§ 32-23-12-8 — Creation of trust to develop coal interest; petition; guardian ad litem; evidence; coal lease; fees

Indiana § 32-23-12-8

• Jurisdiction: Indiana
• Title 32: PROPERTY
• Art. 23: CONVEYANCE OF PROPERTY INTERESTS
• Ch. 12: Coal: Estates in Land

Text

(a) The person seeking to create a trust for an
interest in coal land for the purpose of leasing and developing the coal
interest shall join as a defendant each person who has a legal interest
in the coal land, except for any plaintiffs or persons having a legal
interest in the coal land who at the time of the action are parties to a
valid and existing lease granting to the plaintiff the mining rights
sought by the plaintiff. A person who might have a contingent or future
interest in the coal land is bound by the judgment entered in the
proceedings.
(b) The plaintiff shall file a verified petition that specifically sets
forth the following:
(1) The request of each plaintiff that a trustee be appointed to
execute a lease granting the plaintiff the right to mine and remove
coal from the subject coal land.
(2) The legal description of the coal land.
(3) The interest of the plaintiff in the coal within the coal land.
(4) The apparent interest of each defendant in the coal within the
coal land.
(5) A statement that the plaintiff is willing to purchase a mineral
lease covering the interest of each defendant and that the
existence of these unleased mineral interests is detrimental to and
impairs the enjoyment of the interest of the plaintiff.
(c) The Indiana rules of trial procedure govern an action under this
chapter to make an unknown party a defendant.
(d) The court shall appoint a guardian ad litem for any defendant to
the proceeding who is a ward of the state or a ward to another person.
(e) If it appears to the court that a person who is not in being, but
upon coming into being, is or may 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. A judgment or
order entered by the court in the proceeding is effective against the
person not in being.
(f) The court shall receive evidence and hear testimony concerning:
(1) the matters in the plaintiff's petition; and
(2) the prevailing terms of similar coal leases obtained in the
vicinity of the coal land in the petition, including the length of the
lease term, bonus money, delay rentals, royalty rates, and other
forms of lease payments.
If, upon taking evidence and hearing testimony, the court determines
that the material allegations of the petition are true and that there has
been compliance with the required notice provisions, the court shall
enter an order determining the interest of each defendant in the coal
land sought to be leased. The court shall also appoint a trustee for the
purpose of executing in favor of the plaintiff a coal lease covering the
interest of each defendant. The court's judgment appointing the trustee
and authorizing the execution of the lease must specify the minimum
terms that may be accepted by the trustee. Those terms must 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 also must be substantially consistent with the terms of other
existing leases, if any, covering the remaining coal interests in the land
described in the petition.
(g) The coal land to be covered by a coal lease must be contiguous.
To the extent that any of the coal land described in the petition is not
contiguous to other coal land in the petition, that coal land must be
subject to separate coal leases.
(h) The court shall determine a reasonable fee to be paid to the
trustee and the trustee's reasonable attorney's fees and costs of the
proceeding, which shall be paid by the plaintiff.
(i) Each plaintiff shall promptly furnish to the court a report of
proceedings of the evidence received and testimony taken at the
hearing on the petition. The report of proceedings shall be filed and
made a part of the case record.
(j) In proceedings under this chapter, the circuit court, superior
court, or probate court may:
(1) investigate and determine questions of conflicting or
controverted titles;
(2) remove invalid and inapplicable encumbrances from the title
to the coal land; and
(3) establish and confirm the title to the coal or the right to mine
and remove coal from any of the coal land.

Legislative History

As added by P.L.94-2009, SEC.1. Amended by P.L.84-2016, SEC.142.