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GILLETTE (WNE) — Campbell County could potentially lose out on more than $30 million in unpaid mineral production taxes from Cloud Peak Energy after a federal bankruptcy judge’s decision.
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GILLETTE (WNE) — Campbell County could potentially lose out on more than $30 million in unpaid mineral production taxes from Cloud Peak Energy after a federal bankruptcy judge’s decision.
Judge Kevin Gross ruled last week that Campbell and Converse counties don’t have first priority when it comes to collecting those unpaid taxes.
Cloud Peak secured DIP (debtor in possession) financing, with creditors willing to finance the company through its Chapter 11 bankruptcy. The judge ruled that the DIP has priority over the county’s claim, meaning the $8.3 million Cloud Peak owed the county for production in the second half of 2017 is pretty much “off the table” now, said Campbell County Commissioner Mark Christensen.
Assuming that Cloud Peak’s production remained the same in 2018 and 2019, Christensen said the company could potentially owe the county more than $30 million, and “the chances of us collecting anything on that are slim to none.”
He said he wasn’t surprised by the ruling because Wyoming law doesn’t allow for counties to attach a priority lien claim on unpaid taxes.
