Can severed mineral rights be retained indefinitely?
Under Michigan law (Act 42 of 1963, Termination of Oil or Gas Interests in Land), severed oil or gas rights revert to the surface owner after twenty years unless one of the following actions have occurred within the 20-year period:
A drilling permit is issued.
Oil or gas is actually produced or withdrawn from the severed holdings.
The interest is utilized for underground gas storage operations.
The severed interest is sold, leased, mortgaged, or transferred by recorded instrument.
A written notice is filed with the county Register of Deeds. Act 42 of 1963 applies only to oil or gas rights and not to other mineral rights.
The Act exempts interests owned by a governmental body.