I first encountered this issue forty years ago when I was an auditor with a Big Eight CPA firm auditing P&C insurance companies. It was a huge problem for the small insurer I was looking at and it was obvious then these type of surety bonds required by the states were going to be a problem down the road when mines were ultimately closed. In the 1970’s it was like using band-aids to provide relief/protection from severe injuries–the blood would just continue to flow. Now, as coal is under pressure look for companies to file bankruptcy and when asked about reclamation they will tell the feds and the states to “call my insurer” which will be unable to scratch the surface in covering the costs of reclamation.
I first encountered this issue forty years ago when I was an auditor with a Big Eight CPA firm auditing P&C insurance companies. It was a huge problem for the small insurer I was looking at and it was obvious then these type of surety bonds required by the states were going to be a problem down the road when mines were ultimately closed. In the 1970’s it was like using band-aids to provide relief/protection from severe injuries–the blood would just continue to flow. Now, as coal is under pressure look for companies to file bankruptcy and when asked about reclamation they will tell the feds and the states to “call my insurer” which will be unable to scratch the surface in covering the costs of reclamation.