The Coal Rights Act (P.A.92-0390)

Effective August 16, 2001, P.A.92-0390 created the Coal Rights Act. 765 ILCS 540/1 et seq. (2001). The purpose of the Act is to determine and clarify the rights of joint or multiple owners of coal reserves. Typically, a joint coal owner can only enjoy his or her interests by mining, removing, and selling the products of the coal, which constitutes use of the common estate. The Act seeks to promote and preserve the value of coal reserves and maximize the recovery of coal within the state.

This Act applies only to coal owners who are vested with a fee simple or freehold interest in the coal estate. It does not apply to owners of surface rights unless they too are coal owners. The Act provides a procedure by which coal owners who possess at least a vested and undivided one-half interest in the coal estate may petition the court to establish a trust upon the land for the purpose of leasing or developing it. Sections 25 and 30. This allows the owner to enjoy the benefits of his or her interest without an unfair or detrimental effect on the other joint owners. All persons who have a legal interest in the coal must be joined as defendants in the proceeding. All parties not in being at the time who possess a contingent or future interest are fully bound by the proceeding. Section 30. Court proceedings under the Act take place in the circuit court of the county where the majority of the land is located. Section 15.

The Act also safeguards the rights of the lessees. After negotiating with all interested parties, the trustee will execute a coal lease in favor of the interests of all the joint coal owners subject to judicial confirmation. Section 35. The Act guarantees direct payment of funds, and the lease is binding upon all heirs, successors, and assigns of the interested parties as if they had signed the agreement themselves. Sections 40 and 45. The court will appoint a successor trustee upon the incapacity of the appointed individual to fulfill his duty. The court retains jurisdiction to conduct necessary subsequent proceedings. Section 50. Any lease issued under the Act is effective to convey merchantable title. Section 60.

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