CHAPTER 12. COAL: ESTATES IN LAND
IC 32-23-12
Chapter 12. Coal: Estates in Land
IC 32-23-12-1
Exemptions from chapter
Sec. 1. This chapter does not do the following:
(1) Provide an exclusive basis by which a joint owner in coal ora lessee of the coal owner may enjoy their estate in the coalland.
(2) Diminish the rights of a joint owner of coal or a lessee of thecoal owner under common law.
(3) Diminish the appurtenant rights of a coal owner.
(4) Prohibit a joint owner from filing a petition for partitionunder IC 32-17-4, provided that the petition for partition is filedin accordance with and subject to IC 32-23-12-9(d).
(5) Prohibit any entity with eminent domain powers fromacquiring all or a portion of the coal land by exercise of eminentdomain powers.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-2
"Coal land"
Sec. 2. As used in this chapter, "coal land" means the coal estatein land that contains coal and is subject to a vested interest by aplaintiff, under this chapter, to the coal lying within the land.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-3
"Coal owner"
Sec. 3. As used in this chapter, "coal owner" means a personvested with an undivided fractional fee simple interest or otherfreehold interest in coal contained within the coal land. However, theterm does not include a person with only a leasehold, easement, orright-of-way interest in the coal land.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-4
"Joint owner"
Sec. 4. As used in this chapter, "joint owner" means a person whois a joint tenant, a tenant in common, a tenant by the entirety, orother person who is a coal owner of less than one hundred percent(100%) of an undivided interest in all the coal within the coal landthat is sought to be developed.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-5
Court proceedings
Sec. 5. A proceeding under this chapter must be brought in thecircuit or superior court of the county:
(1) where the coal land sought to be affected is entirely located;
or
(2) if the coal land is located in more than one (1) county, thecounty where the major part of the coal land is located.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-6
Authority to remove coal; authority of court; length of lease
Sec. 6. (a) If the title to coal lying within the land is owned byjoint owners, a coal owner or coal lessee of the coal owner that meetsthe requirements under this chapter is authorized to mine and removecoal from the land subject to this chapter.
(b) The circuit or superior court of the county in which the coalland or the major part of the coal land lies may:
(1) declare a trust in the coal land;
(2) appoint without a bond a trustee for all persons owning aninterest in the coal land who are not plaintiffs or the lessor ofthe plaintiffs under a valid and subsisting coal lease; and
(3) authorize the trustee to sell, execute, and deliver a validlease on the coal land on behalf of each defendant on terms andconditions approved by the circuit court as provided in thischapter.
(c) A lease created under this chapter continues after thetermination of the trust, unless the lease has expired by its ownterms.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-7
Appointment of trustee
Sec. 7. Proceedings for the appointment of a trustee may beinstituted by any person who is:
(1) a coal owner of the coal sought to be developed; or
(2) vested with a valid and subsisting coal lease, if the lessor isa person described in subdivision (1).
As added by P.L.94-2009, SEC.1.
IC 32-23-12-8
Creation of trust to develop coal interest; petition; guardian adlitem; evidence; coal lease; fees
Sec. 8. (a) The person seeking to create a trust for an interest incoal land for the purpose of leasing and developing the coal interestshall join as a defendant each person who has a legal interest in thecoal land, except for any plaintiffs or persons having a legal interestin the coal land who at the time of the action are parties to a validand existing lease granting to the plaintiff the mining rights soughtby the plaintiff. A person who might have a contingent or futureinterest in the coal land is bound by the judgment entered in theproceedings.
(b) The plaintiff shall file a verified petition that specifically setsforth the following:
(1) The request of each plaintiff that a trustee be appointed to
execute a lease granting the plaintiff the right to mine andremove coal from the subject coal land.
(2) The legal description of the coal land.
(3) The interest of the plaintiff in the coal within the coal land.
(4) The apparent interest of each defendant in the coal withinthe coal land.
(5) A statement that the plaintiff is willing to purchase amineral lease covering the interest of each defendant and thatthe existence of these unleased mineral interests is detrimentalto and impairs the enjoyment of the interest of the plaintiff.
(c) The Indiana rules of trial procedure govern an action underthis chapter to make an unknown party a defendant.
(d) The court shall appoint a guardian ad litem for any defendantto the proceeding who is a ward of the state or a ward to anotherperson.
(e) If it appears to the court that a person who is not in being, butupon coming into being, is or may be entitled to any interest in theproperty sought to be leased, the court shall appoint a guardian adlitem to appear for and represent the interest in the proceeding andto defend the proceeding on behalf of the person not in being. Ajudgment or order entered by the circuit court in the proceeding iseffective against the person not in being.
(f) The court shall receive evidence and hear testimonyconcerning:
(1) the matters in the plaintiff's petition; and
(2) the prevailing terms of similar coal leases obtained in thevicinity of the coal land in the petition, including the length ofthe lease term, bonus money, delay rentals, royalty rates, andother forms of lease payments.
If, upon taking evidence and hearing testimony, the court determinesthat the material allegations of the petition are true and that there hasbeen compliance with the required notice provisions, the court shallenter an order determining the interest of each defendant in the coalland sought to be leased. The court shall also appoint a trustee for thepurpose of executing in favor of the plaintiff a coal lease coveringthe interest of each defendant. The court's judgment appointing thetrustee and authorizing the execution of the lease must specify theminimum terms that may be accepted by the trustee. Those termsmust be substantially consistent with the terms of other similar coalleases obtained in the vicinity as determined by the court. The termsof the coal lease also must be substantially consistent with the termsof other existing leases, if any, covering the remaining coal interestsin the land described in the petition.
(g) The coal land to be covered by a coal lease must becontiguous. To the extent that any of the coal land described in thepetition is not contiguous to other coal land in the petition, that coalland must be subject to separate coal leases.
(h) The court shall determine a reasonable fee to be paid to thetrustee and the trustee's reasonable attorney's fees and costs of theproceeding, which shall be paid by the plaintiff. (i) Each plaintiff shall promptly furnish to the court a report ofproceedings of the evidence received and testimony taken at thehearing on the petition. The report of proceedings shall be filed andmade a part of the case record.
(j) In proceedings under this chapter, the circuit or superior courtmay:
(1) investigate and determine questions of conflicting orcontroverted titles;
(2) remove invalid and inapplicable encumbrances from the titleto the coal land; and
(3) establish and confirm the title to the coal or the right to mineand remove coal from any of the coal land.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-9
Duties of trustee; review of lease; petition for partition
Sec. 9. (a) The trustee shall:
(1) enter into negotiations with the plaintiff;
(2) execute a coal lease in favor of the plaintiff covering theinterest of the defendant that reflects the findings and judgmentof the circuit or superior court; and
(3) promptly prepare and file a report of the coal lease statingthe terms of the lease and the payments received for the leaseand give notice to all parties appearing of record.
(b) The circuit or superior court shall review the coal lease undersubsection (a) to determine if the sale is in accordance with thecourt's findings and judgment. If the circuit or superior courtapproves the sale of the coal lease, the court shall:
(1) issue an order confirming the sale; and
(2) issue an order terminating the trust.
(c) If, before an order confirming the lease pursuant to subsection(b) is issued, a party to the proceedings files, in accordance withsubsection (d), a petition for partition under IC 32-17-4 applicable tothe coal land, whether solely for the coal estate or for estates in thesubject land in addition to and including the coal estate, theproceedings under this chapter shall be stayed during the pendencyof the proceeding initiated under IC 32-17-4, and upon any finalorder of partition or sale in that procceding, the proceedings underthis chapter shall be terminated.
(d) Any petition for partition under IC 32-17-4 applicable to thecoal land filed during the pendency of any petition filed under thischapter shall be filed in the same court exercising jurisdiction overthe petition filed under this chapter. If any defendant in a proceedingunder this chapter files during the pendency of any proceeding underthis chapter a petition for partition under IC 32-17-4 applicable to thecoal land, and the petition for partition is subsequently dismissed orterminated prior to a final order of partition or sale, the samedefendant may not refile a subsequent petition for partitionapplicable to the coal land under IC 32-17-4 until the proceedingsunder this chapter are concluded. (e) If a petition for partition is filed under IC 32-17-4 after anorder confirming a lease pursuant to subsection (b) has been issued,any land partitioned or sold shall be partitioned or sold subject to thelease.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-10
Lease payments
Sec. 10. Any payment that is owed to a defendant under a coallease executed by the trustee must be paid by the plaintiff directly tothe defendant.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-11
Sale and execution of coal lease
Sec. 11. The sale of and execution of any coal lease under thischapter is binding concerning the interest in the coal and the right tomine and remove the coal owned by any defendant to the action inthe same manner as if the defendant had personally signed anddelivered the lease. The coal lease is binding on the heirs, legatees,personal representatives, successors, and assigns of the defendant.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-12
Successor trustee; subsequent proceedings
Sec. 12. (a) If a trustee:
(1) dies or resigns; or
(2) refuses or is unable to act;
the circuit or superior court shall, upon either the court's motion orthe motion of a plaintiff, appoint a successor trustee.
(b) After the entry of the initial judgment authorizing a lease, allsubsequent proceedings pertaining to the coal land and the coalinterest involved in the initial litigation, including subsequent leasingproceedings or proceedings by the trustee requesting authority toexecute and deliver additional documents pertaining to a coal lease,must be commenced in the same court as the proceedings for theinitial lease. The acting trustee at the time of any subsequentproceedings shall act as the trustee in the subsequent proceedings.The circuit or superior court retains continuing jurisdiction over anysubsequent proceedings.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-13
Court costs
Sec. 13. The court costs related to the proceedings allowed underthis chapter must be paid by the plaintiff.
As added by P.L.94-2009, SEC.1.
IC 32-23-12-14
Conveying marketable title of lease Sec. 14. This chapter shall be liberally construed so that any leaseissued under this chapter conveys marketable title.
As added by P.L.94-2009, SEC.1.