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Asset Impairment Review
9 Months Ended
Sep. 30, 2017
Asset Impairment Review [Abstract]  
Asset Impairment Review



(7)Asset Impairment Review

Carlisle Mine



In December 2016, the deterioration of the North End of the Carlisle Mine (the North End), coupled with lower coal prices led us to determine that the North End could no longer be mined safely and profitably.  The sealing of the North End was completed in March 2017.



With the Carlisle Mine remaining in hot idle status, we conducted a review of the Carlisle Mine assets as of September 30, 2017, based on estimated future net cash flows, and determined that no impairment was necessary.



The Carlisle Mine assets had an aggregate net carrying value of $112 million at September 30, 2017.  If in future periods, we reduce our estimate of the future net cash flows attributable to the Carlisle Mine, it may result in future impairment of such assets and such charges could be significant. 

 

Bulldog Mine



In October 2017, we entered into an agreement to sell land associated with the Bulldog Mine for $4.9 million.  As part of the transaction, we will hold the rights to repurchase the property for 8 yearsBecause of the likelihood of exercising the repurchase option, we will account for the sale as a financing transaction. The Bulldog Mine assets had an aggregate net carrying value of $15 million at September 30, 2017.  Also in October 2017, the Illinois Department of Natural Resources (ILDNR) notified us that our mine application, along with modifications, was acceptable.  The permit will be issued upon submittal of a fee and bond which is required to be submitted within 12 months of the notification.  We have determined that no impairment is necessary.  If estimates inherent in the assessment change, it may result in future impairment of the assets.