ILNews

Payment of ‘ad valorem’ taxes sustain ownership in mineral interest

Back to TopCommentsE-mailPrintBookmark and Share

Reversing the trial court’s ruling, the Indiana Court of Appeals concluded that a woman’s payment of “ad valorem” taxes on a mineral interest in Posey County prevented the lapse of her partial ownership.

Carolyn Sue Stinson appealed Posey Circuit Court’s finding that she had not paid real estate taxes on the ownership of the mineral interest and that any taxes she did pay on the royalties were not publicly documented.

The appellee, George Woodcock III, argued Stinson’s mineral interest lapsed because her tax payments were for “ad valorem” taxes.

In L.C. Westervelt, Margaret Fox, Joe Dan Trigg, Attorney-in-fact and Trustee for Lillian Guild, Marilyn Guild Ramah Lee Jones, Janice Trigg and the Guild Family Trust, Barbara Killen, Patricia Kunc, Jacqueline Medley, Paul Fennessey, Carolyn Sue Stinson, R.D. Jones, Inc., and their unknown spouses, grantees, representatives, successors, heirs, and devisees v. George Woodcock III, d/b/a West Drilling Company, 65A01-1311-PL-501, the Court of Appeals declined to read the statute as narrowly as Woodcock.

The COA noted Indiana Code 32-23-10-3(a) says a lapse in a mineral interest is prevented when “taxes are paid on the mineral interest by the owner of the mineral interest.”

Also the Court of Appeals found evidence contradicting Woodcock’s assertion that Stinson’s tax payments do not appear in the public record. The COA pointed out the county did keep track of Stinson’s mineral ownership by assessing taxes on her interest and generating tax statements that included legal descriptions and well numbers.

 “But even if Woodcock is correct that the County’s records do not include all the information they should, we decline to hold Stinson may be divested of her mineral rights solely by virtue of the Posey County Auditor’s recordkeeping procedures,” Judge Melissa May wrote.

Judge L. Mark Bailey concurred with the result but, in a separate opinion, argued the majority did not have to inquire into whether and how taxes were paid and recorded.

Since oil has continued to be drilled from the property associated with Stinson’s mineral interest, Bailey contended the plain language of the statute says that was enough to sustain her ownership.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Thank you, John Smith, for pointing out a needed correction. The article has been revised.

  2. The "National institute for Justice" is an agency for the Dept of Justice. That is not the law firm you are talking about in this article. The "institute for justice" is a public interest law firm. http://ij.org/ thanks for interesting article however

  3. I would like to try to find a lawyer as soon possible I've had my money stolen off of my bank card driver pressed charges and I try to get the information they need it and a Social Security board is just give me a hold up a run around for no reason and now it think it might be too late cuz its been over a year I believe and I can't get the right information they need because they keep giving me the runaroundwhat should I do about that

  4. It is wonderful that Indiana DOC is making some truly admirable and positive changes. People with serious mental illness, intellectual disability or developmental disability will benefit from these changes. It will be much better if people can get some help and resources that promote their health and growth than if they suffer alone. If people experience positive growth or healing of their health issues, they may be less likely to do the things that caused them to come to prison in the first place. This will be of benefit for everyone. I am also so happy that Indiana DOC added correctional personnel and mental health staffing. These are tough issues to work with. There should be adequate staffing in prisons so correctional officers and other staff are able to do the kind of work they really want to do-helping people grow and change-rather than just trying to manage chaos. Correctional officers and other staff deserve this. It would be great to see increased mental health services and services for people with intellectual or developmental disabilities in the community so that fewer people will have to receive help and support in prisons. Community services would like be less expensive, inherently less demeaning and just a whole lot better for everyone.

  5. Can I get this form on line,if not where can I obtain one. I am eligible.

ADVERTISEMENT