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ACI » Topics » Failure to obtain or renew surety bonds on acceptable terms could affect our ability to secure reclamation and coal lease obligations and, therefore, our ability to mine or lease coal.This excerpt taken from the ACI 10-K filed Mar 1, 2010. Failure
to obtain or renew surety bonds on acceptable terms could affect
our ability to secure reclamation and coal lease obligations
and, therefore, our ability to mine or lease coal.
Federal and state laws require us to obtain surety bonds to
secure performance or payment of certain long-term obligations,
such as mine closure or reclamation costs, federal and state
workers’ compensation costs, coal leases and other
obligations. We may have difficulty procuring or maintaining our
surety bonds. Our bond issuers may demand higher fees,
additional collateral, including letters of credit or other
terms less favorable to us upon those renewals. Because we are
required by state and federal law to have these bonds in place
before mining can commence or continue, or failure to maintain
surety bonds, letters of credit or other guarantees or security
arrangements would materially and adversely affect our ability
to mine or lease coal. That failure could result from a variety
of factors, including lack of availability, higher expense or
unfavorable market terms, the exercise by third party surety
bond issuers of their right to refuse to renew the surety and
restrictions on availability on collateral for current and
future third party surety bond issuers under the terms of our
financing arrangements.
These excerpts taken from the ACI 10-K filed Feb 27, 2009. Failure
to obtain or renew surety bonds on acceptable terms could affect
our ability to secure reclamation and coal lease obligations
and, therefore, our ability to mine or lease coal.
Federal and state laws require us to obtain surety bonds to
secure performance or payment of certain long-term obligations,
such as mine closure or reclamation costs, federal and state
workers’ compensation costs, coal leases and other
obligations. We may have difficulty procuring or maintaining our
surety bonds. Our bond issuers may demand higher fees,
additional collateral, including letters of credit or other
terms less favorable to us upon those renewals. Because we are
required by state and federal law to have these bonds in place
before mining can commence or continue, or failure to maintain
surety bonds, letters of credit or other guarantees or security
arrangements would materially and adversely affect our ability
to mine or lease coal. That failure could result from a variety
of factors, including lack of availability, higher expense or
unfavorable market terms, the exercise by third party surety
bond issuers of their right to refuse to renew the surety and
restrictions on availability on collateral for current and
future third party surety bond issuers under the terms of our
financing arrangements.
Failure to obtain or renew surety bonds on acceptable terms could affect our ability to secure reclamation and coal lease obligations and, therefore, our ability to mine or lease coal. Federal and state laws require us to obtain surety bonds to secure performance or payment of certain long-term obligations, such as mine closure or reclamation costs, federal and state workers’ compensation costs, coal leases and other obligations. We may have difficulty procuring or maintaining our surety bonds. Our bond issuers may demand higher fees, additional collateral, including letters of credit or other terms less favorable to us upon those renewals. Because we are required by state and federal law to have these bonds in place before mining can commence or continue, or failure to maintain surety bonds, letters of credit or other guarantees or security arrangements would materially and adversely affect our ability to mine or lease coal. That failure could result from a variety of factors, including lack of availability, higher expense or unfavorable market terms, the exercise by third party surety bond issuers of their right to refuse to renew the surety and restrictions on availability on collateral for current and future third party surety bond issuers under the terms of our financing arrangements. This excerpt taken from the ACI 10-K filed Mar 1, 2007. Failure to obtain or renew
surety bonds on acceptable terms could affect our ability to
secure reclamation and coal lease obligations and, therefore,
our ability to mine or lease coal. |
Federal and state laws require us to obtain surety bonds to
secure performance or payment of certain long-term obligations,
such as mine closure or reclamation costs, federal and state
workers’ compensation costs, coal leases and other
obligations. We generally reprice these bonds annually, however,
they are not cancellable by the surety. Surety bond issuers and
holders may increase premiums on the bonds or impose other less
favorable terms upon those renewals. The ability of surety bond
issuers and holders to demand additional collateral or other
less favorable terms has increased as the number of companies
willing to issue these bonds has decreased over time. Our
failure to maintain, or our inability to acquire, surety bonds
required by federal and state law could affect our ability to
secure reclamation and coal lease obligations and, therefore,
our ability to mine or lease coal. Several factors, including
those listed below, could cause us to be unable to maintain or
to acquire surety bonds in the future:
| • | lack of availability, higher expenses or unfavorable market terms of new bonds; | |
| • | restrictions on availability of collateral for current and future third party surety bond issuers under the terms of our credit facility; and |
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| • | insufficient borrowing capacity under our revolving credit facility or our receivable securitization facility for additional letters of credit. |
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