Arch Coal reaches $2 million settlement over West Virginia discharges

Galax, Virginia (Platts)--3Oct2011/622 pm EDT/2222 GMT


US producer Arch Coal has reached a $2 million civil settlement for exceeding the effluent limits for selenium at five discharge points in West Virginia, the company said Monday.

"One discharge point is at an active operation; the remaining outlets are located at inactive or reclaimed mine sites," Arch spokeswoman Kim Link said in an emailed statement. The active site is Arch's Left Fork mine, and production was unaffected by the settlement, Link said in a subsequent email.

The Left Fork No. 1 Deep Mine, in Nicholas County, produced almost 30,000 short tons in the first two quarters of 2011, but nothing in 2010, according to data from the Mine Safety and Health Administration. The mine previously was owned by International Coal Group, which Arch acquired earlier this year.



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Link said that Arch is "taking preventative measures to achieve consistent selenium compliance at these sites, including the installation of five treatment systems."

"We are pleased that $1.8 million of this settlement will support the development of the Land Use and Sustainable Development Law Clinic at the West Virginia University College of Law," Link said.

In a joint statement Monday, conservation and environmental groups including the West Virginia Chapter of the Sierra Club, West Virginia Highlands Conservancy, Ohio Valley Environmental Coalition, and Coal River Mountain Watch said the legal settlement "will require the coal mining company to clean up toxic run off from six coal mines in West Virginia."

The original lawsuit was filed against Arch in June 2010 "for violating limits on selenium at those locations," the joint statement said.

"This settlement holds Arch Coal responsible for the damage done to West Virginia waterways and requires them to make it right," said Jim Sconyers, the Sierra Club's West Virginia Chapter chairman. "This settlement reflects another step in our fight to ensure that coal companies act responsibly in regards to the health of surrounding communities and West Virginia's wild lands."

Environmental group representatives could not immediately be reached Monday for further comment.

The joint statement said that "selenium, a toxic element that causes reproductive failure and deformities in fish and other forms of aquatic life, is discharged from many surface coal-mining operations across Appalachia. At very high levels, selenium can pose a risk to human health, causing hair and fingernail loss, kidney and liver damage, and damage to the nervous and circulatory systems."

--Steve Hooks, steve_hooks@platts.com