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The company said Wednesday that its Apogee subsidiary was found in contempt by Huntington’s Federal District Court for non-compliance with a March 2009 consent decree outlining mandated selenium limits in certain mining permit locations.
Among other orders handed down by the court, the complex must install a biological-based fluid bed reactor, or FBR system, to treat the selenium at affected outfalls.
The company must comply with these applicable discharge limits by March 1, 2013.
Under a separate order, Patriot Coal’s Hobet operation has been ordered to submit a treatment plan by the beginning of next month.
The Hobet 22 permit’s discharge limits for selenium must also be met by the 2013 deadline.
"We are particularly disappointed with the contempt ruling," president Richard Whiting said.
"Patriot has been at the forefront of developing a solution to this complex issue confronting our company and the central Appalachian coal mining industry.
“We have dedicated significant resources over the last several years to take an industry-leading position in identifying viable treatment technology to address selenium discharges."
Whiting noted that Patriot believes the FBR technology has promise, but he pointed out that it has never before been used commercially for selenium removal in any application, including mining.
“Until the selenium standard is modified, the central Appalachian mining industry will continue to face more stringent standards for aquatic life in regional drainages than those established for drinking water in some major cities,” he said.
“Looking forward, Patriot is assessing its position in these cases and will determine its actions after the written judgment has been received."
The producer has estimated an initial investment of about $US50 million will be required for the adjustments to be made under the judgment. Related annual operating costs will be approximately $3 million.
In addition, Whiting said, the court has ordered Patriot to establish a $45 million letter of credit to secure its performance of the order’s obligation.
