Arch Coal (ACI)

 

To dispose of mining overburden generated by our surface mining operations, we often need to obtain permits to construct and operate valley fills and surface impoundments. Some of these permits are Clean Water Act § 404 permits issued by the Army Corps of Engineers. Two of our operating subsidiaries were identified in an existing lawsuit, which challenged the issuance of such permits and asked that the Corps be ordered to rescind them. Two of our operating subsidiaries intervened in the suit to protect their interests in being allowed to operate under the issued permits, and one of them thereafter was dismissed. On February 13, 2009, the U.S. Court of Appeals for the Fourth Circuit ruled on appeals from decisions rendered prior to our intervention, which may have a favorable impact on our permits. The decision of the Fourth Circuit remains subject to appeal. If mining methods at issue are limited or prohibited, it could significantly increase our operational costs, make it more difficult to economically recover a significant portion of our reserves and lead to a material adverse effect on our financial condition and results of operation. We may not be able to increase the price we charge for coal to cover higher production costs without reducing customer demand for our coal. You should see Item 3 — Legal Proceedings for more information about the litigation described above.

 

 

To dispose of mining overburden generated by our surface mining operations, we often need to obtain permits to construct and operate valley fills and surface impoundments. Some of these permits are Clean Water Act § 404 permits issued by the Army Corps of Engineers. Two of our operating subsidiaries were identified in an existing lawsuit, which challenged the issuance of such permits and asked that the Corps be ordered to rescind them. Two of our operating subsidiaries intervened in the suit to protect their interests in being allowed to operate under the issued permits, and one of them thereafter was dismissed. On February 13, 2009, the U.S. Court of Appeals for the Fourth Circuit ruled on appeals from decisions rendered prior to our intervention, which may have a favorable impact on our permits. The decision of the Fourth Circuit remains subject to appeal. If mining methods at issue are limited or prohibited, it could significantly increase our operational costs, make it more difficult to economically recover a significant portion of our reserves and lead to a material adverse effect on our financial condition and results of operation. We may not be able to increase the price we charge for coal to cover higher production costs without reducing customer demand for our coal. You should see Item 3 — Legal Proceedings beginning on page 45 for more information about the litigation described above.

 

 

None.

 

 

 

To dispose of mining overburden generated by our surface mining
operations, we often need to obtain permits to construct and
operate valley fills and surface impoundments. Some of these
permits are Clean Water Act § 404 permits issued by
the Army Corps of Engineers. Two of our operating subsidiaries
were identified in an existing lawsuit, which challenged the
issuance of such permits and asked that the Corps be ordered to
rescind them. Two of our operating subsidiaries intervened in
the suit to protect their interests in being allowed to operate
under the issued permits, and one of them thereafter was
dismissed. On February 13, 2009, the U.S. Court of
Appeals for the Fourth Circuit ruled on appeals from decisions
rendered prior to our intervention, which may have a favorable
impact on our permits. The decision of the Fourth Circuit
remains subject to appeal. If mining methods at issue are
limited or prohibited, it could significantly increase our
operational costs, make it more difficult to economically
recover a significant portion of our reserves and lead to a
material adverse effect on our financial condition and results
of operation. We may not be able to increase the price we charge
for coal to cover higher production costs without reducing
customer demand for our coal. You should see
Item 3 — Legal Proceedings beginning on
page 45 for more information about the litigation described
above.

 

 

None.