Alpha Natural Resources has reached an agreement with West Virginia that aims to ensure some of the bankrupt coal miner's future clean-up costs will be covered. The deal is similar to Wyoming's deal with the company.
The agreement requires Alpha Natural Resources to put up $39 million in financial assurances for its $244 million dollars in self-bonded clean-up costs. Self-bonding is a program that gives companies a pass on putting aside money for clean-up costs if they can pass a test of financial strength.
This summer West Virginia regulators ordered Alpha to replace its self bonds but the company said it couldn't because of its bankruptcy.Wyoming found itself in a similar situation this year, and came to a similar solution. In September, Alpha agreed to prioritize the repayment of just $61 of its $411 million dollars worth of outstanding clean up costs in the state. The West Virginia agreement is subject to bankruptcy court approval.
