Bankruptcy Judge Kevin R. Huennekens approved a deal resolving a dispute between coal operator Alpha Natural Resources and West Virginia regulators over the company’s mine reclamation bonds, the Associated Press reported yesterday. Judge Huennekens’ order said that the agreement is fair and equitable, and represents “a sound exercise of the Debtors’ business judgment.” He overruled an objection filed by the Sierra Club, the West Virginia Highlands Conservancy and the Ohio Valley Environmental Coalition. Tuesday’s order, filed in U.S. Bankruptcy Court in Richmond, Virginia, authorized Alpha to enter into a consent order with the West Virginia Department of Environmental Protection. Under the consent order, Alpha agreed to reduce its self-bonding obligations and to continue reclaiming mining operations in the state. Alpha also will provide $39 million in financial commitments to back its remaining self-bonded obligations. The company has more than 500 mining permits for its operations in West Virginia.
