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West Virginia regulators have settled a lawsuit brought against Alpha Natural Resources over concerns about the coal producer’s reclamation obligations as it emerges from bankruptcy.
A Virginia court approved Alpha’s bankruptcy plan in July. But in November, Alpha revealed $100 million in unaccounted-for expenses.
The state Department of Environmental Protection, worried that the burden put the company at further risk of financial failure, then filed a lawsuit against Alpha. Under the settlement announced Tuesday, Alpha agreed to post its Boone County headquarters as collateral, appraised at $6.3 million.
In addition, Contura Energy Inc., which bought much of Alpha’s assets, will post a $4 million letter of credit and issue a secured $4.5 million guaranty of Alpha’s obligations, each through the end of 2018.
