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Consol can’t appeal Murray’s bankruptcy plan, a judge rules

Source: Pittsburgh Post Gazette

February 3, 2021

 

Consol Energy Inc. was dealt another blow in its campaign against the bankruptcy plan of an Ohio-based rival.

A judge ruled on Monday that Consol doesn’t have standing to appeal the plan of bankrupt miner Murray Energy Inc. It was approved in May.

Cecil-based Consol, which sold five mines to Murray Energy in 2013, has been trying to scuttle the settlement that Murray reached with its creditors and the United Mine Workers of America union, claiming that it wasn’t fair to Consol, an unsecured creditor in the bankruptcy. On Monday, the bankruptcy judge wrote that Consol wasn’t aggrieved enough by the settlement to be able to appeal it, at least not in the legal sense.

The conflict stems from that 2013 sale, a deal that transferred responsibility for paying retiree benefits due the miners who worked at those mines and their beneficiaries from the Pennsylvania company to the Ohio firm.

Those benefits are protected by the Coal Act, which says that if an employer defaults on those responsibilities, the last company that owned them — if it is still in business — would be on the hook.

Murray Energy, founded and led by firebrand Robert Murray, filed for Chapter 11 bankruptcy protection in October 2019. The company said that given coal’s declining financial prospects and the weight of the company’s debts, it could only re-emerge as a functional entity if it shed much of its liabilities, including those under the Coal Act.

In legal filings last year, Consol alleged that Murray Energy and the miners’ union colluded to dump those health care liabilities on Consol.

And just after Murray’s bankruptcy plan, which rejected those obligations, was approved, the retiree’s benefit plan sued Consol and its previous parent, now called CNX Resources Inc., in federal court in Washington D.C., asking a judge to make the two Pittsburgh area companies pay.

Consol and CNX, in defending against that lawsuit, claimed, in part, that even considering the question of their liability was premature because of its pending appeal in Murray’s bankruptcy.

The bankruptcy judge’s decision on Monday removed that line of argument. The opinion was blunt: “The bankruptcy code is not concerned with Consol’s interest in averting liability under the Coal Act,” the decision read. “Protecting health care and retirement benefits for retirees of debtors in bankruptcy is the goal.”

The question of whether Consol and CNX are responsible for these retirement payments should be resolved in the lawsuit filed by the retirement plan, the bankruptcy judge wrote.

And the retirement plan wasted no time pointing that out to the judge in its case.

Consol and CNX have argued that neither has anything to do with the beneficiaries of the retirement plan. CNX noted that it’s a natural gas company, not a coal company, and Consol noted that it was created in 2017 and therefore had nothing to do with the 2013 sale of mines to Murray. Both entities grew out of a 150-year old coal company that used to be called Consol Energy.

Written by: Anya Litvak: alitvak@post-gazette.com

Union Plus: Flowers & Gifts

Source: Union Plus

Save 30% on Valentine’s Day flowers

Valentine’s Day celebrations may be a little different this year. Make sure to brighten a dinner table from afar with beautiful bouquets and centerpieces from Teleflora.

How to get the union member discount for flowers and gifts

Your  discount should be applied automatically. If you encounter any issues accessing your  discount, simply type  BAAUP30 in the Promotion Code  box during checkout.

Your union discount includes:

  • 30% discount on flowers & gifts per order
  • Same-day flower delivery service (If ordered before 2 p.m. Monday-Friday or 12 p.m. Saturday or Sunday in recipient’s time zone)
  • Unconditional 100% satisfaction guarantee on a wide selection of expertly designed flower arrangements, gifts, green and blooming plants and wreaths
  • International service (with three-day delivery guarantee; orders for delivery outside the U.S. and Canada taken by phone only.)

Save even more on today’s deal

You can get the best bouquet for your buck, just order the Deal of the Day. Let expert florists handpick the freshest, most beautiful flowers to create one-of-a-kind arrangements, all at an affordable price.

 

 

Coal Workers Defend Mining

Source: Medicine Hat News

February 2, 2021

Coal mine workers in Alberta say they understand the need to balance environmental concerns about their industry with the financial benefits derived from the product they produce.

“We have been clear on this: mining yes, but not everywhere, everytime,” says United Steelworkers Western Canadian director Stephen Hunt, whose union represents miners at the Wabaman Highvale mine. “You also have to balance the interests of the broader public that are affected by mining. That is something we consider as well, and we think we are responsible in that (as an industry). If you can’t do it safely, and you can’t protect the people who are downstream, then maybe you shouldn’t mine there. With the technologies we have today, I don’t see a reason why we should be contaminating anybody’s water source.”

It also helps if you have union members working in those mines holding the corporations to account, says United Mine Workers of America Canada international auditor and teller Jody Dukart. UMWA Canada represents coal workers at the Teck Mine in Cardinal River and CST Coal Canada Ltd. mine in Grande Cache.

“At any mine we do organize, our members live in those communities, their kids go to school in those communities, and they raise families in those communities,” Dukart says. “Everybody works together because they don’t want to see the place left behind and degraded. It goes hand-in-hand.

“Part of the mine workers’ policy in Canada here is we don’t just go in to represent the workers. Our workers are from the community, and they have families in the community. We spend numerous hours working with residents and governments to hold these mines accountable for reclaim purposes. “If you don’t have a union in there to do that then that is where things fall apart,” he adds.
“No one has a voice at the table with these big coal companies.”

Hunt says the benefits of coal mining are clear if the mining is done by a responsible company backed by good government policy which is enforced rigorously at the mine site.

“These are family-supporting jobs,” he states. “They are decent jobs. They pay well. They support communities, and they support our society. Some people don’t like coalmining, and I do understand that, but that is how we have alternatives. The world is still going to consume coal, and our position is if we can do it safer than, for example, China, and we can do it cleaner — let’s do it. One day coal will be replaced (as a fuel source), but not today.”

“Obviously coal mining is a dirty business even when the pay is good and it builds communities,” agrees Dukart. “You have to look at all those aspects together, and there are lots of options to make coal viable and clean. If everybody works together, I think it could all come together and make it work.
“Everybody’s talking about renewables,” he states, “but if you really look into renewables they need the coal to produce the renewables. If you phase it out, it is going to be tougher to build the renewables.”

Hunt gives an example to illustrate this point.
“Every windmill takes 60 tonnes of steel, and in order to make steel you have to burn coal,” he explains. “You can’t have it both ways. To make solar panel, you need minerals. You want a cell phone, you need minerals. We have to get them from somewhere, and if you drive your electric car it usually has cobalt in it. That’s currently mined mostly in the world by children in the Democratic Republic of the Congo. All of this stuff is connected, and our world is quite small right now.”

Hunt acknowledges coal might be phased out in future even while being needed to help with the transition to a green energy economy today. If those green industry jobs were created in tandem with opening a few new opportunities for the metallurgical side of the coal industry, he says, it might give coal workers a place to go as their thermal coal jobs are phased out.

“We can do more than just say, ‘We are greening the economy,’ and actually do something about it,” states Hunt, “and that would create employment. But that would also require government to actually govern. If you started with every provincial government building, and said we’re going to retrofit it and put solar panels on the roof, or reinsulate it, or look for electric vehicles as an alternative– there’s a good start other than actually saying we’re going to stop this, or hope we are going to start this.

“Alberta is a case study in resource industries nobody likes,” he says. “When you base a vast majority of your economy on resources, it seems to me a government should start to govern, and anticipate there are going to be some issues, and some hard issues. They get elected to govern, and now they got to do it.”

Dukart agrees coal miners and coalmining communities need more options which set them up for continued success, and in the longer term in might be green energy. But in nearer term, he believes, metallurgical coal, if mined responsibly, would allow for a direct transference of skills from the thermal coal side into that greener future.

“The impact (on the community) of losing a coal mine is phenomenal,” he says. “For every coal job we have at the mine, it produces 800 other jobs in the community. That might be a supplier for bringing materials out to the mine in town to a healthcare worker. It impacts the community big-time.”

Written by: Tim Kalinowski

Senators introduce COVID-19 Mine Worker Protection Act, UMWA commends bill

Source: 12WBOY

February 1, 2021

CLARKSBURG, W.Va. – U.S. Senators Joe Manchin (D-WV) and Shelley Moore Capito (R-WV), along with officials from several other states, have introduced a bill to protect miners from COVID-19 exposure.

A press release issued by Senator Manchin’s Office stated that he and Senator Capito, along with Senators Mark Warner (D-VA), Dick Durbin (D-IL), Tim Kaine (D-VA), Bob Casey (D-PA), and Sherrod Brown (D-OH) and Representative Matt Cartwright (D-PA) introduced the bipartisan, bicameral COVID-19 Mine Worker Protection Act, which would requite the U.S. Department of Labor (DOL) to issue an emergency temporary standard requiring mine operators to establish a plan to tackle occupational COVID-19 exposure and provide miners with the necessary personal protective equipment (PPE).

Additional information of the COVID-19 Mine Worker Protection Act can be found here.

“Our miners risk their lives every day to power our nation and during the COVID-19 pandemic, that risk is even greater for our brave miners. The bipartisan, bicameral COVID-19 Mine Worker Protection Act will instruct DOL to create safeguards and provide PPE to ensure our miners are protected from exposure to COVID-19 in the mines. I will continue to work with my bipartisan colleagues, DOL and the United Mine Workers of America (UMWA) to pass this commonsense legislation to help our miners stay safe during the pandemic as they continue to provide Americans with the power we need every day.” – SEN. JOE MANCHIN (D-WV)

“For centuries, our miners have worked tirelessly to power America and keep the lights on. It is vital that we take the necessary steps to provide them safety and job security as we continue to battle COVID-19.” – SEN. SHELLEY MOORE CAPITO (R-WV)

The COVID-19 Mine Worker Protection Act would direct the Secretary of Labor to issue and emergency temporary standard that requires mine operators to:

  • Develop and implement a comprehensive infectious disease exposure control plan to protect miners from COVID-19 exposure at the mines;
  • Provide personal protective equipment to miners;
  • Incorporate guidelines from the CDC, NIOSH, and relevant scientific research;
  • In coordination with CDC and NIOSH, track, analyze, and investigate mine-related COVID-19 infections data in order make recommendations and guidance to protect miners from the virus.

The United Mine Workers of America issued a response on Monday commending the bill, saying it will provide the Mine Safety and Health Administration (MSHA) a critical and vitally-needed tool to prevent the further spread of COVID-19 among America’s nearly 200,00 miners employed in the nation’s coal, metal and nonmetal mines.

“An Emergency Temporary Standard (ETS) at MSHA is long overdue, and should have been issued at the beginning of this pandemic. You would think that the government agencies that are charged with protecting workers on the job would not have to be forced to do it. But that is where we find ourselves today.

I welcome President Biden’s Executive Order directing MSHA to determine if an ETS should be issued, but that does not mean that the agency will do it. I fear that left to its own devices, MSHA will not take this needed action.

This legislation will ensure that MSHA will issue such an order, enforce it and then make it permanent. I want to thank the lead sponsors, Senator Joe Manchin (D-W.Va.) and Rep. Matt Cartwright (D-Pa.), and the bipartisan lawmakers in both houses of Congress who have come to the aid of miners, their families and their communities across America. I urge swift passage of this legislation.” – UMWA INTERNATIONAL PRESIDENT CECIL E. ROBERTS

The release from the UMWA stated that more than 500 UMWA miners have contracted the virus in the past 11 months. UMWA officials said many miners have been hospitalized, and some have died. The extent of infection in nonunion mines is not known at this point, because MSHA is not keeping track. The UMWA represents about 30 percent of all active hourly coal miners in the United States, according to the release.

Written by: Sam Haines

Manchin, Capito, team with others to reintroduce miners’ COVID protection bill

Source: The Dominion Post

February 1, 2021

MORGANTOWN – West Virginia Sens. Joe Manchin and Shelley Moore Capito have again teamed with other senators to reintroduce the COVID-19 Mine Worker Protection Act.

The bill would direct the U.S. Secretary of Labor to issue an emergency temporary standard (ETS) that requires mine operators to develop and implement a comprehensive infectious disease exposure control plan to protect miners from COVID-19 exposure at the mines; provide personal protective equipment to miners; incorporate guidelines from the CDC, NIOSH and relevant scientific research; and in coordination with CDC and NIOSH, track, analyze and investigate mine-related COVID-19 infections data in order make recommendations and guidance to protect miners from the virus.

The senators previously introduced this bill last May but it went nowhere.

Manchin said, “Our miners risk their lives every day to power our nation and during the COVID-19 pandemic, that risk is even greater for our brave miners.”

Capito said, “For centuries, our miners have worked tirelessly to power America and keep the lights on. It is vital that we take the necessary steps to provide them safety and job security as we continue to battle COVID-19.”

The bill again has the backing of the United Mine Workers of America, who failed in June in a joint effort with the United Steelworkers to obtain a federal court order to require the Mine Safety and Health Administration to issue an ETS.

More than 500 UMWA miners have contracted the virus in the past 11 months, UMWA said. Many have been hospitalized, some have died. The extent of infection in nonunion mines is not known at this point, because MSHA is not keeping track. The UMWA represents about 30% of all active hourly coal miners in the United States.

UMWA International President Cecil E. Roberts said of the new bill, “An Emergency Temporary Standard at MSHA is long overdue, and should have been issued at the beginning of this pandemic. You would think that the government agencies that are charged with protecting workers on the job would not have to be forced to do it. But that is where we find ourselves today.”

Roberts said President Biden has issued an executive order on the issue but expressed skepticism about how much it will achieve. “I welcome President Biden’s executive order directing MSHA to determine if an ETS should be issued, but that does not mean that the agency will do it. I fear that left to its own devices, MSHA will not take this needed action. This legislation will ensure that MSHA will issue such an order, enforce it and then make it permanent.”

Last June, Roberts and UMWA spokeman Phil Smith explained the need for a national ETS.

Air is circulated throughout a mine, Roberts said, meaning an airborne disease like COVID-19 can spread among workers who are far removed from one another.

Smith said some companies exercise due caution but others don’t.

“There is no consistency from company to company or mine to mine. Some of the more responsible operators, and all of those where the UMWA represents the workers, are issuing masks, working to schedule shifts in such a way to reduce the number of miners who are in the changing areas of the mine portals at the same time, and taking other steps to encourage social distancing in the elevators and mantrips underground.

“But many others are not,” he said then. “All MSHA has done is issue voluntary guidelines for mines to follow, but until there is something that requires all mine operators to do the same things at every mine far too many operators will continue to ignore the guidelines. There needs to be something with teeth that is enforceable.”

Joining with Manchin and Capito to sponsor the bill are Sens. Mark Warner, D-Va.; Dick Durbin, D-Ill.; Tim Kaine, D-Va.; Bob Casey, D-Pa.; and Sherrod Brown, D-Ohio.

In the House, Rep. Matt Cartwright, D-Pa., introduced the twin version.

Written by: David Beard

Union Plus Union-Made Snacks for Game Day

Source: Union Plus

The Super Bowl is just around the corner! Put your game face on and tune in to watch it live from the safety of your own couch! We’ve gathered a list of union-made beer, snacks and desserts for you that are perfect for game day.

Get ready for Super Bowl Sunday! Did you know that unions play a big role in the Super Bowl? Footballs for the Super Bowl are made with union-made leather by United Food and Commercial Workers (UFCW); of course, the NFL Players are members of NFLPA, and even the stadium workers are unionized!

Show your support by making your game day party spread union-made:

Beer:

1845 Pils Michelob
Bass Pale Ale Mickey’s
Beck’s Miller
Blue Moon Molson Canadian
Budweiser Moosehead
Busch Natural
Butte Creek O’Doul’s (non alcoholic)
Goose Island Olde English 800
Hamm’s Pabst
Henry Weinhard’s Red Stripe
Hoegaarden Red Tail Ale
Iron City Rolling Rock
Keystone Light Sam Adams
Killian’s Schlitz
Kingfisher Premium Lager Shock Top
Kirin Steel Reserve
Labatt Blue Steelhead
Land Shark Lager Stegmaier
Leffe Blond Stella Artois
Lionshead

Snacks:

Alexander & Hornung Cheez-It
Always Tender Chex Mix
Ball Park Doritos
Banquet Fritos
Butterball Humpty Dumpty Potato Chips
Dearborn Sausage Co. Lay’s
Farmer John Pirate Booty
Farmland Smartfood Popcorn
Hebrew National Rold Gold Pretzels
Hormel Ruffles
Omaha Steaks Mission Chips
Oscar Mayer Old El Paso chips
Thumann’s Pace Salsa
Tyson Stacy’s Pita Chips
Act II Popcorn Sun Chips
Bagel Bites Tostitos chips and salsa
Bugels B&M Baked Beans
Cheetos

Desserts:

Ding Dongs Keebler Vanilla Wafers
Twinkies Kit Kat
SnoBalls Laffy Taffy
Rice Krispies Treats Breyer’s Ice Cream
Chips Ahoy Good Humor Ice Cream
Nabisco Nilla Wafers Prairie Farms Ice Cream

Remington’s union, new owners are at the negotiating table

Source: Times Union

January 14, 2021

Ilion, Herkimer County plant was purchased out of bankruptcy

ILION – The union representing laid off employees of the Remington Arms gun factory here says they are now in negotiations with the plant’s new owners.

The United Mine Workers had in December complained that RemArms, the new company that purchased the historic factory out of bankruptcy, had been reaching out directly to former employees with job offers.

UMW[A] officials at the time said that was probably unlawful, given the existing contracts in place when the company’s old owners went into bankruptcy proceedings last year. Since then, the two sides have come to the table and are negotiating, said union spokesman Phil Smith.

“The United Mine Workers of America… have entered into negotiations with the purchasers of the plant, Roundhill, for a collective bargaining agreement regarding terms and conditions of employment at the plant,” Smith said in an email. “We look forward to swiftly reaching an agreement that we can bring to our members for ratification, so that we can begin getting them back to work as soon as possible.”

Roundhill Group LLC renamed the plant RemArms after purchasing it and a handgun barrel factory in Lenoir City, Tenn., for $13 million in the bankruptcy proceedings.

The Ilion plant makes a variety of hunting rifles as well as arms for police and military use. Of the approximately 700 who had been employed at the plant, 585 were laid off during the bankruptcy.

RemArms, in its earlier letter to laid-off workers, said they wanted to reopen in February.

 

Written by: Rick Karlin

 

 

2021 AFL-CIO Dr. Martin Luther King Jr. Civil and Human Rights Conference

Source: AFL-CIO

January 8, 2020

 

2021 AFL-CIO DR. MARTIN LUTHER KING JR. CIVIL AND HUMAN RIGHTS CONFERENCE
VIRTUAL CONFERENCE | JAN. 15-16, 2021
SAVE THE DATE. MORE INFORMATION WILL BE AVAILABLE SOON.

We’re done talking about what 2020 has taken from us. Let’s talk about what we built together. Let’s talk about what we’ll fight for in 2021.

Thousands of organizers and activists protested across the country, demanding to be heard as they said, “Black Lives Matter.” Millions of people elected Joe Biden and Kamala Harris to the White House, winning a labor-friendly administration and the first African American and Indian American woman as vice president.

With that inspiration, the theme for the 2021 Martin Luther King, Jr. Civil and Human Rights Conference is From Protest to Power: When We Fight, We Win. On Jan. 15 and 16, we will gather virtually to build on our victories and strategize about the continued fight for economic and racial justice with—and also within—the labor movement.

The conference will be free of charge, and all sessions and trainings will be held online so that everyone can attend safely.

January 15th:

11-11:15 am : Conference Opens and Benediction

11:15 – 11:30 : Welcome and Greetings

11:30 am – Noon : President’s Address

Noon – 12:45 pm : Concurrent Issue Forms

12:45 – 1 pm : Virtual Networking

1 – 1:45 pm : Keynote Address and Panel Discussion

1:45 – 2 pm : Closing Remarks

January 16th:

11 – 11:15 am : Benediction and Day 2 Conference Opening

11:15 – Noon : Plenary

Noon – 12:15 pm : Virtual Networking

12:15 – 1 pm : Concurrent Issue Forums

1 – 1:45 pm : Awards Ceremony

1:45 – 2 pm : Closing Remarks

*Please note that there will be a virtual community service/contribution option available to all participants.
This agenda is tentative and subject to change.*

 

Click here to register for the event!

 

2021 AFL-CIO Dr. Martin Luther King Jr. Civil and Human Rights Conference

Source: AFL-CIO

January 8, 2020

 

2021 AFL-CIO Dr. Martin Luther King Jr. Civil and Human Rights Conference

Virtual Conference | Jan. 15-16, 2021

Save the date. More information will be available soon.

We’re done talking about what 2020 has taken from us. Let’s talk about what we built together. Let’s talk about what we’ll fight for in 2021.

Thousands of organizers and activists protested across the country, demanding to be heard as they said, “Black Lives Matter.” Millions of people elected Joe Biden and Kamala Harris to the White House, winning a labor-friendly administration and the first African American and Indian American woman as vice president.

With that inspiration, the theme for the 2021 Martin Luther King, Jr. Civil and Human Rights Conference is From Protest to Power: When We Fight, We Win. On Jan. 15 and 16, we will gather virtually to build on our victories and strategize about the continued fight for economic and racial justice with—and also within—the labor movement.

The conference will be free of charge, and all sessions and trainings will be held online so that everyone can attend safely.

January 15th:

11-11:15 am : Conference Opens and Benediction

11:15 – 11:30 : Welcome and Greetings

11:30 am – Noon : President’s Address

Noon – 12:45 pm : Concurrent Issue Forms

12:45 – 1 pm : Virtual Networking

1 – 1:45 pm : Keynote Address and Panel Discussion

1:45 – 2 pm : Closing Remarks

January 16th:

11 – 11:15 am : Benediction and Day 2 Conference Opening

11:15 – Noon : Plenary

Noon – 12:15 pm : Virtual Networking

12:15 – 1 pm : Concurrent Issue Forums

1 – 1:45 pm : Awards Ceremony

1:45 – 2 pm : Closing Remarks

*Please note that there will be a virtual community service/contribution option available to all participants.
This agenda is tentative and subject to change.*

 

Click here to register for the event!

The new operator of Pennsylvania’s third largest coal mine remains a mystery

Source: Pittsburgh Post-Gazette

December 16, 2020

Last week, a mysterious new outfit took over the 40-year-old Cumberland Mine in Greene County.

Few people, including those among the coal mine’s 700-person workforce, know the provenance of their new employer. The name of the company, Iron Senergy Holding LLC, is ringing no bells. It was just formed.

Its team is so fresh that Iron Senergy’s new CFO, Michael Castle, just left his former employer, steel and mining company ArcelorMittal, last week. CEO Justin Thompson and COO Tim Runyan are also ArcelorMittal alumni. Mr. Runyan left the steel company in January for a short stint as head of production for Peabody Energy.

The newly formed venture has kept its leadership secret, redacting officers’ names in Contura’s public filings with the Securities and Exchange Commission, and providing no contact information.

Mr. Castle, reached this week, said Iron’s management team wanted to first sit down with the union that represents its miners and Cumberland’s large suppliers before anyone else, but “COVID issues have kind of put the skids on that for a couple of weeks.”

They plan to reach out to those stakeholders this week, he said.

Chuck Knisell is eager for the contact. As District 2 Vice President of United Mine Workers of America, he said so far the union had received one e-mail from Iron’s legal counsel saying the new company will take over the labor agreement “as is” and plans to mine.

That’s unmitigated good news, Mr. Knisell said.

The UMWA has 580 workers at the mine and, he estimated, another 125 workers are in management positions there. The staffing levels are back to where they were three years ago, he said, before Contura Energy, Cumberland’s owner until last week, announced that it wanted to get out of mining thermal coal — the kind of coal burned at power plants — and focus on metallurgical coal used in steelmaking.

Contura’s shareholders leaned on the company to accelerate that strategy and Contura announced earlier this year that, whether it succeeded in finding a buyer for Cumberland or not, it will stop mining there before 2022.

It called off a $60 million project to build a new impoundment for coal waste that would allow it to keep Cumberland open longer — the current pit is nearly full.

If Iron Senergy plans to continue mining past 2022, as it has said, Mr. Knisell said, it will need to invest that money soon as construction would likely take several years.

Mr. Castle said the new owner is absolutely intent on keeping the mine going into the future. “I think there’s a great reserve base there, a great employee base,” he said. “It’s a great property, (and) the intent is to continue mining.”

Iron Senergy, which was formed specifically for the purpose of buying Contura Energy’s Northern Appalachia business, was basically given $50 million to take the Cumberland Mine, the shuttered and now full of water Emerald Mine, and other properties off Contura’s hands. In an announcement about the deal last month, Iron Senergy said it might be interested in exploring solar development on these assets.

Contura, which itself was formed to acquire the best assets from the bankruptcy of Alpha Natural Resources in 2016, said the Iron Senergy deal spared it the current equivalent of $169 million in future environmental reclamation costs.

A history of new owners

The fact that mines switch hands in the coal industry is no great surprise, and this isn’t the first instance of companies paying others to get rid of coal liabilities.

Cumberland, which began producing in the late 1970s, was originally developed by Pittsburgh-based U.S. Steel. The mine has been through half a dozen owners since then, although all were bigger companies that had other mines.

Last year, according to data from the Energy Information Administration, Cumberland produced 6.6 million tons of coal — putting it third in Pennsylvania behind two Consol Energy Inc. mines, also in Greene County.

Even with scale, coal is a labor and capital intensive commodity business where struggling companies compete not just against one another, but against natural gas suppliers and other fuels for space on the electric grid. It’s not uncommon for mines to close before their owners have pulled all of the coal from their bellies.

The Cumberland mine has 17 years of remaining life, according to Contura’s latest annual report filed earlier this year. There are still more than 31 million short tons of reserves left in the mine.

But many more millions of tons in untapped deposits were also transferred to Iron Senergy as part of the deal, including a block called the Greene Manor Reserve estimated to hold some 230 million short tons of coal. While Contura listed all of those reserves as best suited for power plants, not steelmaking, Cumberland did sell a small fraction of its production into the metallurgical coal market.

Contura isn’t totally done with Greene County.

According to a statement issued last week, the company said it retained “large block of Freeport seam metallurgical-grade coal reserves, located near the Cumberland and Emerald properties for potential future development.”

Written by: Anya Litvak