House File 2423 - Introduced HOUSE FILE 2423 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HF 539) (SUCCESSOR TO HSB 150) A BILL FOR An Act related to claims of railroad corporations involving 1 mineral rights underlying land owned by another person. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1596HZ (4) 84 da/nh

H.F. 2423 Section 1. NEW SECTION . 614.24A Reservation or granting of 1 interests in minerals in or on land —— preservation —— railroad 2 corporations. 3 1. When a railroad corporation as defined in section 321.1, 4 its trustee, or its successor in interest holds an interest 5 in minerals, then no action based upon any claim arising 6 or existing by reason of the provisions of any instrument 7 creating any interest in minerals shall be maintained in any 8 court in this state to recover or establish any interest in or 9 claim to real estate, legal or equitable, against the holder 10 of record title to such real estate after twenty-one years 11 from the execution of such instrument unless the claimant 12 shall, personally, or by the claimant’s attorney or agent, 13 file a verified claim for such interest with the recorder 14 of the county where the real estate is located within the 15 twenty-one-year period. In the event that such instrument was 16 executed more than twenty years prior to July 1, 2012, then 17 such claim may be filed on or before June 30, 2015. 18 2. The following definitions apply for purposes of this 19 section: 20 a. “Claimant” means a railroad corporation as defined in 21 section 321.1, its trustee, or its successor in interest. 22 b. “Interest in minerals” means a perpetual interest in 23 real estate which grants ownership of one or more minerals 24 underlying the real estate of a railroad corporation as defined 25 in section 321.1, its trustee, or its successor in interest to 26 a person other than the person who owns the surface rights in 27 and to the real estate. “Interest in minerals” does not include 28 a lease of real estate which allows the tenant to remove 29 minerals from the real estate. 30 c. “Mineral” means the same as defined in section 556.1, and 31 also includes any other substance defined as a mineral by a law 32 of this state, except coal. 33 d. “Surface rights” means the right of one or more persons 34 to occupy the surface of the real estate. 35 -1- LSB 1596HZ (4) 84 da/nh 1/ 3

H.F. 2423 3. A claim to preserve an interest in minerals shall do all 1 of the following: 2 a. Set forth the legal description of the real estate from 3 which such interest was severed, the nature of the interest, 4 the time and manner in which the interest was created, the name 5 and address of the person making the claim, and each present 6 owner of the interest. 7 b. Verify that the claim has been delivered by certified 8 mail or personal delivery to the record owner of the surface 9 rights to the real estate from which such interest was severed, 10 as set forth in the records maintained by the assessor of the 11 county in which the real estate is located. 12 4. For the purposes of this section, a claimant must be a 13 railroad corporation as defined in section 321.1, its trustee, 14 or its successor in interest claiming an interest in minerals, 15 whether the interest is a present interest or an interest which 16 would come into existence if the happening or contingency 17 provided in the instrument creating the interest were to happen 18 at once. 19 5. Nothing in this section shall do any of the following: 20 a. Revive or extinguish an interest in coal, including but 21 not limited to an interest provided in chapter 557C. 22 b. Impair the validity of an environmental covenant 23 established pursuant to chapter 455I. 24 c. Revive an interest which has expired or been terminated 25 under the terms of the instrument creating the interest. 26 6. The limitations of this section shall not run in respect 27 of any period in which the interest in minerals is separately 28 assessed for taxation as against the person who has paid the 29 taxes so assessed. 30 Sec. 2. Section 614.25, Code 2011, is amended to read as 31 follows: 32 614.25 Effect of filing claim. 33 The filing of such a claim pursuant to section 614.24 or 34 614.24A shall extend for a further period of twenty-one years 35 -2- LSB 1596HZ (4) 84 da/nh 2/ 3

H.F. 2423 the time within which such action may be brought by any person 1 entitled thereto, and successive claims for further like 2 extensions may be filed. 3 Sec. 3. Section 614.28, Code 2011, is amended to read as 4 follows: 5 614.28 Barred claims. 6 The provisions of sections 614.24 to 614.27 , inclusive, or 7 the filing of a claim or claims, hereunder, shall not revive or 8 permit an action to be brought or maintained upon any claim or 9 cause of action which is barred by any other statute. Provided 10 further, that nothing contained in these sections section 11 614.24, 614.25, 614.26, or 614.27 shall affect litigation 12 pending on July 4, 1965 , and nothing contained in section 13 614.24A shall affect litigation pending on July 1, 2011 . 14 EXPLANATION 15 This bill applies when a railroad corporation holds an 16 interest in minerals and an instrument creates an interest in 17 minerals. In that case, no action based upon any claim arising 18 from such instrument can be maintained in court against the 19 holder of record title to the real estate after 21 years from 20 the instrument’s execution unless the railroad corporation 21 files a verified claim with the recorder of the county where 22 the real estate is located within the 21-year period. If the 23 instrument was executed more than 20 years prior to July 1, 24 2012, then such claim may be filed on or before June 30, 2015. 25 The bill does not affect interests in coal or the validity 26 of environmental covenants, or revive an interest which has 27 expired or been terminated. 28 -3- LSB 1596HZ (4) 84 da/nh 3/ 3