Arch Coal Agrees To Secure Cleanup In Wyoming
A federal judge will consider Arch Coal's updated plan to get out of bankruptcy Tuesday. As part of that new plan, the company says it will replace its self-bonds in Wyoming with something more secure.
Arch Coal has more than $400 million in estimated cleanup obligations at its Wyoming coal mines. In the past, Arch was allowed to self-bond those obligations—effectively making a promise to clean up, without putting up cash or collateral to insure those obligations.
In the latest version of the company’s plan for emerging from bankruptcy though, it says it will replace its self-bonds with third-party surety bonds, cash or other assurances within 15 days of exiting bankruptcy.
That decision comes on the heels of a recent announcement that the federal government is planning changes to its self-bonding rules.