blackjewel

Blackjewel attorneys say the companies will seek replacement bonds.

Blackjewel, LLC, filed for Chapter 11 business bankruptcy protection on July 1 and sent hundreds of Belle Ayr and Eagle Butte workers home the same day.

Under the deal, West Virginia-based Blackjewel would sell the Eagle Butte and Belle Ayr mines in northeast Wyoming to Eagle Specialty Materials, a subsidiary of Alabama-based FM Coal.

The new deal that would transfer the mines from Contura to FM Coal also would need approval from a bankruptcy judge and Contura's board of directors.

The lockout that began July 1 has affected 1,700 workers, including nearly 600 in Wyoming.

Lawyers for Blackjewel say the coal is losing value and increasing in combustibility, meaning it could burst into flames, as it sits on the tracks.

The Milton, W. Va.-based Blackjewel LLC, filed for Chapter 11 bankruptcy business reorganization on July 1.

The cabinet has issued Blackjewel a citation including a $366,500 fine for violation of the law.

A West Virginia Federal Bankruptcy judge on Tuesday allowed the sale of Blackjewel LLC to Contura Energy to move forward.
Contura will purchase the Eagle Butte and Belle Ayr mines in Wyoming's Powder River Basin along with the Pax Mine in Scarbro, W...

Belle Ayr and Eagle Butte mines in Campbell County been closed since Blackjewel filed for Chapter 11 bankruptcy protection July 1.