The transaction consists of $27 million cash at closing, of which a portion will be held in escrow for purposes of obtaining the surety bonds required for the permits to transfer, and an additional $17 million in installments over the next four years. Booth Energy will assume the Miller Creek and Fola mine closing and reclamation liabilities, which are estimated by CONSOL Energy to be $103 million. Miller Creek and Fola mining complexes each have 114 million tons of owned and leased coal reserves.
The move completes CONSOL Energy’s exodus from the Central Appalachian (CAPP) coal market. The company will have one remaining coal production complex in Pennsylvania with three mines: Bailey, Enlow Fork and Harvey. It expects annual sales from these operations to total 22.5 million to 25.5 million tons.