Arch Coal Inc.’s chapter 11 filing on Monday has left some citizens groups concerned about the company’s ability to clean up pollution at its Wyoming mines, the Wall Street Journal reported yesterday. Coal miners such as Arch must, under state and federal law, post reclamation bonds to show their ability to clean up the land and treat the water at their mining sites. Some states allow what is called self-bonding, in which the bonds aren’t backed by any insurance. While self-bonds can save companies money, questions arise about their ability to fulfill the bonds when they run into financial trouble. If a company can’t pay for cleaning up the polluted land and water at a mine, the bill could be passed on to taxpayers. In Arch’s case, its lenders have agreed to cover up to $75 million in cleanup and other regulatory obligations in connection with a proposed $275 million bankruptcy loan. But that falls short of the $485 million in self bonds that court papers show Arch has posted for its Wyoming mining operations.
