Westmoreland To Pay MMS $13.5M Over Royalties

Law360, New York (July 16, 2009, 3:48 PM EDT) -- Westmoreland Coal Co. has agreed to pay about $13.5 million to settle claims that it shortchanged the Minerals Management Service on coal royalties, although most of the money will actually come from its customers.

According to a form 8-K filed Wednesday with the U.S. Securities and Exchange Commission, Westmoreland will pay $12.2 million to resolve certain transportation claims for all periods through 2007, and it will pay future royalties on the transportation proceeds in accordance with the established methodology of the MMS.

Customers of Westmoreland have...
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