Judge allows Peabody Energy to pay property taxes

By Mead Gruver, Associated Press

 

CHEYENNE, Wyo. (AP) — A judge on Wednesday agreed to let Peabody Energy go ahead and pay nearly $30 million in property taxes in four states while the coal company goes through bankruptcy reorganization.

The decision in federal court in St. Louis should help end uncertainty for communities in Colorado, New Mexico, Wyoming and Indiana.

Those affected by missed property taxes include a Colorado school district, which lost out on about $1 million due in June. Colorado education officials agreed to loan the South Routt School District money and put up state funding to cover the shortfall.

The northwest Colorado district is home to the Twentymile Mine, which last year produced 3.2 million tons of coal.

"I'm very excited about this good news, but I'm very cautiously optimistic," Superintendent Darci Mohr said Wednesday, adding she hoped the county would be paid soon.

St. Louis-based Peabody, which filed for Chapter 11 bankruptcy in April, owes Routt County a total of $1.7 million in delinquent taxes. The coal company asked earlier this month to go ahead and pay its local taxes to correct such shortfalls.

Peabody began talking to county treasurers Wednesday about making the payments, company spokeswoman Beth Sutton said by email. "Peabody appreciates the continued support from our stakeholders as we work through the Chapter 11 process to emerge stronger on the other side," Sutton said in a statement.

The property tax payments should also help Campbell County, Wyoming, where Peabody has three open-pit mines and owes about $1.8 million in property and land taxes for 2015. In Wyoming, missed property tax payments, even big ones like Peabody's, have relatively little effect on public schools because the state funds districts on a per-pupil basis.

Lost revenue from stalled coal leasing, which began a few years ago and will continue under a three-year federal coal-lease moratorium, will cost Wyoming's school construction account more than $700 million by the decade's end, however.

Peabody's North Antelope Rochelle Mine in Campbell County produced almost 118 million tons in 2014 and was the nation's top-producing coal mine.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Latest Energy Jobs

View more Job Listings >>

Archived Articles

PennEnergy Articles
2008 | 2009 | 2010 | 2011 | 2012 | 2013

OGJ Articles
2011 | 2012 | 2013

OGFJ Articles
2011 | 2012 | 2013

Power Engineering Articles
2011 | 2012 | 2013

Power Engineering Intl Articles
2011 | 2012 | 2013

Utility Products Articles
2011 | 2012 | 2013

HydroWorld Articles
2011 | 2012 | 2013

COSPP Articles
2011 | 2012 | 2013

ELP Articles
2011 | 2012 | 2013