2023 Wisconsin Statutes & Annotations › Chapter 706 - Conveyances of real property; recording; titles. › 706.057 - Lapse and reversion of interests in minerals.

706.057
Lapse and reversion of interests in minerals.
(1)
Applicability. This section does not apply to an interest in minerals which is owned by the same person who owns the fee simple interest in the surface of the land above the interest in minerals.
(2)
Use of an interest in minerals. In this section, an interest in minerals is used if any of the following occur:
(a)
Any minerals are mined in exploitation of the interest in minerals.
(b)
A conveyance of mineral interests is recorded under this chapter.
(c)
Any other conveyance evidencing a transaction by which the interest in minerals is created, aliened, reserved, mortgaged or assigned is recorded under this chapter.
(d)
Property taxes are paid on the interest in minerals by the owner of the interest in minerals.
(e)
The owner of the interest in minerals records a statement of claim under sub. (4) or (5) concerning the interest in minerals.
(3)
Lapse.
(a)
Except as provided in par. (b) or (c), an interest in minerals lapses if the interest in minerals was not used during the previous 20 years.
(b)
An interest in minerals which was not used during the 20-year period prior to July 1, 1984, does not lapse if the interest in minerals is used within 3 years after July 1, 1984.
(c)
An interest in minerals which was used during the period from 17 to 20 years prior to July 1, 1984, does not lapse if the interest in minerals is used within 3 years after July 1, 1984.
(4)
Statement of claim; recording; requirements. If the owner of an interest in minerals uses the interest in minerals by recording a statement of claim, the statement of claim shall comply with this subsection. The statement of claim shall contain the name and address of the owner of the interest in minerals, a description of the location and boundary of the interest in minerals and a reference to the recorded instrument which created the interest in minerals. The statement of claim shall be recorded with the register of deeds for the county in which the interest in minerals is located.
(5)
Cure of lapse. The lapse of an interest in minerals under sub. (3) is cured if the owner of the interest in minerals records a statement of claim complying with all of the requirements of sub. (4) before the surface owner records a statement of claim under sub. (6) (a) or before a statement of claim takes effect under sub. (6) (b) 1., whichever is later.
(6)
Claim of lapsed interest in minerals.
(a)
The owner of the land under which an interest in minerals exists may claim that portion of a lapsed interest in minerals which lies beneath the owner's land by recording a statement of claim. The statement of claim shall contain the name and address of the owner of the land under which the lapsed interest in minerals is located and a description of the land under which the interest in minerals is located. The statement of claim shall be recorded with the register of deeds for the county in which the land is located.
(b)
1.
Except as provided in subd. 2., a statement of claim which is recorded under par. (a) before the lapse of the interest in minerals to which the claim applies takes effect when the interest in minerals lapses.
2.
A statement of claim which is recorded under par. (a) before the lapse of the interest in minerals to which the claim applies is void 6 years after the statement of claim is recorded if the interest in minerals does not lapse within that 6-year period.
(7)
Statement of claim; recording; register of deeds' duty. The register of deeds shall provide copies of the uniform form for statements of claim under subs. (4), (5) and (6). Upon receipt of a statement of claim under sub. (4), (5) or (6) in the office of the register of deeds, the register of deeds shall record the claim in a manner which will permit the existence of an interest in minerals to be determined by reference to the parcel or parcels of land above the interest in minerals. The claimant shall pay the recording fee under s. 59.43 (2).
(9)
Determination of ownership.
(a)
The owner of an interest in minerals which is the subject of a claim under sub. (6) (a), within 3 years after the claim is recorded with the register of deeds or within 3 years after the claim takes effect as provided under sub. (6) (b) 1., whichever is later, may bring an action for a declaratory judgment or declaration of interest on the ownership of the interest in minerals. The action shall be commenced in the circuit court in the county where the interest in minerals is located.
(b)
1.
If the court finds that the owner of the interest in minerals used the interest in minerals within the time limits specified under sub. (3) or that the owner of the interest in minerals recorded a claim under sub. (5) before the surface owner recorded a claim under sub. (6) (a) or before the claim took effect as provided under sub. (6) (b) 1., whichever is later, the court shall issue a judgment declaring that the interest in minerals is not lapsed.
2.
If the court finds that the owner of the interest in minerals did not use the interest in minerals within the time limits specified under sub. (3) and did not record the claim under sub. (5) before the surface owner recorded the claim under sub. (6) (a) or before the claim took effect as provided under sub. (6) (b) 1. whichever is later, the court shall issue a judgment affirming the surface owner's claim.
(c)
Upon the issuance of a judgment affirming the surface owner's claim or, if no action is brought under par. (a), at the end of the 3-year period after the surface owner's claim is recorded or at the end of the 3-year period after the claim takes effect as provided under sub. (6) (b) 1., whichever is later, the ownership of the interest in minerals reverts to the owner of the land under which the lapsed interest in minerals is located and title to the interest in minerals is merged with the title to the surface of the land.
(10)
Waiver; limitation. No person may waive or agree to waive the provisions of this section and any waiver or agreement of this type is void.
History:  1983 a. 455; 1985 a. 29; 1995 a. 201.
Sub. (3) (a) sets forth a general rule that an interest in minerals must be used at least once every 20 years to avoid lapsing. Sub. (3) (b) creates a three-year grace period—lasting from July 1, 1984, to July 1, 1987—during which owners could use their rights and thereby prevent the automatic lapse that would have otherwise occurred under sub. (3) (a). The use of an interest in mineral rights during the three-year period does not permanently prevent that interest from lapsing. Instead, once an interest has been used during the requisite three-year period, it is again subject to sub. (3) (a) and will lapse if not used at least once every 20 years. Lakeland Area Property Owners Ass'n, U.A. v. Oneida County, 2021 WI App 19, 396 Wis. 2d 622, 957 N.W.2d 605, 20-0858.
The U.S. Supreme Court's conclusions in Texaco, 454 U.S. 516 (1982), compel a conclusion in this case that sub. (3) does not result in an unconstitutional taking of property without just compensation, nor does the statute violate due process for lack of notice. Similar to the statute at issue in Texaco, sub. (3) provides that a mineral rights owner's interest lapses if not used for 20 years and sets forth a grace period during which owners who did not use their mineral rights during the previous twenty years could take action to prevent those rights from lapsing. Lakeland Area Property Owners Ass'n, U.A. v. Oneida County, 2021 WI App 19, 396 Wis. 2d 622, 957 N.W.2d 605, 20-0858.
Due process requires that every owner of a recorded interest, including a mineral interest under this section, be provided written notice of an application for a tax deed. 74 Atty. Gen. 59.
Under this section, the owner of land under which mineral rights have lapsed must record a claim to the lapsed mineral rights in order to foreclose a separate mineral rights owner from curing the lapse. 79 Atty. Gen. 61.