Swords Creek Land P’ship v. Belcher

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At issue in this case was a severance deed conveying ownership of, and the right to remove, coal and timber underlying and appurtenant to a certain tract of land. The parties to this appeal were the successors-in-interest to the grantors named in the severance deed (the Surface Owners) and the successor-in-interest to the grantees of the coal rights named in the deed (the Coal Owner). The Surface Owners and the Coal Owner asserted conflicting claims to royalties generated by the extraction of coal bed methane gas (CBM) from the coal seams underlying the property. The Surface Owners filed this declaratory judgment action against the Coal Owner asserting that they were the sole owners of the CBM produced from their land and that they were entitled to all the royalties therefrom. The circuit court granted judgment for the Surface Owners, declaring that the Surface Owners owned the CBM and were entitled to receive the royalties therefrom. The Supreme Court affirmed, holding that the Surface Owners had at all times owned all mineral estates within their lands except coal, and therefore, the Surface Owners were entitled to all royalties accrued from the production of CBM produced from their land and those yet to accrue. View "Swords Creek Land P'ship v. Belcher" on Justia Law