CHAPTER 2. Mining Partnerships [3940 - 3950]
( Chapter 2 added by Stats. 1988, Ch. 259, Sec. 11. )
A mining partnership exists when two or more persons who own or acquire a mining claim for the purpose of working it and extracting the mineral therefrom actually engage in working the claim. To the extent not inconsistent with this chapter, mining partnerships shall be governed in the same manner as other general partnerships would be governed pursuant to Section 16111 of the Corporations Code, by the Uniform Partnership Act (Chapter 1 (commencing with Section 15001) of Title 2 of the Corporations Code), or the Uniform Partnership Act of 1994 (Chapter 5 (commencing with Section 16100) of Title 2 of the Corporations Code).
(Amended by Stats. 1996, Ch. 1003, Sec. 3. Effective January 1, 1997.)
An express agreement to become partners or to share the profits and losses of mining is not necessary to the formation or existence of a mining partnership. The relation arises from the ownership of shares or interests in a mine and working it for the purpose of extracting the minerals therefrom.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
A member of a mining partnership shares in the profits and losses thereof in the proportion which the interest or share he or she owns in the mine bears to the whole partnership capital or whole number of shares.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
Each member of a mining partnership has a lien on the partnership property for the debts due the creditors thereof, and for money advanced by him or her for its use. This lien exists notwithstanding that there is an agreement among the partners that it shall not.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
The mining-ground owned and worked by partners in mining, whether purchased with partnership funds or not, is partnership property.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
One of the partners in a mining partnership may convey his or her interest in the mine and business without dissolving the partnership. The purchaser, from the date of his or her purchase, becomes a member of the partnership.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
A purchaser of an interest in the mining-ground of a mining partnership takes it subject to the liens existing in favor of the partners for debts due all creditors thereof, or advances made for the benefit of the partnership, unless he or she purchased in good faith, for a valuable consideration, without notice of that lien.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
A purchaser of the interest of a partner in a mine when the partnership is engaged in working it, takes with notice of all liens resulting from the relation of the partners to each other and to the creditors of the partnership.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
No member of a mining partnership or other agent or manager thereof can, by a contract in writing, bind the partnership, except by express authority derived from the members thereof.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
The decision of the members owning a majority of the shares or interests in a mining partnership binds it in the conduct of its business.
(Added by Stats. 1988, Ch. 259, Sec. 11.)
This chapter does not apply to any operations for the extraction of oil, gas, and other hydrocarbons.
(Added by Stats. 1988, Ch. 259, Sec. 11.)