In a dramatic turn in Delaware bankruptcy court, Maryland, Pennsylvania, and the creditors committee have moved to block Heritage Coal’s Chapter 11 liquidation plan, warning that the proposal ignores environmental obligations and hands out unwarranted legal releases. The coalition urged the judge to reject the plan during the upcoming October 15 confirmation hearing, saying it threatens both public safety and the environment.
States Warn of Environmental Fallout
Officials from both states argue that Heritage Coal’s plan fails to detail how it will fund cleanup and site restoration at its remaining mining operations. Maryland and Pennsylvania, which oversee Heritage’s mining permits, said the company’s proposal could hinder enforcement of environmental laws by including an injunction that shields the debtor from state action.
Maryland regulators said two mining sites have already fallen into noncompliance with state environmental standards, warning that deteriorating conditions could harm nearby ecosystems. Pennsylvania added that ten mining sites remain under Heritage’s control, including a 185-foot-high open pit in Somerset County, posing serious safety and pollution hazards.
The Commonwealth of Pennsylvania estimated that restoration costs could exceed the company’s posted bonds by millions, noting that capping waste and cleaning contaminated runoff could cost over $4 million, far surpassing existing financial guarantees.
