55-220. Same; contents of petition; hearing; notice; dismissal as to certain defendants; appointment of receiver. - Kansas Statutes

55-220

Chapter 55.--OIL AND GAS Article 2.--LEASES AND LIENS

      55-220.   Same; contents of petition; hearing; notice; dismissal as tocertain defendants; appointment of receiver.(a) The plaintiff shall file a verified petition setting forth thefollowing: (1) The interest of the plaintiff in the tract or tracts of landdescribed in said petition; (2) the apparent interest of the defendant ordefendants as appears from the record of the county clerk and from suchother sources, identifying same, as plaintiff has investigated; (3) thelast known address, business, residence, or otherwise which plaintiff mayhave been able to ascertain for each of said defendants and the sources ofinformation which plaintiff has checked in an attempt to locate the presentaddress or whereabouts of said defendant or defendants, and further statingthat plaintiff has exercised due diligence and cannot by any means withinplaintiff's control ascertain the present address or whereabouts of saiddefendant or defendants; (4) that there are persons or corporations whoare willing to purchase an oil and gas lease upon the interest of thedefendant or defendants and that the existence of these unleased mineralinterests is detrimental to and impairs the enjoyment of the interest ofthe plaintiff; (5) that the plaintiff has acquired or has good reason tobelieve that he or she can acquire operating rights covering all mineralinterests other than the interest of said defendants in said tract or tracts.

      (b)   Upon the filing of such petition the court shall set same forhearing upon a date certain, which date must be at least thirty (30) daysfrom the date of the mailing of notice. Notice of the hearing, the natureof the hearing and relief requested shall be given by publication one (1)time in a newspaper of general circulation in the county in which theproperty is located and also in a newspaper of general circulation in thecounty of the last known address of the defendant or defendants if the sameis within the state of Kansas and by mailing by certified mail, returnreceipt requested to the last known address, if any, of the defendant ordefendants as set forth in said petition. A copy of such notice shall alsobe mailed by certified mail to the address of any person making payment oftaxes upon such interest if the same is other than the owner thereof asindicated by the records in the office of the county treasurer. Thepublication and mailing of notice shall all be done at least seven (7) daysprior to the date of hearing.

      (c)   On the date set for said hearing the court shall dismiss the actionas to all defendants who answer and request such dismissal, and as to allother defendants the court shall require proof that the requirements ofK.S.A. 55-220(b) have been satisfied, shall take evidence andhear testimony as to the matters set forth in plaintiff's petition, and atsaid hearing shall determine the bonus value for oil and gas leases onlands in said vicinity and the prevailing rental and royalty rate; and ifit appears to the court that the requirements of K.S.A. 55-220(b)have been satisfied, that the matters set forth in plaintiff's petition aretrue, that it is probable that a purchaser can be secured for an oil andgas lease on the unleased mineral interests of the defendant or defendants,that the existence of such unleased interests is detrimental to and impairsthe interest of the plaintiff, the court shall appoint a receiver for thepurpose of selling an oil and gas lease upon the interest of said defendantor defendants, and said order appointing the receiver and authorizing thesale of such lease shall set forth the minimum bonus which may be acceptedand the minimum royalty and rental rate. The court, in its discretion, mayrequire the receiver to give bond.

      History:   L. 1973, ch. 218, § 2; July 1.