Laserfiche WebLink
It is important to note that Peabody's financial status in relation to the company's self - <br />bonding is not a new development. In early 2015, the National Wildlife Federation, Western <br />Organization of Resource Councils, and the Natural Resources Defense Council released a report <br />detailing signs that Peabody no longer meets the financial criteria for self -bonding. 17 Among <br />other things, the report disclosed that Peabody's total self -bonding obligations have exceeded <br />25% of the company's net worth since at least 2012. See Graph below. Thus, Peabody's failure <br />to provide proper notification to regulatory authorities and to post alternate bonds appears to <br />represent a longstanding problem that is in dire need of resolution. <br />so <br />so <br />40 <br />so <br />20 <br />to <br />2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 <br />■ Peabody Entergy • Arch Coal Notal: <br />Cloud Peak initiated selt-bondmgin2Q14. <br />*Cloud Peak ■Alpha Alpha (irstdisc lased sett-bondmifar the yesr2014. <br />sowcc C004"My 10-K rMAds <br />Figure 2. Aggregate reclamation self -bonding reported by Peabody Energy, Arch Coal, Cloud Peak, and Alpha <br />Natural Resources, represented as a percentage of reported net worth. Data arrayed in Tables 3, 4, 5 and 6. <br />IV. VIOLATIONS OF SMCRA <br />Where there is reason to believe that a violation of SMCRA exists, OSMRE is required to <br />notify the state regulatory authority pursuant to 30 C.F.R. § 842.11(b)(1)(ii)(B). Where a state <br />fails to respond within 10 days, or otherwise fails to take appropriate action, OSMRE must <br />conduct an inspection of mining operations. If a violation is found as a result of an inspection, <br />OSMRE must issue a "notice of violation" pursuant to 30 C.F.R. § 843.12(a) to remedy the <br />violations. <br />Based on the aforementioned information, there is reason to believe that violations of <br />SMCRA are occurring with regards to all of Peabody Energy's permitted coal mining and <br />reclamation operations in Colorado, New Mexico, and Wyoming. It appears that Peabody has <br />failed to provide notification to state regulatory authorities that the company no longer qualifies <br />for self -bonding at its permitted operations, and to post alternate bonds within 90 days, a <br />violation of 30 C.F.R. § 800.23(g). Accordingly, OSMRE must notify Colorado, New Mexico, <br />"National Wildlife Federation, Western Organization of Resource Councils, and Natural Resources Defense <br />Council, "Undermined Promise II" (2015), report available at <br />http//www.underminedpromise.ora/UnderminedPromisell.pdf. Attached as Exhibit 5. <br />