HF2531: Local Government Mineral Rights

Mandates that all counties and cities in Iowa must divest themselves of any mineral rights they own or control, such as rights to coal, gas, oil, and other resources underlying real estate. These rights must be conveyed, without consideration or expense, to the current surface owner of the respective land. All required conveyances must be completed within five years of the bill's effective date.  Effective 6/2/2026.

Key Points & Impacts:

• Defines 'interest in minerals' as a perpetual interest in real estate for ownership of minerals, excluding leases for mineral removal.

• Defines 'minerals' to include coal, gas, oil, hydrocarbons, oil shale, gemstones, ores, and geothermal resources.

• Counties are required to divest and transfer any mineral interests they own to the surface landowners at no cost.

• Cities are similarly required to divest and transfer any mineral interests they own to the surface landowners at no cost.

• Transfers must be completed within five years from the bill's effective date.

• Conveyances must be made without consideration (i.e., for free) and without cost to the surface owner.

• Affects all mineral rights owned or controlled by counties and cities, regardless of how acquired.

• Establishes a clear process and timeline for conveyance of public mineral interests to private landowners.