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No. 127212
| Antrim County Treasurer, |
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Charles H. Koop |
Plaintiff-Appellee, |
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vs (Appeal from Ct of Appeals)
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(Antrim - Rodgers, P.) |
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| State of Michigan, and Department of |
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Kevin T. Smith |
| Treasury, |
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Defendants-Appellants, |
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| Pure Resources, L.P., Dominion |
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John J. Lynch |
| Reserves, Inc., et al., |
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Mark A. Kehoe |
Defendants-Appellees. |
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| _____________________________ |
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Click to view briefs in Adobe format:
Plaintiff-Appellee's Brief on Appeal>>
Defendants-Appellants' Brief on Appeal>>
Defendants-Appellees Dominion Reserves, Inc. and Wolverine
Gas and Oil Company, Inc.'s Brief on Appeal>>
Defendant-Appellee Pure Resources L.P.'s Brief on Appeal>>
State Bar of Michigan's Real Property Law Section's Amicus Curiae Brief>>
Michigan Oil and Gas Association's Amicus Curiae Brief>>
Michigan United Conservation Clubs', et al Amici Curiae Brief>>
Background
Plaintiff Antrim County Treasurer filed a foreclosure action under the General Property Tax Act (GPTA) after certain property owners failed to pay ad valorem taxes. The circuit court entered an order of foreclosure that affected more than one hundred parcels located in Lakes of the North, a subdivision overlying a large reserve of natural gas and oil. Antrim County sought a court ruling on what effect the foreclosure process would have on severed oil and gas rights on those properties. The State and the Department of Treasury argued that all oil and gas rights were subject to forfeiture upon foreclosure, pursuant to GPTA. But Pure Resources, Dominion Reserves, and Wolverine Gas & Oil argued that GPTA violates the due process and takings clauses of the state and federal constitutions. They also sought a declaratory judgment that severed oil and gas rights are exempt from ad valorem property taxes and therefore not subject to foreclosure. The trial court agreed, ruling that the oil and gas interests that had been severed from the surface estate were not subject to foreclosure under GPTA. In addition, the trial court concluded that GPTA, as amended, does not provide due process to the owners of severed oil and gas interests because it would be impossible for the foreclosing governmental unit to determine the identities of all of the owners of fractional interests and provide notice to all of those entities. The court also determined that, if GPTA is interpreted to extinguish severed oil and gas interests, it would violate the takings clauses of the state and federal constitutions. The Court of Appeals affirmed in a published opinion. The State and the Department of Treasury appeal.
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