Document: 454 U.S. 516 102 S.Ct. 781 70 L.Ed.2d 738 TEXACO, INC., et al., Appellants,v.Louise F. SHORT al. Eden H. POND, Edna Bobe and Consolidation Coal Company, Appellants, v. Ulysses G. WALDEN, Jr., Nos. 80-965, 80-1018. Argued Oct. 6, 1981. Decided Jan. 12, 1982. Syllabus The Indiana Dormant Mineral Interests Act, more commonly known as the Lapse provides that a severed mineral interest is not used for period of 20 years automatically lapses reverts to current surface owner property, unless prior end 20-year or within 2-year grace after effective date Act (September 2, 1971) files statement claim in local county recorder's office. "use" sufficient preclude its extinction includes actual attempted production minerals, payment rents royalties, taxes. statute contains one exception general rule: If an 10 interests same inadvertently omits some those interests, omitted may be preserved by supplemental filing made 60 days receiving notice lapse. Appellants whose unused had lapsed upon expiration under challenged constitutionality actions brought state court. They claimed Fourteenth Amendment lack lapse deprived them property without due process law, effected taking public use just compensation, owners denied equal protection law. also contended constitutes impairment contracts violation Contract Clause. trial court declared unconstitutional, but Supreme Court reversed. Held : 1. State has power enact kind issue, this instance exercised arbitrary manner. Each required avoid abandonment furthers legitimate goals encouraging develop such collecting Pp. 525-530. 2. does take compensation Amendment. Since treat abandoned been which no filed, it follows that, abandonment, former retains he compensation. It owner's failure make any property—and State's action—that causes right; there "taking" requires P.530. 3. Nor unconstitutionally impair obligation contracts. appellant did execute coal oil leases until statutory their rights, cannot said contract exist at time enactment. While appellants' right enter agreement impaired, contract, right. P. 531. 4. extinguish adequate rights. 531-538. (a) provided forecloses argument invalid because have opportunity become familiar with terms. Property are charged knowledge relevant provisions affecting control disposition property. Moreover, greatest deference must accorded judgment legislatures whether citizens new Here, both Legislature concluded was allow familiarize themselves appropriate action protect existing interests. 531-533. (b) Given presumed would they filed claim, appellants constitutional advised nonuse about expire. Mullane Central Hanover Bank & Trust Co., 339 306, 652, 94 L.Ed. 865, distinguished. impose on burden using him lesser keeping informed his own 533-538. 5. purpose multiple ownership being conducive resources, adverse impact persons like who fewer violate Equal Protection Clause 538-540. Ind., 406 N.E.2d 625, affirmed. John L. Carroll, Evansville, appellants. Verner Partenheimer, Princeton, N. J., appellees. Justice STEVENS delivered opinion Court. 1 In 1971 enacted providing office.1 rejected challenge statute. 625 (1980). We noted probable jurisdiction, 450 993, 101 1693, 68 192, now affirm. 2 As explained, "puts coal, oil, gas other minerals twenty years."2 shall "extinguished" "ownership revert then out carved."3 statute, became September 1971, contained were subject could preserve office.4 3 interest5 THE taxes;6 recorder deeds.7 if lapse.8 4 require specific given estate. set forth procedure, however, succeeded estate pursuant give lapsed.9 5 Two cases consolidated appeal. facts each stipulated. No. include 11 parties fractional 1942 1944 from 132-acre tract land Gibson County, Ind.; 12th lessee executed 1976 1977 appellee carved. stipulated Thus, terms 1973, when expired. On April 28, 1977, gave lapsed.10 responded statements Office Recorder County. Thereafter, action, seeking declaratory rights extinguished reason Act. 6 80-1018, created March 1, 1954. date, Pond conveyed appellees warranty deed reservation June 17, 1976, mining lease Consolidated Co. following creation estate, file Recorder's Office. 1974, than two occurred. 4, lapse, letter publication Princeton Daily Clarion. jointly instant lawsuit January 1978, resolve conflicting claims 7 case agreed valid, produce pay taxes, period. neither indicate aware enactment possible effect before published estates. 8 At all stages proceedings, private law; based these arguments United States Constitution.11 constituted Art. § 10, Constitution.12 held compensation.13 9 appeal, first explained Act: "The reflects legislative belief existence display activity thereof mischievous contrary economic welfare public. stale creates uncertainties titles impediment development present well. removes returning owner. There decided served occurs. extinguishment makes entire productive potential again available human use." N.E.2d, 627. vested occur affording heard. "[p]rior will itself conditions rise minimum two-year prevent occurring claim."14 reasoned statutes limitations, permissible exercise police State.15 Finally, violated special who, through inadvertence, failed encourage rational provide since likely able engage resources.16 12 * raise several challenges Before addressing arguments, consider character do affirmative State.17 13 Board Regents Roth, 408 564, 577, 92 2701, 2709, 33 548, stated: 14 "Property course, Constitution. Rather, dimensions defined rules understandings stem independent source law—rules secure certain benefits support entitlement benefits." 15 "vested interest," entitled "the fee simple titles."18 Through less absolute duration; retention conditioned performance least doubt create protection, condition permanent reasonable intention retain interest. 16 From early time, recognized permit another passage time. Hawkins Barney's Lessee, Pet. 457, 190, upheld Kentucky prevented landowner recovering defendant resided seven 17 "Such laws frequently passed review Court; occasions occurred, particularly noticed impeached ground violating What complain, him, vigilant asserting rights?" Id., 466.19 18 Similarly, Wilson Iseminger, 185 55, 22 573, 46 804, Pennsylvania reserved rent collected demand 21 years.20 Though duration, legislation valid.21 19 cases, often emphasized "extinguishment" properly viewed withdrawal remedy rather destruction right.22 subsequently clear, practical consequences extinguishing identical eliminating remedy, analysis same. El Paso Simmons, 379 497, 506-507, 85 582-83, 446. owners' "remedy" Iseminger placed precisely position lapsed. similar operation typical recording Such valid transfer defeated subsequent purported earlier recorded. Jackson Lamphire, 280, 679, even retroactively applied need recorded delivered. "It undoubted pass acts, elder grantee postponed younger, limited time; dated act. law render fraudulent void against purchaser, impairing contracts; too acts effect. Reasons sound policy led adoption descriptions, validity questioned. manner operation, exceptions them, begin run, generally depend discretion legislature, according nature titles, situation country, emergency leads enactment." 290. These decisions clearly establish issue. case, act instance, result perform condition, deemed matter 23 clear terminate takes three steps continuing engages production, collects royalties person proposes so, protected. pays how small, secure. written office, remains viable. Only none taken 24 goal. Certainly interests; similarly, fiscal taxes manifest. requirement facilitating identification location owners, whom developers acquire operating collect surely compliance slight while State.23 II 25 answered quickly. contend Amendment; argue impermissible authorities already discussed mandate rejection arguments. 26 ruling imposed never compensate neglect. abandoned; State—that come forward "taking." t review, question Appellants' course impaired statute; right, event, safeguard contractual obligations minimal "burden" beyond scope action.24 III 27 primary attack notice. advancing argument, actually assert quite different claims. First, adequately notify legal requirements Second, gives advance When considered separately, merit. A. 28 raised simply legislature go advising rule abandoned. answer posed substantial Generally, nothing publish afford citizenry comply. included well established owning property.25 29 settled shows legislatures. See Pet., 290, 679; U.S., 62-63, S.Ct., 575-576. A body far better form correct concerning number affected change means information disseminated community, likelihood innocent harmed receive notice.26 30 short, basis records we conclude so unprecedented unlikely attention reasonably attentive constitutionally inadequate. refuse displace hastily might law.27 B 31 Specifically, claim. presented whether, knowledge, presumably owner—that 32 answering question, essential recognize difference between self-executing feature judicial determination particular fact occur. appellants, impending during preceding period, definition lapse—whether owner, party, use. protected lost undisputed entered quiet title determine conclusively reverted full procedural protections Due Process Clause—including calculated reach interested heard—must provided. place reliance our decision 865. sufficiency beneficiaries common trust fund settlement accounts trustee fund. authorized New York sufficient, apprise pendency proceeding. Jackson, writing Court, 34 "Many controversies raged cryptic abstract words can deprivation life, liberty adjudication preceded hearing case." 313, 656. 35 "[a]n elementary fundamental proceeding finality calculated, circumstances, objections," id., 314, 657; deficient "not fail[ed] everyone, circumstances [was] easily hand." 319, 659-60. 36 reasoning applicable occur, standards apply "adjudication" "to finality." distinguished governing property.28 long "laws [must] ordinary intelligence know what prohibited, accordingly," Grayned City Rockford, 104, 108, 2294, 333, suggested citizen way affect 37 above, purporting years. absence renders ineffective That greater force limitations unconstitutional. plaintiff although certainly obtaining adversary's barred giving 38 rely series heard driver's license suspended post security accident,29 seized prejudgment replevin order,30 service terminated utility tender amounts due.31 only proper.32 uniformly establishes inaction None cited suggests individual operate.33 39 think inexorably discern defect statute.34 IV 40 allows interest, notwithstanding satisfies four conditions: (1) county; (2) diligent effort preserving some; (3) "inadvertence"; (4) lapsed.35 violates 41 tell us often, ever, invoked. Indiana. bought sold little value, composition class benefited constant change. Unlike classes personal characteristics, anyone purchases county, whatever join favored class. 42 Although suggest financially unable class, rights—or indeed excision benefit whatsoever—they nevertheless basically unfair favorably treated. assembly single resources.36 This unquestionably legitimate. provision encourages ownership—by additional forfeiture assembled—is related central purpose, 43 44 ordered. 45 BRENNAN, WHITE, MARSHALL, POWELL join, dissenting. measurable dispute Indiana's control, define, limit boundaries. establishing registration system identify sanction register. here pre-existing regard knew, meaningful mechanism learned, imminent 47 historically afforded incorporeal privileges enjoyed simple. thus assuredly dual guarantees By issue put use, identity every fails comply conditions, extinguished, are, merged owner.1 48 proper power. Every carved statute's limitations. prospective application instrument carries implicit transferee uses meaning transferor. where seeks hands operative restrictions Takings into play. 49 fiat "extinguish" State, itself, all, unconstitutional unenforceable—at absent for, points out, ante, 529, 531, offered options so. Because options, concludes property: . ." Ante, 530. disdains serious consideration saving owners.2 respect errs, inquiry avoids. noted: 50 follow, [a State] legislate prospectively retrospectively. retrospective aspects legislation, aspects, meet test process, justifications latter suffice former." Usery Turner Elkhorn Mining 428 16-17, 96 2882, 2892-93, 752 (1976). 51 much maxim places principal upholding statute: law.3 justification necessity. matter, But irrational transformed merely invoking presumption. survive scrutiny Constitution deprive relies presumption evidence accommodation fairness applied. Cf. Vlandis Kline, 412 441, 93 2330, 63 (1973). acknowledging transform depart principle utmost accommodations instance. puts most cherished maxims presumptions rationality light experience. "[I]n passing judged affairs men ordinarily conducted." North Laramie Land Hoffman, 268 276, 283, 491, 494, 69 953 (1925). 52 very man consistent action. Lambert California, 355 225, 78 240, 228 (1957), municipal ordinance offense convicted felon remain city Los Angeles five registering police. ordinance, failing register, nor expected know, obligation. 53 "[W]e deal conduct wholly passive—mere unlike commission should alert doer deed. 'ignorance excuse' deep powers government, 'one limitable.' hand, limits exercise. Engrained concept Notice sometimes chance defend charges. disturbed, assessments made, penalties assessed. myriad situations penalty suffered mere 54 "Registration range wide. Many akin licensing pertain regulation business activities. entirely different. Violation unaccompanied whatever, presence test. move inquire necessity completely lacking. [T]his becoming her duty register penalty, though default innocent." 228-229, 242-43 (emphasis added) (citations omitted). 55 is, inform imposing sanctions requirement. highlights strains dealt fairly rationally State. individuals tested part proposition obligations. Lambert, involve context sufficiently unusual character, triggered commonplace, average triggering event calling heightened awareness one's obligations.4 56 unreasonable customary monitor Acts 532. appear businessmen, expect attentiveness regulatory affairs. experience supports Court's supposition diligence owners. allowed rest easy holding secure, indication contrary; practice "[n]otice IS act." 228, 243. Surely understanding attributed historic complacency, heretofore undisturbed obligation, prompted install regime here. 57 does, adversely exacting mechanisms notification minimally acceptable contexts. rationale standard "lesser notice" matters involving bears restating contrast presents cases: 58 "[P]ublication traditionally convey warning. ways tangible usually arranges learn direct possessory proprietary Hence, libel ship, attachment chattel entry real name promptly attention. located seizes reason, posting affords measure notification. indulge assumption left either it, proceedings nothing, caretaker let jeopardized." 316, 658, 865 (1950) added; citations 59 maintain mark physically disturbed duties hardly situation. circumstance turned observation; directly attacked, seized, possessed, used, depleted. "caretaker" guarded silent responsibility daily surveillance over happenings legislature. conducted," attribute foresight, duty, lobbyist capital order guard extinguishment. legislatively foreshortened periods vested. illustrate, refute, reasonableness applying cases. retroactive adjustments initiate guarantee fairness. Having injury, possess alertness possibly changing bearing redress necessarily depends recourse system, free intervention further, changes rules. Plaintiffs, attorneys, aware. 61 similar. operate dormant affront called increase derelict pressing third assume anticipate occasion assistance, aid. initiative regulate unregulated apprehended empirical foundation assertion weakest. 62 inquiry, identifiable making circumstance. lightly supplant judgment. I turn asserted procedure plain sheer impracticality implausible applicability. may, feasibly asserts persons, compelled results fine escheat. effectively transferred disinterested, adjusting relative citizen. helpful examine—and contrast—the reasons supporting retrospectively periods. 64 "are pragmatic devices spare courts litigation claims, defense memories faded, witnesses died disappeared, lost." Chase Securities Corp. Donaldson, 325 304, 65 1137, 1142, 89 1628 (1945). avoiding claims—would extending bring suit soon run. addition, pre-expiration impossible: plaintiff's alone future sue. Under behalf future—perhaps unknown—adversary. sum, defeat infeasible scheme. ensuring boundaries, promoting exploitation containing energy resources gas, oil. impedes hinders well, preventing willing buyer contact seller. To facilitate market development, required, here, once years, suffer intended ensure identifiable, suffices accessibility purchasers. Should equally served: identified readily virtue parcel becomes beneficiary default. permits buyer—presumably someone wish use—to locate seller, type lead economically land. With treatment run partially enactment, abbreviated, identification. 66 difficult conceive requiring interest; understand appellees, intervenor, pre-extinguishment supposed untoward impede purposes otherwise inconsistent framework. face 67 terminated. owns inadvertent, "within sixty (60) section [32-5-11-7] herein, published, lapsed."5 Ind.Code 32-5-11-5(4) holder more, And indeed, sets explicitly made: "Any succeed thereof, publishing newspaper circulation located, and, address shown record determined mailing ten copy record, description land, notice, together affidavit office Deeds wherein prima facie evidence, given." 32-5-11-6 notice—or else purchaser possibility later case. difficulty construed today, comes late holders continued me procedurally comparable statutorily hold person, "by law." powers, perhaps owe judgments great deference. Nevertheless, designed governments. scheme unlawful proviso established, discernible meaningful. obligations, permitted operates unconstitutionally. my view, respectfully dissent. §§ 32-5-11-1 32-5-11-8 (1976), added Ind.Acts, Pub.L. 423, shall, accordance hereof [sic], carved." n. 7, infra. "A mean transferring, grant, assignment, reservation, kind, minerals." 32-5-11-2 described follows: "Interests estates lying beneath firmest separate distinct ownership. titles. society natural resources." produced thereunder operations conducted thereon injection, withdrawal, storage disposal water, fluid substances, rentals paid delaying enjoying carried unitized pooled purposes, when, solid vein seam thereof. Any creating continue granted instrument." 32-5-11-3 above year [sic] act, whichever later, contain located. Upon provided, filed." 32-5-11-4 "Failure cause interest: "1) four, defined, and; "2) herein "3) "4) lapsed." 32-5-11-5 Appellee "notice interest" Star Echo, Owensville, Ind. May mailed except lessee. part: "No enforce abridge immunities States; liberty, deny jurisdiction laws." Fifth prohibition applies Webb's Fabulous Pharmacies, Inc. Beckwith, 449 155, 160, 446, 450, 358. Bill Attainder, ex facto Law Obligations Contracts, grant Title Nobility." App. Juris. Statement p. A-14; A-16. 629. Bell Burson, 402 535, 91 1586, 90, relied court, adjudicatory stated beginning sources valuable resources. dependence economies recovery industry fossil fuel illustrates purposes. objectives limitation possession. limiting incursion sense granting adopted objectives, inexpensive method, find states contracts." 630-631. eminent domain theory, benefit. "involve injury activities governmental agents others having exercising domain"; rather, declares "a specified circumstances." 631. Several Courts, considering statutes, reached Bishop, 82 Ill.2d 364, Ill.Dec. 171, 522 (1980); Contos Herbst, 278 N.W.2d 732 (Minn.1979), appeal dism'd sub. nom. Prest 444 100 24, 17; Wheelock Heath, 201 Neb. 835, 272 768 (1978); Chicago W. Transportation Pedersen, 80 Wis.2d 566, 259 316 (1977). see Van Slooten Larsen, 410 Mich. 21, 299 704 specifically argue, irrationally extraction resource took millennia create," Brief impermissibly party another. 26. 5, supra. Much Johnson wrote today: argued, laws, belonging lex fori, immediately yet indirectly complete divesture true, wise fatal universal civil law: existed nature, modified society, community. property? community itself. 467. After observing negligence pursue remedy," unprecedented. "In received failed, three, afterwards seat improve it: denomination forfeited (Mercer's Abr.); it." 467-468 added). characteristics duration. himself heirs grantor annuity charge, conveyance fee. ground, usual simple, descendible, devisable, alienable." 59, 574. conceded proceed idea try courts. bar claimants opportunity; attempt arbitrarily, purport provisions. commencement suits action; wisdom bar, manifestly insufficient denial justice." 575-76. 63, repeated Chief Waite Terry Anderson, 95 628, 632-633, 365, "[t]his effect." forbidding perpetuities frauds, not, sense, destroy thereto, remove remedies furnished courts." 61, 575. supra, 634, 365. Miller Schoene, 276 272, 246, 72 568, Virginia ornamental cedar trees threatened thriving apple industry. say conflict misfortune growers shifted ordering property; obvious be, preponderant concern preservation other. involved preferment individual, extent destruction, distinguishing affects property." 279-280, 247-48 Home Building Loan Assn. Blaisdell, 290 398, 231, 413; 953: "All note them; relieving conforming it. especially relating taxation condemnation universally application, account management safeguarding Anderson National Luckett, 321 233, 243, 599, 604, 88 692. adequacy evaluated reliably For reasons, reject suggestion dissenting legislature." Post, 549. squarely odds "[a]ll dominion up purposes." 605; 25, Additional Act—which dissent admits post, 542-544, 2—was required. cf. 692; Security Savings 263 282, 301, jeopardized. Ballard Hunter, 204 241, 261, 461; Huling Kaw Valley R. 130 559, 603, 1045. phrased ago Marshall Mary, Cranch 126, 144, 678, 'It prudence thing], it.' " 658. "[i]n abandonment." Ibid. attempts distinguish "incorporeal interests" "directly depleted." believe, improper. described, "interests estate," 627; developed length variety constitute entitle applicable—the decide today shorter concepts "nonuse" meaning. 90. Fuentes Shevin, 407 67, 1983, 556. Memphis Light, Gas Water Div. Craft, 436 98 1554, 30. Craft clear. Bell, case: main thrust Georgia's liability fault irrelevant administrative presently 'appropriate case.' 657, (1950). '[i]n reviewing area look substance, bare form, minimums honored.' Willner Committee Character, 373 96, 106-107, 83 1175, 1181-82, 224 (1963) (concurring opinion). looking scheme, liability, ultimate responsibility, plays crucial role Safety Responsibility Act." 541, 1590 supplied). almost exclusive broad language 228. admits, 547, criminal Police. held: "We believe proof probability necessary conviction stand. Holmes Common Law, 'A punished blameworthy member severe bear.' 229, concerns mens rea convict crime. Freed, 401 601, 1112, 356; International Minerals Chemical Corp., 558, 1697, 178. Its limited, lending credence Frankfurter's colorful prediction stand "an isolated deviation strong precedents—a waters 232, 245. precede 553-554, ignores fractured ago, records. "[t]he 630. legitimately bothered worthless encumbrances inactive developer unnecessary. opinions insurance, normally thorough search records, assure ancient clouds title, significance. serve 8, "Minerals earth strata formations coincide chosen divide area. Consequently assemble safe profitable. meeting criteria minerals. classification esential clusters consequently federal protection." 631-632. Code (1976) [32-5-11-5] hereof, "used" "when specifies limits: [32-5-11-1] [one] [September 1971] refusal seriously analogizes Recording draws pre-Fourteenth 679 (1830). 528-529, misplaced. implementing authority. Cases subjects amount call interposition court; one." surprising authority Lamphire unreasonable. 1797, Commission settle competing county. Commission, recover title. 282-283. forms complain lacking expressly notifying populace convening disputes 283. further "in deeds neglect piece commissioners, newspapers aforesaid, six weeks, therein mentioned, months exhibit land." 284 publication, agree Absent meaningless. Despite suggestive references 526-528, implies abandonment. rest. demonstrate finding associated 804 (1902); 466-467, 190 (1831). plainly Until law" exploit feasible extract manner, Provident Institution Malone, 221 660, 664, 661, 663, 899 (1911). intent abandon, found separately assessed 7. slightly ambiguous oral counties assess development. Tr. Oral Arg. 25. imposition sanctions, rigor inappropriate stake, worth noting. city's lay identifying felons want contrived effecting short informing obliged singular felons, individualized incompatible purpose. unenforceable. below, ability objectives. infra, 551-554. holds, prefer less, numerous protections. distinction drawn fails, denying

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