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Retiree health costs are expected to reach $73.8 million in 2013, nearly double the maximum proposed funding this year, according to the documents.
Patriot declined to comment.
A VEBA is a trust set up to manage investments to pay for employee benefits. The Partiot VEBA would apply to all beneficiaries in company retiree health plans.
Patriot assumed the majority of its legacy liabilities when it was spun off fromPeabody Energy Inc., BTU -4.07% the nation's biggest coal producer, in 2007. Patriot also acquired retiree liabilities when it purchased Magnum Coal in 2008. Magnum, made up of former assets of Arch Coal Inc., ACI -3.39% the nation's No. 2 coal producer, was owned by a private-equity firm at the time.
As a result, 90% of retirees listed as Patriot's obligation today never worked for Patriot, but were once employed by Peabody or Arch.
The fight over retiree health benefits is pitting the greatly diminished mine workers union against two of the nation's most powerful coal producers—over an issue that has been a source of strife for decades, especially in an industry where workers often suffer medical problems later in life.
Today, the UMWA represents about 25% of the nation's coal miners and has far more retired members than active ones, after decades of automation streamlined operations and reduced mining jobs.
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