TATUM, Texas — A small East Texas town barely a half-hour from the Louisiana border has relied on coal mining and power plants for jobs and economic development for generations.
One of the region's major mining companies is on the brink of bankruptcy. Aside from the potential economic damage, heavily mined land around Tatum could go unrestored.
Luminant and its parent company are struggling with more than $30 billion in debt. But the state has allowed Luminant Mining Co. to expand without a reserve fund to pay for reclamation. To do so, it must produce an unaudited financial statement every 90 days.
The company insists it has enough money to meet its responsibilities. Environmental groups are worried that if Luminant has to file for bankruptcy, the reclamation bill will fall to taxpayers.
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