Murray Energy bankruptcy (2019) and the shift of black lung benefit liabilities to the federal trust fund
Short record: the main facts, with sources. A full case file has not been prepared.
- The record does not name which of my species, waters, soils or forests were harmed.
Murray Energy filed for Chapter 11 on 29 October 2019 with US$2.7 billion of debt and more than US$8 billion of pension and benefit obligations. Labor Department estimates provided to Congress, as reported by Reuters, put the black lung liability shifting to the federal Black Lung Disability Trust Fund at US$74.4 million.
Department of Labor estimate to Congress, as reported. Potential black lung liability of up to US$155 million was set against US$1.1 million of collateral.
Status As of October 2026: the company emerged from Chapter 11 as American Consolidated Natural Resources in 2020; the black lung shift is a reported Department of Labor estimate; no company statement is in the sources reviewed.
- Murray Energy's successor, American Consolidated Natural Resources — Not responsible for old black lung claims after the bankruptcy; a US$74.4 million liability shifts to the federal fund, according to Labor Department estimates provided to Congress (Reuters via Business Insurance); the company emerged from the bankruptcy in 2020 Business Insurance
- Murray Energy — Court filings put its potential responsibility under the Black Lung Act and general workers' compensation at as much as US$155 million; GAO testimony shows it offered only US$1.1 million in collateral (Ohio Valley ReSource) WKU Public Radio (Ohio Valley ReSource)
- Federal Black Lung Disability Trust Fund — US$74.4 million of black lung liability shifts to it, according to Labor Department estimates provided to Congress (Reuters via Business Insurance) Business Insurance
- UMWA pension plan — A potential hit of about US$6 billion was reported; Murray Energy was its last major employer LPM
What happened
Murray Energy filed for Chapter 11 on 29 October 2019 in the Southern District of Ohio. LPM reported US$2.7 billion of debt and more than US$8 billion in pension and benefit obligations. The company was the last major employer in the United Mine Workers of America (UMWA) pension plan, and a potential hit of about US$6 billion to that plan was reported.
On black lung benefits, Ohio Valley ReSource reported that court filings show Murray Energy could be responsible for as much as US$155 million, and that GAO testimony shows it offered only US$1.1 million in collateral. Reuters, via Business Insurance, reported that after the bankruptcy the successor company is not responsible for old claims and that its US$74.4 million liability shifts to the federal Black Lung Disability Trust Fund, according to Labor Department estimates provided to Congress; GAO testimony of May 2024 puts the transfer from the Westmoreland and Murray bankruptcies together at about $61.1 million, citing DOL officials. The company emerged from the bankruptcy as American Consolidated Natural Resources in mid-September 2020, according to Coal Age.
Robert Murray died on 25 October 2020, aged 80, according to Coal Age; Business Insurance reported that he had sought federal benefits to treat his black lung disease. Earlier, a memo dated 1 March 2017 from Robert E. Murray to Michael R. Pence, titled "Action Plan for the Administration of Donald J. Trump", was made public on 9 January 2018 through Senator Whitehouse and the New York Times, according to press reports; the requests it contained, as reported, included leaving the Paris Agreement, repealing the Clean Power Plan and the endangerment finding, cutting EPA staff by at least 50% and ending wind and solar tax credits. Press counted 14 requests.
- 2017Memo from Robert E. Murray to Michael R. Pence, "Action Plan for the Administration of Donald J. Trump", dated 1 March
- 2018Memo made public via Senator Whitehouse and the New York Times (9 January)
- 2019Murray Energy files Chapter 11 in the Southern District of Ohio (29 October)
- 2020Murray Energy emerges from bankruptcy as American Consolidated Natural Resources (mid-September)
- 2020Robert Murray dies, aged 80 (25 October)
What was said
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Its US$74.4 million liability shifts to the federal fund, according to Labor Department estimates provided to Congress.
Business InsuranceWrote that Murray Energy's "$74.4 million worth of liability" under the Black Lung Benefits Act was shifted to the Department of Labor's Black Lung Disability Trust Fund.
The New RepublicThe bankruptcies of Westmoreland Coal and Murray Energy will lead to the transfer of about $61.1 million in additional estimated benefit responsibility to the Trust Fund.
US Government Accountability OfficeHow it looked
Shown
Recorded
- Chapter 11 filing on 29 October 2019: debt of US$2.7 billion and more than US$8 billion in pension and benefit obligations; last major employer in the UMWA pension plan, with a potential hit of about US$6 billion to that plan reported.
- Black lung, Reuters via Business Insurance (2 October 2020): after the bankruptcy the successor, American Consolidated Natural Resources, is not responsible for old claims, and its US$74.4 million liability shifts to the federal Black Lung Disability Trust Fund, according to Labor Department estimates provided to Congress.
- Black lung, Ohio Valley ReSource (24 November 2019): according to court filings, Murray Energy could be responsible for as much as US$155 million under the Black Lung Act and general workers' compensation; GAO testimony shows the company "only offered $1.1 million in collateral to the Black Lung Disability Trust Fund".
- Court filings show Murray Energy has "$155 million in liability under the Black Lung Act", along with liability for general workers' compensation (The Allegheny Front, 31 October 2019).
- GAO testimony of 20 June 2019 (Table 2) lists 22 self-insured operators without naming them; one has collateral required by DOL of $1.1 million and no liability estimate. The same testimony says DOL recommended revoking Murray Energy's self-insurance authority, Murray appealed, and DOL postponed responding.
- GAO testimony of 22 May 2024: the bankruptcies of Westmoreland Coal and Murray Energy, in October 2018 and October 2019, will lead to the transfer of about $61.1 million in additional estimated benefit responsibility to the Trust Fund, according to DOL officials.
- GAO testimony of 26 February 2020: Murray filed for bankruptcy in October 2019 and DOL had not revoked its authority to self-insure or requested additional collateral, because Murray's appeal was still pending.
- Robert Murray filed for federal black lung benefits weeks before his death on 25 October 2020, according to Business Insurance and other press.
- The Associated Press wrote on 11 January 2018 that Murray "has gotten about half the items on his wish list" and that his proposal to eliminate federal tax credits for wind and solar projects had "floundered".
- Ohio Valley ReSource (26 October 2020): Robert E. Murray, founder and former president and CEO of Murray Energy, has died at 80; American Consolidated Natural Resources "emerged following the conclusion of Murray Energy's bankruptcy process this summer".
Who gained
Reached nature or the ground
Gained elsewhere
In court and with insurers
Lawsuits and rulings
- 2019-10-29–Outcome not on recordMurray Energy Chapter 11 bankruptcyChapter 11 proceeding, Southern District of Ohio · Civil · Murray Energy (filer) → No defendant (bankruptcy filing)
Filed on 29 October 2019 with US$2.7 billion of debt and more than US$8 billion in pension and benefit obligations. The company emerged as American Consolidated Natural Resources in 2020, as reported. The docket was not among the sources reviewed. LPM
Insurers
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Court
- Unclear Murray Energy Chapter 11 bankruptcy: outcome not on record.
Accounts
- Disputed Size of the black lung liability shifted to the federal Black Lung Disability Trust Fund
Record
- Unclear Unclear: the legal route by which the US$74.4 million moved to the Black Lung Disability Trust Fund and the court order concerned; the figure is a Labor Department estimate provided to Congress, as reported by Reuters, and GAO's figure for the Westmoreland and Murray bankruptcies together is about $61.1 million.
- Unclear Unclear: how the pension and retiree-benefit obligations were resolved in the bankruptcy. No court record of the outcome is among the sources reviewed.
- Unclear Unclear: how many requests the 2017 memo contained. Press counts 14; the memo's own count was not established.
- None on record Not on record: whether the US$1.1 million collateral figure, reported by Ohio Valley ReSource from GAO testimony, is the same operator as the unnamed $1.1 million entry in Table 2 of GAO-19-622T; GAO's table does not name operators.
- Insufficient Unconfirmed: that the US$74.4 million estimate was given to Congress by the Labor Department; the document itself was not found.
Did the harm stop?
The record concerns who bears black lung benefit liabilities after the bankruptcy; it contains no measurement of harm to nature.
Who paid?
US$74.4 million of black lung liability shifted to the federal Black Lung Disability Trust Fund (Department of Labor estimate to Congress, as reported). The sources reviewed give no other split of the remaining obligations.
Sources
Company or project
- Robert E. Murray to Michael R. Pence: Action Plan for the Administration of Donald J. Trump, March 1, 2017Yale Energy History (hosted copy of the memo) · 2017-03-01
Government and regulators
- Black Lung Benefits Program: Lack of Resolution on Coal Operator Self-Insurance Increases Financial Risk to Trust Fund (GAO-24-107597, testimony)US Government Accountability Office · 2024-05-22
- Black Lung Benefits Program: Oversight Is Needed to Address Trust Fund Solvency Strained by Bankruptcies (GAO-20-438T, testimony)US Government Accountability Office · 2020-02-26
- Black Lung Benefits Program: Financing and Oversight Challenges Are Adversely Affecting the Trust Fund (GAO-19-622T, testimony)US Government Accountability Office · 2019-06-20
Press and investigations
- A coal executive's action plan for Trump is made publicPBS Frontline ·
- Black Lung Trust Fund Likely Burdened by Murray BankruptcyWKU Public Radio (Ohio Valley ReSource) · 2019-11-24
- Ohio-Based Coal Giant Murray Energy Declares BankruptcyThe Allegheny Front (Ohio Valley ReSource) · 2019-10-31
- Bob Murray Was Vicious to Both Workers and the EnvironmentThe New Republic · 2020-10-26
- Ohio Valley Coal Mine Executive Bob Murray Dead at 80Louisville Public Media (Ohio Valley ReSource) · 2020-10-26
- Former ACNR Chairman, Coal Icon Bob Murray DiesCoal Age · 2020-10-26
- Coal executive's 'action plan' finds success under TrumpAssociated Press (via Fox Business) · 2018-01-11