Coal Firms Lose Bid To Recover Money Used To Restore Old Mines
17 Juni 2011 - 8:08PM
Dow Jones News
Coal companies appear to have lost a lengthy legal battle to try
to recover millions of dollars paid to the federal government to
clean up abandoned mines.
Earlier this week, the U.S. Supreme Court declined to hear an
appeal from Consol Energy Inc. (CNX) and about 70 other coal
companies trying to reclaim fees paid to the government under the
Abandoned Mine Lands Reclamation Fund. This is a fund that finances
the cleanup of mines that were in operation before Congress passed
federal mining laws in 1977.
The Supreme Court's move marks a big win for state and federal
governments, which would have been forced to scrap hundreds of
restoration projects if the coal companies had won their challenge,
Office of Surface Mining Director Joe Pizarchik said in a statement
to Dow Jones Newswires.
By declining to review Consol Energy's appeal, the Supreme Court
has also most likely doomed nearly a dozen other lawsuits filed by
coal companies seeking similar refunds.
"Based on past court proceedings, [Interior Department]
officials anticipate one of two possibilities: either the cases
will be voluntarily dropped by the plaintiffs or they will be
addressed on a motion for summary judgment," Pizarchik said,
referring to court filings that ask a judge to end a lawsuit.
A spokeswoman for Consol Energy was unavailable to comment.
Attorneys for the company declined to comment.
Among the other companies involved in the suit were subsidiaries
of Patriot Coal Corp. (PCX) and Alpha Natural Resources Inc.
(ANR).
Consol Energy filed its lawsuit in 2001. It argued that the
federal government acted illegally when it charged fees on coal
being exported--as opposed to just coal sold in the U.S. They said
the government was violating the constitutional ban on export taxes
and sought compensation for fees already paid on exported coal.
A lower court disagreed, saying the government could apply the
fee to every ton of coal taken from the ground, regardless of where
it was being shipped or sold. The Supreme Court's decision to deny
a review of the case means the lower court's ruling stands.
The federal government currently charges a fee worth 31.5 cents
for every ton of coal taken from a surface mine and 13.5 cents for
every ton taken from an underground mine, according to the Office
of Surface Mining. Beginning in 2013, the fee falls by a few
cents.
In 2010, the U.S. government collected $254 million in fees and
then distributed the money to Pennsylvania, Kentucky and several
other coal-producing states. The money is used to repair open mine
shafts, reduce harm from mine gases and clean up streams polluted
by acid mine drainage, among other measures, the office says.
"Going forward, states and tribes can rest assured that
[abandoned mine lands] money will be available to reclaim those
mine sites," Pizarchik said.
-By Tennille Tracy, Dow Jones Newswires; 202-862-6619;
tennille.tracy@dowjones.com
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