On August 30, 2013, the United States filed seven proofs of claim in the Eastern District of Kentucky, as a government creditor in a Chapter 11 bankruptcy proceeding. The United States filed these claims against the following debtors: Frasure Creek Mining, LLC; Bear Fork Resources, LLC; Trinity Coal Corporation; Trinity Parent Corporation; Trinity Coal Partners, LLC; Falcon Resources, LLC; and Prater Branch Resources, LLC; for a claim of at least $5 million.
These claims stem from litigation brought forth in the United States District Court for the Eastern District of Kentucky, Southern Division, Pikeville, by the United States against eight defendants, for violations of the Clean Water Act (United States v. Frasure Creek Mining, LLC, et al., Case No. 12-cv-00056-ART). In the complaint, the United States requested injunctive relief and civil penalties for the unauthorized discharge of pollutants into waters of the United States, in conjunction with surface mining activities on two sites located in Floyd, Magoffin, and Pike Counties in Kentucky. Subsequently, seven of the eight defendants became involved as debtors in the above-referenced bankruptcy proceeding. The proof of claim was filed in order to preserve the claims against these seven bankrupt parties.
On Jan 31, 2014, a Joint Stipulation was filed and entered with the U.S. Bankruptcy Court for the Eastern District of KY, by the U.S. and the defendants, in a bankruptcy case that is associated with the civil case of