-- Barack Obama, January 17, 2008 --
In today's news:
Patriot Coal Files for Bankruptcy Protection in New York"Regulations restricting emissions make coal costlier to burn."
By Tiffany Kary and Dawn McCarty, Bloomberg Business News
Patriot Coal Corp. (PCX) (PCX) sought bankruptcy protection after milder winters and a shift to natural gas sent coal demand to a 24-year low.
The St. Louis-based company’s Chapter 11 petition listed $3.57 billion in assets and $3.07 billion in debts. The filing in U.S. Bankruptcy Court in Manhattan said dozens of the company’s units would join in the filing.
“The coal industry is undergoing a major transformation and Patriot’s existing capital structure prevents it from making the necessary adjustments to achieve long-term success,” Chief Executive Officer Irl F. Engelhardt said in a statement that cited lower thermal coal prices, canceled customer contracts and rising costs for environmental liabilities for increasing pressure on the company in recent months.
Patriot has 13 active mining complexes in Appalachia and the Illinois Basin and controls an estimated 1.9 billion tons of coal reserves, according to its website. It sells thermal coal to electricity generators and metallurgical coal to steel and coke producers.
U.S. coal use in the first quarter was the lowest for that period since 1988, according to the Energy Information Administration. Utilities have switched some power plants to cheaper natural gas as regulations restricting emissions make coal costlier to burn. Gas fell to a decade low in April amid a surplus of the fuel. [link] [emphasis mine]
Barack Obama's plan is working to perfection.
You folks in the coalfields?
Obama has another plan just for you.
So shut up, give up, and enjoy the monthly check.