Senate Study Bill 1006 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED TREASURER
                                            OF STATE BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the disposition of unclaimed property
  2    concerning minerals.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1216XD 82
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PAG LIN



  1  1    Section 1.  Section 556.1, Code 2007, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  6A.  "Mineral" means gas, oil, and coal;
  1  4 other gaseous, liquid, and solid hydrocarbons; oil shale;
  1  5 cement material; sand and gravel; road material; building
  1  6 stone; chemical raw material; gemstone; fissionable and
  1  7 nonfissionable ores; colloidal and other clays; steam and
  1  8 other geothermal resources; and any other substance defined as
  1  9 a mineral by a law of this state.
  1 10    NEW SUBSECTION.  6B.  "Mineral proceeds" means amounts
  1 11 payable for the extraction, production, or sale of minerals,
  1 12 or upon the abandonment of those payments, all payments that
  1 13 become payable thereafter.  "Mineral proceeds" includes
  1 14 amounts payable as follows:
  1 15    a.  For the acquisition and retention of a mineral lease,
  1 16 including bonuses, royalties, compensatory royalties, shut=in
  1 17 royalties, minimum royalties, and delay rentals.
  1 18    b.  For the extraction, production, or sale of minerals,
  1 19 including net revenue interests, royalties, overriding
  1 20 royalties, extraction payments, and production payments.
  1 21    c.  Under an agreement or option, including a joint
  1 22 operating agreement, unit agreement, pooling agreement, and
  1 23 farm=out agreement, relating to the extraction, production, or
  1 24 sale of minerals.
  1 25                           EXPLANATION
  1 26    This bill adds definitions of "mineral" and "mineral
  1 27 proceeds" to Code chapter 556 which is concerned with the
  1 28 disposition of unclaimed property.
  1 29    Currently, Code section 556.1 defines property which is
  1 30 subject to the provisions of the chapter to include mineral
  1 31 proceeds (Code section 556.1, subsection 10, paragraph "b"),
  1 32 and amounts distributable from a mineral interest in land
  1 33 (Code section 556.1, subsection 10, paragraph "h") although
  1 34 these terms are not currently defined.
  1 35 LSB 1216XD 82
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