                                 CODE OF VIRGINIA

 CONFLICTING CLAIMS OF OWNERSHIP; ARBITRATION (§ 45.2-1623)

A. The Board shall enter an order requiring that the matter of disputed
ownership be submitted to arbitration and notify the circuit court in the
jurisdiction in which the majority of the subject tract is located (i) upon
written request from all claimants to the ownership of coalbed methane gas
related to the subject tract under &#xA7; 45.2-1622; (ii) upon receipt of an
affidavit executed by all such claimants affirming that there is no other known
surface owner, gas or oil owner, coal owner, mineral owner, or operator of a gas
storage field certificated by the State Corporation Commission having an
interest underlying the subject tract; (iii) after a hearing noticed pursuant to
subsection B of &#xA7; 45.2-1618; and (iv) upon a determination by the
Department whether sufficient funds are available to pay the estimated costs of
the arbitration pursuant to subsection F. Within 30 days of receipt of the
notice from the Board, the circuit court shall appoint an attorney from the list
maintained by the Department pursuant to subsection C or, at the discretion of
the court, another attorney meeting the qualifications set forth in subsection
C. Prior to his appointment as an arbitrator of a particular dispute, the
attorney shall certify to the circuit court that he has not derived more than 10
percent of his income during any of the preceding three years from any (a)
claimants asserting ownership or rights in the subject tract or (b) affiliated
entities or immediate family members of such claimants. If the attorney cannot
provide such certification, he shall notify the circuit court and he will be
disqualified from serving as arbitrator for that particular dispute.

B. The Department shall send notice to all claimants if it determines that there
are insufficient funds to pay the estimated costs of the arbitration pursuant to
subsection F. The claimants may, by unanimous agreement, proceed with the
arbitration process, notify the Board of such agreement, and bear the costs to
the extent of the insufficiency. If the parties do not agree, the arbitration
shall be delayed until such funds are available.

C. To be qualified as an arbitrator, a candidate shall (i) be an attorney
licensed in the Commonwealth; (ii) have at least 10 years of experience in real
estate law, including substantial expertise in mineral title examination; and
(iii) disclose to the Board whether he has been engaged within the preceding
three years by any person in a matter subject to the jurisdiction of the Board
or the Department under this chapter. The Department shall solicit applications
from attorneys meeting the qualifications set forth in this subsection and
maintain a list of attorneys qualifying as arbitrators for use by the circuit
courts. The Department shall update its list at least once annually. To maintain
qualification, each attorney whose name appears on the list shall update
annually his disclosures as set forth in clause (iii).

D. The arbitrator shall determine a time and place for the arbitration hearing
and cause written notification of such hearing to be served on each surface
owner, gas or oil owner, coal owner, mineral owner, or operator of a gas storage
field certificated by the State Corporation Commission having an interest
underlying the tract that is the subject of the hearing. Parties shall be served
personally or by certified mail, return receipt requested, not less than 14 days
before the hearing. Appearance at the hearing waives such party&#8217;s right to
challenge notice. Any party to the arbitration has the right to representation
before the arbitrator pursuant to &#xA7; 8.01-581.05. In accordance with &#xA7;
8.01-581.06, the arbitrator may issue subpoenas for the attendance of witnesses
and for the production of books, records, documents, and other evidence;
administer oaths; and, upon application by a party to the arbitration, permit
the taking of depositions for use as evidence. The arbitrator shall hear and
determine the controversy upon the evidence and consistent with applicable law,
notwithstanding the failure of a party to appear at the hearing.

E. The arbitrator shall issue his determination as to the ownership in the
coalbed methane gas and entitlement to proceeds held in escrow within six months
from the order of the Board requiring the matter be submitted to arbitration,
unless a longer period is otherwise agreed to by all parties. Such determination
shall be in writing and sent to the Board and to each party to whom notice is
required to be given under subsection D.

F. Upon the issuance of the arbitrator&#8217;s determination of ownership and
subject to the availability of funds, the fees and expenses of the arbitration,
but not including fees or costs of counsel engaged by the respective claimants
or any other costs of the claimants, shall be paid from the accrued interest on
general escrow account funds.

G. An arbitrator&#8217;s determination rendered pursuant to subsection E shall
be binding upon the parties, and upon request of any party to the arbitration
such determination may be entered as the judgment of the circuit court
responsible for appointing the arbitrator under subsection A.

H. Upon application of any party to the arbitration, a determination rendered
pursuant to subsection E may be confirmed, vacated, corrected, or appealed
pursuant to the grounds set forth in Chapter 21 (&#xA7; 8.01-577 et seq.) of
Title 8.01.

HISTORY: 2010, c. 442, § 45.1-361.22:1; 2021, Sp. Sess. I, c. 387.