TITLE EXAMINATION FOR UNPATENTED MINING CLAIMS

JurisdictionUnited States
Mineral Title Examination
(Feb 2012)

CHAPTER 6B
TITLE EXAMINATION FOR UNPATENTED MINING CLAIMS

Tracy O. Guinand
Reno, Nevada

TRACY O. GUINAND is the President of Triton Land Services, a land consulting business providing expertise in all facets of land property issues. She received her B.A. degree from Utah State University with a major in Finance and minors in Economics and Spanish. She also studied in Mexico City. Tracy started as a landman for Exxon Minerals Company in 1980 in Denver, Colorado, and transferred to Reno, Nevada in 1986. She later worked for Echo Bay Management Corporation, American Copper and Nickel and other corporations prior to founding Triton Land Services. In the past 31 years, she has continued to provide land services across the United States, from Michigan to California, and has worked in the hard-rock minerals, oil and gas and geothermal industries. Tracy will be the incoming Trustee for the RMMLF in November, 2011, has been a National Chairman and Director for the AAPL, the President, Vice President and Secretary for the Nevada Landman's Association, the Chairman for the Mining & Land Resource Institute in 2006-2009 and 2011 and a Public Lands and Reclamation Committee Member for the Nevada Mining Association.

Tracy O. Guinand, Mineral Landman

tracyguinand@yahoo.com

(775) 771-8134

In the "hardrock" mining business, title to the mineral property is usually examined in connection with project financings or large acquisitions involving millions of dollars. Unlike the oil and gas business, with its drilling and division order title opinions, mining title reports or opinions are generally not prepared each time exploration activities are undertaken. Because mining claims are real property, examining title to mining claims is in many respects the same as those involved in examining title to other types of property. Other issues unique to mining claims must be examined through record searches. My goal is to provide the title examiner with the basics of the nature of unpatented mining claims and the records to be searched in a mining claim title examination.

A. Records to be searched:

1. BLM Records. The title examiner must review the records at the appropriate Bureau of Land Management ("BLM") State Office to determine whether the mining claims were located on unappropriated land which was open for location, the approximate location of the mining claims, and the existence of claim conflicts. The master title plats, historical indices and control document indices (CDI's) must be examined, as described more thoroughly in other papers presented at this Institute. The on-line LR2000 public mining claim report records are organized by claim name, claimant, geographical location, and include serial register pages which state the location dates, dates filed with the BLM, whether the claims are active, claim names and numbers, present owners, claim types, the most recent filing dates of claim maintenance documents, county recordation information, if available, and transfers of interest information. The most useful of the mining claim reports is the geographical report, which reflects the mining claims in each quarter section and can be used to identify potential claims conflicts. Since mining claims are usually filed as a group, the serial number assigned to the first claim in the group is referred to as the lead file. Each mining claim lead file, including the lead file for each conflicting claim, should be examined to confirm that the proper evidence of location was timely filed and that evidence of annual assessment work, a notice of intent to hold, or claim maintenance fees were timely filed for each year following location. The lead file should include the claim map and any amendments of location and accounting information evidencing payment of applicable filing fees. The LR2000 reports and lead files are not always complete or current, and there may be a time lag between BLM's receipt of a document and its entry into the file.
2. County Records. An examination of the county records provides the primary means for determining claim ownership. As later discussed, certificates of location and claim maintenance documents are also recorded in the county. The county records are also helpful in identifying conflicting claims. In Nevada, county master claim maps are prepared by the county surveyor. The indexing systems vary from state to

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state. In many states, the counties maintain a separate set of indexed mining records. In some states, the mining claims are indexed in a grantor-grantee system or by claim name. In other states, these records may consist of or be supplemented by tract indices. The title examiner should also review all other county records normally reviewed for other kinds of title examination, including deeds, liens, UCC financing statements, probate files, tax records, lis pendens and judgments. Because unpatented claims are not fee lands, an examination of the county assessor and treasurer records is not usually required. An inquiry...

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