Under the Code of Federal Regulations, as of 2015, special provisions apply to oil placer mining claims, allowing claimants to convert their claims to noncompetitive oil and gas leases, states Cornell University Law School Legal Information Institute. The Bureau of Land Management must have pronounced the claims void and abandoned.Continue Reading
To qualify for claim conversions, claimants must show they made reasonably diligent attempts to comply with section 314 of the Federal Land Policy and Management Act, and that they inadvertently or justifiably failed to comply with the provision, notes Cornell University Law School Legal Information Institute. The claim owners or their predecessors must have located the claims before Feb. 25, 1920. If the claims are not producing gas or oil, they must have produced it previously, or be able to do so.
Claimants must petition the Bureau of Land Management to issue noncompetitive oil and gas leases to obtain conversion approval, explains Cornell University Law School Legal Information Institute. Claimants must make all past rental and royalty payments due from the oil placer mining claim abandonment date. If BLM issues the leases, the date BLM pronounced the oil placer mining claims as void and abandoned is their effective date.Learn more about Investing