Bankrupt coal miner Arch Coal Inc. has reached a deal with the state of Wyoming that will provide it with temporary relief from liability for millions of dollars in future cleanup costs for coal mines, Reuters reported yesterday. In the past, companies like Arch Coal have covered the costs of cleaning up mines through self-bonds that allowed them to use their balance sheet as a guarantee. That practice has come under federal scrutiny since Arch Coal, the second-largest U.S. coal miner, and Alpha Natural Resources filed for bankruptcy, potentially leaving taxpayers exposed to billions of dollars in cleanup costs. Arch said in a court filing that the state of Wyoming and the Wyoming Department of Environmental Quality have agreed to accept $75 million from a debtor-in-possession financing carve-out in the bankruptcy. That amount will cover cleanup costs related to mines operated by Arch, including Black Thunder, one of the country's largest mines, as well as the Coal Creek and Vanguard mines. An additional $17 million will be provided in third-party collateral for four smaller mines, it said.
