HB 3401
Relating to notice of possible surface encumbrances overlying mineral parcels
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill amends West Virginia law to require mineral leases to clearly identify and list any potential surface encumbrances, such as pipelines, well pads, or access roads, that might exist above the leased mineral property. Currently, mineral leases only require a memorandum to be recorded, which may not adequately inform potential buyers or creditors about existing surface issues. This change aims to provide greater transparency and protect property rights.
Key provisions
- Mineral leases must list all potential surface encumbrances.
- Encumbrances include pipelines, well pads, storage pads, equipment, and access roads.
- If no encumbrances exist, the lease must state that.
- A memorandum of lease must include specific information about the parties, lease details, and property description.
- This bill clarifies the requirements for recording mineral leases.
Who is affected
- Mineral leaseholders
- Potential buyers of mineral rights
- Creditors with claims against mineral leases
- Landowners overlying mineral parcels
- Energy companies
Notable changes
- Requires explicit listing of surface encumbrances in mineral leases.
- Mandates detailed information to be included in recorded memoranda of lease.
- Addresses potential lack of transparency regarding surface issues in existing leases.
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