Jul 20 - McClatchy-Tribune Regional News - Scott Sandlin Albuquerque Journal, N.M.



The Four Corners mine that supplies 6.5 million tons of coal annually to the San Juan Generating Station in northwest New Mexico has damaged water quality and endangered wildlife outside its permit area, the Sierra Club claims in a federal lawsuit.

The complaint filed in U.S. District Court in Albuquerque alleges data from groundwater monitoring wells show the company's operations have caused pollution that exceeds New Mexico water quality and human health standards as well as national drinking water standards.

"The data show a long-term persistence of contamination by the facility and continuing gradual increase of some contaminants," the suit says.

 The lawsuit names San Juan Coal, its parent company BHP Billiton Ltd., Public Service Company of New Mexico and PNM Resources as defendants.

San Juan Coal Co. said in a written statement that the water contamination allegations are "incorrect and not supported by water monitoring data."

The company said it conducts environmental monitoring for all mining and reclamation sites and that an approved surface and groundwater monitoring program has been in place for more than 30 years.

San Juan Generating Station provided more than half of PNM's electric power in 2008, according to the company's website.

The primary focus of the litigation is coal combustion waste, which includes sulfates, arsenic, boron, lead, selenium and other toxic byproducts that "present enormous health and environmental risks when they are improperly disposed or stored."

The lawsuit alleges that from 1973 to 2010, at least 40 million tons of waste produced by the power plant has been disposed of in unlined pits ranging from 50 to 200 feet deep and anywhere from hundreds to thousands of feet long.

Among waste products are fly ash, bottom ash and sludge.

San Juan Coal, however, said monitoring data submitted to state authorities demonstrates the mine "has not adversely affected surrounding water quality and is in compliance with all state and federal regulations."

It said in the statement that the mine site is inspected for compliance by regulatory authorities on a monthly basis.

"BHP Billiton prides itself on information and data transparency," the statement said, noting that a January inspection by the EPA included monitoring wells, sewage ponds, wash-down ponds, and coal byproduct placement areas.

"BHP Billiton believes the EPA will confirm that our operations do not present an imminent hazard to human health or the surrounding environment."

PNM spokeswoman Susan Sponar said the company views the allegations as serious but unwarranted.

"I think it's important for our customers to know that a significant portion of our resources are devoted to protecting the environment," including groundwater monitoring, she said.

The Sierra Club asks U.S. District Judge M. Christina Armijo to issue a compliance order requiring the coal company to stop placing coal waste in any part of its permit area that has not been lined to prevent leaching of pollutants into the groundwater.

It also asks the court to find the company's coal combustion waste storage and disposal methods constitute "illegal open dumping" and that its handling, storage, treatment, transportation or disposal of waste products present or could present an imminent danger to public health.

The Sierra Club wants the court to order the coal company to eliminate open dumping practices and to pay for an independent scientific study to determine the extent of any harm. The lawsuit also seeks civil penalties and attorney fees.

According to the lawsuit, the company was sent notice in December 2009 of alleged violations of the Surface Mining and Reclamation Act and the Resource Conservation and Recovery Act.

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