The jury decision on Wednesday followed a lawsuit filed by Delbarton area residents in 2002 that Massey had destroyed their creeks and well water after the company mined under the area.

"The court also ruled as a matter of law that the defendant failed to minimize the disturbance to the hydrologic balance within the permit and adjacent areas by harming the quantity and quality of the water supplies," a law clerk present at the case told Associated Press.

During August in the second part of the case, allegations will be heard that the replacement water Massey provided to some residents was unsafe and damage payments, if any, to individual residents will be decided.