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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 />