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ACI » Topics » Federal and state regulations impose significant costs on us, and future regulations could increase those costs or limit our ability to produce and sell coal.This excerpt taken from the ACI 10-K filed Mar 1, 2007. Federal and state
regulations impose significant costs on us, and future
regulations could increase those costs or limit our ability to
produce and sell coal. |
Federal and state authorities regulate certain areas, including
those listed below, that significantly affect the coal mining
industry:
| • | the discharge of materials into the environment; | |
| • | employee health and safety; | |
| • | mine permitting and licensing requirements; | |
| • | reclamation and restoration of mining properties after mining is completed; | |
| • | management of materials generated by mining operations; | |
| • | surface subsidence from underground mining; | |
| • | water pollution; | |
| • | statutorily mandated benefits for current and retired coal miners; |
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| • | air quality standards; | |
| • | protection of wetlands; | |
| • | endangered plant and wildlife protection; | |
| • | limitations on land use; | |
| • | storage and disposal of petroleum products and substances that are regarded as hazardous under applicable laws; and | |
| • | management of electrical equipment containing PCBs. |
The costs, liabilities and requirements associated with these
regulations may be significant and time-consuming and may delay
commencement or continuation of exploration or production
operations. Failure to comply with these regulations may result
in the assessment of administrative, civil and criminal
penalties, the imposition of cleanup and site restoration costs
and liens, the issuance of injunctions to limit or cease
operations, the suspension or revocation of permits and other
enforcement measures that could have the effect of limiting
production from our mining operations. We may also incur costs
and liabilities resulting from claims for damages to property or
injury to persons arising from our operations. Our profitability
may be negatively affected if we incur significant costs and
liabilities as a result of these regulations. You should see
“Environmental Matters” beginning on page 18 for more
information about the federal and state regulations affecting us.
The possibility exists that new legislation and/or regulations
and orders may be adopted that may adversely affect our mining
operations, our cost structure and/or our customers’
ability to use coal. New legislation or administrative
regulations (or new judicial interpretations or administrative
enforcement of existing laws and regulations), including
proposals related to the protection of the environment that
would further regulate and tax the coal industry, may also
require us or our customers to change operations significantly
or incur increased costs. Such regulations, if enacted in the
future, could have a material adverse effect on our business,
financial condition and results of operations.
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