Mt. Vernon Register-News

Local

December 24, 2008

County investigating sale of coal rights

By TESA CULLI

tesa.culli@register-news.com

MT. VERNON — The Jefferson County Board is investigating selling about 7,000 acres of mineral rights held by the county and throwing in with the Dodds Pendleton Coal Association.

“They would like us to place our rights with the association for their agency to sell,” County Board Chairman Ted Buck said. Buck also is a member of the coal association board, along with Cindy Leeck, Robert Kent, Dexter Edmison, Darrell Wiggins, Bill Piper, Scott Clifton and Mark Tate.

Earlier this month, the coal association and its coal broker, Energy Plus, held an informational meeting for members and potential members who own coal rights in Moores Prairie, Spring Garden, Dodds and Pendleton townships.

According to Nathan Rowland of Bonan, Bonan & Rowland LLC, the attorney for the association, the group has about 16,000 acres in current membership and need about 20,000 acres to market the coal.

Jim Lindsey of Energy Plus recently explained there are two mineable coal seams in the townships, the Herrin No. 6 and Springfield No. 9 seams, which have about 1.48 billion tons of coal. Lindsey said there are no adverse mining conditions in the area.

Exxon gave the county a quitclaim deed several years ago for 7,000 acres of mineral rights at various percentages per acre so the company could avoid paying taxes. As a holding of the county, no taxes are being paid on the mineral rights and the Dodds Pendleton Coal Association has approached the board asking for the rights and to be the agent to sell the coal.

“This would allow the property to be put back on the tax rolls and would result in income for the county,” minutes of this month’s Land, Tax and Appointments Committee stated.

In 2006, Lindsey negotiated a similar deal with Hamilton County. According to the McLeansboro Times Leader archives, Lindsey represented the McLeansboro and North Hamilton County coal associations as a coal broker and was able to negotiate a contract with Hamilton County for 7,700 acres in coal reserves it received from Exxon Coal USA in 1992. Earlier this year it was announced that Hamilton County will have two coal mines with a third in the planning stages by White Oak Resources LLC. The company has filed permits with the Illinois Department of Mines and Minerals and is waiting for permitting to be approved before beginning construction.

The county board has authorized Buck and vice chairman Fred Edwards to speak with Energy Plus regarding the sale of the county-owned mineral rights.

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