2006 Senate Bill 1409 / Public Act 611

Revise oil and gas right foreclosure treatment

Introduced in the Senate

Sept. 5, 2006

Introduced by Sen. Liz Brater (D-18)

To define the procedures for 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

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

Dec. 12, 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

Dec. 13, 2006

Passed in the House 108 to 0 (details)

To define the procedures for 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.

Received in the Senate

Dec. 14, 2006

To concur with the House-passed version of the bill.

Passed in the Senate 38 to 0 (details)

Signed by Gov. Jennifer Granholm

Dec. 31, 2006