On March 6, 2026, the Department of Environmental Protection reduced the subsidence bond for the Rustic Ridge #1 coal mine from about $3.14 million to just $292,679—a cut of more than 90%.
A subsidence bond is money set aside in case underground mining causes the ground to shift and damage homes, water supplies, roads, or streams.
Since the mine opened in 2018, subsidence damage has occurred on at least five properties. Public records show the operator, LCT Energy, has spent at least $1.55 million purchasing damaged properties—a strategy often used when the cost of repairs outweighs a home’s worth.
“There are five homes on our cul-de-sac, and four of them have had subsidence damage,” says Judy Miller, a landowner who lives near the damaged homes above the mine.
Records show LCT Energy bought three homes near the Miller’s area: one for $350,000 and two others for about $600,000 each. Any one of those purchases indicate damages that would entirely exceed the reduced bond amount.
MWA’s appeal also challenges DEP’s later attempt to later undo the cut.
On March 6, 2026, DEP issued a letter saying the bond was restored, yet provided no evidence of meeting certain procedural requirements needed to prove the funds are actually moved back.
“DEP can say a bond is restored,” says Melissa Marshall, Senior Legal Advocate with MWA, “but if the required steps weren’t taken with the surety company, that money—which communities are counting on—may not be there when they need it.”
DEP agreed to the cut after LCT’s claim the site qualified under certain guidelines that allow smaller bonds at sites if no subsidence damage claims in the last five years.
MWA says internal DEP emails show staff knew at least one claim was still open but approved the reduction anyway.
MWA said, despite DEP’s yo-yo-ing approach, MWA’s challenge shows the risk at Rustic Ridge has not changed.
LCT’s own report shows that the soft claystone mine-floor—the condition linked to past subsidence—exists in significant parts of the permit boundary.
That soft floor may extend past the original evaluation, because the mine has since been allowed to expand significantly.
Last year, DEP approved a 1,400+ acre expansion, including beneath the Pennsylvania Turnpike.
The same report also predicts that after mining ends, the mine voids will fill with water and the soft claystone floor will lose 40–60% of its strength. This means the greatest risk of subsidence damage may still be years away.
Even before mining ends, damage may not be detected until years later – one of the damaged properties didn’t experience subsidence damage until nearly three years after being undermined.
Pennsylvania law says subsidence bonds must be a “reasonable amount,” and sufficient to cover damage.
Yet DEP permitted a bond that did not properly account for the mine’s full size, history of delayed damage, or the increased risk as the mine floods after mining.
“Our communities are still living with the legacy pollution from historic mining that companies were allowed to walk away from,” says Ashley Funk, MWA’s Executive Director. “That’s why bonding exists in the first place—weakening it now just sets communities up to pay the price all over again.”
MWA is asking the Environmental Hearing Board to restore the full $3.14 million subsidence bond and make sure that any “restored” mine-damage protections are legally enforceable.
Without strong bond protections, the cost of future damage from the expanding Rustic Ridge mine could fall on homeowners and local communities—exactly what Pennsylvania’s bonding laws are meant to prevent.
Click Here for a copy of the Mountain Watershed Association appeal.
The Mountain Watershed Association is a nonprofit based in Melcroft, Fayette County. Its mission is to protect, preserve, and restore the Youghiogheny River watershed and its communities through conservation, recreation, education, and advocacy.
Visit the DEP Rustic Ridge #1 Mine Expansion webpage for more information on the mine permitting.
Resource Link:
-- Inquirer - Andrew Seidman: How LCT Energy’s Rustic Ridge Coal Mine In Westmoreland County Won Over Harrisburg, Shapiro Administration, Now In Fight With Local Environmental Group
[Posted: April 16, 2026] PA Environment Digest
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