In re: Horizon Natural Resources Company v. HORIZON NATURAL RESOURCES COMPANY and CAROLINA POWER AND LIGHT COMPANY

*The Hon. David M. Lawson, United States District Judge for the Eastern District of Michigan, sitting
by designation.
NOT RECOMMENDED FOR FULL-TEXT PUBLICATION
File Name: 05a0532n.06
Filed: June 22, 2005
No. 04-5794
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT
In re: Horizon Natural Resources Company,
Debtor.
MASSEY ENERGY COAL SALES
COMPANY, INC.,
Appellant,
v.
HORIZON NATURAL RESOURCES
COMPANY and CAROLINA POWER AND
LIGHT COMPANY,
Appellees.
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ON APPEAL FROM THE UNITED
STATES DISTRICT COURT FOR THE
EASTERN DISTRICT OF KENTUCKY
Before: KEITH and DAUGHTREY, Circuit Judges, and LAWSON,* District Judge.
PER CURIAM. The debtor, Horizon Natural Resources Company, entered into
various contracts with Carolina Power and Light Company to provide the energy producer
with coal. In order to fulfill its obligations under those agreements, Horizon not only mined
its own natural resources, but also contracted with Massey Energy Coal Company to
purchase 1.5 million tons of coal from that business entity. Included in Horizon’s contract

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No. 04-5794
Massey Energy Coal v. Horizon Natural Resources
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with Massey was a provision that the “Agreement shall terminate automatically upon the
termination, for any reason, of [Horizon’s] supply agreement with CP&L . . . .”
Horizon eventually filed for bankruptcy protection under the provisions of Chapter
11 of the Bankruptcy Code. In the course of the ensuing proceedings, it filed a motion with
the court to authorize the debtor to assume or reject the various contracts to which both
Horizon and Carolina Power and Light were parties. Horizon further requested an
expedited hearing on the matter. That hearing was conducted in August 2003, at which
time the bankruptcy court approved Horizon’s rejection of one contract with Carolina Power
and Light (the Franklin Contract), the assumption of another of the debtor’s amended
contracts with the power company (the Marrowbone Contract), and the assumption of
Horizon’s contract with Massey for the sale of coal to the debtor (the Massey Contract).
Before the bankruptcy court and the district court, Massey argued that the rejection
of the Franklin Contract automatically terminated the Massey Contract because it ended
Horizon’s “supply agreement with CP&L.” Massey further contended that its due process
rights were violated when the bankruptcy court held the expedited hearing without allowing
Massey sufficient time for discovery to determine whether the Massey Contract was indeed
terminated by Horizon’s other contractual dealings.
Both courts concluded, however, that, despite the debtor’s rejection of the Franklin
Contract, Horizon remained obligated to provide coal to Carolina Power and Light pursuant
to the amended Marrowbone Contract. Moreover, because Horizon’s contractual

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No. 04-5794
Massey Energy Coal v. Horizon Natural Resources
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responsibilities under the Massey Contract remained unchanged, Massey’s economic
position was in no way affected by those other contracts to which Massey was not even a
party.
Before this court, Massey again raises the allegations of error argued to the
bankruptcy court and to the district court. After examining the record on appeal and the
briefs of the parties, we conclude that the district court correctly analyzed and decided the
issues before it on appeal from the bankruptcy court. As the reasons underlying the district
court ruling have been adequately articulated, the issuance of a full written opinion by this
court would be duplicative and would serve no useful purpose. Accordingly, we AFFIRM
the judgment of the bankruptcy court upon the reasoning set out by the district court in its
Memorandum Opinion filed on June 1, 2004.

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