I would be cautious about relying on 614.17 with respect to "mineral rights". While I've never researched in Iowa, in the states where I have researched it, "mineral rights" and "mineral interests" are synonymous terms, and are a group of sticks in the fee simple absolute bundle of sticks (this is often found in old case law). Indeed, if you look up “mineral right” in Black’s it sends you to “mineral interest”. The Iowa Supreme Court long ago recognized the right to own mineral interests and surface interests separately in fee. See Stewart v. Chadwick, 8 Clarke 463 (Iowa 1859). Mineral interests are owned in fee in their own they can be taxed, mortgaged, leased, further severed into additional subsects, and otherwise dealt with (as one would deal with real property) separately from the remaining fee simple estate.

To that end, whether 614.17 applies raises two questions in my mind, would the Iowa courts deem possession of the surface as possession of the severed mineral interests and if so, what is the purpose of Chapter 557C.

As I have posted on this list before, at least one other state's supreme court (North Dakota, which has many similar real property laws) has held that a record titleholder of the surface (or surface and part of the mineral interests) in possession does not "possess" the severed mineral interests, and thus a curative statute relying upon possession could not wipe out the severed mineral owner's interests. Thus, the curative statutes in that state did not apply. In such a vein, it is possible an Iowa court would hold that 614.17 does not apply to severed mineral interests.

Further, if 614.17 (first passed in 1951) were sufficient to "wipe out" the ownership of a mineral owner, there would have been no need for Chapter 557C to have been passed in 1991 (providing for a lapse of ownership in coal interests if not preserved of record), or for the off and on discussion on this list serve (and bills proposed in the legislature) for a similar statute for all other mineral interests. Note also that the timeframe in Chapter 557C is 20 years (not 10 years).

Accordingly, I would recommend extreme caution against relying upon 614.17 with respect to severed "mineral rights".

Jason

From: realestate-owner@iabar.org [realestate-owner@iabar.org] on behalf of Andrew Mahoney [realestate@iabar.org]
Sent: Tuesday, November 07, 2017 4:13 PM
To: realestate@iabar.org
Subject: RE: [ISBA RealEstate] Mineral Rights

Ok I’ll see how this code section applies, thanks all!

Andrew

From: realestate-owner@iabar.org [mailto:realestate-owner@iabar.org] On Behalf Of Jim Nervig
Sent: Tuesday, November 7, 2017 11:57 AM
To: realestate@iabar.org
Subject: Re: [ISBA RealEstate] Mineral Rights

Andrew:

Iowa Code section 614.17 provides that “[a]n action based upon a claim arising or existing prior to January 1, 1980, shall not be maintained, either at law or in equity, in any court to recover real estate in this state or to recover or establish any interest in or claim to real estate, legal or equitable, against the holder of the record title to the real estate in possession . . . unless the claimant . . . within one year after July 1, 1991, files . . . a statement in writing, which is duly acknowledged, definitely describing the real estate involved, the nature and extent of the right or interest claimed, and stating the facts upon which the claim is based.” Does 614.17 apply to the facts of your case? If so, and if no statement was recorded within one year after July 1, 1991, then would the mineral rights interest be rendered unenforceable and no longer valid by the statute of limitations?

Jim Nervig

Brick Gentry P.C.
6701 Westown Parkway, Suite 100
West Des Moines, Iowa 50266
Phone: 515-274-1450
Fax: 515-274-1488
jim.nervig@brickgentrylaw.com

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On Nov 7, 2017, at 11:30 AM, Andrew Mahoney <realestate@iabar.org> wrote:

I have a client that is selling some property but it turns out that a sibling of his ancestors possessed ½ interest in mineral rights for the land. It appears that the mineral rights were just forgotten about and they haven’t been addressed in about 40 years or so. Now the descendants of the sibling, whom the mineral rights would have passed to, all reside in Canada. We would have some difficulty contacting them to relay the situation. We might have a way (or two) of clearing up the objection but, in case the other avenue doesn’t come through, I am wondering if anyone has any suggestions as to clearing title. Would a quiet title action clear that up or is there another solution someone has in mind?

Thanks everyone,

Andrew L. Mahoney

Kozlowski Law Group, LLC

314 N. 4^th Street

Burlington, Iowa 52601

Ph: 319-753-6201

Fax: 319-754-8471

E-mail: andrew@kozlawllc.com

Website: kozlawllc.com

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