Mar 02, 2011

Arch Coal to Pay $4 Million to Settle Clean Water Act Violations

Settlement affects operations in West Virginia and Kentucky

The U.S. Environmental Protection Agency (EPA) and the U.S. Justice Department announced that Arch Coal Inc., the second largest supplier of coal in the U.S., agreed to pay a $4 million penalty for alleged violations of the Clean Water Act in Virginia, West Virginia and Kentucky. Under the settlement, Arch Coal will implement changes to its mining operations in Virginia, West Virginia and Kentucky to ensure compliance with the Clean Water Act.
“The measures required by this settlement will prevent pollutants from entering waterways and bring wide-ranging improvements to mining operations in four mining complexes across three states,” said Ignacia. S. Moreno, assistant attorney general of the Environment and Natural Resources Division of the Department of Justice. “These changes will mean a healthier environment for local communities and will help ensure Arch Coal’s compliance with the Clean Water Act.”
As part of the settlement, Arch Coal has agreed to take measures that will prevent an estimated 2 million lb of pollution from entering the nation’s waters each year. Arch Coal also will implement a treatment system to reduce discharges of selenium, a pollutant found in mine discharges. Selenium runoff from mining operations can build up in streams and have an adverse impact on aquatic organisms.
Arch Coal has agreed to implement a series of inspections, audits and tracking measures to ensure treatment systems are working properly and that future compliance is achieved. The company also is required to develop and implement a compliance management system to help foster a top-down, compliance- and prevention-focused approach to Clean Water Act issues.
A joint federal-state complaint filed in U.S. District Court in the Southern District of West Virginia by the United States, West Virginia and Kentucky alleged numerous violations of Arch Coal’s permits that set limits on pollutants to be discharged into streams. The alleged excess discharges of iron, total suspended solids, manganese and other pollutants reflect deficiencies in the operation and maintenance of wastewater treatment systems in place at four of the company’s mining facilities: Coal Mac Inc.; Lone Mountain Processing Inc.; Cumberland River Coal Co.; and Mingo Logan Coal Co.
Under the settlement, $2 million of the $4 million civil penalty will be paid to the United States and the remaining $2 million will be divided between West Virginia and Kentucky based on the percentage of alleged violations in each state. The consent decree is subject to a 30-day public comment period and final court approval.