Trinity Coal / Frasure Creek
NewBridge Services was contracted as the Debtor’s Mining Consultant for the State of Kentucky as part of the bankruptcy action.
NewBridge mobilizing employees to 43 separate permitted mine sites and analyzing thousands of acres of active and inactive mines. Project and risk management included a comprehensive environmental evaluation of a perpetual water treatment system.
While working closely with state regulators and debtor’s counsel, NewBridge was tasked with providing estimates of reclamation on a permit by permit basis. The analysis involved determining equipment and materials requirements, labor force needs in terms of bodies and hours to get an acceptable phases release from regulatory authorities.
Of the $56.5 million surety bonds outstanding, NewBridge identified $12.9 million of the bonds that qualified for release. NewBridge’s expertise found that those bonds could be released with minor physical and administrative effort. The company also identified significant work required to release an additional $7 million in bonds.
NewBridge’s analysis also determined that more than a thousand acres could be considered overlapped, which in turn could produce significant bond reduction. NewBridge worked strategically with local and state inspectors/regulators to make that happen.
NewBridge advised the bankruptcy trustee of 1,400 acres that had been bonded but undisturbed, which meant those liabilities could be eliminated, leading to another $5-million in potential bond release.
Finally, NewBridge’s detailed client report allowed for the successful implementation of a liability reduction plan. NewBridge completed the undertaking while working on an agreed per-hour formula, which involved six employees working full time for several months.
The final reclamation evaluation report included hundreds of hours of video documentation, and several bound volumes of analysis, insight and estimates. NewBridge met every deadline and stayed within preset budget guidelines.