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92nd General Assembly

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Public Act 92-0390

SB104 Enrolled                                LRB9201635DHmbA

    AN ACT in relation to coal.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.  Short  title.   This Act may be cited as the
Coal Rights Act.

    Section 5.  Purpose.  In recognition of the fact that  an
estate  of  a  joint  owner  in  coal  can be enjoyed only by
mining, removing, and selling the products of the  coal,  and
that the mining, removal, and sale of coal by one joint owner
therefore  constitutes the use and not the destruction of the
common estate, the purpose of this  Act  is  to  clarify  the
rights  of joint owners of coal in this State, to promote and
preserve the value of coal reserves  in  the  State,  and  to
maximize  the  recovery  of  coal  through  the  orderly  and
efficient development of coal reserves for the benefit of all
joint owners in a fair and equitable manner.

    Section 10.  Definitions.  As used in this Act:
    "Joint  owner"  means  a person or entity that is a joint
tenant, a tenant in common, or a tenant by the entirety.
    "Coal owner" means a person or entity vested with a whole
or undivided fee simple interest or other  freehold  interest
in  the  coal  estate,  but  "coal  owner" does not include a
person or entity with a leasehold or any other lesser estate.

    Section 15.  Venue.   Proceedings under this Act must  be
brought  in  the  circuit  court  of the county in which coal
lands sought to be affected, or the major  portion  of  those
lands, is located.

    Section 20.  Joint owners; trusts.
    (a)  If  the  title  to  coal  is owned by joint tenants,
tenants in common, or tenants by the  entirety,  whether  the
title  is  derived  by purchase, legacy, or descent, any coal
owner or owners vested with at least a one-half  interest  in
the  coal  under  the  lands,  or any coal lessee of the coal
owner or owners, upon proper petition, shall be authorized to
mine and remove coal from the land in the manner provided  in
this  Act,  provided,  however,  that a petition shall not be
authorized under this Act for the mining and removal of  coal
by  the  surface method of mining unless all of the owners of
the surface consent to the mining and removal of coal by  the
surface method of mining.
    This  Act affects only coal owners, as defined in Section
10 of this Act, and does not affect  the  rights  of  surface
owners,  except  to  the  extent  that  they may also be coal
owners.
    (b)  The circuit court of the county in  which  the  coal
lands  or  the major portion of those lands lie has the power
to declare a trust in those lands, appoint a trustee for  all
persons   owning   an  interest  in  the  coal  who  are  not
plaintiffs, and authorize the trustee to sell,  execute,  and
deliver  a valid lease on those lands on behalf of all of the
defendants on terms and conditions approved  by  the  circuit
court for the purposes provided in this Act.  The lease shall
continue  in  full  force and effect after the termination of
the trust unless the lease has previously expired by its  own
terms.

    Section  25.  Proceedings  for  appointment  of  trustee.
Proceedings   for   the  appointment  of  a  trustee  may  be
instituted by any person or persons (i)  vested in fee simple
with at least an undivided  one-half  interest  in  the  coal
sought  to  be  developed  or  (ii)  vested  with a valid and
subsisting coal lease,  the  lessor  of  which  is  a  person
defined in subdivision (i).

    Section 30.  Procedure.
    (a)  The  person  or  persons  seeking to impress a trust
upon  a  coal  interest  for  the  purpose  of  leasing   and
developing  it  shall join as the defendant or defendants all
persons, other than the plaintiff  or  plaintiffs,  having  a
legal  interest  in  the  coal.  All parties not in being who
might have some contingent or future interest in the coal and
all persons, whether in being or not  in  being,  having  any
interest, whether present, future, or contingent, in the coal
interest  sought  to  be  leased  shall be fully bound by the
proceedings.
    (b)  A verified  petition  shall  be  filed  specifically
setting forth the following:
         (1)  The request of the plaintiff or plaintiffs that
    a  trustee  be  appointed to execute a lease granting the
    plaintiff or plaintiffs the right to mine and remove coal
    from the subject lands.
         (2)  The legal description of the lands.
         (3)  The interest of the plaintiff or plaintiffs  in
    the coal underlying the lands.
         (4)  The  apparent  interest  of  the  defendant  or
    defendants in the coal underlying the lands.
         (5)  That the plaintiff or plaintiffs are willing to
    purchase  a  mineral  lease  covering the interest of the
    defendant or defendants and that the existence  of  these
    unleased  mineral interests is detrimental to and impairs
    the  enjoyment  of  the  interest  of  the  plaintiff  or
    plaintiffs.
    (c)  If in any action there  are  persons  who  would  be
unknown  parties  as  defined in Section 2-413 of the Code of
Civil Procedure, those persons may be made defendants to  the
action  in  the  same  manner  and  with  the  same effect as
provided in the Code of Civil Procedure.   The  defendant  or
defendants  shall  be  given  notice  of  the pendency of the
action by publication  as  provided  in  the  Code  of  Civil
Procedure.
    (d)  The  court shall appoint a guardian ad litem for any
party to the proceeding who is a ward and is not  represented
by a guardian.
    (e)  If  it  appears  that  any person not in being, upon
coming into being, is or  may  become  or  may  claim  to  be
entitled to any interest in the property sought to be leased,
the court shall appoint a guardian ad litem to appear for and
represent  the  interest  in the proceeding and to defend the
proceeding on behalf of the person  not  in  being,  and  any
judgment  or order rendered in the proceeding is as effectual
for all purposes as though the person were in being and  were
a party to the proceeding.
    (f)  The  court shall take evidence and hear testimony as
to the matters set forth in the petition.   The  court  shall
determine   the  prevailing  terms  of  similar  coal  leases
obtained in the  vicinity  of  the  lands  described  in  the
petition,  including,  but  not limited to, length of primary
term, bonus moneys, delay rentals, royalty rates,  and  other
forms  of  lease  payments.   If,  upon  taking  evidence and
hearing testimony, it appears that the  material  allegations
of  the  petition are true and that there has been compliance
with the notice provisions of this Act, the court shall enter
an order determining the interest of each  defendant  in  the
coal  sought  to  be  leased.  The court shall also appoint a
trustee  for  the  purpose  of  executing  in  favor  of  the
plaintiff or plaintiffs a coal lease covering the interest of
the defendant or defendants.   The  judgment  appointing  the
trustee  and  authorizing  the  execution  of the lease shall
specify the minimum  terms  which  may  be  accepted  by  the
trustee.   Those terms shall be substantially consistent with
the terms of  other  similar  coal  leases  obtained  in  the
vicinity  as  determined by the court.  The terms of the coal
lease shall also be substantially consistent with  the  terms
of other existing leases, if any, covering the remaining coal
interests  in the lands described in the petition.  The lands
to be covered by the coal lease shall be contiguous.  To  the
extent  that  any  of the lands described in the petition are
not contiguous to other lands in the  petition,  those  lands
shall  be  the  subject  of  separate coal leases.  The court
shall determine a reasonable fee to be paid  to  the  trustee
and  that  fee,  together with the reasonable attorney's fees
and costs of the proceeding incurred by the trustee, shall be
paid by the plaintiff or plaintiffs.
    (g)  The plaintiff or plaintiffs shall forthwith  furnish
the court with  a  report  of  proceedings  of  the  evidence
received  and testimony taken at the hearing on the petition,
and the report of proceedings shall be filed and made a  part
of the case record.
    (h)  In   all   suits  under  this  Act,  the  court  may
investigate and determine all  questions  of  conflicting  or
controverted  titles,  remove  clouds  from  the title to the
coal, and establish and confirm the title to the coal or  the
right to mine and remove coal from any of the lands.
    (i)  An action filed under this Act may be joined with an
action under the Severed Mineral Interest Act.

    Section 35.  Coal leases; report by trustee.  The trustee
shall   enter   into   negotiations  with  the  plaintiff  or
plaintiffs and shall execute a coal lease  in  favor  of  the
plaintiff   or   plaintiffs  covering  the  interest  of  the
defendant or defendants.  The terms of the coal  lease  shall
be in accordance with the findings and judgment of the court.
The trustee shall forthwith prepare and file a report of sale
of  the  coal  lease  stating  the terms of the lease and the
payments received for  the  lease  and  give  notice  to  all
parties  appearing  of  record.   If the court finds that the
sale was in accordance with its judgment, the sale  shall  be
confirmed  by court order and the court shall order the trust
terminated and the trustee and his or her bond discharged.

    Section 40.  Payment.  All moneys due to the defendant or
defendants under the lease executed by the trustee  shall  be
paid by the plaintiff or plaintiffs directly to the defendant
or defendants.

    Section  45.  Binding  effect of lease.   The sale of and
execution of any coal lease under this Act is binding in  all
respects  as to all of the interest in the coal and the right
to mine and  remove  the  coal  owned  by  the  defendant  or
defendants  to  the  action  in  the  same  manner  as if the
defendant or defendants had personally signed  and  delivered
the  lease.  The  lease  shall  be  binding  upon  the heirs,
legatees, personal representatives, successors,  and  assigns
of the defendant or defendants.

    Section    50.  Incapacity    of    trustee;   subsequent
proceedings.
    (a)  In the event of the  death  or  resignation  of  the
trustee  or  the  refusal or inability of the trustee to act,
the court, upon its own motion or  upon  the  motion  of  the
plaintiff or plaintiffs, shall appoint a successor trustee.
    (b)  After  the entry of the initial judgment authorizing
a lease, all subsequent proceedings pertaining to  the  lands
and  the  coal  interest  involved in the initial litigation,
including subsequent leasing proceedings  or  proceedings  by
the  trustee  requesting  authority  to  execute  and deliver
additional documents pertaining to a  coal  lease,  shall  be
commenced  and prosecuted in the same case as the proceedings
for the initial lease.  The acting trustee at the time of any
subsequent proceedings shall act  as  the  trustee  in  those
proceedings.     The  court shall retain continuing authority
and jurisdiction to conduct the subsequent proceedings.

    Section 55.  Costs.  All  court  costs  incident  to  the
proceedings  authorized  under  this Act shall be paid by the
plaintiff or plaintiffs.

    Section 60.  Construction.  This Act shall  be  liberally
construed  so  that  any  lease issued under this Act conveys
merchantable title.

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.
    Passed in the General Assembly May 22, 2001.
    Approved August 16, 2001.

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