24. Contingencies Hillsboro and Macoupin Matters In July 2015, we provided notice to WPP LLC (WPP), a subsidiary of NRP, declaring a force majeure event at our Hillsboro mine due to a combustion event. As a result of the force majeure event, as of September 30, 2018, we had not made $98.5 million in minimum deficiency payments to WPP in accordance with the force majeure provisions of the royalty agreement. Since November 2015, WPP maintained a Complaint against the Partnership, Hillsboro, and certain other of the Partnerships subsidiaries, all related to Hillsboros declaration of force majeure under the royalty agreement. In addition, since April 2018, Hillsboro maintained a Counterclaim against WPP. Since April 2016, WPP and HOD LLC (HOD), subsidiaries of NRP, maintained a complaint in the Circuit Court of Macoupin County, Illinois against the Company and Macoupin. The operative complaint generally alleged misapplication of the recoupment provision of the royalty agreement. WPPs claims were estimated to exceed $11 million. On October 19, 2018, the parties reached a settlement to resolve all disputes arising out of the Hillsboro and Macoupin matters, and the court in each matter entered a final order dismissing the case with prejudice. As part of the settlement, WPP received a payment of $25 million from the Partnership in consideration of all disputed past due amounts. This payment is recorded in other operating income (expense), net on the consolidated statement of operations. In addition, the Partnership and WPP amended the coal lease and royalty agreement between Hillsboro and WPP, reducing the annual minimum royalty payments from $30 million to $11 million and providing for a tonnage royalty of 6% of the gross selling price (as defined in the lease) of coal mined and sold from the leased premises. The Partnership, as parent of Hillsboro, also provides a guarantee to WPP of up to $50 million of the minimum royalty payments. This settlement fully and finally concluded all claims and counterclaims in Hillsboro and Macoupin matters. Refer to Note 27 for the most recent developments at Hillsboro. Other Matters We are also party to various other litigation matters, in most cases involving ordinary and routine claims incidental to our business. We cannot reasonably estimate the ultimate legal and financial liability with respect to all pending litigation matters. However, we believe, based on our examination of such matters, that the ultimate liability will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. As of December 31, 2018, we have $1.3 million accrued, in aggregate, for various litigation matters. Insurance Recoveries We are currently in discussions with our insurance provider in regards to further potential recoveries under our policy related to the combustion event at our Hillsboro operation. From the date of the combustion event through December 31, 2018, we have recognized $91.0 million of insurance recoveries related to the recovery of mitigation costs, losses on machinery and equipment, and business interruption insurance proceeds. Insurance proceeds for the recovery of mitigation costs are recognized in cost of coal produced (excluding depreciation, depletion and amortization). Insurance proceeds related to the recovery of losses on machinery and equipment and business interruption insurance are recorded to other operating (income) expense, net. The following table presents the location of insurance proceeds included in our consolidated statements of operations: (Successor) (Successor) (Predecessor) (Predecessor) Location in statements of operations: Year Ended December 31, 2018 Period from April 1, 2017 through December 31, 2017 Period From January 1, 2017 through March 31, 2017 Year Ended December 31, 2016 (In Thousands) (In Thousands) Cost of coal produced (excluding depreciation, depletion and amortization) $ 1,139 $ 3,645 $  $ 10,500 Other operating (income) expense, net 42,947 12,832  20,000 $ 44,086 $ 16,477 $  $ 30,500 We continue to pursue additional remedies under our insurance policies; however, there can be no assurances that we will receive any further insurance recoveries related to this incident. Performance Bonds We had outstanding surety bonds with third parties of $91.0 million as of December 31, 2018 to secure reclamation and other performance commitments.