South Fork Coal Seeks Bankruptcy Protection, Owes State Millions

A coal company that operates surface mines in Greenbrier County has filed for bankruptcy protection.

South Fork Coal Company filed for Chapter 11 bankruptcy protection in the U.S. bankruptcy court in Delaware earlier this month.

Environmental groups have accused South Fork of dozens of violations of the Clean Water Act. Last month, the federal Office of Surface Mining, Reclamation and Enforcement issued a cessation order to South Fork.

The bankruptcy filing lists assets of $50 million to $100 million and liabilities of the same amount.

Among its creditors, South Fork owes nearly $5 million to the state of West Virginia and $300,000 to the West Virginia Department of Environmental Protection. It also owes more than $4 million to CSX Transportation, the railroad that serves its operations.

In December, the West Virginia Highlands Conservancy and Appalachian Voices sued South Fork in U.S. District Court, seeking to force the company to comply with the Clean Water Act and pay appropriate penalties.