Bankruptcy, coal experts voice concerns, takeaways
A group of lawyers, academics and coal bankruptcy veterans shared reservations about new coal companies entering the state, at a University of Wyoming School of Law conference Friday, and highlighted signs that the energy industry may have harmed its “social license” in Wyoming.
As two coal bankruptcies that have dominated the state’s energy discourse come to a close, the panel discussed lessons learned and voiced concerns about future coal troubles and how the state is prepared to deal with them. Neither the Cloud Peak Energy or Blackjewel bankruptcy led to permanent mine closures, as new companies snapped up the five affected mines — four in Wyoming and one in Montana.
But the new ownership shouldn’t necessarily reassure miners and officials, said Rob Godby, panel moderator and director of UW’s Center for Energy Economics and Public Policy. That’s because the problem facing Wyoming coal country, he said, is overcapacity.
“As long as that overcapacity hangs over the [Powder River] Basin, we will be waiting for the shoe to drop and mines to close,” Godby said. “The longer it stays like that, the more unhealthy conditions get [and] the more we have to ask: ‘how are liabilities going to be handled when these mines close?’”
Read more: https://www.wyofile.com/bankruptcy-coal-experts-voice-concerns-takeaways/
