Attorney General's News Release

October 24, 1996

Nixon obtains bond forfeiture to pay for reclamation of abandoned coal mine area in Howard, Randolph counties

Jefferson City, Mo. — Approximately 1,700 acres of abandoned surface and strip coal mines in central Missouri soon will undergo reclamation financed by the forfeiture of almost $1.4 million in surety bonds as part of an agreement announced today by Attorney General Jay Nixon.

Nixon said the agreement will help return the land in southwest Randolph and northern Howard counties to its pre-mining condition. The now-bankrupt Universal Coal and Energy Corp. ceased mining operations on the land in the late 1980s. The company did some reclamation work until finally abandoning the site in a poor condition in 1994, prompting the state to file suit seeking forfeiture of the bonds.

“We aggressively pursue whatever means possible to make certain that businesses that go bankrupt will not be allowed to shirk their environmental responsibilities,” Nixon said.

The surety bonds and other financial assurance instruments that the Missouri Land Reclamation Commission requires of mining operations are doing just what they were intended to do, Nixon said.

“They act as an insurance policy for the state that this land won't be left abandoned in an unusable condition or be allowed to cause environmental problems such as erosion and pollution from water runoff for the current owners, neighboring landowners and future generations of Missourians,” Nixon said.

The total of $1,385,750 in bonds to be forfeited were issued by three insurance companies: Aetna Casualty and Surety Co., The Travelers Indemnity Co. and Lincoln General Insurance Co. The three companies had posted the bonds on behalf of Universal Coal and Energy.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818