45.1-361.22:1 - Conflicting claims of ownership; arbitration.
§ 45.1-361.22:1. Conflicting claims of ownership; arbitration.
A. The Board shall enter an order requiring that the matter of disputedownership be submitted to arbitration, and notify the circuit court in thejurisdiction wherein the majority of the subject tract is located, (i) uponwritten request from all claimants to the ownership of coalbed methane gasrelated to the subject tract under § 45.1-361.22; (ii) upon receipt of anaffidavit executed by all such claimants affirming that there is no otherknown surface owner, gas or oil owner, coal owner, mineral owner, or operatorof a gas storage field certificated by the State Corporation Commissionhaving an interest underlying the subject tract; (iii) after a hearingnoticed pursuant to subsection B of § 45.1-361.19; and (iv) upon adetermination by the Department whether sufficient funds are available to paythe estimated costs of the arbitration pursuant to subsection F. Within 30days of receipt of the notice from the Board, the circuit court shall appointan attorney from the list maintained by the Department pursuant to subsectionC or, at the discretion of the court, such other attorney meeting thequalifications set forth in subsection C. Prior to his appointment as anarbitrator of a particular dispute, the attorney shall certify to the circuitcourt that he has not derived more than 10 percent of his income during anyof the preceding three years from any claimants asserting ownership or rightsin the subject tract or any affiliated entities or immediate family membersof such claimants. If the attorney cannot provide such certification, heshall notify the circuit court and he will be disqualified from serving asarbitrator for that particular dispute.
B. The Department shall send notice to all claimants if it determines thatthere are insufficient funds to pay the estimated costs of the arbitrationpursuant to subsection F. The claimants may, by unanimous agreement, proceedwith the arbitration process, notify the Board of such agreement, and bearthe costs to the extent of the insufficiency. If the parties do not agree,the arbitration shall be delayed until such funds are available.
C. To be qualified as an arbitrator, a candidate (i) shall be an attorneylicensed in the Commonwealth; (ii) shall have at least 10 years of experiencein real estate law, including substantial expertise in mineral titleexamination; and (iii) shall disclose to the Board whether he has beenengaged within the preceding three years by any person in matters subject tothe jurisdiction of the Board or the Department under this chapter. TheDepartment shall solicit applications from attorneys meeting thequalifications set forth above and maintain a list of attorneys qualifying asarbitrators for use by the circuit courts. At least once annually, theDepartment shall update its list. To maintain qualification, each attorneywhose name appears on the list shall update annually his disclosures setforth in clause (iii).
D. The arbitrator shall determine a time and place for the arbitrationhearing and cause written notification of such hearing to be served on eachsurface owner, gas or oil owner, coal owner, mineral owner, or operator of agas storage field certificated by the State Corporation Commission having aninterest underlying the tract that is the subject of the hearing. Partiesshall be served personally or by certified mail, return receipt requested,not less than 14 days before the hearing. Appearance at the hearing waivessuch party's right to challenge notice. Any party to the arbitration has theright to representation before the arbitrator pursuant to § 8.01-581.05. Inaccordance with § 8.01-581.06, the arbitrator may issue subpoenas for theattendance of witnesses and for the production of books, records, documents,and other evidence; administer oaths; and, upon application by a party to thearbitration, permit the taking of depositions for use as evidence. Thearbitrator shall hear and determine the controversy upon the evidence andconsistent with applicable law, notwithstanding the failure of a party toappear at the hearing.
E. The arbitrator shall issue his determination as to the ownership in thecoalbed methane gas and entitlement to proceeds held in escrow within sixmonths from the order of the Board requiring the matter be submitted toarbitration, unless a longer period is otherwise agreed to by all parties.Such determination shall be in writing and sent to the Board and each partyto whom notice is required to be given under subsection D.
F. Upon the issuance of the arbitrator's determination of ownership andsubject to the availability of funds, the fees and expenses of thearbitration, but not including fees or costs of counsel engaged by therespective claimants or any other costs of the claimants, shall be paid fromthe accrued interest on general escrow account funds.
G. An arbitrator's determination, rendered pursuant to subsection E, shall bebinding upon the parties and, upon request of any party to the arbitration,may be entered as the judgment of the circuit court responsible forappointing the arbitrator under subsection A.
H. Upon application of any party to the arbitration, a determination renderedpursuant to subsection E may be confirmed, vacated, corrected, or appealedpursuant to the grounds set forth in Chapter 21 (§ 8.01-577 et seq.) of Title8.01.
(2010, c. 442.)