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America Stands to Benefit from Arch Coal Bankruptcy

Date
January 11, 2016
Contact
Jeremy Nichols (303) 437-7663
In This Release
Climate + Energy  
#KeepItInTheGround
Monday, January 11, 2016
America Stands to Benefit from Arch Coal Bankruptcy

WildEarth Guardians Calls on Company to Shed Liabilities, Commit to Ending its Coal Business
Contact: Jeremy Nichols (303) 437-7663

Denver—WildEarthGuardians today called on Arch Coal’s Chairman and CEO to take meaningful stepsto protect the American public, the climate, public lands, and workers, andwind down its business as the company faces bankruptcy.

“There is no future for coal, and it’s time for Arch Coal tobe honest about this with its shareholders, its employees, and the Americanpublic who sustain so much of the company’s operations,” said Jeremy Nichols,WildEarth Guardians’ Climate and Energy Program Director. “It’s time for the company to take concretesteps to end its mining business for the sake of our climate and our future.”

In a letter submitted today to John Eaves, Arch Coal Chairmanand CEO, WildEarth Guardians called on the company to commit to withdrawingpending coal lease and mining applications, to relinquish coal leases, toreclaim its mining operations by dates certain, and to ensure the needs ofworkers and retirees are fully met.

The letter comes as ArchCoal stated its intent to file for Chapter 11 bankruptcy today.

Arch Coal is the second largest coal company in the UnitedStates and the largest holder of publicly owned coal leases in the nation. The vast majority of its operations andassets are located in the western United States, where the company’s largestmines are located and where the company has thousands of acres of publiclyowned coal under lease that are managed by the federal government.

In its letter, Guardians pointed out that Arch Coal couldtake meaningful steps today to divest its assets, both saving the company moneyin the near-term and protecting the climate and the American public in thelong-term. These steps includewithdrawing applications for new federal coal leases and new mining operations,relinquishing federal coal leases where the company is no longer producingcoal, and committing to expeditious deadlines to shut down and reclaim itsexisting mines.

By withdrawing pending coal lease applications, for example,Arch could eliminate the specter of nearly $1 billion in future liabilities andkeep more than 700 million tons of coal from endangering the climate.

Further, by committing to deadlines to shutdown and reclaimmines, Arch could eliminate reclamation liabilities. In Wyoming, for example, the company faces$457 million in reclamation liability, which could be eliminated if the companycleaned up its mines and fully restored the land. If not, American taxpayers could end upshouldering the costs of reclamation.

“By shedding liabilities, Arch can ensure that workers and retireesare taken care of, the American public is protected, the climate is safeguarded,and shareholders get some return, even as the long-term prospects for thecompany are bleak,” said Nichols. “Thereis no future for coal, but that doesn’t give Arch Coal license to screweveryone over as they decline.”

WildEarth Guardians has challenged many of Arch’s miningplans in the American West, notably overturningthe company’s plans to expand its West Elk mine in western Colorado in2014. In its letter, Guardians offeredto “stand down” if Arch makes commitments to wind down its operations andcommit to ending its coal enterprise.

For more information about Arch Coal’s mines,lease, and operations in the western United States, click here >>

 

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“There is no future for coal, and it’s time for Arch Coal to be honest about this with its shareholders, its employees, and the American public who sustain so much of the company’s operations,” said Jeremy Nichols, WildEarth Guardians’ Climate and Energy Program Director. “It’s time for the company to take concrete steps to end its mining business for the sake of our climate and our future.”