Revelation Energy, Blackjewel’s sister company and another coal company claiming bankruptcy, is asking the Harlan County School District to send them $73,611 in refunds for an overpaid utility tax the company paid to the district. Harlan County Superintendent Brent Roark is baffled by their request as the company still owes thousands in delinquent property taxes that support local services, including the school system.

Roark said the amount Revelation still owes the school system from the delinquent taxes is greater than the amount the company overpaid on utility tax.

“I don’t think we should give them the money while they still owe us, but at least it’s been put on hold for now,” Roark said during a board meeting on Thursday.

Not only does Revelation still owe thousands in delinquent taxes, but it’s sister company, Blackjewel, has placed financial stress in Harlan County and much of eastern Kentucky.

Blackjewel caused money to be taken out of miners’ bank accounts after being paid, resulting in hundreds of out-of-work miners having their accounts overdrawn by around $2,000 each. Don’s Super Saver was also impacted by Blackjewel’s actions, as they now hold over $90,000 in cold checks after the store already cashed them for the workers.

According to an email from the Kentucky Department of Revenue, after reviewing Revelation’s 2016 tax return, it showed the company had paid $73,611.96 too much to the school system through taxes. The school system received the extra money and was responsible for the refund.

The auditor told school finance director Gary Hensley on Aug. 1 that she understood the amount of financial stress it would place on the school system but that she was instructed to continue with the refund process, as ordered by state law.

Hensley responded to her in a letter, stating he was sure the people of Harlan “will not feel very happy knowing the company that has damaged so many families and individuals in our county are now damaging the school system.”

Hensley also notified the department about the substantial amount of delinquent taxes Revelation and Blackjewel owe in Harlan alone, per Roark’s request.

Richard Dobson, head of office sales and excise taxes for the department, said they had not decided what to do about the refund request, as stated in an Aug. 6 letter to the school district. There still has not been a decision made on how to handle the situation.

Harlan County Circuit Clerk Donna Hoskins said Revelation and related companies owe more than $300,000 in delinquent property taxes in Harlan, with Revelation owing $197,000 from 2017 alone. She added the school system receives almost half of the money from local property tax collections, meaning the school system would get nearly $100,000 from Revelation’s 2017 bill if the company pays it.

Many school and local officials argue it’s unfair to require the school to refund Revelation’s money while they still owe thousands in delinquent property taxes.

Roark said if the school district must refund the money, it should go toward paying Blackjewel miners who still have yet to be paid or to the county to be divided among local agencies that receive funding from property tax. This would include the school system and county, but also the library and health department.

Regardless, Roark said if the school systems pay Revelation’s refund “we’ll never see it again.”

Former Blackjewel miners continue their protest at the tracks in Cumberland as they continue to wait to be paid.