Mountain Top Removal Coal Mining United States pdf

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Mountain top removal mining is a form of strip mining in which coal companies use explosives to blast as much as 800 to 1000 feet off the tops of mountains order to reach the coal seams that lie underneath. The resulting millions of tons of waste rock, dirt, and vegetation are then dumped into surrounding valleys, burying miles and miles of streams under piles of rubble hundreds of feet deep. Mountaintop removal mining harms not only aquatic ecosystem, and water quality, it also destroys hundreds of acres of healthy forests and fish and wildlife habitat, including habitat of threatened and endangered species, when the tops of mountains are blasted away.

Throughout the Appalachian region of the Eastern United States, hundreds of mountains have been flattened – first by clear-cutting forests, then by blowing off the top layers of rock with powerful explosives. Giant cranes (draglines) expose buried coal by scraping billions of tons of dirt off the mountain. The debris is then dumped into neighboring valleys and streams. Rather than remove coal from the mountain, MTR removes the mountain from the coal.


what must happen

We urge all private banks involved in commercial lending and investment banking services for the mining sector to end their relationships with companies who practice mountaintop removal coal mining in Appalachia.

Our recommended ‘best practice’ is a clear exclusion policy on commercial lending
and investment banking services for all coal companies who practice mountaintop
removal coal extraction.

Where banks choose to maintain relationships with this sector, we recommend a publicly available policy, with a clearly identified performance threshold and regular reporting on policy implementation.Banks should withdraw from any on-going financing relationships with clients that practice MTR, divest and place MTR on their financing exclusion lists.


location
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last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

social impact

Coal companies use MTR mining methods because it allows for almost complete recovery of coal seams while significantly reducing the number of workers required compared to conventional methods. The coal-bearing counties of Appalachia are some of the poorest in the nation, despite the fact that some of the greatest wealth is being extracted from them.

For marginalized coalfield resident communities, MTR has meant the loss of thousands of jobs and growing health risks. Poverty has increased in MTR regions, even as corporate profits soar.

Once coal is extracted, it is then washed and treated, resulting in waste water called coal sludge—a mix of water, coal dust, clay and toxic chemicals such as arsenic, mercury, lead, copper, selenium and chromium. Billions of gallons of this toxic soup is then stored in vast, unlined impoundments or injected for storage in abandoned underground-mines.

Impoundments are often held in place by mining debris or earthen dams, making them unstable. Sludge dams have been known to fail. In October 2000, residents of Martin County, Kentucky suffered 306 million gallons of slurry entering their water supply. The disastrous spill was over 30 times the size of the Exxon Valdez spill.


environment

MTR is a mining practice where explosives are used to remove the tops of mountains and expose the thin seams of coal that lie beneath. Once blasted, the earth from the mountaintop is then typically dumped in the neighboring valleys. As a result, MTR mining poses significant threats to water quality in Appalachia, and undermines the objectives and requirements of the Clean Water Act. According to a 2005 environmental impact statement, nearly 2,000 miles of Appalachian streams have been buried or contaminated. 


human rights

After blasting has occurred, waste from mining operations is systematically dumped into nearby valleys, burying streams. This waste then releases toxic metals, killing life in streams and polluting ground water. Health problems such as cancer, liver and kidney disease and skin rashes have been found in correlation with people who drink water from wells contaminated by coal mining. The problem was exacerbated in 2002 when the Bush Administration changed rules in the Clean Water Act to allow waste material to be considered “fill,” effectively legalizing the dumping of toxic mining waste directly into Appalachian waterways.


other issues

The expansion of mountaintop removal mining is fuelled by the fact that the U.S. is in the midst of a coal rush. Currently, more than 150 new coal-fired power plants are in various stages of development around the country, and our government is relaxing laws in order to allow even more coal mining that destroys communities and ecosystems. These new power plants will emit 600 million tons of carbon dioxide annually - which is tantamount to doubling the number of cars on our roads! Coal is the single biggest obstacle to curbing global warming as well as destructive coal mining practices.

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active file
last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

Jan 31, 2010

On-going financing of destructive operations.

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active file
last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

financial institutions involved
banks
Bank of America - profile
  • Credit to Alpha Natural Resources for Aquistion - October 2005
  • General corporate finance: Arch Coal - 2004 and 2009, International Coal - July 2007, Massey Energy - August 2006, Magnum Coal Company (owned by Patriot Coal) - October 2007, International Coal Group Inc - June 2006, Alpha Natural Resources - 2004 and 2005, Ashland Inc - 2008, CONSOL Energy Inc - 2004 and 2005
  • Issuing of bonds: International Coal - June 2006, Ashland Inc - 2002, TECO Energy Inc - 2001 and 2002, Arch Coal Inc - 2009
  • bonds issue: US$168 million, of which US$61.49 directly supporting Mountain Top Removal coal mining
    to Arch Coal
    source: Mtr Banks Financial Overview.pdf
  • shares/bonds underwriter or manager: $250 million (03/15/10)
    Bank of America Securities LLC underwrote a $250 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • corporate loan: $522.5 million (second amendment dated 5/19/08)
    Bank of America, NA served as one Lender among 18 banks in a $522.5 million credit agreement with Patriot Coal
    source: Bloomberg 4/28/10
  • corporate loan: $1.23 billion (4/15/10)
    Bank of America served as Co-Documentation Agent in a $1.23 billion credit agreement between 5 banks and Alpha Natural Resources in its second amended and restated agreement
    source: Bloomberg 4/28/10
BNP Paribas - profile
  • General corporate finance: Arch Coal - 2006
Citigroup - profile
Citi have provided share and bond issuances.
  • Credit to Alpha Natural Resources for Aquistion - October 2005
  • Issuing of shares: Arch Coal - October 2004, Alpha Natural Resources - 2005 and 2006
  • Issuing of bonds: Massey Energy - August 2003, Magnum Coal Company (owned by Patriot Coal) - 2008, Alpha Natural Resources / Foundation Coal - 2004 and 2008, TECO Energy Inc - 2003, 2005 and 2008, Arch Coal Inc - 2004 and 2009
  • General corporate finance: Arch Coal - 2004 and 2009, Alpha Natural Resources - May 2004, Ashland Inc - 2008, TECO Energy Inc - 2004, CONSOL Energy Inc 2004 and 2005
  • shares/bonds underwriter or manager: $250 million (3/15/10)
    Citigroup Global Markets Inc. underwrote a $250 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • shares/bonds underwriter or manager: $300 million (3/15/10)
    Citigroup Global Markets Inc. underwrote a $300 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • credit agreement: $1.23 billion (4/15/1)
    Citicorp North America, Inc served as Administrative Agent and Collateral Agent in a $1.23 billion credit agreement between 5 banks and Alpha Natural Resources in its second amended and restated agreement
    source: Bloomberg 4/29/10
  • credit facility: $1 billion (3/12/2010)
    Citicorp North America, Inc. served as one Lender among 22 lending banks to a $1 billion credit facility for Consol Energy in its second amendment
    source: Bloomberg 4/30/10
Crédit Agricole - profile
  • General corporate finance: Through Crédit Agricole CIB: Arch Coal - 2006
Credit Suisse Group - profile
  • General corporate finance: Alpha Natural Resources - May 2004
  • bonds issue: TECO Energy Inc - 2001 and 2002, Arch Coal Inc - July 2009
  • offering of Sernior notes: $600 million (7/28/09)
    Credit Suisse Securities (USA) LLC purchased over $5 million in Arch Coal securities in a $600 million offering of senior notes
    source: Bloomberg 4/30/10
Goldman Sachs - profile
  • Issuing of bonds: International Coal - June 2006
  • Issuing of shares: International Coal - December 2005
JPMorgan Chase - profile
  • Issuing of shares: Arch Coal - October 2004, International Coal - December 2005
  • Issuing of bonds: International Coal - June 2006, Massey - June 2004 and August 2008, Ashland Inc (Hercules Inc) - September 2004, TECO Energy Inc - 2001, 2002, 2003 and 2008, Arch Coal Inc 2004 and 2009
  • General corporate finance: Arch Coal - 2004 renewed 2006 and 2009, International Coal - July 2007
  • shares/bonds underwriter or manager: $250 million (3/15/10)
    .P. Morgan Securities Inc. underwrote a $250 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • shares/bonds underwriter or manager: $300 million (3/15/10)
    J.P. Morgan Securities Inc. underwrote a $300 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • credit facility: $800 million (3/19/10)
    JPMorgan Chase Bank, N.A., acted as co-syndication agent in an $800 million credit facility between 19 banks and Arch Coal in its fifth amendment
    source: Bloomberg 4/30/10
  • credit facility: $1 billion (3/12/2010)
    JPMorgan Chase Bank, N.A. served as one Lender among 22 lending banks to a $1 billion credit facility for Consol Energy in its second amendment
    source: Bloomberg 4/30/10
Lehman Brothers
  • bonds issue: Magnum Coal Company (owned by Patriot Coal) - May 2008
Morgan Stanley
  • shares/bonds underwriter or manager: $50 million (3/16/10)
    Morgan Stanley & Co. Incorporated underwrote $50 million of $100 million in convertible senior notes 3/16/10 for International Coal Group
    source: Bloomberg 4/30/10
  • shares/bonds underwriter or manager: $90 million (3/11/2010)
    Morgan Stanley underwrote $90 million and served as Lead Manager for $200 million in senior secured second-priority notes for International Coal Group
    source: Bloomberg 4/30/10
  • shares/bonds underwriter or manager: $126 million (7/28/09)
    Morgan Stanley & Co Incorporated purchased $126 million in Arch Coal securities in a $600 million offering of senior notes
    source: Bloomberg 4/30/10
  • shares/bonds underwriter or manager: $250 million (3/15/10)
    Morgan Stanley & Co. Incorporated underwrote a $250 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • shares/bonds underwriter or manager: $300 million (3/15/10)
    Morgan Stanley & Co Incorporated underwrote a $300 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • credit facility: $18.1 million (5/9/07)
    Morgan Stanley Bank committed $18.1 million served as Lead Arranger for a $200 million revolving credit facility between 12 banks and TECO Energy as of the most recent amendment 5/9/07. The credit facility matures 5/9/12.
    source: Bloomberg 4/30/10
PNC Bank
  • bonds issue: $60 million (8/5/08)
    PNC Capital Markets LLC underwrote $60 million of a $690 million bond offering from Massey Energy
    source: Prospectus Supplement filed by Massey Energy 8/6/08.
  • bonds issue: $200 million (part) (5/21/08)
    PNC Capital Markets served as a Lead Manager on a $200 million bond issue by Patriot Coal
    source: Bloomberg 4/28/10
  • bonds issue: $250 million (part) (4/1/08)
    PNC Capital Markets served as a Co-Manager on a $250 million bond issue by Alpha Natural Resources dated
    source: Bloomberg 4/28/10
  • Securities: $20 million (3/11/2010)
    PNC Capital Markets underwrote $20 million and served as Lead Manager for $200 million in senior secured second-priority notes for International Coal Group
    source: Bloomberg 4/30/10
  • Securities: $40.5 million (7/28/09)
    PNC Capital Markets LLC purchased $40.5 million in Arch Coal securities in a $600 million offering of senior notes
    source: Bloomberg 4/30/10
  • Credit agreement: $522.5 million (part) (5/19/08)
    PNC Bank, National Association served as one Lender among 18 banks in a $522.5 million credit agreement with Patriot Coal in the second amendment
    source: Bloomberg 4/28/10
  • Credit agreement: $1.23 billion (part) (4/15/10)
    PNC Bank served as Co-Documentation Agent in a $1.23 billion credit agreement between 5 banks and Alpha Natural Resources in its second amended and restated agreement
    source: Bloomberg 4/29/10
  • Credit facility: $800 million (part) (3/19/10)
    PNC Bank, National Association acted as administrative agent in an $800 million credit facility between 19 banks and Arch Coal in its fifth amendment
    source: Bloomberg 4/30/10
  • Credit facility: $1 billion (part) (3/12/2010)
    PNC Bank, National Association served as one Lender among 22 lending banks to a $1 billion credit facility for Consol Energy in its second amendment
    source: Bloomberg 4/30/10
Royal Bank of Scotland - profile
  • General corporate finance: Arch Coal - 2006
  • Credit to Alpha Natural Resources for Aquistion - October 2005
    inherited from take over ABN Amro
  • shares issue: (Alpha Natural Resources - 2005)
    inherited from take over ABN Amro
  • corporate loan: (Arch Coal - 2006)
    Inherited from take-over ABN Amro
Société Générale - profile
  • Credit to Alpha Natural Resources for Aquistion - October 2005
Sumitomo Mitsui Banking Corporation - profile
  • Credit to Alpha Natural Resources for Aquistion - October 2005
UBS - profile
  • General corporate finance: Arch Coal - 2006, Alpha Natural Resources - May 2004, International Coal - July 2007, Massey Energy - August 2006
  • Issuing of shares: Alpha Natural Resources - 2005 and 2006, International Coal - December 2005
  • Credit to Alpha Natural Resources for Aquistion - October 2005
  • Issuing of bonds: International Coal - 2006 and 2007, TECO Energy - 2005, Alpha Natural Resources - April 2008, Massey Energy - 2005 and August 2008, James River Coal Company - November 2009
  • shares/bonds underwriter or manager: $50 million (3/16/10)
    UBS Securities LLC underwrote $50 million of $100 million in convertible senior notes for International Coal Group
    source: Bloomberg 4/30/10
  • shares/bonds underwriter or manager: $90 million (3/11/2010)
    UBS Securities LLC underwrote $90 million and served as Lead Manager for $200 million in senior secured second-priority notes for International Coal Group
    source: Bloomberg 4/30/10
  • credit facility: $125 million (part) (2/22/10)
    UBS acted as a collateral agent for a $125 million senior secured facility between 3 banks and International Coal Group
    source: Bloomberg 4/30/10
Wachovia
  • bonds issue: $250 million (4/1/08)
    Wachovia served as a Co-Manager on a $250 million bond issue by Alpha Natural Resources
    source: Bloomberg 4/28/10
  • bonds issue: $800 million (3/19/10)
    Wachovia Bank acted was a syndicate participant in an $800 million credit facility between 19 banks and Arch Coal in its fifth amendment
    source: Bloomberg 4/30/10
Wells Fargo
  • bonds issue: Alpha Natural Resources / Foundation Coal - April 2008
  • General corporate finance: Arch Coal Inc - August 2009
  • shares/bonds underwriter or manager: $250 million (3/15/10)
    Wells Fargo Securities, LLC underwrote a $250 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
  • shares/bonds underwriter or manager: $300 million (3/15/10)
    Wells Fargo Securities LLC underwrote a $300 million offering of TECO Energy notes
    source: TECO Energy Prospectus Supplement dated 3/6/10
WestLB AG - profile
  • General corporate finance: Arch Coal - 2006
investment funds
Merrill Lynch
  • Issuing of shares: Arch Coal - October 2004, Alpha Natural Resources - 2006
  • bonds issue: International Coal Group Inc - October 2006, TECO Energy - 2001 and 2003

By the summer of 2010  Citi, JPMorgan Chase, Bank of America, Credit Suisse, Morgan Stanley and Wells Fargo, have all publicly confirmed that they are moving away from bankrolling the destruction of America's mountains.

image
active file
last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

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active file
last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

2011 2010 2008 2007 2006
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active file
last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

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active file
last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

pictures
Marsh Fork Protest Jun 23, 2009

videos

Pledge to End Mountaintop Removal
Aug 02, 2011 -

The Last Mountain
Apr 18, 2011 - Documentary on Mountaintop Removal.

Mountaintop Removal: An American Tragedy
Apr 06, 2011 - Wake up call for MTR banks

Hijacking PNC Bank
Dec 13, 2010 - Reverend Billy and his followers hijack a PNC office in Washington, urging PNCBank to stop financing mountaintop removal coal mining in the Appalachia mountains.

Demonstration against JPMorgan Chase in Manhattan
Jun 08, 2010 - Rev. Billy and his choir literally brought the muddy devastation of Appalachia to Chase offices in Manhattan

JP Morgan Chase client discussing her account with a Chase banking official
Jun 08, 2010 -

Marie Gunnoe Speaks out about Flooding
Jul 06, 2009 - Goldman "Enivironmental Nobel" Prize winner, Marie Gunnoe, describes the flooding at her home in Bob White, West Virginia, as a direct result of Mountain Top Removal.

Wise Up Dominion
Nov 05, 2008 - RAN joins its Appalachian allies to demand a clean energy future in Wise County, Virginia.

Demonstration at Citi AGM, 22 April 2008
May 08, 2008 - Demonstration against the involvement of Citi Group in financing mountain top removal coal mining

RAN Action at Citibank in Washington DC
Nov 07, 2007 - RAN action protests against Citibank's coal investments on November 5, 2007.

image
active file
last update: Jan 25, 2012

banktrack contact

Amanda Starbuck, Rainforest Action Network, United States

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