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2010 SESSION

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HB 1344 Coalbed methane gas; Gas & Oil Board to order arbitration to resolve conflicting claim of ownership.

Introduced by: Terry G. Kilgore | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Coalbed methane gas; conflicting claims of ownership; arbitration.   Requires that the Virginia Gas and Oil Board order arbitration to resolve conflicting claims of ownership over coalbed methane upon the written request of all parties claiming ownership. The arbitrator shall be appointed by the circuit court from a list of qualified persons maintained by the Department of Mines, Minerals, and Energy. To qualify as an arbitrator, a candidate (i) shall be an attorney licensed in the Commonwealth; (ii) shall have at least 10 years of experience in real estate law, including substantial expertise in mineral title examination; and (iii) shall disclose to the Board whether he has been engaged within the preceding three years by any person in matters subject to the jurisdiction of the Board or the Department. The arbitrator shall make a determination within six months and, after receiving notice of the written determination, the Gas and Oil Board must disburse any proceeds held in escrow and owing to the owner of the coalbed methane gas interest. The costs of the arbitrator shall be paid from the accrued interest on general escrow account funds. If the Department finds, at the outset of the request for arbitration, that there are insufficient funds to pay the estimated costs of the arbitration, 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.

SUMMARY AS PASSED HOUSE:

Coalbed methane gas; conflicting claims of ownership; arbitration. Requires that the Virginia Gas and Oil Board order arbitration to resolve conflicting claims of ownership over coalbed methane upon the request of a party claiming ownership. The arbitrator shall be appointed by the circuit court and shall make his determination within six months. To qualify as an arbitrator, a candidate (i) shall be an attorney licensed in the Commonwealth; (ii) shall have at least 10 years of experience in real estate law, including substantial expertise in mineral title examination; (iii) shall not have derived more than 10 percent of his income during the preceding three years from any claimants asserting ownership in the subject tract or any affiliates of claimants; and (iv) shall disclose to the circuit court any income he earned within the preceding three years from any person holding a permit issued by the Department. After receiving notice of the written determination, the Gas and Oil Board must disburse any proceeds held in escrow and owing to the owner of the coalbed methane interest. The costs of arbitration shall be shared equally among the parties claiming ownership of the tract in question.

SUMMARY AS INTRODUCED:

Coalbed methane gas; conflicting claims of ownership; arbitration.  Requires that the Virginia Gas and Oil Board order arbitration to resolve conflicting claims of ownership over coalbed methane upon the request of the owner of the surface estate. The arbitrator shall be appointed by the circuit court and shall make his determination within six months. After receiving notice of the written determination, the Gas and Oil Board must disburse any proceeds held in escrow and owing to the owner of the coalbed methane interest. The costs of arbitration shall be shared equally among the parties claiming ownership of the tract in question, although such costs may be payable from the proceeds held in escrow for the subject tract prior to the determination reached by the arbitrator.