Longview will fund $6 million trust to avoid mining effluent liability

By Kali Hays

New York, Oct. 8 – Longview Power, LLC is seeking approval of a consent order and agreement between subsidiaries Dana Mining Co. of Pennsylvania, LLC and AMD Reclamation, Inc. and Pennsylvania Environmental Protection Agency that would establish a $6 million mining discharge trust fund, according to an Oct. 8 motion with the U.S. Bankruptcy Court for the District of Delaware.

As part of Longview’s coal mining and processing operations, Dana Mining and AMD remove and treat subterranean water from mine pools of closed and/or abandoned mines under a permit issued by the National Pollutant Discharge Elimination System (NPDES) to allow safe mining of flooded coal reserves and prevent drainage into nearby watersheds.

The proposed agreement is a response from Longview in order to maintain compliance with revised effluent limits and terms set by the Pennsylvania Environmental Protection Agency (PADEP) allowing the company to be issued a revised NPDES permit, according to the motion.

The current permit was set to expire in 2008, but has been administratively extended each year.

Under the terms of the agreement, the PADEP will immediately issue Dana and AMD a revised permit and the companies will begin a three-phase construction project to satisfy the effluent limits, expected to result in the substantial reduction or elimination of mining discharge and implement the monitoring or aquatic life surrounding watershed areas.

Moreover, Dana and AMD will establish a trust fund for the treatment of any post-mining discharge which will receive an initial payment of $300,000 and annual payments of $300,000 thereafter for up to 19 years.

With these actions, Longview, Dana and AMD will not be liable for any mining discharges that have resulted from mining sites Longview does not own.

Longview said the that agreement will ensure its ability “to obtain the revised NPDES permit and regulatory approval witch is essential to the continued operation of the mining business, while also permitting the debtors to avoid the expense of acquiring and implementing new, costly water treatment and management technologies,” according to the motion.

A hearing is set to take place on Oct. 30.

Longview, an integrated power generation enterprise based in Maidsville, W.Va., filed for bankruptcy on Aug. 30, 2013. The Chapter 11 case number is 13-12211.

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