According to sources, the largest power provider in Texas is facing massive debt and may be forced to file for Chapter 11 Texas bankruptcy in the near future. Luminant Mining Co. is operating its coal mining and power facilities with more than $30 million in combined debts, and many are concerned about what it will mean for Texas communities and for the mining industry in the state if the company files Chapter 11 Texas bankruptcy.
Chapter 11 Could be Looming
Among the concerns voiced by Texas residents is the fear that a Chapter 11 filing for Luminant would mean the mining reclamation projects scheduled to be underway would not be funded. The United States has had a law on the books since the 1970s regarding reclamation of strip mined land; mining companies like Luminant are required to devote funds to drive initiatives that plant new grass and trees on strip mined land. Texas allows big companies like Luminant to essentially use the honor system in terms of having the money set aside to pay for these reclamation projects, and many are very worried that a Texas bankruptcy for Luminant would leave millions of dollars worth of reclamation work to be done with no funding coming in at all.
Many of the same advocates protest that Luminant has been allowed to expand its mining operations recently despite the $30 million on the wrong end of the balance sheet, and despite the concerns above related to reclamation efforts. To many the situation looks like big government and big corporations going to bed together and not bothering to care about the ramifications for the community and the environment.