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Asset Impairment Review
6 Months Ended
Jun. 30, 2018
Asset Impairment Review [Abstract]  
Asset Impairment Review

(2)ASSET IMPAIRMENT REVIEW



Carlisle Mine

During the second quarter of 2018 we began preparations to re-open the Carlisle Mine.  In July 2018, we commenced production and began shipping coal to customers.  We conducted a review of the Carlisle Mine assets as of June 30, 2018, based on estimated future net cash flows, and determined that no impairment to the aggregate net carrying value of $108 million was necessary. 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 Reserves

 

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 hold the rights to repurchase the property for eight years at the original sale price of $4.9 million plus interest. We are accounting for the sale as a financing transaction with the liability recorded in other long-term liabilities. The Bulldog Mine assets had an aggregate net carrying value of $15 million at June 30, 2018.  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 are required 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.