Patriot Coal has entered into a consent decree with the Ohio Valley Environmental Coalition, the West Virginia Highlands Conservancy and the Sierra Club to settle a lawsuit.
The company will pay $7.5 million in the settlement to the environmental groups to deal with the selenium discharges from its mining operations in West Virginia.
The claims made under the US Clean Water Act will be settled using the money. Richard M. Whiting, the President and Chief Executive officer of Patriot Coal said in a statement on Wednesday that selenium was an issue that many companies involved in coal mining must confront. Today's settlement by Patriot represented a strategic response to this challenging issue he added. He was pleased that this settlement provided a comprehensive framework for Patriot to address selenium across their properties going forward.
The environmental groups also issued a joint statement on Wednesday saying that the settlement required the coal mining company and its subsidiaries to treat selenium pollution at 43 outlets, including outlets previously thought to be untreatable. The statement continued to say that a 2010 order resolving a separate action brought by the groups against Patriot, a federal judge ordered the company to treat selenium at four outlets. The company had estimated the cost of treatment at just those four outlets would be nearly $100 million.
Selenium is often released into waterways during mountain top removal mining. It is toxic to aquatic life and high levels of exposure to humans can also lead to damage in kidneys, liver and the central nervous system.
Patriot Coal has 14 mining operations in Appalachia and the Illinois Basin. Mr Whiting said that the deal made with the environmental groups was in the best interest of both the public and the shareholders of the company. In a similar case Arch Coal Inc from St Louis had agreed to pay $2 million to settle a case involving its subsidiaries Coal-Mac Inc and Mingo Logan Coal Co. they also agreed to install treatment and monitoring equipment.