2006 Senate Bill 1408 / Public Act 519

Revise oil and gas right foreclosure treatment

Introduced in the Senate

Sept. 5, 2006

Introduced by Sen. Patricia Birkholz (R-24)

To clarify the treatment in a delinquent property tax foreclosure action of subsurface oil and gas rights that previously had been severed (sold) from the above-ground property. In a recent case (Antrim County Treasurer v. Michigan, SC docket No. 127212), the state Supreme Court upheld a trial court ruling that oil and gas interests are exempt from local government foreclosure. The bill would establish that the oil and gas rights are not exempt from foreclosure unless a severance deed has been recorded with the county register of deeds within the past 20 years.

Referred to the Committee on Natural Resources and Environmental Affairs

Sept. 14, 2006

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Sept. 19, 2006

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Sept. 20, 2006

Passed in the Senate 37 to 0 (details)

Received in the House

Sept. 20, 2006

Referred to the Committee on Natural Resources, Great Lakes, Land Use, and Environment

Nov. 30, 2006

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Dec. 13, 2006

Passed in the House 105 to 3 (details)

To clarify the treatment in a delinquent property tax foreclosure action of subsurface oil and gas rights that previously had been severed (sold) from the above-ground property. In a recent case (Antrim County Treasurer v. Michigan, SC docket No. 127212), the state Supreme Court upheld a trial court ruling that oil and gas interests are exempt from local government foreclosure. The bill would establish that the oil and gas rights are not exempt from foreclosure unless a severance deed has been recorded with the county register of deeds within the past 20 years.

Signed by Gov. Jennifer Granholm

Dec. 28, 2006