45-7-1      Discharge and cancellation of record of lease--Marginal entry on record.
45-7-2      Discharge and cancellation by endorsement on original lease--Entry on margin of record.
45-7-3      Expiration or forfeiture of lease--Release of record.
45-7-4      Demand for release--Service upon lease owner of record--Form.
45-7-5      Affidavit as to demand for release--Filing with register of deeds.
45-7-6      Action by owner of lease to determine rights--Lis pendens notice--Affidavit as to demand for release not recorded.
45-7-7      Affidavit as to demand for release--Recording by register of deeds, effect.
45-7-8      Action to obtain release--Damages--Attorney fees.
45-7-9      Extension of lease on occurrence of contingency--Effect--Recording.

45-7-1. Discharge and cancellation of record of lease--Marginal entry on record.

Any oil and gas or mining lease that has been or may hereafter be recorded in the office of the register of deeds of any county may be discharged and canceled of record by an entry on the margin of the record thereof signed by the lease owner of record, or his duly authorized attorney in fact or personal representative, or if a corporation, by its duly authorized officers, surrendering all of his right, title, and interest in and to said lease, in the presence of the register of deeds or his deputy who shall subscribe the same as witness.

Source: SL 1941, ch 180, § 2; SDC Supp 1960, § 42.0813.

45-7-2. Discharge and cancellation by endorsement on original lease--Entry on margin of record.

Any oil and gas or mining lease that has been or may hereafter be recorded in the office of the register of deeds of any county may be discharged and canceled by an endorsement made on the original lease signed by the lease owner or his duly authorized attorney in fact or personal representative, or if a corporation, by its duly authorized officers, surrendering his right, title, and interest in and to said lease, which endorsement shall be entered on the margin of the record thereof at such time as the lease containing the endorsement is submitted to the register of deeds or his deputy.

Source: SL 1941, ch 180, § 3; SDC Supp 1960, § 42.0814.

45-7-3. Expiration or forfeiture of lease--Release of record.

When an oil, gas, or other mineral lease heretofore or hereafter given on lands situated in any county of South Dakota and recorded therein shall expire or become forfeited, it shall be the duty of the record owner of the lease, within fifteen days after the date of the forfeiture or expiration of any lease, to have such lease surrendered in writing, such surrender to be signed by the party making the same, acknowledged and placed of record in the county where the leased land is situated, without cost to the landowner or the owner of the mineral rights.

Source: SL 1941, ch 180, § 1; SL 1943, ch 154; SDC Supp 1960, § 42.0812.

45-7-4. Demand for release--Service upon lease owner of record--Form.

If the record owner of the lease shall fail or neglect to execute and record such surrender within the time provided for, then the owner of said land or mineral rights may serve upon the lease owner of record in person, or by registered or certified letter mailed to his address as disclosed by the lease or assignment under which he holds, or in the absence thereof, by publication for two consecutive weeks in a newspaper of general circulation in the county where the land is situated, a notice in writing in substantially the following form:

To __________:

I, the undersigned owner of the following described land situated in ____ county, South Dakota, to wit:

(Description of land)

upon which a lease dated ____ day of ____, 20__, was given to: ____, do hereby notify you that said lease has expired or has become forfeited and that I hereby elect to declare, and do declare, the said lease forfeited and void, and that unless, within thirty days from the date of service, mailing or first publication of this notice, you notify the register of deeds of said county as provided by law that said lease has not been forfeited or has not expired, I will file with the said register of deeds an affidavit of forfeiture as provided by law; and I hereby demand that you execute, or have executed, a proper surrender of said lease and that you put the same of record in the office of the register of deeds of said county within said thirty-day period.

Dated this ____ day of ____, 20__.

______________________________.

Source: SL 1941, ch 180, § 1; SL 1943, ch 154; SDC Supp 1960, § 42.0812.

45-7-5. Affidavit as to demand for release--Filing with register of deeds.

The owner of said land or the owner of the mineral rights may then file with the register of deeds of the county where said land is situated, an affidavit setting forth that affiant is the owner of said land or mineral rights; that the lease has expired or become forfeited, reciting the facts constituting such expiration or forfeiture; and setting out in said affidavit a copy of the notice served as provided in § 45-7-4 and the manner and time of the service thereof.

Source: SL 1941, ch 180, § 1; SL 1943, ch 154; SDC Supp 1960, § 42.0812.

45-7-6. Action by owner of lease to determine rights--Lis pendens notice--Affidavit as to demand for release not recorded.

If the owner of the lease shall, within the thirty-day period provided by the notice pursuant to § 45-7-4, commence an action against the owner of said land or mineral rights to determine all rights under said lease and file for record a notice of pendency of said action, then the said affidavit shall not be recorded, but the register of deeds shall notify the owner of the land or mineral rights of the action of the lease owner.

Source: SL 1941, ch 180, § 1; SL 1943, ch 154; SDC Supp 1960, § 42.0812.

45-7-7. Affidavit as to demand for release--Recording by register of deeds, effect.

If the lease owner shall not commence the action and file for record a notice of pendency of said action as provided in § 45-7-6, then at the expiration of the said thirty-day period, the register of deeds shall record said affidavit and thereafter said lease shall not affect the merchantability of the title to said land or mineral rights and the record of said lease shall not be notice to the public of the existence of said lease or of any interest therein or rights thereunder, and said record shall not be received in evidence in any court of the state on behalf of the lease owner against the lessor, his successors, or assigns.

Source: SL 1941, ch 180, § 1; SL 1943, ch 154; SDC Supp 1960, § 42.0812.

45-7-8. Action to obtain release--Damages--Attorney fees.

The owner of said land or the owner of the mineral rights may, after thirty days have expired from the time of the service of the demand as set forth in § 45-7-4, in lieu of the filing of his affidavit, commence an action against the owner of such lease upon his neglect or refusal to execute a release as provided by this chapter in any court of competent jurisdiction, to obtain such release, and he may also recover in such action of the lessee, his successors, or assigns, together with court costs including a reasonable attorney's fee for preparing and prosecuting the suit, in addition to the damages suffered by him as the proximate result of such neglect or refusal to execute a release as herein provided.

Source: SDC Supp 1960, § 42.0812 as added by SL 1965, ch 176.

45-7-9. Extension of lease on occurrence of contingency--Effect--Recording.

If any oil, gas, or mineral lease contains a statement of any contingency, the occurrence of which extends the lease for either a specified or an unspecified period of time, and that contingency has taken place, that lease may not be discharged or cancelled under the provisions of this chapter until the period of extension has run or until the contingency has ceased. Any such extension caused by reason of production shall be recorded by the lessee by filing an affidavit of production with the records of the property being leased in the office of the register of deeds.

Source: SL 1985, ch 342.