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Settlement with Patriot Coal
9 Months Ended
Sep. 30, 2013
Settlement with Patriot Coal [Abstract]  
Legal Matters and Contingencies [Text Block]
Settlement with Patriot Coal
On December 31, 2005, Arch entered into a purchase and sale agreement to sell mining complexes to Magnum Coal Company ("Magnum"). On July 23, 2008, Patriot Coal Corporation acquired Magnum from Arc Light Capital Partners. On July 9, 2012, Patriot Coal Corporation and certain of its wholly owned subsidiaries, including Magnum, (collectively, "Patriot") filed voluntary petitions for reorganization under Chapter 11 of the U.S. Code in the U.S. Bankruptcy Court for the Southern District of New York.
The Company entered into a settlement agreement with Patriot on October, 10, 2013 that resolves all pending and potential legal claims with Patriot stemming from the sale of coal companies to Magnum and the subsequent purchase of those companies by Patriot in 2008.
The Company will pay $5.0 million in cash to Patriot upon its exit from bankruptcy, which is reflected in "Other operating income, net" in the condensed consolidated statement of operations for the three month and nine month periods ended September 30, 2013. Additionally, the settlement includes the release of a $16.7 million letter of credit posted by Patriot in the Company's favor for surety bonds related to the companies sold to Magnum. The Company has also agreed to purchase Patriot's Guffey reserves for $16.0 million in cash upon their exit from bankruptcy. The Guffey reserves border the Company's Leer metallurgical coal development.