Since collapsing in 2007 in two incidents that killed nine miners and rescuers, iron-rich water has been spilling from the mine.
Genwal is reportedly cleaning the water before it is discharged into local creeks.
According to an Associated Press report, Genwal, a division of Murray Energy, argued its case before the board for an agreeable bond amount of $480,000 or two years of treatment but the Utah Board of Oil, Gas and Mining on Thursday ruled the company must maintain the three-year bond.
Genwal attorney Kevin Anderson told the AP the company, which sought to transfer the difference in bond amounts to an operating account to cover water treatment costs, would likely accept the ruling and not appeal its case to the Utah Supreme Court.
The news service said Genwal also felt the bond reduction was justified because two years of water treatment would bring it to its estimate of when the mine’s discharge water would cleanse itself of iron levels.
The bond issue began when Utah regulators requested Genwal post a bond for treatment in perpetuity at an estimated $30 million and the company reportedly asked for the amount to be reduced to $720,000, then again to $480,000.
Anderson told the AP the producer disagreed the bond was needed, as the company was still in an operational mode at Crandall Canyon and another side of Crandall Canyon that didn’t collapse still had bountiful coal reserves.
Multiple ILN requests for comment from a Murray Energy spokesperson have gone unanswered.
In March, 4.5 years after the fatal Crandall Canyon collapse, Genwal agreed to a $500,000 settlement following its admission to two misdemeanor criminal charges.
US Attorney for the District of Utah David Barlow filed a two-count information that charged the Murray Energy affiliate with two criminal violations of Federal Mine Safety and Health Act regulations.
The office came to a plea agreement with the operator for both counts, with it paying the maximum fine allowed of $250,000 per count.
In its admission of guilt, the producer said it willfully did not report an earlier March 2007 outburst in a timely manner and admitted it was aware of the approved roof control plan amendment prohibiting mining at the barrier pillar in the No. 1 area of the mine.
Also under the plea agreement, the US Attorney’s Office was not to bring other charges against Genwal or its associated companies, individuals, officers or directors and particularly those related to the August 2007 accidents and the investigation.
Six miners were trapped inside the Crandall Canyon mine following a mine collapse on August 6, 2007.
Ten days after the rescue attempt started, another coal outburst left three rescuers dead and injured six others.