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Case 16-42529 Doc 23 Filed 04/13/16 Entered 04/13/16 11:20:44 Main Document <br />Pg 5 of 32 <br />jeopardize the Debtors' businesses by causing them to be in violation of applicable law, <br />preventing them from continuing mining operations and disrupting the provision of benefits to <br />their employees, among other things. <br />The Debtors' Third -Party Surely Bonds <br />10. As of March 31, 2016, the Debtors had approximately $538.0 million in <br />outstanding Third -Party Surety Bonds. Approximately $337.4 million in aggregate amount of <br />the Third -Party Surety Bonds have been provided by the Debtors to various Governmental <br />Authorities to secure certain reclamation obligations of the Debtors (the "Reclamation <br />Obli atg ions") in relation to their mining operations, especially those operations that are surface <br />mining operations. Other categories of Third -Party Surety Bonds issued on behalf of the Debtors <br />include (but are not limited to) lease bonds, prospecting bonds, road bonds, performance bonds <br />and workers' compensation bonds. <br />11. The Debtors pay premiums (the "Bond Premiums") for the Third -Party <br />Surety Bonds, which premiums generally are determined annually and are paid by the Debtors to <br />the Issuers of the Surety Bonds at or near inception and annually thereafter during the month of <br />renewal. The Debtors currently pay approximately $5.1 million in annual Bond Premiums. The <br />Debtors estimate that, as of the Petition Date, they owe approximately $1.3 million in unpaid <br />Bond Premiums. <br />12. In addition, the Debtors are party to a number of agreements (collectively, <br />the "Indemnity Agreements"), pursuant to which the Debtors are required to indemnify the <br />applicable Issuer as a condition to the issuance of the bond. Pursuant to the Indemnity <br />Agreements, the Debtors have generally agreed to indemnify the Issuers and certain related <br />parties from any loss, cost, damage or expense they may incur by reason of their execution of <br />any Surety Bonds on behalf of the Debtors. By this Motion, the Debtors seek the authority, but <br />-5- <br />