“All the mines (in the basin) are still producing, and yet the market is only two-thirds what it used to be,” Godby said.

In part, that’s because with closure comes mandated and costly reclamation, often more expensive than the operation of the coal mine itself.

“(The companies) are between a rock and a hard place,” he added.

But Campbell County and Blackjewel’s roughly 700 employees in Wyoming have the most at stake, according to Godby. More senior secured creditors often have first dibs on returns during the bankruptcy process.

While Blackjewel owns and operates the Campbell County mines, Contura still holds the mine permits. Due to concerns from landowners over Blackjewel’s lack of assets and its checkered environmental past, the state has yet to finalize the transfer. Blackjewel delayed applying for the transfer for months after ownership changed hands too.

From the very beginning of the ownership transfer, Blackjewel fell behind on its ad valorem taxes to the county, amassing $37 million in tax liability. This spring, the county and company signed a new financial agreement. But Monday’s announcement casts doubt on these recent conciliatory efforts.