EPA v. ARCH COAL (NATIONAL CASE) (and REVELATION ENERGY LLC CD MODIFICATION)

Case summary

Arch Coal to Pay $4 Million to Settle Clean Water Act Violations in Appalachian Mining Operations Release Date: 03/01/2011 Contact Information: Stacy Kika, kika.stacy@epa.gov, 202-564-0906, 202-564-4355 WASHINGTON -- The U.S. Environmental Protection Agency (EPA) and the U.S. Justice Department announced today that Arch Coal Inc., the second largest supplier of coal in the United States, has agreed to pay a $4 million dollar 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. ?Violations at mining operations can have significant environmental and public health consequences, including the pollution of the waters that people use for drinking, swimming and fishing,? said Cynthia Giles, assistant administrator for EPA?s Office of Enforcement and Compliance Assurance. ?It is critical that companies operating next door to homes, schools and other businesses meet the standards established to protect the health and the environment for these communities.? ?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 pounds of pollution from entering the nation?s waters each year. Arch will also 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 is also 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 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.

Defendants (6)

• ARCH COAL, INC.Named in complaintNamed in settlement
• CUMBERLAND RIVER COAL COMPANYNamed in complaintNamed in settlement
• LONE MOUNTAIN PROCESSING, INC.Named in complaintNamed in settlement
• MINGO LOGAN COAL COMPANYNamed in complaintNamed in settlement
• COAL MAC, INC.Named in complaintNamed in settlement
• REVELATION ENERGY, LLCNamed in complaintNamed in settlement

Facilities (6)

• ARCH COAL TERMINAL INC (810-8038)

  US 23 S, CATLETTSBURG, KY, 41129

  Registry ID: 110011216237

• ARCH COAL TERMINAL INC (810-8038)

  US 23 S, CATLETTSBURG, KY, 41129

  Registry ID: 110011216237

• LONE MOUNTAIN PROCESSING INC (848-5353)

  RT 1, HOLMES MILL, KY, 41701

  Registry ID: 110009965430

• REVELATION ENERGY LLC (CONSOLIDATED)

  KY 806, EOLIA, KY, 40826

  Registry ID: 110070147268

• COKING COAL LLC 867-5375

  JCT OF US 119 & KY 806, EOLIA, KY, 40823

  Registry ID: 110013668717

• LONE MOUNTAIN PROCESSING INC (848-5353)

  RT 1, HOLMES MILL, KY, 41701

  Registry ID: 110009965430

Statutes cited

• CWA 301 — NPDES Discharge without a Permit

Enforcement conclusions (2)

• REVELATION ENERGY LLC CD MODIFICATION (Region 4 Only) (04-2015-C023)entered 2014-11-26

  Primary law: CWA

• ARCH COAL (NATIONAL CASE) (04-2011-C007))entered 2011-11-07

  Primary law: CWA

  Federal penalty: $666,667 · State/local: $160,000

Timeline (5 milestones)

• 2008-12-30Referred To Dept Of Justice
• 2009-01-15Enforcement Action Data Entered
• 2011-03-01Complaint Filed With Court
• 2014-11-26Final Order Entered
• 2014-11-26Final Order Lodged