According to the Associated Press, Cobalt officials filed a motion in District Court in Charleston claiming that court system does not have jurisdiction since all companies involved are based in West Virginia.

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

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

While the payer of the royalties varied in the months to follow between Westchester Coal and Cobalt Coal, Encoal and Gopher said the payments stopped altogether in May 2012.

Encoal and Gopher are asking for damages in their suit, and the plaintiffs’ attorney, Tom Rist, told the AP last month that the missing royalties at that time were estimated to be about $100,000.

They also said in the suit that because Gopher owned the land where the mine was situated and because the company was actively mining, Cobalt was effectively trespassing.

Cobalt has not released any public statement 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.