Tuesday, November 9, 2010

Judge Rules Against Alliance Resource Partners in Royalties Lawsuit

SPRINGFIELD, Ill. (AP) - A judge says a coal company and two other Alliance Resource Partners subsidiaries must pay $3.8 million to resolve a lawsuit over royalty payments involving a southern Illinois coal mine.

Second Circuit Court Judge David Overstreet ruled Friday that White County Coal Co. failed to make the payments to widows and heirs of men who discovered a 200-million-ton coal reserve in White County.

The judgment includes unpaid royalties on 6.4 million tons of coal mined at White County's Pattiki Mine near Carmi between 2002 and September 2009.

Alliance also must calculate and pay additional sums for royalties and interest due on coal mined since September 2009 and reinstate the plaintiffs' royalty rights on 6,000 remaining coal acres.

A spokesman for Tulsa, Okla.-based Alliance Resources has declined to comment.

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