In a U.S. Securities and Exchange Commission filing dated July 21, ORP subsidiary Oxford Mining Company said it had inked a mediation agreement with Big Rivers Electric under which the utility will make the settlement payment within 30 days of the agreement date of July 15.
The company said the deal settles and releases all of the parties’ claims and counterclaims in the lawsuit, and the suit is being dismissed.
Oxford first signed a coal delivery contract with Big Rivers in 2010; that contract for at least 800,000 tons per year was to be in effect from 2012 through 2015. After the utility terminated the deal, the relationship quickly soured, and Oxford filed suit against Big Rivers in 2012.
Big Rivers claimed it canceled the transaction because the coal did not meet its specifications.
Oxford, in the aftermath of the canceled contract, idled or reduced operations at two of its mines in western Kentucky.
The lawsuit was entitled Oxford Mining Co-KY LLC vs. Big Rivers Electric Corp. Known formally as Case 12-CI-00160, the dispute was initially filed in the Circuit Court of Ohio County, Kentucky.