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Wyoming and Arch Coal reach self-bonding deal
SELF-BONDING
Wyoming and Arch Coal reach self-bonding deal
Benjamin Storrow 307-335-5344, Benjamin.Storrow@trib.com | Updated 17 hrs ago
Wyoming regulators and Arch Coal have agreed to a deal that would cover 19 percent of the bankrupt mining firm’s $485 million reclamation bill. ... The deal, which is likely to attract intense scrutiny from federal regulators and environmentalists, mirrors a similar agreement struck between the Department of Environmental Quality and another bankrupt coal company last year.
A federal bankruptcy judge must still approve the agreement, but its terms were outlined in a motion filed by Arch on Monday. ... The Missouri-based company said it will post $17 million in third-party collateral for four closed mines in the Cowboy State. It also gives Wyoming a so-called superpriority claim of $75 million, essentially guaranteeing roughly 16 percent of Arch’s remaining $468 million cleanup tab.
The state, in return, will not require Arch to post collateral for the full extent of its reclamation bill, enabling the company to continue operations while it navigates Chapter 11 proceedings. No new or modified permits will be allowed under the terms of the agreement.
Wyoming officials cast the deal as a win for the state.
Wyoming and Arch Coal reach self-bonding deal
Benjamin Storrow 307-335-5344, Benjamin.Storrow@trib.com | Updated 17 hrs ago
Wyoming regulators and Arch Coal have agreed to a deal that would cover 19 percent of the bankrupt mining firm’s $485 million reclamation bill. ... The deal, which is likely to attract intense scrutiny from federal regulators and environmentalists, mirrors a similar agreement struck between the Department of Environmental Quality and another bankrupt coal company last year.
A federal bankruptcy judge must still approve the agreement, but its terms were outlined in a motion filed by Arch on Monday. ... The Missouri-based company said it will post $17 million in third-party collateral for four closed mines in the Cowboy State. It also gives Wyoming a so-called superpriority claim of $75 million, essentially guaranteeing roughly 16 percent of Arch’s remaining $468 million cleanup tab.
The state, in return, will not require Arch to post collateral for the full extent of its reclamation bill, enabling the company to continue operations while it navigates Chapter 11 proceedings. No new or modified permits will be allowed under the terms of the agreement.
Wyoming officials cast the deal as a win for the state.
