Western Railroad Discussion > One of the Oldest Coal Companies in the US Files for Bankruptcy

This was in today's local paper:

https://observer-reporter.com/one-of-oldest-coal-companies-in-u-s-files-for/article_fe4a2981-0335-5304-bb68-0dfae81069f2.html?utm_medium=social&utm_source=email&utm_campaign=user-share

jmbreitigan Wrote:
-------------------------------------------------------
> This was in today's local paper:
>
> https://observer-reporter.com/one-of-oldest-coal-c
> ompanies-in-u-s-files-for/article_fe4a2981-0335-53
> 04-bb68-0dfae81069f2.html?utm_medium=social&utm_so
> urce=email&utm_campaign=user-share

Canadian mines not included in the bankruptcy proceedings.

Mine map:

http://westmoreland.com/about-us/locations/

By looking at the map I can see an obvious problem and why they would have to file.  

In general coal mines doing the best (in the western United States) have high to very high BTU coal with very low sulphur, plus low ash yield (after burning). That is what the utilities (and many steel mills/utilities overseas) are looking for now.  There aren't any newspaper articles and very few on line articles that have this information.  


Allen
 



Edited 6 time(s). Last edit at 10/10/18 09:25 by bradleymckay.

bradleymckay Wrote:
-------------------------------------------------------
> jmbreitigan Wrote:
> --------------------------------------------------
> -----
> > This was in today's local paper:
> >
> >
> https://observer-reporter.com/one-of-oldest-coal-c
>
> >
> ompanies-in-u-s-files-for/article_fe4a2981-0335-53
>
> >
> 04-bb68-0dfae81069f2.html?utm_medium=social&utm_so
>
> > urce=email&utm_campaign=user-share
>
> Canadian mines not included in the bankruptcy
> proceedings.
>
> Mine map:
>
> http://westmoreland.com/about-us/locations/
>
> By looking at the map I can see an obvious problem
> and why they would have to file.  
>
> In general coal mines doing the best (in the
> western United States) have high to very high BTU
> coal with very low sulphur and ash content.  That
> is what the ulilities (and many steel
> mills/utilties overseas) are looking for now. 
> There aren't any newspaper articles and very few
> on line articles that have this information.  
>
>
> Allen

Yes,

The Denver Post notes that the company's largest creditors include the BIA / Crow Indian nation for royalties owed, and the Penson Benefit Guaranty Corporation for under funded pension plans.  The company also has significant clean up liabilities.

https://www.denverpost.com/2018/10/09/westmoreland-coal-files-chapter-11/

Lackawanna484 Wrote:
-------------------------------------------------------
> The Denver Post notes that the company's largest
> creditors include the BIA / Crow Indian nation for
> royalties owed, and the Penson Benefit Guaranty
> Corporation for under funded pension plans.  The
> company also has significant clean up
> liabilities.
>
> https://www.denverpost.com/2018/10/09/westmoreland
> -coal-files-chapter-11/

The newspaper that the OP linked to stated in the last paragraph that Westmoreland was fully bonded for the land reclaimation at all of their mine sites, so in theory even if they roll up the carpet and go away, money will be there for the reclamation.

Russ

Yeah, I read that on line this morning.  I imediately thought of Wash, Pa.  When I was  in fifth Ward grade school there, I used to sit in my clasrooms and watch the watch the steam engines haul the B & O coal trains running Pittsburgh to Wheeling Wva, on the Ohio River.   The teachers user to tell us students to not turn our heads to watch them.  DIdn't work very well for all of us kids to do that.   I'm 72 yrs old now, and I'll still not ever forget it.

John. (Teddy) Tilton). 

I'm now a resigned Navy Master Chief In Poway Ca. for 50 yrs
and worked on F-4 Phantom jet fighters and followed with F-14 Tom Cats.

I live in Washington, PA. I have spent considerable time in the MGA coal territory. Blacksville #2 (WV), Loveridege ( WV), Bailey / Enlow Fork (PA) mines are still loading. Federal #2 in WV stopped loading months ago. Bailey / Enlow fork is doing the best of the mines as far as loadings at this time.

John Breitigan
Washington, PA.

NSTopHat Wrote:
-------------------------------------------------------
(SNIP)
>
> The newspaper that the OP linked to stated in the
> last paragraph that Westmoreland was fully bonded
> for the land reclaimation at all of their mine
> sites, so in theory even if they roll up the
> carpet and go away, money will be there for the
> reclamation.
>
> Russ

Westmoreland has stated that it is fully covered for reclamation costs, although it has asked customers to assume excess liability.  The Associated Press says NRG is among these.  The same article notes that the state regulatory agencies have differed on how much the reclamation will cost, what needs to be done, etc.  A friendly regulator may differ rom a vigilant regulator, for example

West Virginia is currently dealing with several abandoned mine sites where the reclamation assets turned out to be insufficient.  Going after a bankrupt firm which posted its own bonds and mortgages as collateral is going to be a difficult slog.

https://www.apnews.com/caaf984676824b588ad2858cc82a5c75