A California developer purchases 100 acres of land and plans to build a housing development. The previous owner severed and retained the mineral rights 30 years ago but has never exercised them. Under California Civil Code §883.110 et seq. (the Dormant Mineral Rights Act), what legal action can the developer take to address these unused mineral rights?
Correct Answer
A) The developer can record a notice of intent to terminate the dormant mineral interest, and if the mineral rights holder fails to record a notice of intent to preserve within the statutory period, the mineral rights may be extinguished
Under California Civil Code §883.110–883.270, commonly known as the Dormant Mineral Rights Act, a surface owner may act to clear title against unused mineral interests. The surface owner records a notice of intent to terminate the dormant mineral interest. The mineral rights holder then has a statutory period in which to respond by recording their own notice of intent to preserve the interest. If the mineral rights holder fails to timely record that notice, the mineral interest is deemed abandoned and is extinguished by operation of law, allowing the surface owner to hold clear title.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Eminent domain is the government's constitutional right to take private property for public use, provided the owner receives just compensation. It is also known as condemnation.
An encroachment occurs when a building, structure, or improvement illegally extends onto another person's property or beyond a setback line. It is a physical intrusion, not a right to use the land.
An environmental impact statement (EIS) is a detailed report required for major federal projects or actions that may significantly affect the environment. It is mandated by the National Environmental Policy Act (NEPA).
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