According to local sources, the most predominate mineral in the local area is coal. Peabody owns most (if not all) of the rights to the coal in the local area. Peabody is the largest coal company in the country and owns the Frisco/Black Beauty mine near Oakland City.
Some individuals affected by the I 69 project have transferred their coal rights to Peabody directly. In these instances, Peabody usually takes a 10 year ownership right with a royalty share that is allocated to the landowner. The royalty is typically based off of the price of the coal extracted from the landowners property.
If a landowner has a royalty lease with Peabody there are two important questions that must be answered as part of the taking for the I 69 project. First, how will the taking affect my royalty income. Second, how will the taking affect access to coal deposits on my land. If either income or access is affected then landowners must seek compensation for their losses.
Our firm is in direct communication with Peabody and the State of Indiana regarding these issues on behalf of our clients. In addition, we are already mobilizing resources that will allow us to properly value coal rights of affected owners. We will continue to provide updates as more information becomes available.
If you have questions about how your mineral rights will be affected by the I69 project please call us for a free consultation at 888-318-3761 or visit us on the web at www.severstorey.com.
Phil
]]>Indiana case law holds that, when the government takes an individual’s property through its power of eminent domain, it also has taken control of the materials present on the land. As a result, courts have held that the existence of such materials in an individual’s land may potentially be taken into consideration in determining the value of that land. The presence of such valuable assets, such as mineral deposits, may make a drastic difference in the amount the government is required to compensate a landowner for his or her property.
In the past, the government has consistently taken advantage of people by not compensating them properly for such valuable materials. For example, when the cities of Dallas and Fort Worth acquired land for the Dallas-Fort Worth Airport through eminent domain in the 1960s and 1970s, it has been reported that few landowners even included mineral rights in their just compensation calculations. According to Fort Worth’s land manager at the time, “nine out of 10 people wouldn’t even know what you were talking about with mineral rights.” Now, these same mineral rights are worth millions of dollars. For instance, the Chesapeake Energy Corporation paid $185 million, with a promise to pay 25% of all future gas royalties. It is important to note that the original property owners received no money from the Corporation.
In order to avoid such an egregious result, it is strongly recommended that a landowner contact an attorney, especially one well-versed in eminent domain law and mineral rights.
By Liz Currid, Sever Storey Associate Attorney
If you have any questions about this article, mineral rights, eminent domain or condemnation please feel free to contact one of the attorneys at Sever Storey for a free consultation at 1-888-318-3761 or on the web at www.severstorey.com.
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