Self-bonding

IEEFA Research

The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

The Federal Government’s Coal-Leasing Program Is Broken: Here’s How to Fix It

Appoint a Price-Setting Commission; Ban Exports; Cancel Some Leases; Eliminate Self-Bonding; Mandate Set-Asides for Mine Clean-up and Miner Pensions; Require Twice-a-Year Audits; Assume Smaller Markets

It’s time for the U.S. to modernize how it manages its publicly owned coal reserves. That’s the essence of comments we’ve filed today with the Department of the Interior as it begins a review of its federal coal-leasing program in the Powder River Basin, a program that has been mismanaged for years at taxpayer expense […]

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More News and Commentary

IEEFA Conference: Long Odds for U.S. Coal; Transition in Europe

‘We Live in a Time of Energy-consumption Choices, and Consumers Want Clean Energy'

The U.S. coal industry faces long odds against recovery, said panel members today at IEEFA’s Energy Finance 2017 conference in New York. Sheldon Stone, a partner at Amherst Partners in Detroit who specializes in bankruptcy cases, said bankruptcy-recovery plans filed by the likes of Peabody Energy and Alpha Natural Resources will in all likelihood fail. […]

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Peabody to Stop Using ‘Self-Bonding’ for Cleanup Obligations; May Revive It in the Future

Reuters: U.S. coal miner Peabody Energy Corp said on Monday it has agreed to set aside collateral to cover future mine cleanup costs as part of its bankruptcy reorganization plan, ending its controversial use of “self-bonds.” For decades the largest U.S. coal companies have used a federal practice known as “self-bonding,” which exempts companies from […]

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IEEFA Guest Commentary: Peabody Must No Longer Be Self Bonded

IEEFA Guest Commentary: Peabody Must No Longer Be Self Bonded

‘Dodging Debt Obligations Through Bankruptcy Proceedings’

Wyoming’s Department of Environmental Quality is facing a critical decision regarding Peabody Energy and whether the company can continue to self-bond for its $728 million Wyoming coal mine cleanup obligation. Self-bonds are unsecured IOUs, uncollectable when a company hides under bankruptcy protection. Peabody is the nation’s largest coal company, and is going through Chapter 11 […]

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As Peabody Comes Out of Bankruptcy, Little Clarity on Its $728 Self-Bonding Commitments in Wyoming

Heather Richards for the Casper Star-Tribune: The company’s court documents shed little light on what the coal behemoth will do about $728 million in self-bonds in Wyoming and $1.1 billion in self-bonds in a total of four states. The company promised it would follow the law post-bankruptcy but failed to provide details as to how […]

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Mounting Risk (and Opportunity) in Coal Industry Self-Bonding

Gregory DL Morris for Risk & Insurance: Waves of bankruptcies convulsing the coal industry in the United States leave billions of dollars in mine remediation costs potentially unfunded, and raise ominous questions for both tactical insurance and strategic risk management. Dozens of coal companies are in court-supervised reorganization or liquidation, some of them for the […]

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With Demise of Coal Industry’s Self-Bonding, a Shortage of Alternatives

Joshua Learn for SNL: As more and more coal producers shift away from the practice of self-bonding, companies may have an increasingly difficult time finding surety bonds to back their reclamation obligations. “We are seeing that surety bonding is becoming more expensive and less available,” said Anna Zubets-Anderson, a senior analyst at Moody, at a […]

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Arch Coal Says It Will End Its ‘Self-Bonding’ Scheme and Make Good on Mine Cleanups

Tracy Rucinksi for Reuters: U.S. coal miner Arch Coal has agreed to set aside collateral to cover future mine cleanup costs as part of its bankruptcy reorganization plan, according to a court filing, ending its controversial use of “self-bonds.” For decades the largest U.S. coal companies have used a federal subsidy known as “self-bonding,” which […]

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BLM Official in Wyoming: Coal Reserves ‘Belong to the American People’

Taylor Kuykendall for SNL: Officials charged with leasing federal coal remain busy even if there is moratorium on the practice. Mary Jo Rugwell was selected as the U.S. Bureau of Land Management’s state director for Wyoming, the nation’s top-producing coal state, earlier this year. While new coal leases are paused for a review of the […]

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Government Review in Australia of Coal Self-Bonding Schemes

Joanne McCarthy for the Newcastle Herald: The NSW Audit Office will put mine rehabilitation bonds and the NSW Department of Industry’s control of bonds and mine rehabilitation under the microscope. The Audit Office has released terms of reference for an audit in response to mounting concerns about the adequacy of bonds, and whether taxpayers risk […]

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On the Blogs: Texas Taxpayers on the Hook for $250 Million in Coal Mine Cleanup

Naveena Sadasivam for the Texas Observer: Environmental advocates urged state lawmakers to require coal companies to set aside cash or bonds to cover the cost of cleaning up mines instead of permitting companies to self-bond, a process that could leave Texans on the hook for more than $250 million in environmental cleanup. “The backwards-looking instruments […]

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