Arch wants to keep trio of contract mining deals at Mingo Logan Coal

Arch Coal is due for a May 11 bankruptcy court hearing on its April 27 motion for assumption of a series of services contracts, including three contract mining deals with Eagle Creek Mining LLC held by Arch’s Mingo Logan Coal subsidiary.

Arch, one of the nation’s top coal producers, sought Chapter 11 protection in January at the U.S. Bankruptcy Court for the Eastern District of Missouri.

Said the April 27 motion: “The Agreements concern the purchase of goods and services that are essential to the Debtors’ future business operations and restructuring efforts. In exchange for the assumption of the Agreements, each of the Counterparties has agreed to a reduced Cure Cost and certain improvements in the Debtors’ payment terms and in the discount obtained on payment of invoices. The total Cure Cost to assume the Agreements is $744,350.”

No cure costs are shown for the three Eagle Creek Mining agreements, two of which date back to 2011 and the other to April 2015. The other contracts to be assumed mostly involve mine services and equipment supply.

The U.S. Mine Safety and Health Administration database shows three surface mines, all in southern West Virginia, listed under the Eagle Creek Mining name that had formerly been listed under Mingo Logan Coal. Two (Eagle Creek No. 5 and Daniel Hollow) are shown as non-producing and the third, Spruce No. 1, is shown by MSHA as active. Spruce No. 1 is the Mingo Logan Coal mine at the center of a years-long court battle with the U.S. EPA over the mine’s Section 404 Clean Water Act permit. Eagle Creek Mining is controlled by coal operators John Potter and Thomas Potter.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.