US regulators and environmental groups have tangled with coal companies for decades over the effects their mining practices have on the environment.  But with the coal industry fading, the challenge is to make sure these companies are able to clean-up the mess they leave behind.

The state of West Virginia in the US coal belt in the Appalachian Mountains faces perhaps the greatest difficulties.  Dozens of coal mines filed to declare bankruptcy over the past year.  They borrowed millions of dollars during the good times, but are struggling to pay back the banks and hedge funds as cheaper natural gas and tougher environmental regulations ravage the industry.  West Virginia hired a top New York City lawyer to make sure there's some money left over to clean up Appalachia’s polluted rivers and mountains.

"The goal is to make sure the coal companies clean up the mess when they leave," said attorney Kevin W. Barrett of Bailey & Glasser, who is the state's special assistant attorney general in charge of the case against Alpha Natural Resources.  The company's current bankruptcy plan involved selling off assets to some of the world's highest-powered hedge funds.  US$209 Million would be set aside for clean-ups in West Virginia and four other states.  But West Virginia officials believe these coal mines are leaving behind at least a billion dollars in damage.

Hedge funds snapped up the coal industry's debt like vultures on a US$50 Billion bloated wildebeest carcass.  But the massive pay day they're expecting if the bonds increase seems to be based on coal coming back - something that seems unlikely, especially after the Paris Climate Accord to limit global warming caused by man-made activities such as burning coal.

"Bankruptcy courts need to hold strong and not let financial institutions pocket the money and leave a huge part of Appalachia out to dry," said attorney Peter Morgan, who represents the respected environmental group the Sierra Club.