On the Blogs: A ‘Wink and a Nod’ in Regulatory Allowance That Saw Coal as Too Big to Fail

first_imgOn the Blogs: A ‘Wink and a Nod’ in Regulatory Allowance That Saw Coal as Too Big to Fail FacebookTwitterLinkedInEmailPrint分享Patrick McGinley for TheConversation.com:A self-bonding corporation’s promise to reclaim is little more than an IOU backed by company assets.Companies reorganizing under federal bankruptcy laws will continue to mine and market coal, hoping to shed mountains of debt and eventually emerge from bankruptcy. It remains to be seen whether they will be able to obtain conventional surety bonds after they reorganize, or whether bankruptcy courts will direct the companies to use their remaining assets to partially fulfill their self-bonding obligations.One thing is clear, however. Against the backdrop of a century of coal company bankruptcies and attendant environmental damage, regulators ignored a looming coal market collapse with a wink and a nod. Properly administered, SMCRA’s reclamation bonding requirements should have required secure financial guarantees collectible upon bankruptcy.Unfortunately, coal regulators viewed America’s leading coal companies like Wall Street’s mismanaged banks – too big to fail. As a result, American taxpayers may have to pick up an enormous reclamation tab for coal producers.Full item: Will taxpayers foot the cleanup bill for bankrupt coal companies?last_img

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