{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/45.2-1624.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/45.2-1624.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/45.2-1624.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/45.2-1624.html"}],"law_id":54396,"edition_id":1,"section_id":54396,"structure_id":13431,"section_number":"45.2-1624","catch_line":" Release of funds held in escrow or suspense because of conflicting claims to coalbed methane gas","history":"2015, c. 396, \u00a7 45.1-361.22:2; 2021, Sp. Sess. I, c. 387.","full_text":"A\n\nFor a coalbed methane gas well that was force-pooled prior to July 1, 2015, the coalbed methane gas well operator shall, on or before January 1, 2016, apply to the Board for the release of the funds in escrow and give written notice of such application to every conflicting claimant identified in the pooling orders, or to the successor of such claimant where the successor is known to the coalbed methane gas well operator or has identified himself to the coalbed methane gas well operator or the Board. Such notice shall be in accordance with the applicable provisions of § 45.2-1618 and, if any unknown person or unlocatable conflicting claimant is subject to escrow, such notice shall also be published in a newspaper of general circulation in the county or counties where the drilling unit is located once each week for four successive weeks. The application shall include a detailed accounting in accordance with subdivision B 5 of § 45.2-1622. The Board shall order payment of the principal and accrued interest, less escrow account fees, held in escrow, along with all future royalties attributable to the drilling unit, to each gas claimant identified in the pooling order unless, within 45 days of the coalbed methane gas well operator’s notice of its application, the coal claimant provides the Board and the coalbed methane gas well operator with evidence of a proceeding or agreement. The Board, pursuant to its authority granted by § 45.2-1614, may extend the time for filing the application and delay the payment of funds for a gas title conflict, the existence of an unknown gas claimant, the existence of an unlocatable gas claimant, an unresolved gas heirship issue, or any other reason beyond the reasonable control of the coalbed methane gas well operator and shall not order payment if the gas claimant fails to provide the Board with information needed under applicable law or regulation to distribute the funds.B\n\nFor a coalbed methane gas well force-pooled on or after July 1, 2015, the Board, in its pooling order, shall direct the coalbed methane gas well operator to pay royalties to the gas claimant unless the coal claimant provides the coalbed methane gas well operator and the Board with evidence of a proceeding or agreement not later than the time and place of the pooling hearing. The coalbed methane gas well operator shall provide written notice of the hearing to every gas claimant and coal claimant in accordance with § 45.2-1618. However, the Board, pursuant to its authority granted by § 45.2-1614, shall not order the coalbed methane gas well operator to make payment to a gas claimant if there exists any gas title conflict, unknown gas claimant, unlocatable gas claimant, unresolved gas heirship issue, or other reason beyond the reasonable control of the coalbed methane gas well operator or if the gas claimant fails to provide the coalbed methane gas well operator with the information required under applicable law or regulation to pay royalties. If the Board so declines to order payment to be made to a gas claimant, the coalbed methane gas well operator shall provide each affected gas claimant and the Board with written notice of the reason payment is not required to be made in accordance with the applicable provisions of § 45.2-1618. If payment is not required to be made due to the gas claimant’s failure to provide needed information under applicable law or regulation, the notice shall identify the information that is needed to enable the payment to be made.C\n\nFor a coalbed methane gas well voluntarily pooled at any time, the coalbed methane gas well operator shall pay royalties, including past royalties held, to each gas claimant unless, within 45 days of the coalbed methane gas well operator’s provision of written notice to the coal claimant that the operator will be paying royalties to the gas claimants, the coal claimant provides the coalbed methane gas well operator and each gas claimant with evidence of a proceeding or agreement. For any unit voluntarily pooled before July 1, 2015, the coalbed methane gas well operator shall provide such written notice to each gas claimant and coal claimant on or before January 1, 2016. For any unit voluntarily pooled on or after July 1, 2015, the coalbed methane gas well operator shall provide such written notice to each gas claimant and coal claimant not later than 45 days after production commences. However, the coalbed methane gas well operator shall not be required to make payment to a gas claimant if there exists any gas title conflict, unknown gas claimant, unlocatable gas claimant, unresolved gas heirship issue, or other reason beyond the reasonable control of the coalbed methane gas well operator or if the gas claimant fails to provide the coalbed methane gas well operator with information to process or pay royalties. If the Board so declines to order payment to be made to a gas claimant, the coalbed methane gas well operator shall provide each affected gas claimant with written notice of the reason payment is not required to be made in accordance with the applicable provisions of § 45.2-1618. If payment is not required to be made due to a gas claimant’s failure to provide needed information, the notice shall identify the information that is needed to enable the payment to be made.D\n\nAny pending judicial or arbitration proceeding shall be pursued by the coal claimant with diligence and shall not be voluntarily dismissed or nonsuited without the consent of the gas claimant. No default judgment shall be entered against a gas claimant in such proceeding. Royalties shall be paid as determined by the final order in the proceeding. A prevailing gas claimant may recover from the nonprevailing coal claimant reasonable costs and attorney fees if such gas claimant substantially prevails on the merits of the case and the coal claimant’s position is not substantially justified.E\n\nA coalbed methane gas well operator paying funds to a gas claimant in accordance with this section shall have no liability to a coal claimant for the payments made by the coalbed methane gas well operator to a gas claimant.F\n\nThis section shall not operate to extinguish any other right or cause of action or defense thereto, including any claim for an accounting or claim under § 8.01-31. Nothing in this section shall create, confer, or impose a fiduciary duty.","order_by":null,"text":{"0":{"id":199690,"text":"For a coalbed methane gas well that was force-pooled prior to July 1, 2015, the coalbed methane gas well operator shall, on or before January 1, 2016, apply to the Board for the release of the funds in escrow and give written notice of such application to every conflicting claimant identified in the pooling orders, or to the successor of such claimant where the successor is known to the coalbed methane gas well operator or has identified himself to the coalbed methane gas well operator or the Board. Such notice shall be in accordance with the applicable provisions of § 45.2-1618 and, if any unknown person or unlocatable conflicting claimant is subject to escrow, such notice shall also be published in a newspaper of general circulation in the county or counties where the drilling unit is located once each week for four successive weeks. The application shall include a detailed accounting in accordance with subdivision B 5 of § 45.2-1622. The Board shall order payment of the principal and accrued interest, less escrow account fees, held in escrow, along with all future royalties attributable to the drilling unit, to each gas claimant identified in the pooling order unless, within 45 days of the coalbed methane gas well operator’s notice of its application, the coal claimant provides the Board and the coalbed methane gas well operator with evidence of a proceeding or agreement. The Board, pursuant to its authority granted by § 45.2-1614, may extend the time for filing the application and delay the payment of funds for a gas title conflict, the existence of an unknown gas claimant, the existence of an unlocatable gas claimant, an unresolved gas heirship issue, or any other reason beyond the reasonable control of the coalbed methane gas well operator and shall not order payment if the gas claimant fails to provide the Board with information needed under applicable law or regulation to distribute the funds.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":199691,"text":"For a coalbed methane gas well force-pooled on or after July 1, 2015, the Board, in its pooling order, shall direct the coalbed methane gas well operator to pay royalties to the gas claimant unless the coal claimant provides the coalbed methane gas well operator and the Board with evidence of a proceeding or agreement not later than the time and place of the pooling hearing. The coalbed methane gas well operator shall provide written notice of the hearing to every gas claimant and coal claimant in accordance with § 45.2-1618. However, the Board, pursuant to its authority granted by § 45.2-1614, shall not order the coalbed methane gas well operator to make payment to a gas claimant if there exists any gas title conflict, unknown gas claimant, unlocatable gas claimant, unresolved gas heirship issue, or other reason beyond the reasonable control of the coalbed methane gas well operator or if the gas claimant fails to provide the coalbed methane gas well operator with the information required under applicable law or regulation to pay royalties. If the Board so declines to order payment to be made to a gas claimant, the coalbed methane gas well operator shall provide each affected gas claimant and the Board with written notice of the reason payment is not required to be made in accordance with the applicable provisions of § 45.2-1618. If payment is not required to be made due to the gas claimant’s failure to provide needed information under applicable law or regulation, the notice shall identify the information that is needed to enable the payment to be made.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":199692,"text":"For a coalbed methane gas well voluntarily pooled at any time, the coalbed methane gas well operator shall pay royalties, including past royalties held, to each gas claimant unless, within 45 days of the coalbed methane gas well operator’s provision of written notice to the coal claimant that the operator will be paying royalties to the gas claimants, the coal claimant provides the coalbed methane gas well operator and each gas claimant with evidence of a proceeding or agreement. For any unit voluntarily pooled before July 1, 2015, the coalbed methane gas well operator shall provide such written notice to each gas claimant and coal claimant on or before January 1, 2016. For any unit voluntarily pooled on or after July 1, 2015, the coalbed methane gas well operator shall provide such written notice to each gas claimant and coal claimant not later than 45 days after production commences. However, the coalbed methane gas well operator shall not be required to make payment to a gas claimant if there exists any gas title conflict, unknown gas claimant, unlocatable gas claimant, unresolved gas heirship issue, or other reason beyond the reasonable control of the coalbed methane gas well operator or if the gas claimant fails to provide the coalbed methane gas well operator with information to process or pay royalties. If the Board so declines to order payment to be made to a gas claimant, the coalbed methane gas well operator shall provide each affected gas claimant with written notice of the reason payment is not required to be made in accordance with the applicable provisions of § 45.2-1618. If payment is not required to be made due to a gas claimant’s failure to provide needed information, the notice shall identify the information that is needed to enable the payment to be made.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":199693,"text":"Any pending judicial or arbitration proceeding shall be pursued by the coal claimant with diligence and shall not be voluntarily dismissed or nonsuited without the consent of the gas claimant. No default judgment shall be entered against a gas claimant in such proceeding. Royalties shall be paid as determined by the final order in the proceeding. A prevailing gas claimant may recover from the nonprevailing coal claimant reasonable costs and attorney fees if such gas claimant substantially prevails on the merits of the case and the coal claimant’s position is not substantially justified.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":199694,"text":"A coalbed methane gas well operator paying funds to a gas claimant in accordance with this section shall have no liability to a coal claimant for the payments made by the coalbed methane gas well operator to a gas claimant.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":199695,"text":"This section shall not operate to extinguish any other right or cause of action or defense thereto, including any claim for an accounting or claim under § 8.01-31. Nothing in this section shall create, confer, or impose a fiduciary duty.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":13431,"edition_id":1,"name":"Gas and Oil Conservation","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13430,"metadata":{},"date_created":"2026-06-26 03:44:53","date_modified":"2026-06-26 03:44:53","permalink":{"id":224731,"object_type":"structure","relational_id":13431,"identifier":"2","token":"45.2\/IV\/16\/2","url":"\/45.2\/IV\/16\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13430,"edition_id":1,"name":"Virginia Gas and Oil Act","identifier":"16","label":"chapter","depth":3,"order_by":1,"parent_id":13429,"metadata":{},"date_created":"2026-06-26 03:44:53","date_modified":"2026-06-26 03:44:53","permalink":{"id":224675,"object_type":"structure","relational_id":13430,"identifier":"16","token":"45.2\/IV\/16","url":"\/45.2\/IV\/16\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13429,"edition_id":1,"name":"Gas and Oil","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12713,"metadata":{},"date_created":"2026-06-26 03:44:53","date_modified":"2026-06-26 03:44:53","permalink":{"id":224673,"object_type":"structure","relational_id":13429,"identifier":"IV","token":"45.2\/IV","url":"\/45.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12713,"edition_id":1,"name":"Mines, Minerals, and Energy","identifier":"45.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":222539,"object_type":"structure","relational_id":12713,"identifier":"45.2","token":"45.2","url":"\/45.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":76144,"structure_id":13431,"section_number":"45.2-1613","catch_line":" Meetings of the Board; notice; general powers and duties","url":"\/45.2-1613\/","token":"45.2\/IV\/16\/2\/45.2-1613","metadata":false},{"id":76594,"structure_id":13431,"section_number":"45.2-1614","catch_line":" Additional duties and responsibilities of the Board","url":"\/45.2-1614\/","token":"45.2\/IV\/16\/2\/45.2-1614","metadata":false},{"id":83675,"structure_id":13431,"section_number":"45.2-1615","catch_line":" Applicability and construction","url":"\/45.2-1615\/","token":"45.2\/IV\/16\/2\/45.2-1615","metadata":false},{"id":59912,"structure_id":13431,"section_number":"45.2-1616","catch_line":" Statewide spacing of wells","url":"\/45.2-1616\/","token":"45.2\/IV\/16\/2\/45.2-1616","metadata":false},{"id":60521,"structure_id":13431,"section_number":"45.2-1617","catch_line":" Voluntary pooling of interests in drilling units; validity of unit agreements","url":"\/45.2-1617\/","token":"45.2\/IV\/16\/2\/45.2-1617","metadata":false},{"id":66948,"structure_id":13431,"section_number":"45.2-1618","catch_line":" Notice of hearing; standing; form of hearing","url":"\/45.2-1618\/","token":"45.2\/IV\/16\/2\/45.2-1618","metadata":false},{"id":77291,"structure_id":13431,"section_number":"45.2-1619","catch_line":" Field rules and drilling units for wells; hearings and orders","url":"\/45.2-1619\/","token":"45.2\/IV\/16\/2\/45.2-1619","metadata":false},{"id":81791,"structure_id":13431,"section_number":"45.2-1620","catch_line":" Pooling of interests in drilling units","url":"\/45.2-1620\/","token":"45.2\/IV\/16\/2\/45.2-1620","metadata":false},{"id":80520,"structure_id":13431,"section_number":"45.2-1621","catch_line":" Coalbed methane gas; ownership","url":"\/45.2-1621\/","token":"45.2\/IV\/16\/2\/45.2-1621","metadata":false},{"id":64077,"structure_id":13431,"section_number":"45.2-1622","catch_line":" Pooling of interests for coalbed methane gas wells; conflicting claims to ownership","url":"\/45.2-1622\/","token":"45.2\/IV\/16\/2\/45.2-1622","metadata":false},{"id":72088,"structure_id":13431,"section_number":"45.2-1623","catch_line":" Conflicting claims of ownership; arbitration","url":"\/45.2-1623\/","token":"45.2\/IV\/16\/2\/45.2-1623","metadata":false},{"id":54396,"structure_id":13431,"section_number":"45.2-1624","catch_line":" Release of funds held in escrow or suspense because of conflicting claims to coalbed methane gas","url":"\/45.2-1624\/","token":"45.2\/IV\/16\/2\/45.2-1624","metadata":false},{"id":56696,"structure_id":13431,"section_number":"45.2-1625","catch_line":" Appeals of the Director's decisions; notices; hearings and orders","url":"\/45.2-1625\/","token":"45.2\/IV\/16\/2\/45.2-1625","metadata":false},{"id":85821,"structure_id":13431,"section_number":"45.2-1626","catch_line":" Enforcement","url":"\/45.2-1626\/","token":"45.2\/IV\/16\/2\/45.2-1626","metadata":false},{"id":54593,"structure_id":13431,"section_number":"45.2-1627","catch_line":" Standing when Director or Board fails to act","url":"\/45.2-1627\/","token":"45.2\/IV\/16\/2\/45.2-1627","metadata":false},{"id":56231,"structure_id":13431,"section_number":"45.2-1628","catch_line":" Recording of orders","url":"\/45.2-1628\/","token":"45.2\/IV\/16\/2\/45.2-1628","metadata":false}],"previous_section":{"id":72088,"structure_id":13431,"section_number":"45.2-1623","catch_line":" Conflicting claims of ownership; arbitration","url":"\/45.2-1623\/","token":"45.2\/IV\/16\/2\/45.2-1623","metadata":false},"next_section":{"id":56696,"structure_id":13431,"section_number":"45.2-1625","catch_line":" Appeals of the Director's decisions; notices; hearings and orders","url":"\/45.2-1625\/","token":"45.2\/IV\/16\/2\/45.2-1625","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/45.2-1624\/","history_text":"

This law was first created in 2015. The record of its establishment is cataloged in chapter 396<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":[{"id":76594,"section_number":"45.2-1614","catch_line":" Additional duties and responsibilities of the Board","order_by":null,"url":"\/45.2-1614\/"},{"id":66948,"section_number":"45.2-1618","catch_line":" Notice of hearing; standing; form of hearing","order_by":null,"url":"\/45.2-1618\/"},{"id":64077,"section_number":"45.2-1622","catch_line":" Pooling of interests for coalbed methane gas wells; conflicting claims to ownership","order_by":null,"url":"\/45.2-1622\/"},{"id":70643,"section_number":"8.01-31","catch_line":"Accounting in equity","order_by":null,"url":"\/8.01-31\/"}],"permalink":{"id":224777,"object_type":"law","relational_id":54396,"identifier":"45.2-1624","token":"45.2\/IV\/16\/2\/45.2-1624","url":"\/45.2-1624\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/45.2-1624\/","token":"45.2\/IV\/16\/2\/45.2-1624","dublin_core":{"Title":" Release of funds held in escrow or suspense because of conflicting claims to coalbed methane gas","Type":"Text","Format":"text\/html","Identifier":"\u00a7 45.2-1624","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For a coalbed methane gas<\/span> well<\/span> that was force-pooled prior to July 1, 2015, the coalbed methane gas<\/span> well<\/span> operator<\/span> shall, on or before January 1, 2016, apply to the Board<\/span> for the release of the funds in escrow and give written notice of such application to every conflicting claimant identified in the pooling orders<\/span>, or to the successor of such claimant where the successor is known to the coalbed methane gas<\/span> well<\/span> operator<\/span> or has identified himself to the coalbed methane gas<\/span> well<\/span> operator<\/span> or the Board<\/span>. Such notice shall be in accordance with the applicable provisions of § 45.2-1618<\/a> and, if any unknown person or unlocatable conflicting claimant is subject to escrow, such notice shall also be published in a newspaper of general circulation in the county or counties where the drilling unit<\/span> is located once each week for four successive weeks. The application shall include a detailed accounting in accordance with subdivision B 5 of § 45.2-1622<\/a>. The Board<\/span> shall order<\/span> payment of the principal and accrued interest, less escrow account fees, held in escrow, along with all future royalties attributable to the drilling unit<\/span>, to each gas claimant<\/span> identified in the pooling order<\/span> unless, within 45 days of the coalbed methane gas<\/span> well<\/span> operator<\/span>’s notice of its application, the coal claimant<\/span> provides the Board<\/span> and the coalbed methane gas<\/span> well<\/span> operator<\/span> with evidence of a proceeding or agreement<\/span>. The Board<\/span>, pursuant to its authority granted by § 45.2-1614<\/a>, may extend the time for filing the application and delay the payment of funds for a gas title conflict, the existence of an unknown gas claimant<\/span>, the existence of an unlocatable gas claimant<\/span>, an unresolved gas heirship issue<\/span>, or any other reason beyond the reasonable control of the coalbed methane gas<\/span> well<\/span> operator<\/span> and shall not order<\/span> payment if the gas claimant<\/span> fails to provide the Board<\/span> with information needed under applicable law<\/span> or regulation to distribute the funds. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For a coalbed methane gas<\/span> well<\/span> force-pooled on or after July 1, 2015, the Board<\/span>, in its pooling order<\/span>, shall direct the coalbed methane gas<\/span> well<\/span> operator<\/span> to pay royalties to the gas claimant<\/span> unless the coal claimant<\/span> provides the coalbed methane gas<\/span> well<\/span> operator<\/span> and the Board<\/span> with evidence of a proceeding or agreement<\/span> not later than the time and place of the pooling hearing<\/span>. The coalbed methane gas<\/span> well<\/span> operator<\/span> shall provide written notice of the hearing<\/span> to every gas claimant<\/span> and coal claimant<\/span> in accordance with § 45.2-1618<\/a>. However, the Board<\/span>, pursuant to its authority granted by § 45.2-1614<\/a>, shall not order<\/span> the coalbed methane gas<\/span> well<\/span> operator<\/span> to make payment to a gas claimant<\/span> if there exists any gas title conflict, unknown gas claimant<\/span>, unlocatable gas claimant<\/span>, unresolved gas heirship issue<\/span>, or other reason beyond the reasonable control of the coalbed methane gas<\/span> well<\/span> operator<\/span> or if the gas claimant<\/span> fails to provide the coalbed methane gas<\/span> well<\/span> operator<\/span> with the information required under applicable law<\/span> or regulation to pay royalties. If the Board<\/span> so declines to order<\/span> payment to be made to a gas claimant<\/span>, the coalbed methane gas<\/span> well<\/span> operator<\/span> shall provide each affected gas claimant<\/span> and the Board<\/span> with written notice of the reason payment is not required to be made in accordance with the applicable provisions of § 45.2-1618<\/a>. If payment is not required to be made due to the gas claimant<\/span>’s failure to provide needed information under applicable law<\/span> or regulation, the notice shall identify the information that is needed to enable the payment to be made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> For a coalbed methane gas<\/span> well<\/span> voluntarily pooled at any time, the coalbed methane gas<\/span> well<\/span> operator<\/span> shall pay royalties, including past royalties held, to each gas claimant<\/span> unless, within 45 days of the coalbed methane gas<\/span> well<\/span> operator<\/span>’s provision of written notice to the coal claimant<\/span> that the operator will be paying royalties to the gas claimants<\/span>, the coal claimant<\/span> provides the coalbed methane gas<\/span> well<\/span> operator<\/span> and each gas claimant<\/span> with evidence of a proceeding or agreement<\/span>. For any unit voluntarily pooled before July 1, 2015, the coalbed methane gas<\/span> well<\/span> operator<\/span> shall provide such written notice to each gas claimant<\/span> and coal claimant<\/span> on or before January 1, 2016. For any unit voluntarily pooled on or after July 1, 2015, the coalbed methane gas<\/span> well<\/span> operator<\/span> shall provide such written notice to each gas claimant<\/span> and coal claimant<\/span> not later than 45 days after production commences. However, the coalbed methane gas<\/span> well<\/span> operator<\/span> shall not be required to make payment to a gas claimant<\/span> if there exists any gas title conflict, unknown gas claimant<\/span>, unlocatable gas claimant<\/span>, unresolved gas heirship issue<\/span>, or other reason beyond the reasonable control of the coalbed methane gas<\/span> well<\/span> operator<\/span> or if the gas claimant<\/span> fails to provide the coalbed methane gas<\/span> well<\/span> operator<\/span> with information to process or pay royalties. If the Board<\/span> so declines to order<\/span> payment to be made to a gas claimant<\/span>, the coalbed methane gas<\/span> well<\/span> operator<\/span> shall provide each affected gas claimant<\/span> with written notice of the reason payment is not required to be made in accordance with the applicable provisions of § 45.2-1618<\/a>. If payment is not required to be made due to a gas claimant<\/span>’s failure to provide needed information, the notice shall identify the information that is needed to enable the payment to be made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Any pending judicial or arbitration proceeding shall be pursued by the coal claimant<\/span> with diligence and shall not be voluntarily dismissed or nonsuited without the consent of the gas claimant<\/span>. No default judgment<\/span> shall be entered against a gas claimant<\/span> in such proceeding. Royalties shall be paid as determined by the final order<\/span> in the proceeding. A prevailing gas claimant<\/span> may recover from the nonprevailing coal claimant<\/span> reasonable costs and attorney fees if such gas claimant<\/span> substantially prevails on the merits of the case and the coal claimant<\/span>’s position is not substantially justified. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A coalbed methane gas<\/span> well<\/span> operator<\/span> paying funds to a gas claimant<\/span> in accordance with this section shall have no liability to a coal claimant<\/span> for the payments made by the coalbed methane gas<\/span> well<\/span> operator<\/span> to a gas claimant<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> This section shall not operate to extinguish any other right or cause of action<\/span> or defense thereto, including any claim for an accounting or claim under § 8.01-31<\/a>. Nothing in this section shall create, confer, or impose a fiduciary duty. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n RELEASE OF FUNDS HELD IN ESCROW OR SUSPENSE BECAUSE OF CONFLICTING CLAIMS TO\nCOALBED METHANE GAS (\u00a7 45.2-1624)\n\nA. For a coalbed methane gas well that was force-pooled prior to July 1, 2015,\nthe coalbed methane gas well operator shall, on or before January 1, 2016, apply\nto the Board for the release of the funds in escrow and give written notice of\nsuch application to every conflicting claimant identified in the pooling orders,\nor to the successor of such claimant where the successor is known to the coalbed\nmethane gas well operator or has identified himself to the coalbed methane gas\nwell operator or the Board. Such notice shall be in accordance with the\napplicable provisions of § 45.2-1618 and, if any unknown person or\nunlocatable conflicting claimant is subject to escrow, such notice shall also be\npublished in a newspaper of general circulation in the county or counties where\nthe drilling unit is located once each week for four successive weeks. The\napplication shall include a detailed accounting in accordance with subdivision B\n5 of § 45.2-1622. The Board shall order payment of the principal and\naccrued interest, less escrow account fees, held in escrow, along with all\nfuture royalties attributable to the drilling unit, to each gas claimant\nidentified in the pooling order unless, within 45 days of the coalbed methane\ngas well operator’s notice of its application, the coal claimant provides\nthe Board and the coalbed methane gas well operator with evidence of a\nproceeding or agreement. The Board, pursuant to its authority granted by §\n45.2-1614, may extend the time for filing the application and delay the payment\nof funds for a gas title conflict, the existence of an unknown gas claimant, the\nexistence of an unlocatable gas claimant, an unresolved gas heirship issue, or\nany other reason beyond the reasonable control of the coalbed methane gas well\noperator and shall not order payment if the gas claimant fails to provide the\nBoard with information needed under applicable law or regulation to distribute\nthe funds.\n\nB. For a coalbed methane gas well force-pooled on or after July 1, 2015, the\nBoard, in its pooling order, shall direct the coalbed methane gas well operator\nto pay royalties to the gas claimant unless the coal claimant provides the\ncoalbed methane gas well operator and the Board with evidence of a proceeding or\nagreement not later than the time and place of the pooling hearing. The coalbed\nmethane gas well operator shall provide written notice of the hearing to every\ngas claimant and coal claimant in accordance with § 45.2-1618. However, the\nBoard, pursuant to its authority granted by § 45.2-1614, shall not order\nthe coalbed methane gas well operator to make payment to a gas claimant if there\nexists any gas title conflict, unknown gas claimant, unlocatable gas claimant,\nunresolved gas heirship issue, or other reason beyond the reasonable control of\nthe coalbed methane gas well operator or if the gas claimant fails to provide\nthe coalbed methane gas well operator with the information required under\napplicable law or regulation to pay royalties. If the Board so declines to order\npayment to be made to a gas claimant, the coalbed methane gas well operator\nshall provide each affected gas claimant and the Board with written notice of\nthe reason payment is not required to be made in accordance with the applicable\nprovisions of § 45.2-1618. If payment is not required to be made due to the\ngas claimant’s failure to provide needed information under applicable law\nor regulation, the notice shall identify the information that is needed to\nenable the payment to be made.\n\nC. For a coalbed methane gas well voluntarily pooled at any time, the coalbed\nmethane gas well operator shall pay royalties, including past royalties held, to\neach gas claimant unless, within 45 days of the coalbed methane gas well\noperator’s provision of written notice to the coal claimant that the\noperator will be paying royalties to the gas claimants, the coal claimant\nprovides the coalbed methane gas well operator and each gas claimant with\nevidence of a proceeding or agreement. For any unit voluntarily pooled before\nJuly 1, 2015, the coalbed methane gas well operator shall provide such written\nnotice to each gas claimant and coal claimant on or before January 1, 2016. For\nany unit voluntarily pooled on or after July 1, 2015, the coalbed methane gas\nwell operator shall provide such written notice to each gas claimant and coal\nclaimant not later than 45 days after production commences. However, the coalbed\nmethane gas well operator shall not be required to make payment to a gas\nclaimant if there exists any gas title conflict, unknown gas claimant,\nunlocatable gas claimant, unresolved gas heirship issue, or other reason beyond\nthe reasonable control of the coalbed methane gas well operator or if the gas\nclaimant fails to provide the coalbed methane gas well operator with information\nto process or pay royalties. If the Board so declines to order payment to be\nmade to a gas claimant, the coalbed methane gas well operator shall provide each\naffected gas claimant with written notice of the reason payment is not required\nto be made in accordance with the applicable provisions of § 45.2-1618. If\npayment is not required to be made due to a gas claimant’s failure to\nprovide needed information, the notice shall identify the information that is\nneeded to enable the payment to be made.\n\nD. Any pending judicial or arbitration proceeding shall be pursued by the coal\nclaimant with diligence and shall not be voluntarily dismissed or nonsuited\nwithout the consent of the gas claimant. No default judgment shall be entered\nagainst a gas claimant in such proceeding. Royalties shall be paid as determined\nby the final order in the proceeding. A prevailing gas claimant may recover from\nthe nonprevailing coal claimant reasonable costs and attorney fees if such gas\nclaimant substantially prevails on the merits of the case and the coal\nclaimant’s position is not substantially justified.\n\nE. A coalbed methane gas well operator paying funds to a gas claimant in\naccordance with this section shall have no liability to a coal claimant for the\npayments made by the coalbed methane gas well operator to a gas claimant.\n\nF. This section shall not operate to extinguish any other right or cause of\naction or defense thereto, including any claim for an accounting or claim under\n§ 8.01-31. Nothing in this section shall create, confer, or impose a\nfiduciary duty.\n\nHISTORY: 2015, c. 396, \u00a7 45.1-361.22:2; 2021, Sp. Sess. I, c. 387.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}