Laserfiche WebLink
November 24, 2015 C-1980-007/West Elk Mine LDS <br />Inspection Topic Summary <br />NOTE: Y=Inspected N=Not Inspected R=Comments Noted V=Violation Issued NA Not Applicable <br />N - Air Resource Protection <br />R - Availability of Records <br />N - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />R - Hydrologic Balance <br />R - Gen. Compliance With Mine Plan <br />N - Other <br />R - Processing Waste <br />Y - Roads <br />N - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />Y - Support Facilities On-site <br />R - Signs and Markers <br />N - Support Facilities Not On-site <br />NA - Special Categories Of Mining <br />N -Topsoil <br />COMMENTS <br />This was a complete inspection by Leigh Simmons of the Division of Reclamation, Mining and Safety <br />(Division). Jessica Loveland of Mountain Coal Company (MCC) accompanied the inspection. The weather was <br />fine, with a little snow on the ground in the facilities areas. <br />Although some ice had built up, the North Fork of the Gunnison River was again flowing slightly above the <br />seasonal average (-130 cfs, per the USGS streamflow measuring site upstream of Somerset). <br />The mine was actively mining, processing and shipping coal. The principal focus of the inspection was on <br />CDPS outfalls. <br />In a filing made to the Securities and Exchange Commission on November 9, 2015, Arch Coal Inc. (the parent <br />company of MCC) reported a $2 billion net loss for the quarter ending September 30, 2015. In the notes <br />accompanying the financial statements it was reported that: <br />"The Company incurred a net loss for the years ended 2014, 2013 and 2012 and will report a net loss in <br />the current year as well. Additionally, in 2014 and 2015, the Company has been unable to generate sufficient <br />cash to cover interest expense and capital expenditures. The Company launched subordinated debt exchange <br />offers in July 2015 that, if successful, would have substantially improved the Company's leverage profile. The <br />exchange offers were terminated on October 27, 2015 as a result of various factors, including the actions of <br />the Company's term lenders in directing the term loan agent not to execute the required documents as well <br />as highly challenging market conditions. <br />With the extremely challenging market conditions currently facing the industry, the Company will require <br />a significant restructuring of its balance sheet to continue to operate as a going concern over the long term. <br />The Company is currently in active dialogue with various creditors with respect to restructuring of the <br />Company's balance sheet. The Company's mining operations and customer shipments are continuing as <br />normal and the Company has no near-term maturities." <br />The complete filing is available to the public at: <br />http://www.sec.gov/cgi-bin/viewer?action=view&cik=1037676&accession_number=0001104659-15-076941&xbrl type=v <br />Number of Partial Inspection this Fiscal Year: 3 <br />Number of Complete Inspections this Fiscal Year: 2 <br />Page 2 of 15 <br />