According to an Associated Press report earlier this week, West Virginia-based Frasure Creek Mining, owner of seven Kentucky properties, claimed it had no income from operations.

Therefore, it said, it could not resolve in mediation its penalties initially assessed in 2010 and later fought in court by environmental groups claiming the $350,000 total for Frasure Creek and fellow operator International Coal Group was not high enough.

Kentucky Energy and Environment Cabinet spokesman Dick Brown confirmed to ILN that while Frasure Creek was not operating mines in Kentucky, it had not “closed up shop” completely.

“They are still working to keep up their reclamation obligations along with their water reporting requirements in Kentucky,” he said.

Brown said the company was still mining at one site in West Virginia.

“The company does owe substantial fines to us and those are still being negotiated with the company with the hope that penalties can be resolved,” he said.

Brown noted that should Frasure Creek file bankruptcy, the agency would pursue remedies available to it under US bankruptcy laws.

Attorneys were to meet in Franklin County Circuit Court on Monday to discuss the status of the case, though no results from the meeting had been reported and Brown did not provide further comment.

Environmental attorney Mary Cromer told the AP that the miner should prove its financial position in court.

“Frasure Creek should not be able to get out of having to pay any penalties just because they say they're in financial trouble,” she said.

Cromer, a representative of the Appalachian Citizens Law Center, said the groups were still opposed to the settlement amount between Frasure Creek and state officials.