It is no secret that coal mining is terrible for the environment and public health. It pollutes our air and water, is the leading contributor to climate change, and the World Health Organization estimates that mining coal shortens over one million lives each year. Now, some coal companies are not only harming our planet by mining, they are also unable to pay for their mines to be cleaned up after the fact.
In order for any company in the United States to mine coal, it must first post bonds to guarantee it can pay for the land to be restored back to its original state. There are many types of bonds these companies can use, and one of these is a “self-bond,” which is basically a big “IOU” to states. Rather than having a third party make sure these corporations can pay, self-bonds are self-insuring, and become the burden of the taxpayer when corporations cannot pay for restoration.
In the past, coal companies have had to be in strong financial standing to self-bond. Now, because the whole industry is under such great stress, companies that are on the verge of bankruptcy, such as Peabody Energy, are self-bonding. Currently, Peabody guarantees $1.36 billion for cleanup in self-bonds in the U.S., and the company’s net worth was recently reported at $1.34 billion. Even if it wanted to responsibly pay for the restoration of the mining sites, Peabody Energy could not afford to.
The American people have already bailed out corporations for irresponsible financial behavior. To bailout companies in the dying coal industry would be unfair and unnecessary.
It is time that we ensure coal companies are certain to pay for the damage they do to the planet and our health by restoring their mines. The public comment period for self-bonding on coal lease ends on June 20. Sign this petition now to tell the Obama Administration that we must hold coal companies accountable for the mess they make.
