CHAPTER 8. OIL AND GAS: CANCELLATION OF CONTRACTS AND LEASES FOR OIL AND GAS
IC 32-23-8
Chapter 8. Oil and Gas: Cancellation of Contracts and Leases forOil and Gas
IC 32-23-8-1
Lapse of rental payment; nonproduction or nondevelopment oflease
Sec. 1. (a) Leases for oil and gas that are recorded in Indiana arevoid:
(1) after a period of one (1) year has elapsed since:
(A) the last payment of rentals on the oil and gas lease asstipulated in the lease or contract; or
(B) operation for oil or gas has ceased, both by thenonproduction of oil or gas and the nondevelopment of thelease; and
(2) upon the written request of the owner of the land,accompanied by the affidavit of the owner stating that:
(A) no rentals have been paid to or received by the owner orany person, bank, or corporation in the owner's behalf for aperiod of one (1) year after they have become due; and
(B) the leases and contracts have not been operated for theproduction of oil or gas for one (1) year.
As added by P.L.2-2002, SEC.8.
IC 32-23-8-2
Certification of invalidity of lease; recording
Sec. 2. (a) The recorder of the county in which real estatedescribed in section 1 of this chapter is situated shall certify upon theface of the record of the oil and gas lease that:
(1) the leases and contracts are invalid and void by reason ofnonpayment of rentals; and
(2) the oil and gas lease is canceled of record.
(b) The request and affidavit shall be recorded in themiscellaneous records of the recorder's office.
As added by P.L.2-2002, SEC.8.
IC 32-23-8-3
Payment of rent; void cancellation
Sec. 3. If, at any time after the cancellation of a lease and contractand within the term provided in the lease or contract, the lesseesubmits to the recorder:
(1) a receipt or a canceled check, or an affidavit, showing thatthe rental has been paid; or
(2) an affidavit that:
(A) the lease has been operated within a period of one (1)year before the cancellation, as stipulated in the lease orcontract; and
(B) the affidavit of the lessor provided under this chapter isfalse or fraudulent;
the cancellation is void, and the recorder shall so certify at the place
where the cancellation of the lease and contract has been entered.
As added by P.L.2-2002, SEC.8.
IC 32-23-8-4
Appeal of cancellation of lease
Sec. 4. The owner of a lease that is canceled by a county recorderunder this chapter may, not more than six (6) months after the dateof cancellation of the lease, appeal the order and record ofcancellation in the circuit court of the county in which the land islocated.
As added by P.L.2-2002, SEC.8.