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House
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2531
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House
File
2531
AN
ACT
RELATING
TO
INTERESTS
IN
MINERALS
OWNED
BY
COUNTIES
AND
CITIES,
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
NEW
SECTION
.
331.310
Mineral
interests.
1.
For
purposes
of
this
section:
a.
“Mineral
interests”
means
any
real
property
interest
in
one
or
more
natural
resources
or
minerals
underlying
the
surface
of
a
tract
of
land,
which
can
be
owned
separately
from
the
surface
estate.
b.
“Minerals”
means
coal,
any
naturally
occurring
gas,
oil,
or
other
gaseous,
liquid,
or
solid
hydrocarbons;
oil
shale;
gemstones;
metals;
fissionable
or
nonfissionable
ore;
or
steam
or
other
geothermal
resources.
“Minerals”
does
not
mean
minerals
as
defined
in
section
208.2.
2.
A
county
shall
divest
itself
of
any
mineral
interest
owned
or
controlled
by
the
county
and
shall
convey
such
mineral
interest
to
the
surface
owner
of
the
land
to
which
the
mineral
interest
pertains
except
when
the
county
is
the
fee
simple
surface
owner
of
the
land.
A
conveyance
under
this
section
shall
be
made
without
consideration
and
shall
be
without
cost
to
the
surface
owner
of
the
land.
3.
A
county
shall
complete
all
conveyances
required
under
this
section
no
later
than
five
years
after
the
effective
date
of
this
Act.
Conveyances
pursuant
to
section
458A.20
shall
House
File
2531,
p.
2
be
completed
within
one
hundred
fifty
days
of
service
of
the
required
notice.
Any
interest
in
minerals
acquired
by
the
county
after
the
effective
date
of
this
Act
shall
be
conveyed
as
required
under
this
section
within
ninety
days.
Sec.
2.
NEW
SECTION
.
364.26
Mineral
interests.
1.
For
purposes
of
this
section:
a.
“Mineral
interests”
means
any
real
property
interest
in
one
or
more
natural
resources
or
minerals
underlying
the
surface
of
a
tract
of
land,
which
can
be
owned
separately
from
the
surface
estate.
b.
“Minerals”
means
coal,
any
naturally
occurring
gas,
oil,
or
other
gaseous,
liquid,
or
solid
hydrocarbons;
oil
shale;
gemstones;
metals;
fissionable
or
nonfissionable
ore;
or
steam
or
other
geothermal
resources.
“Minerals”
does
not
mean
minerals
as
defined
in
section
208.2.
2.
A
city
shall
divest
itself
of
any
mineral
interests
owned
or
controlled
by
the
city
and
shall
convey
such
mineral
interests
to
the
surface
owner
of
the
land
to
which
the
mineral
interest
pertains
except
when
the
city
is
the
surface
owner
of
the
land.
A
conveyance
under
this
section
shall
be
made
without
consideration
and
shall
be
without
cost
to
the
surface
owner
of
the
land.
3.
A
city
shall
complete
all
conveyances
required
under
this
section
no
later
than
five
years
after
the
effective
date
of
this
Act.
Any
mineral
interest
acquired
by
the
city
after
the
effective
date
of
this
Act
shall
be
conveyed
as
required
under
this
section
within
ninety
days.
Sec.
3.
Section
446.7,
Code
2026,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
3.
The
county
shall
not
offer
mineral
interests,
as
defined
in
section
331.310,
for
sale.
If
the
taxes
on
any
mineral
interests
not
owned
by
the
surface
owner
of
the
land
are
delinquent,
the
county
shall
proceed
in
accordance
with
section
458A.20.
Sec.
4.
Section
458A.18,
Code
2026,
is
amended
to
read
as
follows:
458A.18
Mineral
rights
taxed
separately.
All
rights
and
interests
in
or
to
oil,
gas,
or
other
minerals
underlying
land,
whether
created
by
or
arising
under
deed,
House
File
2531,
p.
3
lease,
reservation
of
rights,
or
otherwise,
which
rights
or
interests
are
owned
by
any
person
other
than
the
surface
owner
of
the
land,
shall
be
assessed
and
taxed
separately
to
the
owner
of
such
rights
or
interests
in
the
same
manner
as
other
real
estate.
The
taxes
on
such
rights
or
interests
that
are
not
owned
by
the
surface
owner
of
the
land
shall
not
be
a
lien
on
the
land.
Sec.
5.
Section
458A.19,
Code
2026,
is
amended
to
read
as
follows:
458A.19
Rate.
In
order
to
pay
the
costs
of
assessment
and
collection
and
provide
a
reasonable
minimum
standard
of
taxation,
the
taxes
on
any
mineral
rights
or
interests
not
owned
by
the
surface
owner
of
the
land
shall
be
not
less
than
five
cents
per
acre.
Sec.
6.
Section
458A.20,
Code
2026,
is
amended
to
read
as
follows:
458A.20
Tax
sale
——
redemption
by
owner.
1.
When
If
the
taxes
on
any
mineral
rights
or
interests
not
owned
by
the
surface
owner
of
the
land
are
sold
at
tax
sale,
and
when
delinquent,
the
county
treasurer
shall
send
a
statement
of
delinquent
taxes
and
a
notice
that
the
mineral
rights
or
interests
will
be
conveyed
to
the
owner
of
the
associated
surface
tract
unless
the
owner
of
those
mineral
rights
or
interests
does
not
redeem
under
the
provisions
of
chapter
447
pays
the
total
amount
of
the
delinquent
taxes,
interest,
and
costs
to
the
county
treasurer
within
ninety
days
after
the
tax
sale,
the
owner
of
the
land
shall
thereafter
have
the
same
right
of
redemption
as
the
owner
of
the
mineral
rights
or
interests
has,
and
redemption
by
the
notice
is
served.
The
county
treasurer
shall
serve
the
notice
by
sending
it
by
regular
first
class
mail
to
the
person’s
last
known
address
and
to
the
address
of
the
person’s
registered
agent
listed
with
the
secretary
of
state,
applicable.
2.
When
the
owner
of
those
mineral
rights
or
interests
does
not
pay
the
total
amount
due
by
the
deadline,
the
county
shall
convey
the
mineral
rights
or
interests
pursuant
to
section
331.310
to
the
surface
owner
of
the
land
.
Such
conveyance
shall
terminate
any
right
of
redemption
of
the
owner
of
the
mineral
rights
or
interests.
House
File
2531,
p.
4
3.
a.
The
county
may
collect
the
total
amount
due
by
converting
the
amount
due
to
a
personal
judgment
against
the
owner
of
the
delinquent
mineral
interest
pursuant
to
sections
445.3
and
446.20,
notwithstanding
the
absence
of
a
tax
sale
or
tax
sale
certificate.
b.
If
the
treasurer
determines
that
it
is
impractical
to
pursue
collection
of
the
total
amount
due
and
the
personal
judgment
remedies,
the
treasurer
shall
make
a
written
recommendation
to
the
board
of
supervisors
to
abate
the
amount
due.
The
board
of
supervisors
shall
abate,
by
resolution,
the
amount
due
and
direct
the
treasurer
to
strike
the
amount
due
from
the
county
system.
Sec.
7.
Section
557C.1,
Code
2026,
is
amended
to
read
as
follows:
557C.1
Lapse
of
mineral
interests
in
coal
——
prevention.
A
mineral
interest
in
coal
shall
be
extinguished
is
abandoned
if
it
has
not
been
active
in
accordance
with
section
557C.2A
for
a
period
of
twenty
years
after
its
creation,
transfer,
or
preservation,
unless
a
statement
of
claim
is
filed
in
accordance
with
section
557C.3
,
and
the
ownership
shall
revert
to
the
person
who
was
then
the
owner
of
the
interest
from
which
the
mineral
interest
in
coal
was
created,
transferred,
or
preserved
.
Title
to
an
abandoned
mineral
interest
vests
in
the
owner
of
the
surface
estate
in
the
land
in,
or
under,
which
the
mineral
interest
is
located
on
the
date
of
abandonment.
Upon
the
filing
of
a
statement
of
claim
within
the
specified
period,
the
mineral
interest
shall
be
deemed
to
have
been
preserved
for
an
additional
period
of
twenty
years,
or
a
shorter
period
as
may
be
specified
in
the
instrument
creating
the
interest.
Sec.
8.
Section
557C.2,
subsection
2,
Code
2026,
is
amended
to
read
as
follows:
2.
“
Mineral
Severed
mineral
interest
in
coal
”
means
an
interest
created
by
an
instrument
which
that
creates
or
transfers
,
either
by
grant,
assignment,
reservation,
or
otherwise,
an
interest
of
any
kind
in
coal,
as
described
in
chapter
207
,
without
limitation
on
the
manner
of
mining
the
coal
any
naturally
occurring
gases,
oil,
or
other
gaseous,
liquid,
or
solid
hydrocarbons;
oil
shale;
gemstones;
metals;
House
File
2531,
p.
5
fissionable
or
nonfissionable
ore;
or
steam
or
other
geothermal
resources
.
“Severed
mineral
interest”
does
not
include
an
interest
in
any
resource
listed
in
the
definition
of
“mineral”
under
section
208.2.
Sec.
9.
NEW
SECTION
.
557C.2A
Active
mineral
interests.
A
severed
mineral
interest
is
active
when
any
one
of
the
following
conditions
exists:
1.
Minerals
are
produced
or
explored
by
the
record
owner
of
the
mineral
interest,
or
the
rightful
assignees
or
lessees
of
the
record
owner
of
the
severed
mineral
interest,
or
pursuant
to
a
pooling
order
issued
by
the
department
of
natural
resources
pursuant
to
chapter
458A.
2.
Operations
are
conducted
for
extraction,
withdrawal,
injection,
storage,
or
disposal
of
water,
gas,
or
other
fluid
substances
to
produce
or
enhance
the
production
of
minerals
by
or
with
the
express
permission
of
the
record
holder
of
the
mineral
interest,
or
pursuant
to
a
pooling
order
issued
by
the
department
of
natural
resources
pursuant
to
chapter
458A.
3.
For
solid
minerals,
there
is
a
production
from
a
well
or
a
common
vein
or
seam
with
the
express
permission,
including
such
permission
as
provided
for
in
an
instrument
of
lease
or
other
form
of
assignment,
of
the
record
owner
of
the
severed
mineral
interest,
or
pursuant
to
a
pooling
order
issued
by
the
department
of
natural
resources
pursuant
to
chapter
458A.
4.
Any
valid
conveyance,
lease,
mortgage,
assignment,
private
distribution,
termination
of
joint
tenancy
interest
affidavit,
termination
of
life
estate
affidavit,
or
any
judgment
or
decree
that
makes
specific
references
to
the
record
owner’s
severed
mineral
interest
is
recorded
within
the
last
twenty
years
in
the
recorder’s
office
for
the
county
in
which
the
severed
mineral
interest
is
located.
5.
The
severed
mineral
interest
is
subject
to
a
written
agreement
or
pooling
order
issued
by
the
department
of
natural
resources
pursuant
to
chapter
458A.
6.
A
statement
of
claim
is
filed
in
accordance
with
section
557C.3.
Sec.
10.
Section
557C.3,
Code
2026,
is
amended
to
read
as
follows:
557C.3
Statement
of
claim
——
filing
requirement.
House
File
2531,
p.
6
The
statement
of
claim
provided
in
section
557C.1
shall
be
filed
by
the
owner
of
the
severed
mineral
interest
in
coal
prior
to
the
end
of
the
twenty-year
period
set
forth
in
section
557C.1
or
by
July
1,
1994,
whichever
is
later.
The
statement
of
claim
shall
contain
the
name
and
address
of
the
owner
of
the
severed
mineral
interest
in
coal
,
and
a
description
of
the
real
estate
on,
or
under,
which
the
severed
mineral
interest
in
coal
is
located.
The
statement
of
claim
shall
be
filed
in
the
office
of
the
recorder
in
the
county
in
which
the
real
estate
is
located.
Sec.
11.
Section
557C.4,
Code
2026,
is
amended
to
read
as
follows:
557C.4
Statement
of
claim
——
recorder’s
duty.
Upon
the
filing
of
the
statement
of
claim
provided
for
in
section
557C.3
in
the
recorder’s
office
for
the
county
where
the
real
estate
on,
or
under,
which
the
severed
mineral
interest
in
coal
exists
,
is
located,
the
recorder
shall
record
the
statement
of
claim
and
index
the
entries
required
to
be
made
pursuant
to
section
557C.3
and
any
applicable
entries
specified
in
sections
558.49
and
558.52
.
Sec.
12.
Section
557C.5,
Code
2026,
is
amended
to
read
as
follows:
557C.5
Reservation
in
other
conveyance.
A
reservation
of
a
mineral
interest
in
coal
or
an
exception
of
a
mineral
interest
in
coal
,
contained
in
a
conveyance
of
the
interest
out
of
which
it
is
carved,
by
a
nonowner
of
the
mineral
interest
in
coal
shall
not
be
deemed
to
satisfy
the
requirements
of
this
chapter
or
as
a
revival
of
a
severed
mineral
interest
in
coal
otherwise
extinguished
under
this
chapter
.
Sec.
13.
Section
557C.6,
Code
2026,
is
amended
to
read
as
follows:
557C.6
Exemption.
The
filing
of
the
statement
of
claim
required
under
section
557C.3
to
preserve
the
severed
mineral
interest
in
coal
shall
not
be
required
of
an
owner
if
the
severed
mineral
interest
was
separately
taxed
for
real
estate
tax
purposes
at
any
time
after
July
1,
1971
,
the
tax
was
paid,
the
mineral
interest
has
not
been
subject
to
a
tax
sale,
and
the
severed
mineral
interest
House
File
2531,
p.
7
has
not
been
conveyed
to
the
owner
of
the
surface
estate
pursuant
to
sections
331.310
or
458A.20
.
Sec.
14.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2531,
Ninety-first
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2026
______________________________
KIM
REYNOLDS
Governor