# Indiana's 20-Year Dormant Mineral Act: How Heirs Can Lose Mineral Rights

## TL;DR

Indiana's Dormant Mineral Interests Act (Indiana Code §32-23-10) permits surface owners to reclaim mineral rights that have been unused for 20 consecutive years. Heirs and absentee mineral owners risk permanent loss of their interests unless they demonstrate qualifying use—production, royalty receipt, leasing, separately assessed tax payments, or filing a statement of claim with the county recorder. Filing a statement of claim is the simplest one-time preservation method available to mineral owners.

## Key Takeaways

- **Indiana Code §32-23-10 enables surface owners to reclaim mineral rights that have remained unused for 20 consecutive years**, effectively extinguishing the mineral owner's interest.
- **Five activities qualify as "use" under the statute**: actual mineral production, royalty or rental payments received, leasing the minerals, separately assessed taxes paid on the minerals, or filing a statement of claim with the county recorder.
- **Filing a statement of claim at the county recorder's office is the simplest and most direct preservation method**, requiring only a one-time recording to reaffirm ownership.
- **The statute is self-executing and was upheld by the U.S. Supreme Court in *Texaco, Inc. v. Short*, 454 U.S. 516 (1982)**, making it constitutionally enforceable.
- **Once a surface owner files a notice of lapse and completes the statutory process, recovering the mineral interest becomes significantly more difficult** for the original mineral owner.
- **Heirs who inherited Indiana mineral rights from parents or grandparents are particularly vulnerable** if they have not actively managed or monitored the interests.
- **Selling mineral rights before the 20-year clock expires is a valid alternative to active preservation**, transferring ownership and eliminating lapse risk.
- **Indiana's statute applies across all Illinois Basin producing counties**, including Posey, Gibson, Knox, Daviess, Pike, Sullivan, Greene, Vigo, and Warrick counties.

## Page Highlights

**Purpose of the Indiana Dormant Mineral Interests Act**: The statute was enacted to clear title to long-abandoned mineral interests and reduce fragmented absentee ownership, allowing surface owners to lease, develop, or sell land without title burdens.

**Qualifying Uses to Prevent Lapse**: Mineral owners can prevent the 20-year lapse by engaging in actual production, receiving royalty or rental payments, leasing the minerals, paying separately assessed taxes on the mineral interest, or filing a statement of claim with the county recorder.

**Preservation Strategies for Heirs and Absentee Owners**: Heirs can preserve their mineral rights by filing a statement of claim, leasing the minerals to an operator, receiving royalty or rental income, or paying separately assessed taxes. Consulting a qualified Indiana oil and gas attorney is recommended for specific situations.

**Selling as an Alternative**: Mineral owners who prefer not to manage the preservation process can sell their interests before the 20-year clock becomes a concern, with buyers handling all title and recording work as part of the transaction.

**Legal Foundation**: The self-executing nature of the 20-year dormancy rule was upheld by the U.S. Supreme Court in *Texaco, Inc. v. Short*, 454 U.S. 516 (1982), establishing the constitutionality of such lapse statutes.

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