Washington (Platts)--5May2008

Shutdown of Ohio's two largest coal mines, which together produce nearly 12
million short tons/year, could be triggered by the Ohio Environmental
Protection Agency's proposed denial of a permit request by Ohio Valley Coal to
replace a coal preparation refuse impoundment nearing its fill capacity,
according to company officials.

In a May 1 ruling, the state agency said the water quality certification
sought by the Robert Murray-owned company would have allowed Ohio Valley Coal
to impound Casey Run in the Captina Creek watershed. "They want to impound the
stream and fill in the valley," Ohio EPA spokeswoman Heather Lauer told Platts
on Friday. "It happens to be an exceptional-quality stream."

Lauer said the agency carefully evaluated the issue for months after receiving
the coal company's application last fall.

In a statement, Ohio EPA Director Chris Korleski said Ohio Valley Coal "has
failed to demonstrate that construction in the Casey Run watershed will not
result in the degradation of the designated aquatic life habitat use of Casey
Run. Additionally, Casey Run flows into Captina Creek, an exceptional warm
water habitat, and the company has failed to demonstrate that the designated
aquatic life habitat use for Captina Creek can be maintained and protected."

As of Friday afternoon, no request for an adjudication hearing had been filed
with the agency, Lauer said. If no request is submitted, the denial will
become final on June 9.

In addition to Ohio EPA's certification, the company also would have to secure
approval from the Ohio Department of Natural Resources.

Robert Edward Murray, vice president of business development and external
affairs for Murray Energy, said the ruling threatens the operation of Ohio
Valley Coal's Powhatan No. 6 underground mine and American Energy's Century
underground mine. Powhatan 6 produced about 4.6 million st in 2007 while
Century's output was 7.1 million st.

--Bob Matyi, bobmaty@roadrunner.com