Encoal and Gopher submitted a joint motion to dismiss the case last week, acknowledging that the federal court had no jurisdiction, according to Associated Press,.

Cobalt had previously filed a motion claiming the federal court did not have jurisdiction because all companies involved were based in West Virginia.

Encoal Energy and Gopher Land Services initially brought the suit against Cobalt in late August. But the owner of the Westchester mine in southern West Virginia – the subject of the 2011 documentary series Coal - said both entities agreed to binding arbitration to rectify any disputes.

The three signed an agreement in 2010 outlining 4% royalty payments on the average gross sales price per tonne sold, if that price was at or less than $US95 per tonne.

Payments by Westchester regarding this agreement were alleged to have stopped in May 2012.

Cobalt has not commented publicly on the filing.

Westchester Coal bought the mineral and surface rights for the mine, as well as the permit, for about $1.6 million in March 2008.

An initial royalty detail outlined a 7.5% royalty, but it was later amended.