H.F. 539 Section 1. NEW SECTION . 614.24A Reservation or granting of 1 interests in minerals in or on land —— preservation. 2 1. No action based upon any claim arising or existing 3 by reason of the provisions of any instrument creating any 4 interest in minerals shall be maintained in any court in this 5 state to recover or establish any interest in or claim to real 6 estate, legal or equitable, against the holder of record title 7 to such real estate after twenty-one years from the execution 8 of such instrument unless the claimant shall, personally, or by 9 the claimant’s attorney or agent, or if the claimant is a minor 10 or under legal disability, by the claimant’s guardian, trustee, 11 or either parent or next friend, file a verified claim for such 12 interest with the recorder of the county where the real estate 13 is located within the twenty-one-year period. In the event 14 that such instrument was executed more than twenty years prior 15 to July 1, 2011, then such claim may be filed on or before June 16 30, 2014. 17 2. The following definitions apply for purposes of this 18 section: 19 a. “Interest in minerals” means a perpetual interest in 20 real estate which grants ownership of one or more minerals 21 underlying the real estate to a person other than the person 22 who owns the surface rights in and to the real estate. 23 “Interest in minerals” does not include a lease of real estate 24 which allows the tenant to remove minerals from the real 25 estate. 26 b. “Mineral” means the same as defined in section 556.1, and 27 also includes any other substance defined as a mineral by a law 28 of this state, except coal. 29 c. “Surface rights” means the right of one or more persons 30 to occupy the surface of the real estate. 31 3. A claim to preserve an interest in minerals shall do all 32 of the following: 33 a. Set forth the legal description of the real estate from 34 which such interest was severed, the nature of the interest, 35 -1- LSB 1596HV (1) 84 da/nh 1/ 3

H.F. 539 the time and manner in which the interest was created, the name 1 and address of the person making the claim, and each present 2 owner of the interest. 3 b. Verify that the claim has been delivered by certified 4 mail or personal delivery to the record owner of the surface 5 rights to the real estate from which such interest was severed, 6 as set forth in the records maintained by the assessor of the 7 county in which the real estate is located. 8 4. For the purposes of this section, a claimant may be any 9 person or persons claiming an interest in minerals, whether the 10 interest is a present interest or an interest which would come 11 into existence if the happening or contingency provided in the 12 instrument creating the interest were to happen at once. A 13 claimant may also be any member of a class of persons entitled 14 to claim such interest. 15 5. Nothing in this section shall do any of the following: 16 a. Revive or extinguish an interest in coal, including but 17 not limited to an interest provided in chapter 557C. 18 b. Impair the validity of an environmental covenant 19 established pursuant to chapter 455I. 20 c. Revive an interest which has expired or been terminated 21 under the terms of the instrument creating the interest. 22 6. The limitations of this section shall not run in respect 23 of any period in which the interest in minerals is separately 24 assessed for taxation as against the person who has paid the 25 taxes so assessed. 26 Sec. 2. Section 614.25, Code 2011, is amended to read as 27 follows: 28 614.25 Effect of filing claim. 29 The filing of such a claim pursuant to section 614.24 or 30 614.24A shall extend for a further period of twenty-one years 31 the time within which such action may be brought by any person 32 entitled thereto, and successive claims for further like 33 extensions may be filed. 34 Sec. 3. Section 614.28, Code 2011, is amended to read as 35 -2- LSB 1596HV (1) 84 da/nh 2/ 3

H.F. 539 follows: 1 614.28 Barred claims. 2 The provisions of sections 614.24 to 614.27 , inclusive, or 3 the filing of a claim or claims, hereunder, shall not revive or 4 permit an action to be brought or maintained upon any claim or 5 cause of action which is barred by any other statute. Provided 6 further, that nothing contained in these sections section 7 614.24, 614.25, 614.26, or 614.27 shall affect litigation 8 pending on July 4, 1965 , and nothing contained in section 9 614.24A shall affect litigation pending on July 1, 2011 . 10 EXPLANATION 11 This bill provides for the reservation of a right to bring a 12 claim in district court involving an interest in one or more 13 minerals underlying the surface of real estate which another 14 person has a right to occupy. The bill does not address rights 15 to coal, which are subject to Code chapter 557C. 16 The bill applies when an instrument has been executed 17 creating an interest in one or more minerals. In order to 18 maintain a legal or equitable action against the record title 19 holder of the real estate after 21 years from the instrument’s 20 execution, a claim must be filed with the recorder for 21 the county within that period. An exception applies to an 22 instrument executed more than 21 years prior to July 1, 2011. 23 In that case, the claim may be filed on or before June 30, 24 2014. The bill provides that additional claims may be filed 25 for additional 21-year periods. 26 The bill expressly states that it does not affect an interest 27 in coal, impair the validity of an environmental covenant (Code 28 chapter 455I), or revive an interest which has expired or been 29 terminated under the terms of the instrument. 30 The bill does not affect litigation pending on the effective 31 date of the bill. 32 -3- LSB 1596HV (1) 84 da/nh 3/ 3