{"data":{"id":"us-ky/krs-353.468","jurisdiction":"us-ky","citation":"KRS 353.468","heading":"If advantageous to unknown or missing owner, court may declare trust --","body":"Bond of trustee -- Sale of lease -- Trustee's report -- When court not to\nauthorize trustee's lease -- Trustee to use percentage of funds to search for\nowner -- Period during whic h unknown or missing owner may establish\nidentity and title.\n(1) If, upon presentation to the Circuit Court of the petition, the answer of the trustee ad\nlitem and the proof presented by the petitioner in such case, it appears to the court\nthat development  of the severed mineral interests will be advantageous to the\nunknown or missing owners, the court shall declare a trust in the lands or estate or\ninterest therein, appoint a trustee therefor and authorize the trustee to sell, execute\nand deliver a valid m ineral lease covering the severed mineral interests in and\nunderlying the lands.\n(2) Should the court appoint a trustee pursuant to subsection (1) of this section, the\ncourt shall, in its decree, require the trustee to give a bond in favor of the owners of\nthe severed mineral interest which is to be leased and shall fix the amount of the\nbond. The decree of the court shall further provide for all of the terms and\nprovisions of the lease which the trustee is authorized to make. It shall be\ndiscretionary with the court as to whether or not the trustee's sale of lease shall be\npublic or private and the decree shall provide therefor, and if a public sale be\nauthorized, the court shall in its decree fix and determine the notice to be given. The\nsale shall be for cash, payable on confirmation of sale. No appraisal shall be\nrequired.\n(3) The trustee shall proceed in compliance with the provisions of the decree to sell the\nlease authorized thereby, and after making the sale shall make a report thereof to the\ncourt. Upon filing the report, the court may hear evidence as to whether or not the\nsale price is reasonable, and if the court is satisfied with the sale and the amount\nreceived therefor, the sale shall be confirmed by the court and the lease shall be\nexecuted by the trustee with the approval of the court endorsed on the face thereof.\n(4) The court shall not authorize a trustee's lease upon the severed mineral interest of\nany owner whose identity and whereabouts is known, or can be ascertained by\ndiligent inquiry, or is discovered as a result of the action brought hereunder; and any\nsuch owner may intervene as a matter of right at any time prior to the entry of\njudgment approving the trustee's lease, for the purpose of establishing his title to the\nsevered mineral i nterests, and if the mineral owners claim is established to the\nsatisfaction of the court, the court shall dismiss the action as to the intervenor's\ninterest at plaintiff's cost.\n(5) The trustee shall collect the proceeds, if any, from the sale of the leas e and hold and\ninvest the same for the use and benefit of the unknown or missing owners. The\ncourt upon its own motion or upon motion of the trustee may authorize the trustee\nto expend an amount not to exceed ten percent (10%) of the funds collected by the\ntrustee for the purpose of instituting a search for the unknown or missing owners.\n(6) Within seven (7) years after the date of first commercial production of the severed\nmineral interests under the trustee's lease, any person being an unknown or missing\nowner of the severed mineral interest or any undivided portion thereof, may petition\nthe Circuit Court to redocket the action in which the trustee's lease was sought and\napproved in accordance with subsection (3) of this section and may thereupon\npresent such proof as the court may deem necessary to establish his identity and title\nto the severed mineral interest or any portion thereof. If the court finds that the\nunknown or missing owners have established their identity and title, the trustee\nshall be directed to distribute the funds in his hands attributable to the unknown or\nmissing owners' interest, and shall assign all future proceeds from said lease to the\nowners as their interests appear and shall deliver to the owners a recordable\ninstrument documenting their title to the  severed mineral interest, which instrument\nshall bear the endorsement and approval of the Circuit Court on the face thereof.","path":["KRS Chapter 353"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33099","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:39Z","sha256":"48d3fd41b1bcf8b995f5527547373f565b68500625845931785b66a377bce174","source_id":"us-ky","stale":false,"prev":"us-ky/krs-353.466","next":"us-ky/krs-353.470"},"notice":"GroundRules: Original legal text. Not legal advice."}