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Guardians Puts States on Notice: Coal Giant Must Pay up or Shut Down
Contact: Jeremy Nichols (303) 437-7663 jnichols@wildearthguardians.org

Denver—The statesof New Mexico and Wyoming were put on notice today that if they don’t stopgiving Peabody coal illegal breaks over its mine clean ups, WildEarth Guardiansintends to file suit to compel them to stop.

“No more breaks to big coal,” said Jeremy Nichols, WildEarthGuardians’ Climate and Energy Program Director. “With industry in a tailspin and companies going bankrupt, now is thetime to hold Peabody accountable to cleaning up its mess and to helping our nationtransition from coal.”

At issue is nearly a billion dollars of coal mine clean upliability in New Mexico and Wyoming that currently is on the shoulders oftaxpayers.

For years now, Peabody has been allowed by the states to“self-bond,” or to guarantee the cost of reclamation based on its own financesinstead of posting an actual bond. Last week, Peabody filed for bankruptcy,meaning the company no longer has the financial means to guarantee reclamationof its mines with its own money.

This means taxpayers are now on the hook for cleaning upPeabody’s mines if the company goes out of business. Given the overall decline of the coalindustry, such an outcome is more likely than ever. Ultimately, taxpayers could be forced toshoulder $909 million to cover reclamation.

“It’s bad enough we’re shouldering the cost of the coalindustry’s climate pollution, now we’re facing the cost of basic reclamation,”said Nichols. “It’s time for Peabody toaccept the reality that the American public is no longer content to prop uptheir failing coal business. It reallyis time for Peabody to pay up or shut down.”

Under state and federal laws, a company can’t mine coal ifit can’t post an adequate clean up bond. In letters today, WildEarth Guardians put regulators in New Mexico andWyoming on notice that they must ensure Peabody either posts adequate bonds orceases coal extraction. If the statesfail to act, they face legal action.

Already, other states have stepped up to ensure Peabodyposts adequate bonds for its mines. Onlydays before the company’s bankruptcy, Coloradoapproved the replacement of Peabody’s self-bonds with corporate sureties,guaranteeing nearly $30 million in clean up.

Peabody is the largest coal producer in New Mexico andWyoming, as well as the largest in the United States. In the U.S., Peabody every year produces morethan 180 million tons of coal. When burned, this coal produces more than 330million metric tons of carbon dioxide annually, more than 5% of all U.S.greenhouse gas emissions.

Before its bankruptcy, WildEarth Guardians and other groups calledon Peabody CEO, Glenn Kellow, to acknowledge the bleak future for coal and to bringabout an orderly and effective end to Peabody’s coal business. In a letter to Kellow, the groups called onPeabody to help communities and workers transition from coal, rather than denythe company’s demise.

“This is about holding Peabody and other companiesaccountable to helping our nation transition from coal,” said Nichols. “Guaranteeing reclamation, providingresources for communities and workers, and coming clean with the Americanpublic that there is no future for coal are critical steps that need to betaken by industry to ensure we become more sustainable and prosperous.”