Michigan Compiled Laws

Mich. Comp. Laws § 554.281 (2026)

Oil, gas or mineral lease; forfeiture; procedure for surrender, effect on record.

✓ current as of July 2026

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OIL, GAS, OR MINERAL LEASES

Act 81 of 1929

554.281 Oil, gas or mineral lease; forfeiture; procedure for surrender, effect on record.

Sec. 1.

When any oil, gas or other mineral lease heretofore or hereafter given on land situated in any county of Michigan and recorded therein shall become forfeited, it shall be the duty of the lessee, his successors or assigns, within 60 days from the date of the taking effect of this act, if the forfeiture occurred prior thereto, and within 30 days after the date of the forfeiture of any other lease, to have such lease surrendered in writing, such surrender to be signed by the party making the same, his successors or assigns, witnessed and acknowledged and placed on record in the county where the leased land is situated, without cost to the owner thereof: Provided, That if the said lessee, his successors or assigns shall fail or neglect to execute and record such surrender within the time provided for, then the owner of said land may at any time after forfeiture serve upon said lessee, his successors or assigns, in person, or by registered letter, at his last known address, or by publication for 3 consecutive weeks in a newspaper of general circulation in the county where the land is situated, a notice in writing in substantially the following form:

"To ................: I, the undersigned, owner of the following described land situated in ............... county, Michigan, to-wit: (description of land) upon which a lease dated the .......... day of ..............., 19...., was given to ..............., lessee, do hereby notify you that the terms of said lease have been broken by the owner thereof, that I hereby elect to declare and do declare the said lease forfeited and void, and that unless you do within 30 days from this date notify the register of deeds of said county as provided by law, that said lease has been forfeited, I will file with the said register of deeds an affidavit of forfeiture as provided by law; and I hereby demand that you execute or have executed a proper surrender of said lease and that you put the same on record in the office of the register of deeds in said county within 30 days from this date.

Dated this ............... day of ..............., 19....

..................."

And the owner of said land may after 30 days from the date of service, registration or first publication of said notice, file with the register of deeds of the county where said land is situated, an affidavit setting forth that the affiant is the owner of said land; that the lessee, or his successors or assigns, has failed and neglected to comply with the terms of said lease, reciting the facts constituting such failure; that the same has been forfeited and is void; and setting out in said affidavit a copy of the notice served as above provided and the manner and time of the service thereof.

If the lessee, his successors or assigns, shall within 30 days after the filing of such affidavit, give notice in writing to the register of deeds of the county where said lands are located that said lease has not been forfeited and that said lessee, his successors or assigns, still claim that said lease is still in full force and effect, then the said affidavit shall not be recorded, but the register of deeds shall notify the owner of the lands of the action of the lessee, his successors or assigns, and the owner of the land shall be entitled to the remedies now provided by law, for the cancellation of such disputed lease. If the lessee, his successors or assigns, shall not notify the register of deeds as above provided, then the register of deeds shall record said affidavit and thereupon the said lease shall be null and void and of no legal effect, and thereafter the record of the said lease shall not be notice to the public of the existence of said lease or of any interest therein or rights thereunder, and said record shall not be received in evidence in any court of the state on behalf of the lessee, his successors or assigns against the lessor, his successors or assigns.

History: 1929, Act 81, Eff. Aug. 28, 1929 ;-- CL 1929, 13506 ;-- CL 1948, 554.281

Notes of Decisions

Cited in 5 cases, 1977–2014 · leading case: In Re P.i.n.e., Inc., 52 B.R. 463 (Bankr. W.D. Mich. 1985).

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In Re P.i.n.e., Inc., 52 B.R. 463 (Bankr. W.D. Mich. 1985). · cites it 17× “On July 20, 1984, Woloszyks filed a motion requesting that this court declare that lease to have been abandoned, or, in the alternative, to grant relief from stay so as to permit them to commence the forfeiture procedures set forth in Mich.Comp.Laws § 554.281 (Mich.Stat.Ann. §…”

In re Madison Heights Grp., LLC, 506 B.R. 734 (Bankr. E.D. Mich. 2014). · cites it 2× “” The statute was similar to the current statute, Mich.Comp.Laws §§ 554.281 and 554.232. Sloman dealt with a situation in which there was a foreclosure sale of the mortgaged real estate, at which the purchaser at the foreclosure sale was a third party— not the mortgagor or the…”

Erickson v. Dart Oil & Gas Corp., 474 N.W.2d 150 (Mich. Ct. App. 1991). · cites it 3× “Plaintiff claimed that the lease was "terminated, forfeited and rendered void” by its own terms on March 2, 1986, and demanded that it be released pursuant to MCL 554.281; MSA 26.1161. Defendants refused to execute a release of the lease, and this litigation resulted.”

Mask v. Shell Oil Co., 257 N.W.2d 256 (Mich. Ct. App. 1977). “See MCLA 554.281; MSA 28.1161. Were this not so and defendants’ contention accepted, termination of plaintiffs’ interests by running of the 20-year period would have the effect of treating as abandoned those interests which were being actively maintained, including this lease…”

Wagner v. Dooley, 282 N.W.2d 469 (Mich. Ct. App. 1979). “See MCL 554.281; MSA 26.1161. Accordingly we find that by utilization of the words "any interest in oil or gas” the Legislature intended that all interests in oil and gas, whether they be created by deed reservation, lease or otherwise, be subject to the affirmative duties…”

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