James Christian and Tina Christian v. Pinn Mc Wind Down Co., LLC, formerly known as Pinnacle Mining Company, and Bluestone Resources, Inc., and Alpha Metallurgical Resources, Inc., formerly known as Contura Energy, Inc., and Brooks Run South Mining, LLC

District Court, S.D. West Virginia·Decided June 29, 2026·No. 5:24-cv-00673·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA AT BECKLEY

JAMES CHRISTIAN, and TINA CHRISTIAN,

Plaintiffs,

v. CIVIL ACTION NO. 5:24-cv-00673

PINN MC WIND DOWN CO., LLC, formerly known as Pinnacle Mining Company, and BLUESTONE RESOURCES, INC., and ALPHA METALLURGICAL RESOURCES, INC., formerly known as Contura Energy, Inc., and BROOKS RUN SOUTH MINING, LLC,

Defendants.

MEMORANDUM OPINION AND ORDER

On March 12, 2026, the Court directed the parties to “submit supplemental briefing on the question of how, if at all, the retained jurisdiction provision(s) in (1) the Sale Approval Order of the United States Bankruptcy Court for the Northern District of Alabama, and (2) the related Asset Purchase Agreements, impact the Court’s ability to resolve the ownership and responsibility issues raised in the parties’ Summary Judgment briefing [ECFs 46–53, 56].” [ECF 80]. Defendants Bluestone Resources, Inc. (“Bluestone”) and Alpha Metallurgical Resources, Inc. (“Alpha”) filed their Joint Supplemental Briefing of Defendants Regarding Retention of Jurisdiction Provisions in Sale Approval Order and Asset Purchase Agreements on April 10, 2026. [ECF 82]. Plaintiffs James and Tina Christian (the “Christians”) responded on April 24, 2026. [ECF 83]. Alpha and Bluestone replied on May 1, 2026. [ECF 84]. The matter is ready for adjudication. I.

A. Factual Background

This action arises from mine drainage that damaged the Christians’ property beginning in 2023. [ECF 1-2 ¶¶ 6-7]. The Christians contend that the “illegal discharge of foul- smelling, noxious, foamy, and potentially hazardous mine drainage” has “eroded [their] property, necessitated the removal and loss of their heat pump, invaded the underpinning of their dwelling and structures, eroded the foundation of their dwelling and thereby damaged it, contaminated their well and drinking water, and interfered with the use of [sic] enjoyment of their private property.” [Id. ¶¶ 6, 11]. In 2023, the Christians complained to the West Virginia Department of Environmental Protection (“WVDEP”) about the mine drainage -- also referred to as “artesianing” which is the industry term used “when water in an underground [mine] void becomes pressurized to the point that it emerge [sic] somewhere at the surface under pressure.” [Id. ¶ 7]. The WVDEP investigated the Christians’ complaints, and a WVDEP inspector found the artesian issue arose from a mine associated with WVDEP Permit U-0204-83 (“Permit 83”). According to deposition testimony of WVDEP Inspector Matthew Dillon, Permit 83 is the permit for the deep mine within the Pinnacle Mine Complex, with coal being extracted from the Pocahontas No. 3 coal seam. [ECF 46-2 at 21:23-22:5, 110:23-111:1]. Specifically, the mine drainage arose from “the elevation of Mine Pool 8A, which is part of the mine complex associated with [Permit 83].” [ECF 1-2 ¶ 10]. That mine complex is generally referred to as the Pinnacle Mine Complex. The WVDEP investigation found that water “has been rising consistently since at least May 2019, and that Mine Pool 8A has been at or near the surface elevation since March 2022.” Id. Testing of the mine drainage revealed “the presence of sulfur compounds and sulfur-eating

bacteria” along with “the presence of aluminum, iron, manganese, and sulfurous compounds in the discharge[.]” [Id. ¶¶ 14-15]. The mine drainage affecting the Christians’ property arose from the No. 50 mine within the Pinnacle Mine Complex, formerly owned by Pinnacle Mine Company, which operated under Permit 83. [ECF 46-1 at 7]. The No. 50 Mine operated from 1968 until 2018, first started by U.S. Steel Corporation (now U.S. Steel Mining Company, LLC), and in 1983 the U.S. Steel Mining

Company, Inc., permitted the mine under Permit 83. In 2018, Pinnacle Mining Company held Permit 83. [Id. at 6-7]. The No. 50 mine ceased operations under Permit 83 in 2018 because Pinnacle Mine Company, as a subsidiary of Mission Coal Co., filed a voluntary petition for bankruptcy in October 2018. [ECF 46-1 at 6; ECF 46-3 at 6]. Accordingly, the mine associated with Permit 83 is no longer considered to be active. As a result of the bankruptcy proceedings, Pinn MC Wind Down Co., LLC (“Pinn Wind Down”), formerly known as Pinnacle Mining Company, is presently listed as the permit holder of Permit 83. Following the investigation of the mine drainage, the WVDEP issued an imminent harm cessation order against Pinn Wind Down on February 21, 2023. [ECF 48-3 at 4]. Then in

March 2023, the WVDEP filed a complaint in the Circuit Court of Wyoming County which included a demand for a preliminary injunction against Pinn Wind Down. [Id.; ECF 1-2 ¶ 8]. In a letter to Representative Carol Miller, WVDEP Director Jonathan Rorrer explained the WVDEP pursued litigation over the matter “as an additional enforcement instrument due to the imminent harm situation created.” [ECF 48-3 at 4]. Although the WVDEP named only Pinn Wind Down as a defendant in the state court complaint, Bluestone and Alpha were named as third-party defendants in the litigation. [ECF 46-5 at 2]. Specifically, Pinn Wind Down added Bluestone as a party to the litigation alleging “Bluestone is subject to an Agreed Order before the Bankruptcy Court obligating Bluestone to assume [Permit 83] and abate any outstanding violations.” [Id. at 5-6]. Despite admitting to those allegations, Bluestone then moved for its own preliminary injunction, alleging Alpha was responsible for mitigating the violations alleged by the WVDEP. [Id.]. That action was resolved by stipulation of dismissal in September 2025. Dep’t of Env’t Prot. v. Pinn MC Wind Down Co., LLC, No. CC-55-2023-C-23, Doc. No. 778 (Wyo. Cnty. Cir. Ct. September 23, 2025).

As highlighted in Alpha’s Response to Bluestone’s Motion for Preliminary Injunction filed in the state court action, Pinn Wind Down, Alpha, and Bluestone each denied responsibility for remediating the mine discharge that affected the Christians’ property. [ECF 46- 5 at 4-6]. The disagreements about ownership and responsibility for mitigation of the mine discharge issues arose by virtue of ownership transfers that occurred following Pinnacle Mining Company’s bankruptcy proceedings in 2019. [Id.]. The ownership and liability disputes that arose in state court, and are now presented here, necessitate a discussion of the bankruptcy proceedings that transferred certain Pinnacle Mining Company assets to Alpha and Bluestone.

B. Bankruptcy Proceedings

On April 15, 2019, the United States Bankruptcy Court for the Northern District of Alabama (“bankruptcy court”), entered its order (1) Approving the Sales of the Acquired Assets Free and Clear of Claims, Liens, Interests, and Encumbrances, (2) Approving the Assumption and Assignment of Certain Executory Contracts and Unexpired Leases, and (3) Granting Related Relief. [ECF 48-4 at 2, 45]. The bankruptcy court also approved the transfer of the Pinnacle Mine Company assets to Bluestone, Alpha, and WPP LLC. [See ECF 48-4]. The assets Bluestone and Alpha acquired were memorialized in the Bluestone Asset Purchase Agreement (“Bluestone APA”) and the Contura -- now doing business as Alpha -- Asset Purchase Agreement (“Alpha APA”), respectively. [Id. at 88-574]. In approving the sale of the Pinnacle Mine Company assets, the bankruptcy court noted, “assumption of the applicable Assumed Liabilities by the Buyers pursuant to the APAs is integral to the APAs and is in the best interests of the Debtors, their estates, and their creditors and represents the reasonable exercise of sound and prudent business judgment by the Debtors.” [ECF 48-4 at 11]. The approval order acknowledged the purchase of the “Acquired Assets free and clear

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James Christian and Tina Christian v. Pinn Mc Wind Down Co., LLC, formerly known as Pinnacle Mining Company, and Bluestone Resources, Inc., and Alpha Metallurgical Resources, Inc., formerly known as Contura Energy, Inc., and Brooks Run South Mining, LLC, (S.D.W. Va. 2026).

James Christian and Tina Christian v. Pinn Mc Wind Down Co., LLC, formerly known as Pinnacle Mining Company, and Bluestone Resources, Inc., and Alpha Metallurgical Resources, Inc., formerly known as Contura Energy, Inc., and Brooks Run South Mining, LLC (James Christian and Tina Christian v. Pinn Mc Wind Down Co., LLC, formerly known as Pinnacle Mining Company, and Bluestone Resources, Inc., and Alpha Metallurgical Resources, Inc., formerly known as Contura Energy, Inc., and Brooks Run South Mining, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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