Despite the climate change campaign urged by the Biden administration, a new SEC filing shows the coal industry including Tulsa’s Alliance Resource Partners is still busy providing coal to electric-power producers.
The required annual 10-K report filed with the Securities Exchange Commission showed that Alliance Resource, the second-largest coal producer in the U.S., sold more than 94% of its coal to electric utilities while more than 3% went to international markets.
Key customers in 2020 were American Electric Power, the parent company to Public Service Company of Oklahoma. Others included Louisville Gas and Electric Company and Tennessee Valley Authority.
The company stated that 100% of the coal sold to U.S. electric utilities went to utility plants with installed pollution control devices. The coal was mined from seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania and West Virginia—states that cover the Illinois Basin and Appalachia.
But it’s international coal market involved end-users in Europe, Africa, Asia, North America and South America.
No reason was stated but the filing revealed a major lender to Alliance Resources, PNC Bank had reduced its commitment from $100,000,000 to $60,000,000.
In 2020, Alliance had a 19% cut in the number of employees due to the COVID-19 pandemic, leaving a total of 2,902 full-time workers at the end of the year.
Alliance started an expansion several years ago into oil and gas holdings and as of 2020 owned mineral and royalty interests in nearly 1.5 million acres, primarily in the Permian, Anadarko and Williston Basins.
President Biden’s executive orders against new oil and gas drilling on federal lands was also noted by Alliance Resources in the SEC filing.
“However, the impact of these orders, and the terms of any legislation or regulation to implement the United States’ commitment under the Paris Agreement, remain unclear at this time. Moreover, many states, regions, and governmental bodies have adopted GHG initiatives and have or are considering the imposition of fees or taxes based on the emission of GHGs by certain facilities—”
Biden’s decision to rejoin the Paris Climate Agreement, stated the company “could further reduce demand and prices for fossil fuels.”
Click here to view filing with SEC.