27.01-28 - Retention of Mineral Rights
(ISSUED: 07/11/2005)

Language from DNR Director's Letter 128 - Retention of Mineral Rights, dated May 17,2004:

Letter No.:	128
Effective Date:	May 17,2004
Supersedes:

 

TO:	All DNR Employees
FROM:	K.L. Cool, Director
SUBJECT:	Retention of Mineral Rights

The Director of the Department of Natural Resources is authorized to retain oil and gas mineral rights in the conveyance of land, if those minerals are under production or lease; permitted for production; or to land the Department determined has unusual/sensitive environmental features.

Natural Resources Commission Policy 2308 required the Department to reserve mineral rights in the sale of tax-reverted land until 1998 with the passage of the Mineral Reunification Act (Part 610, Act 451, P.A. of 1994). The Department continues to administer the “mineral rights only” on some 1 million acres of land, as a result of these sales. As these lands were tax-reverted and never dedicated as part of any Department project area, they are identified in the Department’s land ownership database as “undedicated.” The Department continues, however, to administer these mineral rights, and in some cases they are under lease by the Department for mineral production.

This Director’s Letter is being issued, therefore, to affirm my approval that all of these mineral rights are recognized as under the management of this Department and are to be identified as mineral rights “retained” for public benefit, and that such dedication is effective from the date they were so acquired. If any of these mineral rights are subsequently requested by the surface owner and sold to reunite with the surface owner pursuant to statute, the proceeds from their sale will be deposited to the Michigan Natural Resources Trust Fund, as defined by statute.

 

 

David E. Freed, Chief
Land and Facilities



George E. Burgoyne, Jr.                                       Kelli Sobel
Resource Management Deputy                             Administrative Services Deputy



K. L. Cool                                                          ____________________________
Director                                                             Date Approved