Mining and Natural Resources

The exploration, extraction and processing of coal and other natural resources not only is a vital industry in itself, it also fuels several other industries that power the U.S. economy. Over the years, companies in this industry have faced significant changes to the way they operate, including consolidation, price fluctuations and operational efficiency. Environmental concerns and an increasingly stringent regulatory environment continue to place new pressures on mining and oil and gas companies.

Our long history of service to companies in the mining and natural resources industry began in 1929, when our firm founders entered an appearance as counsel for the plaintiff in Shell Pipeline Corp. v. Whitmore. Our representation of the industry continues today, and now we serve clients in a variety of sectors, including oil and gas, coal and minerals. Our decades of experience ensure that we understand the important issues that affect our clients.

Throughout our firm’s representation of the industry, we have handled significant cases relating to contract disputes, royalty disputes, price reopening, property damage, subsidence and environmental contamination. We also have assisted our clients in matters involving mergers and acquisitions, joint ventures, financing, exploration agreements, environmental permitting, compliance, land use issues, royalty and refining agreements, and complex joint operating agreements.

Partners: Cohen, Edward A.; Eilerts, Kimberly M.; Farrell, David D.; Hammett, Ruthanne C.; Hockett, Brian W.; Hohn, Christopher M.; Rosenberg, Sharon B.; Strasheim, Frederick R.; Strassner, Peter S.; Wuller, Roman P.

All Star Gas Company
Ashland Oil, Inc.
Coal Synthetics, LLC
ConocoPhillips
Cyprus Amax
ExxonMobil
Newpark Resources, Inc.
Maxum Petroleum, Inc.
Patriot Coal Company
Peabody Energy
RiverStone Group, Inc.

Under a 30-year supply agreement between Peabody Energy and a consortium of Western U.S. utilities, the parties can renegotiate certain contractual pricing mechanisms every five years. The utilities rejected Peabody’s offer of a price reduction and subsequently sought to recover a $50 million “overpayment” they allegedly made to Peabody from 1992-1996. The utilities also wanted a price reduction of approximately $80 million for the years 1997-2001. In 2002, the arbitration panel issued its ruling in Peabody’s favor. The net effect of the award resulted in a contractual price increase, with the utilities owing Peabody approximately $30 million.
Peabody Energy Corporation also retained our firm as co-counsel in connection with its successful initial public offering and with its $225 million accounts receivable securitization with PNC Bank.
ConocoPhillips Company chose our firm as lead counsel in connection with its acquisition of a 50% stake in various entities formed by TransCanada Corporation to own, construct and operate a crude oil pipeline from the Alberta Oil Sands to various points in the U.S. The deal required extensive negotiation and governance issues. The total equity capitalization of the joint venture entities is expected to be at least $5.2 billion.
The firm played a significant role in multidistrict litigation related to alleged groundwater contamination by methyl tertiary butyl ether (MTBE). Thompson Coburn represented one oil company as lead counsel in the initial round of MDL 1358 litigation and also served as co-counsel for two other oil companies in this action. We had a lead role within the defense group's consolidated motion to dismiss. In addition, our firm was an integral player in the defense group's successful effort to defeat class certification.
We are currently representing ExxonMobil Coal in this state court case, in which a local environmental group sought an injunction invalidating the coal mine’s operating and reclamation permits. The group claimed that the permits were issued in violation of Illinois law. It is requesting that the Court order our client to remove a reclaimed area of coal refuse 40 or 50 feet tall and approximately 400 acres in size from the coal mine site and to dispose of the material in a landfill. We recently obtained dismissal of all counts in the lawsuit at the trial court level. The case is currently on appeal.
For over a decade, we have represented southern Illinois coal mines in connection with a wide range of environmental issues. On the regulatory side, we have provided ongoing compliance counseling, obtained variances and provided permitting assistance to a major energy concern. We also helped obtain approval for the first Groundwater Management Zone ever issued to a coal mine in the State of Illinois, as part of a unique settlement with the Illinois Environmental Protection Agency and the Illinois Department of Natural Resources.
We represent a mining company in connection with a potential major expansion. That representation has included providing assistance with the interpretation of permit requirements, assistance with potential governmental incentives and other financing opportunities, as well as assistance with related real estate and mineral rights matters.
In a federal administrative case, the claimant alleged that the Office of Surface Mining should bring an enforcement action against the State of Illinois for the alleged failure to protect the groundwater at our client’s mine site and for permitting certain surface reclamation activities. We intervened and presented evidence that the approved reclamation plan protected the groundwater and that the permitted surface reclamation activities were authorized in accordance with Illinois and federal law. The Administrative Law Judge panel found in favor of our client and the Office of Surface Mining in all respects. Langenhorst v. U.S. Department of the Interior, Office of Surface Mining, IBLA Case No. 2006-188 before the Department of the Interior, Board of Land Appeals in Washington, D.C.
Our firm represented Standard Oil of Indiana in its victory over Standard Oil of New Jersey, resulting in the formation of Exxon Corporation.

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Mining and Natural Resources