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What will become of abandoned coal mines throughout Appalachia as more and more coal companies go bankrupt?

 

A report released by a coalition of groups in Central Appalachia Thursday suggests answers to that question that could benefit the region while acknowledging how steep the challenge will be.

 

The report, developed by the Reclaiming Appalachia Coalition, a regional collaboration aiming to redevelop communities across the region through mine reclamation projects, highlights the daunting reclamation bonding issues that West Virginia and other states face.

 

Enacted in 1977, the federal Surface Coal Mining and Reclamation Act allows states to regulate their own surface coal mining and reclamation operations while the Office of Surface Mining Reclamation and Enforcement maintains some oversight to keep state programs in compliance with the law, which requires coal mining permit applicants to post a reclamation bond to ensure that regulatory authorities have enough funding to reclaim the site.

 

But actual reclamation costs may exceed bond amounts, and Thursday’s report says the cost of reclaiming at least 490,000 acres of mined land in West Virginia, Kentucky, Ohio, Virginia and Tennessee may amount to $6 billion, far more than the $2.5 billion the report says those states have in available bonds based on a review of state and federal data.

 

A recent trend in bankruptcies among coal companies raises the concerning possibility that much of that land will remain unreclaimed if companies forfeit their bonds.

 

“We have not yet seen a large company abandon many mines, but we are likely about to. Many state bonding programs were not designed to withstand widespread forfeiture resulting from multiple bankruptcies or even the bankruptcy of a single large company,” states the report.

 

More than 50 coal companies have gone bankrupt over the past decade.

 

The report notes the coal company Blackjewel’s 2019 bankruptcy declaration and a Kentucky Energy and Environment Cabinet finding that the reclamation costs stemming from permits mainly in Kentucky but also in West Virginia and other states would exceed available bonds by $38 million. That’s just $8 million less than the funding the Kentucky Reclamation Guaranty Fund has in its funding pool, according to the report.

 

Insufficient data on reclamation needs and costs makes determining the extent of bonding shortfalls tricky, but the report concludes that it’s still evident that the bonding system may be ill-equipped to stop a new wave of abandoned coal mines in Central Appalachia.

 

 

Source : https://www.wvgazettemail.com/news