Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)

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.

Nature's voice · report
No measurement of the harm done to me here is on record.
Did nature suffer? Not measured.
Not on record
  • The record does not name which of my species, waters, soils or forests were harmed.
What the record lacks: 1 none on record · 1 insufficient · 1 not measured · 1 disputed · 4 unclear See the gaps

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.

US$74.4 million estimateBlack lung liability shifted to the federal Black Lung Disability Trust Fund
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.

What?
Murray Energy filed for Chapter 11 on 29 October 2019. 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. LPM
Where?
Chapter 11 filing in the Southern District of Ohio, United States. LPM
When?
Filed 29 October 2019; the company emerged in 2020; Robert Murray died 25 October 2020. LPM
Who?
Gained
  • 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)
Lost
  • 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
Harmed
None on record
Why?
Not stated in the sources reviewed.
How?
According to Reuters, citing Labor Department estimates provided to Congress, the successor company is not responsible for old claims after the bankruptcy and its US$74.4 million liability shifts to the federal Black Lung Disability Trust Fund. Business Insurance
6 of 6 questions answered from the record

What happened

The record, in order.

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.

  1. 2017Memo from Robert E. Murray to Michael R. Pence, "Action Plan for the Administration of Donald J. Trump", dated 1 March
  2. 2018Memo made public via Senator Whitehouse and the New York Times (9 January)
  3. 2019Murray Energy files Chapter 11 in the Southern District of Ohio (29 October)
  4. 2020Murray Energy emerges from bankruptcy as American Consolidated Natural Resources (mid-September)
  5. 2020Robert Murray dies, aged 80 (25 October)

What was said

Claims, in the words of those who made them.

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Size of the black lung liability shifted to the federal Black Lung Disability Trust Fund
Press and investigations
Reuters, via Business Insurance (2 October 2020)

Its US$74.4 million liability shifts to the federal fund, according to Labor Department estimates provided to Congress.

Business Insurance
Press and investigations
The New Republic (26 October 2020)

Wrote 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 Republic
Government and regulators
US Government Accountability Office, citing DOL officials (22 May 2024)

The 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 Office

How it looked

What was shown, beside what was recorded.

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

    Money that reached nature, beside money that stayed elsewhere.

    Reached nature or the ground

    Not published
    No figure published.

    Gained elsewhere

    Not totalled
    Debt at the Chapter 11 filing$2.7bn
    US$2.7 billion.
    Pension and benefit obligations> $8bn
    US$8 billion.
    Potential hit to the UMWA pension plan estimate≈ $6bn
    Potential black lung liability$155m
    Collateral offered against black lung liability (GAO testimony, as reported)$1.1m
    Black lung liability shifted to the federal Black Lung Disability Trust Fund (Department of Labor estimate to Congress) estimate$74m
    Currency: USD · Window: 2019. All figures cover the same period. * Estimate built from cited figures.

    In court and with insurers

    Every proceeding and every insurer decision on record.

    Lawsuits and rulings

    1. 2019-10-29–Outcome not on record
      Murray Energy Chapter 11 bankruptcy
      Chapter 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

    No insurer decision on record.

    What we don't know

    Undisclosed, unproven, untried: recorded as data.

    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

    Voices on record: ✓ Company or project✓ Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

    Company or project

    Bonds and banking

    Liquidation, insolvency, bankruptcy
    Legal processes that apply when a company cannot pay its debts; its assets are sold and claims against it may go unpaid.

    Institutions

    EPA
    The US Environmental Protection Agency.

    Insurance

    Captive insurer, self-insurance
    A company covering its own risks, either directly or through an insurance company it owns.