Michigan S.B. 427
Status: Passed Senate, October 15, 2013
Service Performed by Oil, Gas or Mineral Landmen Not Considered Employment
Under this bill, the term “employment”, for purposes of the Michigan Employment Security Act, no longer includes service performed by an individual as an oil, gas, or mineral landman under a contract with a private person or private entity if:
- Substantially all remuneration, including payment at a daily rate paid in cash or otherwise for the performance of the service, is directly related to the individual’s completion of the specific tasks contracted for rather than the number of hours worked,
- The contract provides that the individual is an independent contractor and not an employee with respect to the contracted service
“Landman” means an individual who is engaged in 1 or more of the following:
- Negotiating the acquisition or divestiture of oil, gas, or mineral rights.
- Negotiating business agreements that provide for the exploration for, transportation of, or development of oil, gas, or minerals.
- Determining the ownership of oil, gas, or minerals through research of public and private records.
- Reviewing the status of the title to, and curing title defects and deficiencies associated with, the ownership of oil, gas, or minerals.
- Managing rights or obligations derived from the ownership of interests in oil, gas, or minerals.
Interacting with regulatory agencies in support of activities relating to exploring for and producing oil, gas, or minerals, including unitizing or pooling interests in oil, gas, or minerals.