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    coal-investing

    Kentucky Coal Association and State sue EPA

    Investing News Network
    Oct. 19, 2010 07:03PM PST
    Industrial Metals Investing

    Kentucky and the state’s coal mining association together have joined forces, filing a lawsuit Monday against the U.S. Environmental Protection Agency’s (EPA) move to block water discharge permits.

    By Ethan Ribalkin – Exclusive to Coal Investing News

    Kentucky and the state’s coal mining association together have joined forces, filing a lawsuit Monday against the U.S. Environmental Protection Agency’s (EPA) move to block water discharge permits.

    The legal action centers on interim guidelines issued earlier this year by the EPA, which set benchmarks for measuring the conductivity of water in streams and waterways that must be achieved by coal mining operations within certain eco-regions.

    “Kentucky can and does mine coal while at the same time protecting Kentucky’s environment,” said Kentucky Governor Steven L. Beshear in a press release.

    “However, the arbitrary and unreasonable decisions being made by the EPA threaten to end the responsible mining of coal and eliminate the jobs of an estimated 18,000 Kentucky miners who depend on mining for their livelihood.”

    Under attack is the U.S. government’s Clean Water Act (CWA), which gives the EPA the power to issue pollution control programs, including the National Pollutant Discharge Elimination System (NPDES) permit program, which can stop mines from operating.

    In March, the EPA, after multiple discussions with state officials, allowed draft water discharge permits to be issued by the Division of Water. Later on, the standards were toughened, according to Beshear’s press release.

    “Kentucky has tried time and time again to work with the EPA to strike a reasonable balance on mining and environmental issue. However, the EPA’s recent arbitrary and unreasonable actions could well have a devastating impact to Kentucky’s economy,” said Beshear.  “As Governor, I am going to do everything in my power to keep that from happening.”

    Earlier this month, the EPA blocked nearly a dozen water discharge permits sought by coal mines in Kentucky, stated a Kentucky newspaper.

    The Courier-Journal reported that the EPA cited the state’s own assessment of poor water quality in regions where the permits are sought and said the state failed to include adequate pollution limits in the permits.

    A coalition of environmental groups alleged thousands of violations of the federal Clean Water Act at three eastern Kentucky mines over a two-year period. The group alleged that coal operators in some cases submitted false water quality monitoring data to the state, according to Bloomberg Businessweek.

    Republican Senator Mitch McConnell predicted the “anti-coal” administration would use the EPA to shut down mines in Kentucky, according to an online video. In it, McConnell attacks Congress, stating that the government is looking at “every possible way they can find to undermine” the coal industry, home to 80,000 jobs in Kentucky. McConnell further states in the video posted Sept. 15 “In the Commonwealth of Kentucky […] we have some of the lowest, and occasionally, the lowest utility rates in the country,”

    The Coal Association filed the federal lawsuit against the EPA Monday in U.S. District Court, Eastern District of Kentucky, Pikeville Division, while the State of Kentucky filed a companion suit.

    The Kentucky coal industry paid $1.035 billion in direct wages in 2006, directly employing 17,669 persons and indirectly providing 3 additional jobs for every miner employed.  The average weekly wage for coal miners in Kentucky was $1,126 during 2006, according to coaleducation.org.

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