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According to regional newspaper the Herald Star, the two had been set to go to trial on July 30 at Brooke County Circuit Court in West Virginia but agreed to the deal within hours of the meeting.
Mountain State Carbon initially sued Central West Virginia Energy, a subsidiary of Massey Energy, last year.
When Massey was purchased by Alpha, the producer also gained ownership of CWVEC.
At the heart of the suit was CWVEC’s failure to deliver metallurgical coal that had been contracted between the two for Mountain State’s coke operations in northern West Virginia.
The paper said the then-Massey affiliate instead sold the output to the export markets at a significantly higher price.
Reed Smith attorney David Fawcett, the legal representative for Mountain State, told the Star the case included similar misconduct to a 2005 lawsuit that the former Wheeling-Pittsburgh Steel had filed against Massey.
That suit, which ended in a $220 million jury award, also alleged shipments were diverted away from Mountain State and to export customers at higher prices.
