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2016-02-22_ENFORCEMENT - C1982057
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2016-02-22_ENFORCEMENT - C1982057
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Last modified
8/24/2016 6:19:23 PM
Creation date
3/4/2016 9:41:01 AM
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Template:
DRMS Permit Index
Permit No
C1982057
IBM Index Class Name
Enforcement
Doc Date
2/22/2016
Doc Name
Notice of Intent to File Law Suit Against Peabody Energy
From
Wild Earth Guardians
To
Peabody Energy
Violation No.
TDNX16140182001
Email Name
JRS
MPB
DIH
JHB
Media Type
D
Archive
No
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states that it does not qualify. Further, Peabody has not posted alternate bonds for the <br />aforementioned mining and reclamation operations. <br />In fact, Peabody claims these states have continued to determine that the company <br />qualifies for self -bonding, even though it clearly does not. Most recently, Peabody asserted that <br />the State of Wyoming re -affirmed the company's self -bonding of its North Antelope -Rochelle <br />and Rawhide mining operations in the state. 14 The company also asserted that the State of New <br />Mexico approved of its self-bonding.15 However, there is no indication that Peabody provided <br />notification to the states of Wyoming or New Mexico, or the state of Colorado for that matter, <br />that the company does not actually qualify for self -bonding. Regardless of the opinions of <br />regulators in the states of Colorado, New Mexico, or Wyoming, the obligation remains upon <br />Peabody to provide proper notification when the company no longer qualifies for self -bonding <br />and to take steps to ensure adequate bonds are in place. <br />Furthermore, the circumstances that have rendered Peabody ineligible for self -bonding <br />show no signs of dissipating. As indicated above, even though the company has expressed its <br />intent to sell its Colorado and New Mexico assets, this sale would not eliminate sufficient <br />bonding obligations to render the company eligible for self -bonding again. Additionally, there is <br />skepticism that this deal may even go through and suggestions that Peabody may file for <br />bankruptcy in the next few days. 16 If Peabody Energy files for bankruptcy, its subsidiary, <br />Peabody Investments Corporation, will surely also file. <br />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. 1 7 <br />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 be <br />longstanding. <br />14 Supra. Note 3. <br />15 Supra. Note 4. <br />16 WYCO Researcher, "Peabody Energy Could File for Bankruptcy Unless Bowie Gets Financing," Seeking Alpha <br />(Feb. 8, 2016), available at http://seekingalpha.com/article/3872816-peabody-energy-file-bankruptcy-unless-bowie- <br />gets-financing. <br />17 National Wildlife Federation, Western Organization of Resource Councils, and Natural Resources Defense <br />Council, "Undermined Promise II' (2015), report available at <br />htip://www.underminedpromise.org/UnderminedPromisell.pdf. Attached as Exhibit 9. <br />
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