LEGAL PROCEEDINGS
+Added: Legal Matters
From time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business.
−Removed: We are not currently involved in any legal proceedings that we believe could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations.
−Removed: We may become involved in material legal proceedings in the future.
+Added: Except as disclosed below, we are not currently involved in any legal proceedings that we believe could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations.
+Added: Such current litigation or other legal proceedings are described in, and incorporated by reference in, this “Part I, Item 3.
+Added: Legal Proceedings ” of this Annual Report from, “ Part II – Item 8.
+Added: Financial Statements and Supplementary Data ” in the Notes to Consolidated Financial Statements in “ Note 13 – Commitments and Contingencies ”, under the heading Other Commitments.
+Added: The Company believes that the resolution of currently pending matters will not individually or in the aggregate have a material adverse effect on our financial condition or results of operations.
+Added: However, assessment of the current litigation or other legal claims could change in light of the discovery of facts not presently known to the Company or by judges, juries or other finders of fact, which are not in accord with management’s evaluation of the possible liability or outcome of such litigation or claims.
+Added: Additionally, the outcome of litigation is inherently uncertain.
+Added: If one or more legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected.
+Added: Governmental Proceedings
+Added: From time-to-time, we receive notices of violation from governmental and regulatory authorities, including notices relating to alleged violations of environmental statutes or the rules and regulations promulgated thereunder.
+Added: While we cannot predict with certainty whether these notices of violation will result in fines, penalties or both, if fines or penalties are imposed, they may result in monetary sanctions, individually or in the aggregate, in excess of a specified threshold.
+Added: We have elected to use a $1 million threshold for disclosing governmental proceedings of this nature.
+Added: We believe proceedings under this threshold are not material to our business and financial condition.
+Added: In 2022, two environmental advocacy groups filed suit against the U.S.
+Added: Department of Interior and the BLM challenging certain lease sales by the BLM beginning in December of 2017.
+Added: On January 17, 2025, a three-judge panel of the Ninth Circuit Court of Appeals upheld vacatur of various leases sold by the BLM, on grounds that the BLM violated the NEPA (defined herein) and the Federal Land Planning and Management Act when selling certain leases.
+Added: It remains unclear whether parties involved in the BLM Litigation will seek en banc review of the decision.
+Added: While the Company is not named in the BLM Litigation (as defendants, intervenors or otherwise), certain of the leases owned by the Company in the PRB have been “ placed in suspense ” pending a ruling by the Ninth Circuit Court of Appeals in the BLM Litigation.
+Added: It is possible that the Ninth Circuit Court of Appeals ruling could result in the cancellation of some or all of these leases.
+Added: In the event all of these leases are cancelled, the Company would lose leases covering approximately 84,362 net acres in the PRB, upon cancellation of which leases the Company would receive reimbursement for leasehold purchase amounts paid of approximately $79,253,934.
MINE SAFETY DISCLOSURES.
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