Document Page 1 of 5 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF VIRGINIA Richmond Division In Re: ALPHA NATURAL RESOURCES, INC., et al, Debtors. Chapter 11 Case No. 15-33896(KRH) (Jointly Administered) WISE COUNTY TREASURER S LIMITED OBJECTION TO SALE OF CERTAIN MINING PROPERTIES AND RELATED ASSETS FREE AND CLEAR OF LIENS COMES NOW, the Wise County Treasurer ( Treasurer ), by and through counsel, and in objection to the proposed sale of assets states as follows: BACKGROUND 1. Alpha Natural Resources, Inc. and numerous of its direct and indirect subsidiaries ( the debtors ) filed for relief under Chapter 11 of the United States Bankruptcy Code on August 3, 2015. 2. Pursuant to Code of Virginia 58.1-3910 the Treasurer is charged with issuing bills for and the collecting duly assessed local taxes in Wise County, Virginia. 3. As of the petition date, the debtor, Alpha Natural Resources, Inc. and certain of its affiliate co-debtors ( Wise County debtors ) had been assessed for real estate, personal property taxes for the year 2015. These taxes remain due and unpaid as Mark K. Ames, VSB #27409 Taxing Authority Consulting Services, P.C. P.O. Box 31800 Henrico, VA 23113 (804) 545-9399 FAX (804) 378-2681 mark@taxva.com
Document Page 2 of 5 of the date of this objection. Taxes for the year 2015 owed by the Wise County debtors are itemized in Exhibit A attached to and made a part of this pleading. ARGUMENT 4. On or about October 22, 2015, the Alpha Natural Resources, Inc. and its codebtors filed the Combined Motion for Entry of (A) an Order Establishing Bidding and Sale Procedures for the Potential Sale of Certain Mining Properties and Related Assets and Granting Related Relief and (B) One or More Orders Approving the Sale of Such Properties [Docket No. 707] (the motion ). Among other things, the motion sought approval of bidding procedures for the sale of certain mining properties and the personal property located at those mines. The Court granted the motion by its Order (I) Approving Bidding and Sale Procedures for Certain Mining Properties and Related Assets, (II) Approving the Form and Manner of Notice of the Related Assumption and Assignment of Executory Contracts and Unexpired Leases and (III) Scheduling an Auction and Sale Hearing [Docket No. 855] (the order ). The order authorizes an auction of certain real and personal property of the debtors free and clear of liens on January 27, 2016, and set January 20, 2016 as the deadline for objecting to the sale of any specific property at the auction. The order also requires the debtors to provide a schedule of the assets subject to the sale, and permits the debtors to revise the schedule of assets prior to the auction by giving notice to certain affected parties. 2
Document Page 3 of 5 5. Pursuant to Code of Virginia 58.1-3942 and 3340, there shall be a lien prior to all other encumbrances and security interests for local taxes assessed per item or in bulk against tangible personal property and for real estate taxes. Accordingly, the Treasurer holds a first priority lien upon any real or personal property under assessment to be transferred in the proposed auction. Under the terms of the proposed sale, liens of parties secured by the auctioned assets shall attach to the proceeds in the same order of priority as existed against the assets. 6. The debtors notice of sale describes a proposed auction of mining properties, assets and related infrastructure, as described in Annex A, attached to the sale notice. The annex specifies mine and mine related operation locations based on internal company nomenclature with no detail as to the exact description or location of the real and tangible property to be sold. As a substantial portion of the property taxes assessed against the Wise County debtors is mobile tangible personal property which could be at any of the locations subject to the sale, the Treasurer is unable to unable to make any meaningful or accurate evaluation of the auction process, or to protect her interests in this matter without specific information to identify which items of real and tangible personal property are to be sold. 7. The Treasurer objects to the auction of the debtors assets as proposed without first being provided further identifying information which would enable her to reconcile her tax assessments with the specific personal or real property subject to 3
Document Page 4 of 5 sale and secondly being provided with other adequate assurances as required by Bankruptcy Code 363(e) that her first priority lien status will be protected and recognized accordingly in the distribution of sales proceeds. WHEREFORE, for the foregoing reasons, Wise County Treasurer objects to the debtors proposed sale of property of the estate at the auction currently scheduled for January 27, 2016. Respectfully submitted, Treasurer Wise County, Virginia BY: /s/ Mark K. Ames Mark K. Ames, VSB #27409 Jeffrey A. Scharf. VSB #30591 Taxing Authority Consulting Services, P.C. P.O. Box 31800 Henrico, VA 23294 (804) 545-9399 mark@taxva.com 4
Document Page 5 of 5 CERTIFICATE OF SERVICE I hereby certify that a true copy of the Objection was transmitted on this 15th day of January 2016, via ECF to debtor s counsel, the office of the US Trustee and all parties requesting notice as well as through First Class mail to the following recipients: Alpha Natural Resources Sands Anderson PC Attn: Richard H. Verheij, Esq. Attn: William A. Gray, Esq. One Alpha Place, PO BOX 16429 1111 East Main Street Bristol, Virginia 24209 Richmond, Virginia 23219 Jones Day Davis Polk & Wardell LLP Attn: Carl E. Black, Esq. Attn: Damian S. Schaible, Esq. 901 Lakeside Avenue Attn: Damon P. Meyer, Esq. Cleveland, Ohio 44114 450 Levington Avenue New York, New York 10017 Jones Day Attn: Jeffrey B. Ellman, Esq. McGuireWoods LLP North Point, 1420 Peachtreet St. NE Attn: Dion W. Hayes, Esq. Suite 800 Attn: Sarah B. Boehm, Esq. Atlanta, Georgia 30309 Attn: K. Elizabeth Sieg, Esq. Gateway Plaza Hunton & Williams LLP 800 East Canal Street Attn: Tyler Brown, Esq. Richmond, Virginia 23219 Riverfront Plaza, East Tower 951 East Byrd Street Kutak Rock LLP Richmond, Virginia 23219 Attn: Michael A Condyles, Esq. 1111 East Main Street Milbank, Tweed, Hadley & McCloy LLP Richmond, Virginia 23219 Attn: Evan R. Fleck, Esq. Attn: Eric K. Stodola, Esq. Kirland & Ellis LLP 28 Liberty Street Attn: Paul M. Basta, Esq. New York, New York 10005 Attn: Stephen E. Hessler, Esq. Attn: Brian E. Schartz, Esq. 601 Lexington Ave. New York, New York 10022 /s/ Mark K, Ames 5
NAME CASE # ACCT # PARCEL # PROPERTY TYPE SECURED Alpha Coal Sales Co LLC Case 15 33926 15-33896-KRH 10000064 Doc 1292-1 Filed PP 01/15/16 Entered $ 01/15/16 235.1716:14:50 Desc Exhibit(s) Page 1 of 3 Alpha Natural Resources LLC 15 33947 10027735 PP $ 440,138.32 Alpha Natural Resources Services L15 33952 10024496 PP $ 239.38 Black Mountain Cumberland Resou15 33902 10027595 PP $ 370.11 Cumberland Coal Resources LP 15 34030 10027492 PP $ 1,351.58 Dickenson Russell Coal Company LL15 33932 10027627 PP $ 930.93 Knox Creek Coal Corporation 15 33904 10098298 PP $ 262.47 Maxxim Rebuild Co LLC 15 34027 10000005 PP $ 320,699.41 Maxxim Shared Services LLC 15 34029 10027678 PP $ 40,997.42 Mill Branch Coal Corporation 15 33905 10096465 PP $ 135,786.94 North Fork Coal Corporation 15 33907 10096684 PP $ 96,673.20 Paramont Coal Company Virginia LL15 34039 10054794 PP $ 63.01 Paramont Coal Company Virginia LL15 34039 10002116 PP $ 331,461.84 Pigeon Creek Processing Corporatio15 33908 10060074 PP $ 51,942.56 TOTAL PP $ 1,421,152.34 Alpha Land and Reserves LLC 15 33939 10029793 007106 RE $ 31.50 Alpha Land and Reserves LLC 15 33939 10029793 012380 RE $ 15.00 Alpha Land and Reserves LLC 15 33939 10029793 019265 RE $ 2.10 Alpha Land and Reserves LLC 15 33939 10029793 019269 RE $ 0.60 Alpha Land and Reserves LLC 15 33939 10029793 019264 RE $ 127.50 Alpha Land and Reserves LLC 15 33939 10029793 034489 RE $ 84.30 Alpha Land and Reserves LLC 15 33939 10029793 034662 RE $ 11.70 Alpha Land and Reserves LLC 15 33939 10029793 040901 RE $ 0.90 Alpha Land and Reserves LLC 15 33939 10029793 008452 RE $ 9.60 Alpha Land and Reserves LLC 15 33939 10029793 020387 RE $ 75.00 Alpha Land and Reserves LLC 15 33939 10029793 039168 RE $ 47.70 Alpha Land and Reserves LLC 15 33939 10029793 039167 RE $ 43.50 Alpha Land and Reserves LLC 15 33939 10029793 039169 RE $ 0.60 Alpha Land and Reserves LLC 15 33939 10029793 039170 RE $ 81.60 Alpha Land and Reserves LLC 15 33939 10029793 039171 RE $ 29.10 Alpha Land and Reserves LLC 15 33939 10029793 011161 RE $ 43.20 Alpha Land and Reserves LLC 15 33939 10029793 011160 RE $ 45.30 Alpha Land and Reserves LLC 15 33939 10029793 011151 RE $ 8.10 Alpha Land and Reserves LLC 15 33939 10029793 020500 RE $ 96.00 Alpha Land and Reserves LLC 15 33939 10029793 010426 RE $ 15.00 Alpha Land and Reserves LLC 15 33939 10029793 010427 RE $ 15.00 Alpha Land and Reserves LLC 15 33939 10029793 004372 RE $ 102.90 Alpha Land and Reserves LLC 15 33939 10029793 039089 RE $ 52.80 Alpha Land and Reserves LLC 15 33939 10029793 009571 RE $ 5.10
Alpha Land and Reserves LLC 15 33939 10029793 002692 RE $ 5.10 Alpha Land and Reserves LLC Case 15 33939 15-33896-KRH 10029793 Doc 002207 1292-1 Filed RE 01/15/16 Entered $ 01/15/16 41.7016:14:50 Desc Exhibit(s) Page 2 of 3 Alpha Land and Reserves LLC 15 33939 10029793 003962 RE $ 9.00 Alpha Land and Reserves LLC 15 33939 10029793 003188 RE $ 51.60 Alpha Land and Reserves LLC 15 33939 10029793 002786 RE $ 105.00 Alpha Land and Reserves LLC 15 33939 10029793 032793 RE $ 53.70 Alpha Land and Reserves LLC 15 33939 10029793 042450 RE $ 7.20 Maxxim Rebuild Co LLC 15 34027 10071782 034575 RE $ 6.00 Maxxim Rebuild Co LLC 15 34027 10071782 020831 RE $ 452.40 Maxxim Rebuild Co LLC 15 34027 10071782 020834 RE $ 149.40 Maxxim Rebuild Co LLC 15 34027 10071782 020838 RE $ 92.40 Maxxim Rebuild Co LLC 15 34027 10071782 020836 RE $ 3,968.10 Maxxim Rebuild Co LLC 15 34027 10071782 041973 RE $ 2,435.70 Maxxim Shared Services LLC 15 34029 10056506 040567 RE $ 10,168.80 Paramont Coal Company Virginia LL15 34039 10049160 007987 RE $ 48.00 Paramont Coal Company Virginia LL15 34039 10049160 035571 RE $ 76.20 Paramont Coal Company Virginia LL15 34039 10049160 019272 RE $ 23.70 Paramont Coal Company Virginia LL15 34039 10049160 019059 RE $ 17,349.90 Paramont Coal Company Virginia LL15 34039 10049160 019518 RE $ 8.40 Paramont Coal Company Virginia LL15 34039 10049160 019519 RE $ 16.95 Paramont Coal Company Virginia LL15 34039 10049160 019522 RE $ 6.30 Paramont Coal Company Virginia LL15 34039 10049160 019520 RE $ 12.00 Paramont Coal Company Virginia LL15 34039 10049160 019528 RE $ 74.49 Paramont Coal Company Virginia LL15 34039 10049160 019524 RE $ 47.79 Paramont Coal Company Virginia LL15 34039 10049160 019523 RE $ 10.32 Paramont Coal Company Virginia LL15 34039 10049160 019527 RE $ 25.69 Paramont Coal Company Virginia LL15 34039 10049160 019525 RE $ 36.54 Paramont Coal Company Virginia LL15 34039 10049160 019529 RE $ 50.85 Paramont Coal Company Virginia LL15 34039 10049160 019521 RE $ 11.16 Paramont Coal Company Virginia LL15 34039 10049160 040340 RE $ 9.00 Paramont Coal Company Virginia LL15 34039 10049160 040341 RE $ 6.30 Paramont Coal Company Virginia LL15 34039 10049160 039181 RE $ 13.20 Paramont Coal Company Virginia LL15 34039 10049160 039185 RE $ 356.70 Paramont Coal Company Virginia LL15 34039 10049160 039183 RE $ 13.80 Paramont Coal Company Virginia LL15 34039 10049160 039187 RE $ 318.60 Paramont Coal Company Virginia LL15 34039 10049160 039186 RE $ 963.30 Paramont Coal Company Virginia LL15 34039 10049160 039182 RE $ 37.80 Paramont Coal Company Virginia LL15 34039 10049160 039188 RE $ 34.50 Paramont Coal Company Virginia LL15 34039 10049160 039180 RE $ 140.10 Paramont Coal Company Virginia LL15 34039 10049160 039184 RE $ 160.50
Paramont Coal Company Virginia LL15 34039 10049160 020469 RE $ 3.00 Paramont Coal Company Virginia LL15 34039 Case 15-33896-KRH 10049160 Doc 020464 1292-1 Filed RE 01/15/16 Entered $ 01/15/16 199.8016:14:50 Desc Exhibit(s) Page 3 of 3 Paramont Coal Company Virginia LL15 34039 10049160 003278 RE $ 1.50 Paramont Coal Company Virginia LL15 34039 10049160 003277 RE $ 32.70 Paramont Coal Company Virginia LL15 34039 10049160 003639 RE $ 47.58 Paramont Coal Company Virginia LL15 34039 10049160 002501 RE $ 21.60 Paramont Coal Company Virginia LL15 34039 10049160 003116 RE $ 16.50 Paramont Coal Company Virginia LL15 34039 10049160 042121 RE $ 11.70 Paramont Coal Company Virginia LL15 34039 10049160 042508 RE $ 11.10 Paramont Coal Company Virginia LL15 34039 10049160 042071 RE $ 4.80 Paramont Coal Company Virginia LL15 34039 10049160 042415 RE $ 20.40 TOTAL RE $ 38,712.97