Mich. Comp. Laws § 554.292

Preservation of oil or gas interest; recording of interest notice claimed; applicability of act.

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TERMINATION OF OIL OR GAS INTERESTS IN LAND

Act 42 of 1963

554.292 Preservation of oil or gas interest; recording of interest notice claimed; applicability of act.

Sec. 2.

(1) Any interest in oil or gas referred to in this act may be preserved by recording within the period specified in this act a written notice in the register of deeds office for the county in which the land is located. The notice shall be verified by oath and shall describe the land and the nature of the interest claimed, give the name and address of the person or persons claiming the interest, and state that the person or persons desire to preserve the interest and do not intend to abandon the interest.

(2) A person other than the owner of the surface holding interests in oil or gas in any land for use in underground gas storage operations may preserve the oil or gas interests, and the rights of any lessor of the oil or gas interests, by recording a single written notice defining the boundaries of and the formations included in the underground gas storage field or pool within which the oil or gas interests are located, without the necessity of describing each separate oil or gas interest claimed in that underground gas storage field or pool by that person.

(3) Recording a written notice under this section shall operate to preserve the oil or gas interest included in the written notice from abandonment under this act for a period of 20 years after recording. At the conclusion of that 20-year period, that interest in oil or gas shall be deemed abandoned if, during that 20-year period, the nondormant character of the oil or gas interest has not been evidenced by sale, lease, mortgage, or transfer by instrument recorded in the register of deeds office for the county in which that oil or gas interest is located, a drilling permit issued, oil or gas actually produced or withdrawn from said lands, or from lands covered by a lease to which that interest in oil or gas is subject, or from lands pooled, unitized, or included in unit operations therewith, or the use of that interest in oil or gas in underground gas storage operations, or a like notice filed.

(4) In the absence of prior abandonment, an interest in oil or gas in any land owned by any person other than the owner of the surface may be preserved indefinitely from abandonment under this act by filing written notices as provided in this act or the performance of any of the acts specified in this act evidencing nondormancy of the interest in oil or gas within each succeeding 20-year period.

(5) This act shall not apply to any interest in oil or gas owned by any governmental body or agency.

History: 1963, Act 42, Eff. Sept. 6, 1963 ;-- Am. 2006, Act 519, Imd. Eff. Dec. 29, 2006

Notes of Decisions

Cited in 4 cases, 1989–2004 · leading case: Comben v. State

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Comben v. State (2004) michctapp “§ 554.292. Persons dealing with the surface owner may reasonably be charged with understanding that their rights depend on those of that surface owner; this is not so with respect to persons *847 whose severed oil and gas interests exist apart from those of the surface owner.”

Oberlin v. Wolverine Gas & Oil Co. (1989) michctapp “The specific requirements of what must be contained in a notice of a claim of interest are set forth in MCL 554.292; MSA 26.1163(2). The parties do not dispute the fact that the mineral deed filed in 1966 does not comply with the requirements of § 2 to constitute a "claim of…”

Antrim County Treasurer v. Department of Treasury (2004) michctapp “That is not so with respect to persons exercising their rights pursuant to wholly severed subsurface interests, including those taking specific precautions against forfeiture to the surface owner under MCL 554.292. Persons dealing with the surface owner may reasonably be charged…”

Bates v. Keso (1991) michctapp “1 MCL 554.292; MSA 26.1163(2) provides in pertinent part: Any interest in oil or gas referred to in this act may be preserved by the recording within the period specified in this act a written notice in the register of deeds office for the county where such interest is located,…”

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