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Lots of attention on the @peabodyenergy announcing it has devalued the North Antelope Rochelle Mine (NARM) by $1.4 billion. Billion with B. For those following along, here is a thread with some background and additional context of why this is such a big deal. (1/?)
For good coverage of Peabody's NARM #coal mine announcement from yesterday, check out stories from @taykuy @MicahMaidenberg @camillereports @The_News_Record and @FT And here is our statement
The NARM #coal mine is huge. The largest in the world, in area. It takes 2 inspectors from @Wyoming_DEQ to be able to cover it all. You can see it from space with satellite imagery.
The NARM #coal mine covers over 20k acres (or 30+ square miles) of public land in the Thunder Basin National Grassland. The mine has yet to receive ANY final bond release, meaning none of this land has been returned to the public for recreation or hunting.
Peabody was the last company to get a big #coal lease from @interior for NARM and that was back in June 2012. https://eplanning.blm.gov/public_projects/nepa/67033/98788/119658/North_Porcupine_LBA.pdf
Peabody gobbled up federal #coal acreage during the Obama years - pocketing roughly 1 billion tons into its reserves for NARM. The coal sales highlighted the problems with Obama's call to #actonclimate and led to the coal leasing moratorium. #thiscoalbelongstoyouandme #fairreturn
Soon after the big #coal leasing, Peabody tumbled into #bankruptcy. Unlike some, no mines were shut down but there were layoffs. Ultimately Peabody made it out, with its balance sheet $5 billion better off than before. https://www.reuters.com/article/us-peabody-energy-bankruptcy/peabody-creditors-back-plan-to-cut-over-5-billion-of-debt-idUSKBN14C001 #whogetspaid
Peabody's #bankruptcy was particularly controversial because of the company's prolific use of self-bonds - #coal reclamation bonds backed by only the company itself. Through grassroots pressure and @interior action, the self-bonds were replaced. #bigwin #protecttaxpayers
Peabody's use of self-bonds during #bankruptcy led #wyoming to reform and limit the practice through new rules. https://www.wyomingpublicmedia.org/post/eqc-approves-revised-self-bonding-rules-reduce-risk#stream/0 We hope @OSMRE will follow, but its proposed rules from @JoePizarchik were abandoned during the new administration.
Following the #bankruptcy, things were looking up. Huge bonuses were back on the table for the Peabody leaders. https://www.stltoday.com/business/columns/david-nicklaus/post-bankruptcy-stock-award-boosts-peabody-ceos-pay-to-20-6-million/article_6032e7eb-4751-5373-8a6f-c045d1036946.html #whogetspaid
But the #coal markets were already in perpetual decline. #RenewableEnergy costs were rapidly declining, #natgas was widely available through #fracking, and states were passing policies to address #climatechange
