House Resolution 28, which calls for ‘Patriot Coal to live up to their obligations to active and retired coal miners, their families and widows’, was passed Monday 93 votes to four.
The non-binding measure was introduced by delegate Mike Caputo of Marion County, who worked for Peabody Energy for 20 years and also represents the United Mine Workers of America.
The only delegates to vote against the bill were four Republicans – including Troy Andes, an official with coal operator Alpha Natural Resources, and John McCuskey, whose law firm represents Patriot.
Patriot Coal filed for Chapter 11 Bankruptcy in July and since then announced its retiree health liability had ballooned to $1.6 billion.
The company has proposed funding just $300 million of those benefits through a trust fund, a plan protested by UMWA. It alleges Peabody and Arch set up Patriot to fail by spinning off or selling mines to shed pension and health care benefits.
Earlier in the month, Patriot filed a lawsuit against Peabody Energy.
The suit has asked the bankruptcy court to declare that Peabody must continue to pay for the healthcare costs of retirees employed by Peabody entities that were transferred to Patriot when the company formed.
Peabody responded with a statement stating it had fulfilled its contractual healthcare obligations to Patriot since the spinoff.
“Our contract with Patriot Coal states that we will fund a portion of Patriot's retiree healthcare expenses for specified retirees,” it said.
“We have been providing funds under this contract since the spinoff.
“The contract also appropriately states that, should Patriot's benefit obligations decrease, our funding would proportionately be reduced. Patriot is taking the untenable position that our payments should continue in full in the future even if Patriot's expenses are reduced.
“Such a claim is not only unreasonable, but counter to the fundamental basis of the language in the contract. These are Patriot's obligations and, to the extent they are reduced, we will meet our agreement with Patriot to fund the new lower levels.”
The bankruptcy court is scheduled to decide Patriot’s case on April 23.
