A California developer buys 100 acres and plans a housing development. The previous owner severed and retained the mineral rights 30 years ago and has never exercised them: there has been no drilling or mining, no separate tax assessment paid on the mineral interest, and no recorded instrument or notice of intent to preserve it. Under California Civil Code §883.110 et seq., the Dormant Mineral Rights Act, what can the developer do about the unused mineral rights?
Correct Answer
A) Bring an action to terminate the mineral right as dormant, which the holder can defeat by recording a notice of intent to preserve
The Dormant Mineral Rights Act lets the owner of real property subject to a mineral right bring an action to terminate that right when it is dormant (Civil Code §883.210). The right is dormant only if, for the 20 years immediately before the action is filed, there was no production or mining operation, no separate property tax assessment paid on the mineral interest, and no recorded instrument evidencing it (§883.220). The mineral owner preserves the right by having recorded a notice of intent to preserve within that period, and even after the action is filed the court must permit a late notice as a condition of dismissal if the owner pays the surface owner's litigation expenses (§§883.230, 883.250). Termination comes from the court's judgment, not from any notice the surface owner records.
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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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