Lawsuit Brought Against Peabody Energy

PEABODYA lawsuit has been brought against the owners of Twentymile mine by multiple environmental groups including The WildEarth Guardians. The law suit claims that Peabody Energy which also owns mines in New Mexico and Wyoming, no longer qualifies economically to finance their reclamation projects through self-bonding. Self-bonds use a companies assets to guarantee that money will be available to finance the reclamation of lands that are mined. According to the U.S. Surface Mining Control and Reclamation’s Act companies must cease mining operations if at any point their self bonds fail to adequately cover the cost of reclamation. Many of the qualifications to self-bond are tied to the economic health of the company involved, which does not bode well for Peabody Energy as they reported losses of $2 billion in 2015. In a statement refuting the lawsuit Peabody claims all of their mines were reaffirmed for self-bonding eligibility last year in all states where they use self-bonded. The state governments that are involved will have a week to evaluate the lawsuit and determine if Peabody is indeed operating its mines illegally. At the end of the week, the states will have the option to agree with the complaint and offer solutions, determine that a violation did not occur, or request more time to evaluate.

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