Document ID: ./input/supremecourt_opinions/opinions/boundvolumes/524bv.pdf
Page Number: 574.0

524US2

Unit: $U94

[09-11-00 13:26:39] PAGES PGT: OPLG

Cite as: 524 U. S. 498 (1998)

529

Opinion of O(cid:146)Connor, J.

that could not have anticipated the liability, and the extent
of that liability is substantially disproportionate to the par-
ties’ experience.

C

We believe that the Coal Act’s allocation scheme, as ap-
plied to Eastern, presents such a case. We reach that con-
clusion by applying the three factors that traditionally have
informed our regulatory takings analysis. Although Jus-
tice Kennedy and Justice Breyer would pursue a differ-
ent course in evaluating the constitutionality of the Coal Act,
they acknowledge that this Court’s opinions in Connolly and
Concrete Pipe indicate that the regulatory takings frame-
work is germane to legislation of this sort. See post, at 545–
546 (Kennedy, J., concurring in judgment and dissenting in
part); post, at 555–556 (Breyer, J., dissenting).

As to the ﬁrst factor relevant in assessing whether a reg-
ulatory taking has occurred, economic impact, there is no
doubt that the Coal Act has forced a considerable ﬁnancial
burden upon Eastern. The parties estimate that Eastern’s
cumulative payments under the Act will be on the order of
$50 to $100 million. See Brief for Petitioner 2 ($100 million);
Brief for Respondents UMWA Combined Beneﬁt Fund et al.
46 ($51 million). Eastern’s liability is thus substantial, and
the company is clearly deprived of the amounts it must pay
the Combined Fund. See Connolly, 475 U. S., at 222. The
fact that the Federal Government has not speciﬁed the assets
that Eastern must use to satisfy its obligation does not ne-
It is clear that the Act requires Eastern
gate that impact.
to turn over a dollar amount established by the Commis-
sioner under a timetable set by the Act, with the threat of
severe penalty if Eastern fails to comply. See 26 U. S. C.
§§ 9704(a) and (b) (directing liable operators to pay annual
premiums as computed by the Commissioner); § 9707 (impos-
ing, with limited exceptions, a penalty of $100 per day per
eligible beneﬁciary if payment is not made in accordance
with § 9704).