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SB 686

Coal Co-tenancy Modernization and Miners Protection Act

2026 Regular Session Introduced by Chris Rose

SB 686 lets operators mine coal with 75% consent of present owners, compensates unknown/unlocatable owners via a state fund, and preserves surface rights.

Chapter 155, Acts, Regular Session, 2026
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Bill Summary · SB 686

Overview

SB 686, as amended by the Committee Substitute, is a West Virginia bill enacted in 2026 to modernize coal co-tenancy arrangements and protect miners. It creates a new regulatory framework (Chapter 37D) governing coal co-tenancy, clarifies when mining is permissible, establishes a mechanism to compensate nonconsenting co-tenants and unknown/unlocatable ownership interests, and sets up a dedicated fund administered by the State Treasurer to handle reserved interests and related claims.

Main purpose and intent

  • Promote safe, efficient coal mining while protecting the rights of both coal owners and surface owners.
  • Redefine co-tenancy rights to allow lawful production when a supermajority of vested ownership consents, even if some co-tenants do not.
  • Ensure unknown or unlocatable coal owners are compensated through a structured royalty system and a state-administered fund.
  • Preserve surface rights and common-law surface-use principles, while providing a clear process for resolving disputes and resolving interests.

Key provisions and changes

  • New regime for coal co-tenancy (Chapter 37D):
    • Definitions of coal land, consenting co-tenant, nonconsenting co-tenant, operator, and unknown/unlocatable owners.
    • An operator may mine, use, or develop coal if:
    • Reasonable efforts have been made to negotiate with known owners; and
    • At least three-fourths of the present ownership consents to the lawful use.
    • Consequences for consenting co-tenants:
    • They and their lessees may mine without being liable for waste or trespass for the lawful development.
    • They must reserve, and remit to the fund, amounts representing unknown/unlocatable interests.
    • Nonconsenting co-tenants receive a production royalty:
    • Royalty is the greater of the highest royalty paid to any consenting co-tenant in the same coal land or 6%.
  • Unknown/unlocatable interests:
    • A mechanism to reserve royalties for unknown/unlocatable owners and report/remit to the State Treasurer.
    • A process for surface owners to quiet title to interests underlying their land after seven years from the first report.
  • Financial and administrative structure:
    • Creation of the Unknown and Unlocatable Coal Interest Owners Fund (the Fund) in the State Treasury.
    • The Fund is administered by the State Treasurer, invested via the West Virginia Board of Treasury Investments, and used to pay valid claims to unknown/unlocatable owners.
    • Funds may be used to identify/locate owners, cover administrative costs (up to 4%), and support claim payments.
    • A portion of transferable funds is earmarked for the Special Reclamation Fund beginning July 1, 2027.
  • Liability and surface-use:
    • Nonconsenting co-tenants have limited liability for site-related injuries or environmental claims arising from coal production, with exceptions for intentional acts.
    • Surface-use principles are preserved; the bill notes its intent not to alter existing surface-rights law.

Who is affected

  • Coal land operators who own, lease, or develop coal estates.
  • Consenting and nonconsenting co-tenants (including unknown/unlocatable owners) with interests in coal land.
  • Surface owners who may seek to quiet title after seven years.
  • State Treasurer and the Treasurer’s Office administering the new Fund.
  • Potential claimants under the Unknown and Unlocatable Coal Interest Owners Fund.

Procedural and timeline aspects

  • Emergency rulemaking required by September 1, 2026, to implement the article.
  • Report and remittance obligations commence upon reserved-interest events, with quarterly reporting deadlines.
  • Seven-year quiet-title trigger for surface owners to pursue knowable ownership rights, with a special commissioner’s deed if proven.
  • Regular transfers to the Special Reclamation Fund begin July 1, 2027, and semiannual thereafter.

Overall, SB 686 restructures coal co-tenancy to balance productive coal development with protections for nonconsenting owners and unknown interests, backed by a state-managed fund and clear reporting and timeline requirements.

Compiled from official sources — confirm details with the bill’s official record.

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