                                 CODE OF VIRGINIA

 PRODUCTION OF COAL BY MAJORITY INTEREST OWNER; PETITION TO ESTABLISH TRUST FOR
KNOWN COAL OWNERS (§ 45.2-607)

A. Any coal owner or lessee who (i) has at least a two-thirds interest in the
coal on a particular tract of land and (ii) seeks to extract such coal may
petition the circuit court in the county or city containing the majority of the
tract of coal to establish a trust for known coal owners and lessees.

B. The petition shall:

   1. Describe the particular tract of coal at issue;

   2. List all known owners of interests in the tract of coal; and

   3. Include the proposed terms of a lease to be offered to each minority owner.
   Such lease shall be typical of other arm&#8217;s-length leases in the area.

C. The petitioner shall establish to the satisfaction of the court that a
diligent effort has been made to obtain the consent of each minority owner to
lease his interest in the coal. The petitioner shall demonstrate to the court
that (i) the production of the coal by the petitioner&#8217;s lessee is of
economic benefit to all parties; (ii) if the coal is not produced, the economic
value of the coal is lost and the economic benefit of owning the coal is
decreased; and (iii) there is no practical method for dividing such coal among
the owners without extracting the coal.

D. Immediately upon filing the petition, the petitioner shall send by registered
or certified mail, with a return receipt requested, notice of the petition to
the party subject to the petition.

E. The court may appoint a trustee and authorize the trustee to execute a lease
pursuant to &#xA7; 45.2-604.

F. The court shall escrow or direct the trustee to escrow the proceeds of the
lease attributable to each of the minority interests until such minority
owner&#8217;s claim is established to the satisfaction of the court.

HISTORY: 2003, c. 775, § 45.1-161.311:8; 2021, Sp. Sess. I, c. 387.