KRS § 353.468 — KY Code / Title XXVIII / Chapter 353 / Section 353.468
353.468 If advantageous to unknown or missing owner, court may declare trust -- Bond of trustee -- Sale of lease -- Trustee's report -- When court not to authorize trustee's lease -- Trustee to use percentage of funds to search for owner -- Period during which unknown or missing owner may establish identity and title
Status: in_force

353.468 If advantageous to unknown or missing owner, court may declare trust --

Bond of trustee -- Sale of lease -- Trustee's report -- When court not to

authorize trustee's lease -- Trustee to use percentage of funds to search for

owner -- Period during which unknown or missing owner may establish

identity and title.

(1) If, upon presentation to the Circuit Court of the petition, the answer of the trustee ad

litem and the proof presented by the petitioner in such case, it appears to the court

that development of the severed mineral interests will be advantageous to the

unknown or missing owners, the court shall declare a trust in the lands or estate or

interest therein, appoint a trustee therefor and authorize the trustee to sell, execute

and deliver a valid mineral lease covering the severed mineral interests in and

underlying the lands.

(2) Should the court appoint a trustee pursuant to subsection (1) of this section, the

court shall, in its decree, require the trustee to give a bond in favor of the owners of

the severed mineral interest which is to be leased and shall fix the amount of the

bond. The decree of the court shall further provide for all of the terms and

provisions of the lease which the trustee is authorized to make. It shall be

discretionary with the court as to whether or not the trustee's sale of lease shall be

public or private and the decree shall provide therefor, and if a public sale be

authorized, the court shall in its decree fix and determine the notice to be given. The

sale shall be for cash, payable on confirmation of sale. No appraisal shall be

required.

(3) The trustee shall proceed in compliance with the provisions of the decree to sell the

lease authorized thereby, and after making the sale shall make a report thereof to the

court. Upon filing the report, the court may hear evidence as to whether or not the

sale price is reasonable, and if the court is satisfied with the sale and the amount

received therefor, the sale shall be confirmed by the court and the lease shall be

executed by the trustee with the approval of the court endorsed on the face thereof.

(4) The court shall not authorize a trustee's lease upon the severed mineral interest of

any owner whose identity and whereabouts is known, or can be ascertained by

diligent inquiry, or is discovered as a result of the action brought hereunder; and any

such owner may intervene as a matter of right at any time prior to the entry of

judgment approving the trustee's lease, for the purpose of establishing his title to the

severed mineral interests, and if the mineral owners claim is established to the

satisfaction of the court, the court shall dismiss the action as to the intervenor's

interest at plaintiff's cost.

(5) The trustee shall collect the proceeds, if any, from the sale of the lease and hold and

invest the same for the use and benefit of the unknown or missing owners. The

court upon its own motion or upon motion of the trustee may authorize the trustee

to expend an amount not to exceed ten percent (10%) of the funds collected by the

trustee for the purpose of instituting a search for the unknown or missing owners.

(6) Within seven (7) years after the date of first commercial production of the severed

mineral interests under the trustee's lease, any person being an unknown or missing

owner of the severed mineral interest or any undivided portion thereof, may petition

the Circuit Court to redocket the action in which the trustee's lease was sought and

approved in accordance with subsection (3) of this section and may thereupon

present such proof as the court may deem necessary to establish his identity and title

to the severed mineral interest or any portion thereof. If the court finds that the

unknown or missing owners have established their identity and title, the trustee

shall be directed to distribute the funds in his hands attributable to the unknown or

missing owners' interest, and shall assign all future proceeds from said lease to the

owners as their interests appear and shall deliver to the owners a recordable

instrument documenting their title to the severed mineral interest, which instrument

shall bear the endorsement and approval of the Circuit Court on the face thereof.