LITTLE ROCK, Ark. (AP) — A federal appeals court has ruled that holders of coal rights at a mine in Arkansas' Sebastian County do not also own the natural gas rights.
The Friday ruling affirms a federal judge's finding that a set of three deeds issued in the 1960s specifically granted coal rights to one entity and rights to oil, gas and other minerals to other holders.
CDX Gas LLC sued in 2009, asking the court whether it should pay natural gas royalties to the holder of the coal rights or the holder of the other mineral rights.
Sebastian Mining LLC intervened and appealed the initial ruling. But the 8th U.S. Circuit Court of Appeals turned away arguments that gas rights should go to the coal rights holder, even though the gas is produced from the coal.