.1, Code 2026, is amended to read as 8 follows: 9 557C.1 Lapse of mineral interests in coal —— prevention. 10 A mineral interest in coal shall be extinguished is 11 abandoned if it has not been active in accordance with section 12 557C.2A for a period of twenty years after its creation, 13 transfer, or preservation, unless a statement of claim is 14 filed in accordance with section 557C.3 , and the ownership 15 shall revert to the person who was then the owner of the 16 interest from which the mineral interest in coal was created, 17 transferred, or preserved . Title to an abandoned mineral 18 interest vests in the owner of the surface estate in the land 19 in, or under, which the mineral interest is located on the date 20 of abandonment. Upon the filing of a statement of claim within 21 the specified period, the mineral interest shall be deemed to 22 have been preserved for an additional period of twenty years, 23 or a shorter period as may be specified in the instrument 24 creating the interest. 25 Sec. 8. Section 557C.2, subsection 2, Code 2026, is amended 26 to read as follows: 27 2. Mineral Severed mineral interest in coal means an 28 interest created by an instrument which that creates or 29 transfers , either by grant, assignment, reservation, or 30 otherwise, an interest of any kind in coal, as described in 31 chapter 207 , without limitation on the manner of mining the 32 coal any naturally occurring gases, oil, or other gaseous, 33 liquid, or solid hydrocarbons; oil shale; gemstones; metals; 34 fissionable or nonfissionable ore; or steam or other geothermal 35 -4- HF 2531.2866 (1) 91 ms/js 4/ 7
resources . 1 Sec. 9. NEW SECTION . 557C.2A Active mineral interests. 2 A severed mineral interest is active when any one of the 3 following conditions exists: 4 1. Minerals are produced or explored by the record owner 5 of the mineral interest, or the rightful assignees or lessees 6 of the record owner of the severed mineral interest, or 7 pursuant to a pooling order issued by the department of natural 8 resources pursuant to chapter 458A. 9 2. Operations are conducted for extraction, withdrawal, 10 injection, storage, or disposal of water, gas, or other fluid 11 substances to produce or enhance the production of minerals 12 by or with the express permission of the record holder of the 13 mineral interest, or pursuant to a pooling order issued by the 14 department of natural resources pursuant to chapter 458A. 15 3. For sold minerals, there is a production from a well or 16 a common vein or seam with the express permission, including 17 such permission as provided for in an instrument of lease or 18 other form of assignment, of the record owner of the severed 19 mineral interest, or pursuant to a pooling order issued by the 20 department of natural resources pursuant to chapter 458A. 21 4. Any valid conveyance, lease, mortgage, assignment, 22 private distribution, termination of joint tenancy interest 23 affidavit, termination of life estate affidavit, or any 24 judgment or decree that makes specific references to the record 25 owner’s severed mineral interest is recorded within the last 26 twenty years in the recorder’s office for the county in which 27 the severed mineral interest is located. 28 5. The severed mineral interest is subject to a written 29 agreement or pooling order issued by the department of natural 30 resources pursuant to chapter 458A. 31 6. A statement of claim is filed in accordance with section 32 557C.3. 33 Sec. 10. Section 557C.3, Code 2026, is amended to read as 34 follows: 35 -5- HF 2531.2866 (1) 91 ms/js 5/ 7
557C.3 Statement of claim —— filing requirement. 1 The statement of claim provided in section 557C.1 shall be 2 filed by the owner of the severed mineral interest in coal 3 prior to the end of the twenty-year period set forth in section 4 557C.1 or by July 1, 1994, whichever is later. The statement 5 of claim shall contain the name and address of the owner of 6 the severed mineral interest in coal , and a description of the 7 real estate on, or under, which the severed mineral interest in 8 coal is located. The statement of claim shall be filed in the 9 office of the recorder in the county in which the real estate 10 is located. 11 Sec. 11. Section 557C.4, Code 2026, is amended to read as 12 follows: 13 557C.4 Statement of claim —— recorder’s duty. 14 Upon the filing of the statement of claim provided for 15 in section 557C.3 in the recorder’s office for the county 16 where the real estate on, or under, which the severed mineral 17 interest in coal exists , is located, the recorder shall record 18 the statement of claim and index the entries required to be 19 made pursuant to section 557C.3 and any applicable entries 20 specified in sections 558.49 and 558.52 . 21 Sec. 12. Section 557C.5, Code 2026, is amended to read as 22 follows: 23 557C.5 Reservation in other conveyance. 24 A reservation of a mineral interest in coal or an exception 25 of a mineral interest in coal , contained in a conveyance of 26 the interest out of which it is carved, by a nonowner of the 27 mineral interest in coal shall not be deemed to satisfy the 28 requirements of this chapter or as a revival of a severed 29 mineral interest in coal otherwise extinguished under this 30 chapter . 31 Sec. 13. Section 557C.6, Code 2026, is amended to read as 32 follows: 33 557C.6 Exemption. 34 The filing of the statement of claim required under section 35 -6- HF 2531.2866 (1) 91 ms/js 6/ 7
557C.3 to preserve the severed mineral interest in coal shall 1 not be required of an owner if the severed mineral interest was 2 separately taxed for real estate tax purposes at any time after 3 July 1, 1971 , the tax was paid, the mineral interest has not 4 been subject to a tax sale, and the severed mineral interest 5 has not been conveyed to the owner of the surface estate 6 pursuant to sections 331.310 or 458A.20 . > 7 ______________________________ HARRIS of Appanoose -7- HF 2531.2866 (1) 91 ms/js 7/ 7