Patriot Coal to end mountaintop mining
MORGANTOWN, W.Va. — Bankrupt Patriot Coal Corp. agreed Thursday to become the first U.S. coal operator to phase out and eventually stop all large-scale mountaintop removal mining in central Appalachia under an agreement reached with three environmental groups that sued over pollution from several West Virginia operations.
St. Louis-based Patriot said the proposed agreement allows it to postpone as much as $27 million in expenses into 2014 and beyond, improving its liquidity and the likelihood it can successfully emerge from Chapter 11 protection as a viable business.
The deal comes as Patriot tackles litigation that must be resolved during those proceedings. The terms would be binding on any subsidiaries it sells or spins off.
Presented to U.S. District Judge Robert Chambers in Huntington for consideration, the agreement stemmed from water pollution lawsuits filed by the Sierra Club, Ohio Valley Environmental Coalition and West Virginia Highlands Conservancy.
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