Vote Smart's Synopsis:

Vote to pass a bill that requires a local government to compensate a mineral rights owner in certain circumstances.

Highlights:

• Requires a local government to compensate a mineral rights owner for the full reduction in the “fair market value” of the owner’s mineral interest if the government passes a regulation that reduces the “fair market value” of the interest by at least 60 percent (Sec. 1).

• Defines “owner” as an individual with a right to a share of the revenues resulting from the mineral extraction, including, but not limited to, the owner of a royalty interest (Sec. 1).

• Establishes a procedure for a board of commissioners, jury, or district court to determine the value of an owner’s mineral interest at a hearing (Sec. 1).

• Authorizes an owner to challenge the value determined by the hearing on the basis that it is too low (Sec. 1).

• Prohibits a local government from challenging the value determined by the hearing on the basis that it is too high (Sec. 1).

• Prohibits a local government from implementing a regulation unless the government pays the value determined by the hearing to the owner within 7 business days (Sec. 1).

• Requires an owner intending to undertake new mineral extraction operations to notify the local government at least 63 days before the commencement of the proposed operations (Sec. 1).

Full Bill Text