SB 686: Coal Co-tenancy Modernization and Miners Protection Act - West Virginia

sb686 h epw am _1 adopted.htm → sb686 hfat anderson 3-12 adopted.htm · 3 edits

MINOR

The bill was amended to replace the previous committee draft with a new version introduced by Delegate Anderson. This revision clarifies the bill's official title and scope, explicitly stating that it modifies coal mining laws to protect non-consenting co-tenants while allowing production when at least three-fourths of owners agree. The new text maintains the core mechanisms for handling unknown owners and creating a state fund but streamlines the legislative description to better reflect the specific amendments to the Code of West Virginia.

Scope change

The scope remains focused on coal mining rights and co-tenancy disputes, but the amendment clarifies the specific sections of the Code being amended and the intent to preserve common law rights regarding surface use.

TITLE

The bill title was changed from a generic committee amendment label to a specific description of the bill's purpose, including the creation of the 'Unknown and Unlocatable Coal Interest Owners Fund' and the modification of waste and trespass exceptions.

ENFORCEMENT

The amendment explicitly lists the intent to preserve common law rights concerning the relationship between surface owners and coal estates, clarifying that the new rules do not override existing surface use laws.

TECHNICAL

The text was updated to formally list the specific Code sections (e.g., §37-7-2, §37B-3-1 through §37B-4-7) that are being amended or added, replacing the previous procedural language about striking out and inserting text.

Committee Substitute for the Committee Substitute → sb686 h epw am _1 adopted.htm · 1 edit

MINOR

The bill was amended to change the chapter number from 37D to 37B and renumbered sections to align with the new chapter structure. The substantive policy regarding coal mining rights, royalty payments, and the handling of unknown owners remains identical to the previous version.

Scope change

The bill's scope and applicability are unchanged; only the internal numbering and chapter designation were updated.

TECHNICAL

The chapter title was changed from 'Chapter 37D' to 'Chapter 37B', and all section numbers were updated accordingly (e.g., from §37D-1-1 to §37B-3-1) to reflect the new placement within the code.

Committee Substitute → Committee Substitute for the Committee Substitute · 5 edits

MODERATE

The bill was revised to strengthen protections for non-consenting coal owners by increasing their royalty payment from 6% to 7% and clarifying that no costs can be deducted from this payment. It also updated the definition of 'unknown or unlocatable interest owners' to rely on more specific record searches rather than general internet inquiries. Additionally, the process for challenging royalty claims was shifted from the circuit court to the Tax Commissioner, and the fund transfer mechanism was modified to remove a specific future date, allowing for more flexible administration.

Scope change

The bill's scope regarding royalty calculations and dispute resolution mechanisms was expanded and clarified to better protect minority owners and streamline administrative processes.

FISCAL

The minimum production royalty for non-consenting co-tenants increased from 6% to 7%, and the language was added to ensure no deductions are made for mining or marketing costs.

DEFINITION

The definition of 'unknown or unlocatable interest owner' was updated to require specific searches of county records, probate files, and online databases instead of vague references to sheriff records and the internet.

ENFORCEMENT

The mechanism for challenging royalty payments changed from a petition in circuit court to a petition with the West Virginia Tax Commissioner, with a 45-day filing window and a 60-day ruling deadline.

TIMELINE

A specific deadline for transferring funds to the Special Reclamation Fund (July 1, 2027) was removed, giving the administrator more flexibility in managing the fund.

REQUIREMENT

Minor text corrections were made to the short title and formatting of the bill description.

Enrolled Version → Committee Substitute · 6 edits

MODERATE

The bill was revised from an Enrolled Version to a Committee Substitute, shifting the effective date from 90 days after passage to an immediate report date and changing the chapter number from 37B to 37D. The most significant policy change is the reduction of the minimum production royalty for non-consenting co-tenants from 7% to 6%. Additionally, the legal mechanism for resolving disputes regarding royalty payments was changed from the Tax Commissioner to the circuit court, and a new requirement was added to transfer surplus funds to a Special Reclamation Fund starting in 2027.

Scope change

The bill's scope was technically adjusted by changing the chapter designation from 37B to 37D and renaming the article titles to match the new chapter number. The applicability to coal co-tenancy remains the same, though the specific legal pathways for enforcement and fund management have been altered.

TIMELINE

The effective date was removed, and the bill now reflects a status of being reported by the Committee on Energy, Industry, and Mining on February 3, 2026, rather than taking effect 90 days after passage.

FISCAL

The minimum production royalty that non-consenting co-tenants must receive was reduced from 7% to 6% of gross proceeds.

A new requirement was added to transfer surplus funds from the Unknown and Unlocatable Coal Interest Owners Fund to the Special Reclamation Fund beginning July 1, 2027.

ENFORCEMENT

The authority to adjudicate disputes over royalty payments and lease terms was transferred from the West Virginia Tax Commissioner to the circuit court in the county where the coal estate is located.

DEFINITION

Minor technical corrections were made to the chapter and article numbering throughout the text, changing references from Chapter 37B to Chapter 37D.

REQUIREMENT

The definition of 'Unknown or unlocatable interest owner' was expanded to explicitly include the owner's unknown heirs, successors, and assigns.

Introduced Version → Enrolled Version · 7 edits · Mar 14, 2026

MODERATE

The bill was finalized and enacted as an act to modernize coal mining laws by clarifying that mining is not considered waste when at least three-fourths of co-owners consent. It also updated administrative procedures for handling funds belonging to unknown or unlocatable owners and adjusted the minimum royalty rate for non-consenting owners from 6% to 7%.

Scope change

The bill's scope was expanded to include two new articles (Article 3 and Article 4) within Chapter 37, replacing the previous Chapter 37D structure, and the effective date was set for 90 days after passage.

ELIGIBILITY

The threshold for lawful mining without consent was changed from requiring 'one or more owners' to consent to requiring 'at least three fourths of the undivided interests' to consent.

DEFINITION

The definition of 'Coal' was updated to include 'semi-bituminous' coal and corrected the spelling of 'bituminous' to 'semi-bituminous'.

REQUIREMENT

The minimum production royalty for non-consenting co-tenants was increased from 6% to 7%, and the calculation now explicitly excludes deductions for mining or transportation costs.

The method for locating unknown owners was updated to require an examination of county real property records, grantor-grantee indices, tax rolls, and probate records instead of a sheriff's search.

ENFORCEMENT

The dispute resolution process for royalty challenges was changed from filing a petition in circuit court to filing with the West Virginia Tax Commissioner, with a 45-day deadline for the petition.

TIMELINE

The timeline for transferring excess funds to the Abandoned Land Reclamation Fund was removed, eliminating the previous requirement to begin transfers on July 1, 2027.

TECHNICAL

The text was converted from a draft bill format to an enrolled act format, including signatures from the Governor, Senate, and House of Delegates.

Coal Co-tenancy Modernization and Miners Protection Act

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