Preference Rights Lease Application Settlement Income	12 Months Ended
Dec. 31, 2020
Commitments and Contingencies
Preference Rights Lease Application Settlement Income	8. Preference Rights Lease Application Settlement Income The Company recorded a $39.0 million gain during the third quarter of 2019 related to a settlement with the United States Department of Interior over a long-standing dispute, dating back to the 1970’s, on the valuation and disposition of Preference Rights Lease Application that Arch controlled in northwestern New Mexico with a joint venture partner. As part of the settlement, Arch received $67.0 million in the form of royalty credits on its federal coal leases which will be used to settle 50% of the Company’s monthly royalty obligations. Additionally, as part of the settlement, Arch made a one-time payment of $27.0 million during October 2019 to its’ partner in the venture for its ownership interest in the underlying mineral reserves, as well as paying $1.0 million in closing fees. The Company utilized $36.0 million of its royalty credits during the year ended December 31, 2020. The Company realized a credit for $13.3 million during the year ended December 31, 2019. The remaining balance outstanding at December 31, 2020 is $17.7 million, which is expected to be realized during 2021.

Preference Rights Lease Application Settlement Income

12 Months Ended

Dec. 31, 2020

Preference Rights Lease Application Settlement Income

8. Preference Rights Lease Application Settlement Income

The Company recorded a $39.0 million gain during the third quarter of 2019 related to a settlement with the United States Department of Interior over a long-standing dispute, dating back to the 1970’s, on the valuation and disposition of Preference Rights Lease Application that Arch controlled in northwestern New Mexico with a joint venture partner. As part of the settlement, Arch received $67.0 million in the form of royalty credits on its federal coal leases which will be used to settle 50% of the Company’s monthly royalty obligations. Additionally, as part of the settlement, Arch made a one-time payment of $27.0 million during October 2019 to its’ partner in the venture for its ownership interest in the underlying mineral reserves, as well as paying $1.0 million in closing fees.

The Company utilized $36.0 million of its royalty credits during the year ended December 31, 2020. The Company realized a credit for $13.3 million during the year ended December 31, 2019. The remaining balance outstanding at December 31, 2020 is $17.7 million, which is expected to be realized during 2021.