765 ILCS 540/ Coal Rights Act.

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765 ILCS 540/1

(765 ILCS 540/1)

Sec. 1.

Short title.

This Act may be cited as the

Coal Rights Act.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/5

(765 ILCS 540/5)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/10

(765 ILCS 540/10)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/15

(765 ILCS 540/15)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/20

(765 ILCS 540/20)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/25

(765 ILCS 540/25)

Sec. 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).

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/30

(765 ILCS 540/30)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/35

(765 ILCS 540/35)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/40

(765 ILCS 540/40)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/45

(765 ILCS 540/45)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/50

(765 ILCS 540/50)

Sec. 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.

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/55

(765 ILCS 540/55)

Sec. 55.

Costs.

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

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/60

(765 ILCS 540/60)

Sec. 60.

Construction.

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

(Source: P.A. 92-390, eff. 8-16-01.)

765 ILCS 540/99

(765 ILCS 540/99)

Sec. 99.

Effective date.

This Act takes effect upon becoming
law.

(Source: P.A. 92-390, eff. 8-16-01.)