CHARLESTON, West Virginia, February 12, 2009 (ENS)

One of the largest coal mining companies in the United States has agreed to pay a $6.5 million civil penalty to settle violations of the Clean Water Act, federal and West Virginia agencies have announced. The consent decree signed by Patriot Coal includes the third largest penalty ever paid in a federal Clean Water Act case for discharge permit violations.

In a joint complaint filed with the consent decree, the United States and the State of West Virginia alleged that Patriot Coal violated its Clean Water Act permits more than 1,400 times - representing over 22,000 days of violations between January 2003 and December 2007 at its mining complexes in West Virginia.

During this time, Patriot and its subsidiaries allegedly discharged excess amounts of metals, sediment, and other pollutants into dozens of rivers and streams in West Virginia.

Excess discharges of these pollutants can significantly harm water quality and aquatic life in West Virginia's streams, said William Wisniewski, acting Regional Administrator for the U.S. EPA’s mid-Atlantic region.

"This settlement continues to set the bar high for the coal industry and Clean Water Act enforcement in general. Today's settlement reiterates EPA's commitment to maintaining clean and healthy waterways," said Wisniewski.

A West Virginia stream polluted by coal mine drainage, not a Patriot or Magnum property. (Photo courtesy iLoveMountains.org)

In addition, Patriot has agreed to extensive measures designed to ensure Clean Water Act compliance at its mines in West Virginia. The settlement includes what Wisniewski calls "innovative and heightened operating standards" which should serve as a model for the coal mining industry in Central Appalachia.

As part of the settlement, Patriot Coal has agreed to implement extensive measures to prevent future violations and to perform environmental projects, at a total estimated cost of $6 million.

Patriot will develop and implement a company-wide compliance-focused environmental management system including creating a database to track information relevant to compliance efforts; conduct regular internal and third-party environmental compliance audits; implement a system of tiered response actions for any possible future violations; and conduct annual training for all employees and contractors with environmental responsibilities.

The company also will perform five stream restoration projects in local watersheds and perform assessments of mining impacts on aquatic life.

"Consistent with our corporate mission to be a good steward of the environment and our philosophy of maintaining a constructive dialogue with federal and state regulatory authorities, we entered into good faith negotiations which resulted in this settlement," said Patriot Chief Executive Officer Richard Whiting.

"We believe the consent decree is a fair and reasonable resolution of issues relating to former Magnum properties acquired by Patriot in 2008, and serves the interests of both the public and our stockholders," he said. Patriot completed the acquisition of Magnum in July 2008.

The consent decree, lodged in the U.S. District Court for the Southern District of West Virginia, is subject to a 30-day public comment period and approval by the federal court.

With corporate headquarters in St. Louis, Patriot owns and operates 16 mining complexes in West Virginia and Kentucky.

"This settlement represents a very important step in making sure that the coal mining industry is in compliance with the Clean Water Act," said John Cruden, acting assistant attorney general in charge of the Justice Department's Environment and Natural Resources Division. "It will benefit the citizens of West Virginia and helps make sure that the Mountain State's streams and rivers are not damaged."