§ 64-1083. Abandoned municipality - Definition - Oil and gas leases thereon.

(A) As used herein, "abandoned municipality" means any city, town, or school district in and for which there is not, and has not been for a period of one (1) year, any acting or functioning governing board and no persons purporting or claiming to act as such governing board:  Provided, however, that a school district which has been disorganized and its territory legally made a part of another school district, by annexation, uniting, consolidation, or otherwise, shall not be considered an "abandoned municipality" within this act.

(B) Oil and gas mining leases of lands belonging to or under the control of an abandoned municipality may be entered into and executed in the following manner:

(1) Any legal resident of said abandoned municipality, or any person desiring to offer to purchase an oil or gas mining lease or leases of any lands owned by or belonging to any abandoned municipality, may file a petition in the district court of the county in which said abandoned municipality is located, alleging that said municipality is an abandoned municipality as defined by this act, stating the particular facts upon which said allegation is based, and that there are lands belonging to said abandoned municipality upon which it is desirable to execute an oil or gas mining lease or leases, and requesting the appointment of a receiver authorized to enter into such lease or leases as herein provided.  If said abandoned municipality is located in more than one county, the petition shall be filed in the district court of the county in which the greater portion of the area thereof is located.

(2) Notice of the filing of said petition and of the purpose thereof, and of the date of the hearing to be held as provided herein, shall be given by publication for three successive issues in a weekly newspaper of general circulation in the county in which the abandoned municipality is located, the first publication to be not less than twenty-five (25) days prior to said hearing, and in addition, such notice shall be posted not less than twenty-five (25) days prior to said hearing at five public places within such abandoned municipality.

(3) The district court shall hold a hearing at which any interested person may appear in support of, or in opposition to, the appointment of a receiver for the purpose of executing and entering into an oil and gas mining lease or leases of lands belonging to or under the control of the abandoned municipality.  The district court may continue said hearing from time to time without additional notice.

(4) If the district court shall find that the municipality is an abandoned municipality as defined by this act, and that there are lands belonging to said abandoned municipality, and that there is a person or persons desiring to secure an oil or gas mining lease or leases upon such lands, or any part thereof, the court shall appoint a receiver who shall have power and authority, upon approval by the court, to enter into valid oil and gas mining lease or leases of such lands to any person, firm, association, or corporation for oil and gas development, said leases to be for the term and conditioned as are leases executed by governing boards under the provisions of Section 1, Chapter 8, Title 64, Session Laws 1943; and said leases must be offered for sale and sold in the manner prescribed by Section 2, Chapter 8, Title 64, Session Laws 1943.

(5) After said lease or leases have been executed by the receiver, they shall be submitted to the district court for approval, and the district court shall approve the same if they comply with the provisions of this act.

(6) After said lease or leases have been executed by the receiver and approved by the district court, and the said lease or leases shall be recorded in each county in which any portion of said lands may be located, and the receiver shall be discharged.

(7) All monies to which said abandoned municipality is entitled, including rents, royalties, bonus payments, or any monies whatsoever, under any lease entered into under the provisions of this section, shall be paid to the county treasurer of the county in which the petition was filed, and shall be by the county treasurer deposited in a special account to the credit of said abandoned municipality, to be disposed of as may now or hereafter be provided by law.

(8) Any lessee, or the assignee of any lessee, under any lease executed as provided in this section, who shall fail to pay any monies to which said abandoned municipality is legally entitled under the terms of said lease, to the county treasurer, shall be guilty of a misdemeanor, and upon conviction thereof shall be fined a sum of not more than Ten Thousand Dollars ($10,000.00).

(9) The district attorney shall have authority to enforce the obligations of any lessee or the assignee thereof under any lease entered into as prescribed by this section, by any legal proceeding he may deem necessary, and he shall defend the interests of said abandoned municipality in any action or proceeding in which the interests of said abandoned municipality under said lease may be adversely affected.

(10) If any municipality, after having been an abandoned municipality, shall again have an acting, functioning, and duly constituted governing board, said governing board shall assume control of any lands belonging to said abandoned municipality, and of any leases thereof, including those executed as provided by this section, in the same manner and to the same extent as though said leases had been executed and entered into by said governing board.

Added by Laws 1949, p. 438, § 1, emerg. eff. June 6, 1949.  Renumbered from § 407 of this title by Laws 2010, c. 41, § 135, emerg. eff. April 2, 2010.