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(Please note: Some formatting from the original Consent Order and Agreement
may have been lost in preparing this document for the web)

 

                                         COMMONWEALTH OF PENNSYLVANIA

                             DEPARTMENT OF ENVIRONMENTAL PROTECTION

 

In the Matter of:

 

Amerikohl Mining, Inc.:                                           SMP No. 33990101

202 Sunset Drive:                                                   Rathmel Mine

Butler, Pennsylvania 16001:                                    Winslow Township,

                                                                              Jefferson County

 

                                           CONSENT ORDER AND AGREEMENT

 

            This Consent Order and Agreement is entered into this _______ day of _______________________, 1999, by and between the Commonwealth of Pennsylvania, Department of Environmental Protection (hereinafter "Department"), and Amerikohl Mining, Inc.  (hereinafter "Amerikohl").

            The Department has found and determined the following:

            A.        The Department is the agency with the duty and authority to administer and enforce the Surface Mining Conservation and Reclamation Act, Act of May 31, 1945, P.L. 1198, as amended, 52 P.S. § 1396.1-1396.31 ("Surface Mining Act"); the Coal Refuse Disposal Control Act, Act of September 24, 1968, P.L. 1040, as amended, 52 P.S. § 30.51-30.66 ("Coal Refuse Disposal Act"); The Clean Streams Law, Act of June 22, 1937, P.L. 1987, as amended, 35 P.S. § 691.1-691.1001 ("Clean Streams Law"); Section 1917-A of the Administrative Code of 1929, Act of April 9, 1929, P.L. 177, as amended, 71 P.S. § 510-17 ("Administrative Code") and the rules and regulations promulgated thereunder.

            B.         Amerikohl is a Pennsylvania corporation with a business address of 202  Sunset Drive, Butler, Pennsylvania 16001 whose business includes the mining of bituminous coal in the Commonwealth by the surface mining method.  John M. Stilley is the president of Amerikohl.

            C.        The Soldier Run watershed is approximately 8000 feet southwest of Dubois, Pennsylvania, in Winslow Township, Jefferson County.  The watershed covers 2.8 square miles and consists chiefly of reclaimed and abandoned mine land and forestland.  Underground mining of the Lower Freeport coal seam in the Peterson and Nimo mines has resulted in numerous acid mine drainage discharges which have degraded an unnamed tributary  to Soldier Run and Soldier Run. The unnamed tributary has been identified as # 1.

            D.        Soldier Run and unnamed tributary #1 do not meet the instream water quality requirements in 25 Pa. Code Chapter 93 because the numerous discharges of acid mine drainage from abandoned surface and underground mines are uncontrolled and untreated.

            E.         Remining is the reaffecting of previously mined areas by surface mining methods to extract remaining coal reserves.  Remining, when implemented with the appropriate best management practices (“BMPs”), can be an effective way of abating or reducing acid mine drainage and improving water quality. 

            F.         Section 1396.4f of the Surface Mining Act, 52 P.S. §1396.4f, contains the substance of the Department’s existing program for the remining of previously affected areas.  This section of the act, known as Subchapter F, was added in 1984.

            G.        Prior to the formal statutory adoption of Subchapter F and the approval by the Office of Surface Mining of its incorporation into Pennsylvania’s primacy program, the Department entered into a number of Consent Order and Agreements which contained Subchapter F provisions. 

            H.        The existing Subchapter F program has been successful in providing incentives for remining and improving water quality throughout Pennsylvania.  Since its inception, 260 Subchapter F permits have been issued.  Of these 260 permits, only 5 or less than 2% have incurred long-term treatment liability or ended in bond forfeiture, a rate which is lower than conventional mining permits.  As time has passed, the Department has decided that there are additional ways of providing remining incentives and creating possibilities for abating or reducing acid mine drainage and improving water quality.

            I.      “Reclaim PA” is a program established by Governor Tom Ridge to encourage reclamation of abandoned mine lands in Pennsylvania.  The program consists of a series of incentives to encourage remining of abandoned mine lands as one of the most effective means of achieving reclamation.  One of these incentives was to add flexibility to Pennsylvania’s Subchapter F permitting program, to further encourage remining in areas which may result in improved water quality.

            J.     Amerikohl has permitted the Rathmel mine, SMP No. 33990101 in Winslow Township, Jefferson County.  The permit (“the Rathmel SMP”) was issued for 127.8 acres on July 22, 1999 to mine the Lower Freeport coal seam.  The permit includes special authorization under 25 Pa. Code Chapter 87, Subchapter F for preexisting discharges of acid mine drainage.  These preexisting discharges are identified as: D1, D2, D3, D5, SP4, SP7, and SP9(combined as hydrologic unit HU-1).  The Rathmel mine is located within the Soldier Run watershed.

            K.      Neither Amerikohl nor any officer, principal shareholder, agent, partner, associate, parent corporation, contractor or subcontractor, or any related party has any legal responsibility or liability as an operator for treating the pollutional discharges from or on the Rathmel mine, or has any statutory responsibility or liability for reclaiming the Rathmel mine.

            L.     The water quality of Soldier Run is monitored at a point referred to as S-4,  located where Pennsylvania Route 322 crosses Soldier Run.[the 6.2 shows S-4 about 700 feet downstream of 322] The water quality of unnamed tributary #1 is monitored at a point referred to as S-2, located at its confluence with Soldier Run (See map attached as Exhibit 1). Water quality samples collected from December 1996 through March 1999 represent baseline water quality conditions.  A statistical summary of the baseline water quality is summarized in the tables attached as Exhibit 2 and Exhibit 3.

            M.     The Department and Amerikohl have had several discussions regarding the use of Subchapter F to encourage remining and to abate acid mine drainage in the Soldier Run watershed.  Both parties agree that it is in the public interest to encourage abatement-oriented remining in the Soldier Run watershed and that additional remining can best be accomplished through the application of Subchapter F-like conditions to the entire watershed, rather than to individual permits and discharges.

            N.        Water quality monitoring at S-2 and S-4 is the most effective way to measure the performance of AMD remediation activities within the watershed as the water quality impact of all remining, reclamation, and abatement activities are manifest at these points.  The water quality baseline uses concentration, rather than loading data because:  1)  In-stream concentration data are more stable than load data, rendering a higher quality statistical summary;  2)  concentration data are much easier and less costly to collect than load data;  3)  pollution loads from individual discharges are manifested in the in-stream concentration; and  4)  loading data in large streams tend to be dominated by flow, which makes it difficult and impractical to monitor actual changes in in-stream quality which is the actual principal goal of AMD-abatement oriented remining.

 

            O.  The Soldier Run Watershed is well-suited for the application of an alternative remining authorization for the following reasons: 1)  It is currently not meeting in-stream water quality standards; 2)  remining, employing the appropriate best management practices, is likely to result in an overall improvement to in-stream water quality and reduce the total maximum daily load of mine drainage pollutants; 3)  significant reminable coal reserves are present in the watershed; 4)  there is significant acreage in the watershed in need of surface reclamation; 5)  there are numerous sources of mine drainage entering the watershed, making monitoring at each individual discharge point less practical than in-stream performance monitoring; and 6)  there are multiple mining and reclamation activities proposed or ongoing in the watershed, making it more practical to monitor the combined effect of these projects rather than focusing on the performance of individual projects.

                                                                         Order

                        After full and complete negotiation of all matters set forth in this Consent Order and Agreement and upon mutual exchange of covenants contained herein, the parties desiring to avoid litigation and intending to be legally bound, it is hereby ORDERED by the Department and AGREED to by Amerikohl as follows:   

            1.         Authority.  This Consent Order and Agreement is an Order of the Department authorized and issued pursuant to Section 5 of the Clean Streams Law, 35 P.S. § 691.5; Section 4.3 of the Surface Mining Act, 52 P.S. §1396.4c; and Section 1917-A of the Administrative Code, supra.

            2.         Findings.

                        a.         Amerikohl agrees that the findings in  Paragraphs A through O are true and correct and, in any matter or proceeding involving Amerikohl and the Department, Amerikohl shall not challenge the accuracy or validity of these findings.

                        b.         The parties do not authorize any other persons to use the findings in this Consent Order and Agreement in any matter or proceeding.

            3.         This Consent Order and Agreement supersedes Part A, Section I, subsection D, paragraphs 3 through 9(on pages 3 through 9) of Surface Mine Permit No. 33990101, except as expressly set forth in this Agreement.  Should this agreement be terminated or should Amerikohl breach this Consent Order and Agreement, Part A, Section I, subsection D, paragraphs 3 through 9 of Surface Mining Permit No. 33990101 shall automatically be reinstated.

            4.         At the initiation of mining activities, the sample points identified in paragraph J (the original Subchapter F points) shall be sampled quarterly.  Sample results shall be submitted to the Knox District Office within 30 days of the end of the applicable quarter.

            5.         Amerikohl will conduct bi-monthly water quality sampling of  unnamed tributary #1 at S-2 and Soldier Run at S-4   for pH, specific conductance, iron, manganese, aluminum, sulfate, acidity,  alkalinity, and total suspended solids.  Water quality analyses for S-2 and S-4 shall be submitted quarterly, no later than 30 days after the end of the applicable quarter.  If the median water quality[for what parameters?] at S-2 and  S-4 becomes degraded following the execution of this agreement, as defined by Paragraphs 6a or 6b below, then within 30 days of receiving notice by the Department, Amerikohl shall:

                        a.     Determine the pollution load emanating from the preexisting pollutional discharges identified in Paragraphs 4 and J above.  The current pollution load for each discharge or hydrologic unit shall be determined using loading rates from the four most recent quarters.  This determination will be made using an n-value equal to the baseline n-value, regardless of the number of samples used.

                        b.     Compare the current pollution load with the baseline pollution load established in the applicable permit or permits.  If statistical analysis of data from the four most recent quarters reveals that the difference between the median load for any of the parameters listed in Table D2 of Coal Surface Mine Permit No. 33990101, as compared to the premining baseline, is statistically significant as determined by a comparison of approximate 95% confidence levels above the median listed in Table D2 (from Module 26.5(c), Item Number 5), then the pollution load has significantly increased.

                        c.     If the determination in Paragraph 5b above, indicates increased pollution load from one or more preexisting discharges  in HU-1, Amerikohl shall implement either of the options described in Subparagraphs 1 and 2 below, or a combination of these two options.

                                    1.     Commence treatment of the discharges or hydrologic units identified in Paragraph 5a above within 30 days in accordance with permit conditions 5 through 7 and the treatment limits established in Table D3 of Coal Surface Mine Permit No. 33990101, unless it is able to affirmatively demonstrate to the satisfaction of the Department within 30 days that the increase in pollution load has been caused by factors not attributable to Amerikohl’s mining operation;

                                    2.     Cause other measures to be taken within the watershed which improve water quality at S-2 and  S-4, sufficient to restore instream water quality to the baseline level as determined in Paragraph L, above.  If these measures will take longer than 90 days to implement, Amerikohl shall provide interim treatment under Subparagraph 1 above until such time as the remedial measures under this Subparagraph 2 can be implemented.

            6.         Comparison of Current Water Quality With Baseline Conditions - Determination of Significant Water Quality Degradation in Soldier Run

 

            Significant degradation of instream water quality will have occurred if either of the two following conditions has been met:

                        a.         If six or more consecutive bi-weekly samples at S-2 and  S-4 exceed the 95% tolerance limit for net acidity, iron, manganese or aluminum identified in the table attached as Exhibit 2; or

                        b.         If statistical analysis of data from any water year defined as October 1 through September 30 reveals that the difference between the median concentration for acidity, iron, manganese or aluminum as compared to the premining baseline (set forth in Paragraph L and Exhibit 2), is statistically significant as determined by a comparison of the approximate 95% confidence levels above the median listed in the table attached as Exhibit 2.

.           7.         Additional Remedies. 

                        c.         In the event Amerikohl fails to comply with any provision of this Consent Order and Agreement, the Department may, in addition to the remedies prescribed herein, pursue any remedy available for a violation of an order of the Department, including an action to enforce this Consent Order and Agreement.

                        d.         The remedies provided by this paragraph  are cumulative and the exercise of one does not preclude the exercise of any other.  The failure of the Department to pursue any remedy shall not be deemed to be a waiver of that remedy.  The payment of a stipulated civil penalty, however, shall preclude any further assessment of civil penalties for the violation for which the stipulated civil penalty is paid.

            8.         Reservation of Rights.  The Department reserves the right to require additional measures to achieve compliance with applicable law.  Amerikohl reserves the right to challenge any action which the Department may take to require those measures.

            9.         Liability of Operator.  Amerikohl shall be  liable for any violations of the Consent Order and Agreement, including those caused by, contributed to, or allowed by its officers, agents, employees, or contractors.  Amerikohl also shall be liable for any violation of this Consent Order and Agreement caused by, contributed to, or allowed by its successors and assigns.

            10.       Transfer of Site.

                        a.         The duties and obligations under this Consent Order and Agreement shall not be modified, diminished, terminated or otherwise altered by the transfer of any legal or equitable interest in the Rathmel mine.

                        b.         If Amerikohl intends to transfer any legal or equitable interest in the Rathmel mine or any part thereof  which is affected by this Consent Order and Agreement, Amerikohl shall serve a copy of this Consent Order and Agreement upon the prospective transferee of the legal and equitable interest at least thirty (30) days prior to the contemplated transfer and shall simultaneously inform the District Office of the Department of such intent.

                        e.         The Department in its sole discretion may agree to modify or terminate Amerikohl's duties and obligations under this Consent Order and Agreement upon transfer of the Rathmel mine. Amerikohl waives any right that it may have to challenge the Department's decision in this regard.

            11.       Correspondence with Department.  All correspondence with the Department concerning this Consent Order and Agreement shall be addressed to:

                                                Department of Environmental Protection

                                                P.O. Box 669, White Memorial Building

                                               Knox, PA 16232

                                                Phone ( 814) 797-1191and Fax (814) 797-2706

 

            12.       Correspondence with Amerikohl.  All correspondence with Amerikohl concerning this Consent Order and Agreement shall be addressed to:

                                                                        John M. Stilley

                                                                        Amerikohl Mining, Inc.

                                                                        202 Sunset Drive

                                                                        Butler, PA 16001

                                                                        Phone (724) 282-2339

                       

            Amerikohl shall notify the Department whenever there is a change in the contact person's name, title, or address.  Service of any notice or any legal process for any purpose under this Consent Order and Agreement, including its enforcement, may be made by mailing a copy by first class mail to the above address.

            13.     Severability.  The paragraphs of this Consent Order and Agreement shall be severable and should any part hereof be declared invalid or unenforceable, the remainder shall continue in full force and effect between the parties.

            14.       Entire Agreement.  This Consent Order and Agreement shall constitute the entire integrated agreement of the parties.  No prior or contemporaneous communications or prior drafts shall be relevant or admissible for purposes of determining the meaning or extent of any provisions herein in any litigation or any other proceeding.

            15.       Attorney Fees.  The parties shall bear their respective attorney fees, expenses and other costs in the prosecution or defense of this matter or any related matters, arising prior to execution of this Consent Order and Agreement. 

            16.       Modifications.  No changes, additions, modifications, or amendments of this Consent Order and Agreement shall be effective unless they are set out in writing and signed by the parties hereto.

            17.       Titles.  A title used at the beginning of any paragraph of this Consent Order and Agreement may be used to aid in the construction of that paragraph, but shall not be treated as controlling.

            18.       Decisions under Consent Order.  Any decision which the Department makes under the provisions of this Consent Order and Agreement is intended to be neither a final action under 25 Pa.Code §1021.2, nor an adjudication under 2 Pa. C.S. §101.  Any objection which Amerikohl may have to the decision will be preserved until the Department enforces this Consent Order and Agreement.

            IN WITNESS WHEREOF, the parties hereto have caused this Consent Order and Agreement to be executed by their duly authorized representatives.  The undersigned representatives of Amerikohl certify under penalty of law, as provided by 18 Pa.C.S. § 4904, that they are authorized to execute this Consent Order and Agreement on behalf of Amerikohl; that Amerikohl consents to the entry of this Consent Order and Agreement as a final ORDER of the Department; and that Amerikohl hereby knowingly waives its rights to appeal this Consent Order and  Agreement and to challenge its content or validity, which rights may be available under Section 4 of the Environmental Hearing Board Act, the Act of July 13, 1988, P.L. 530, No. 1988-94, 35 P.S. § 7514; the Administrative Agency Law, 2 Pa.C.S. § 103(a) and Chapters 5A and 7A; or any other provision of law.  Signature by Amerikohl’s attorney certifies only that the agreement has been signed after consulting with counsel.

FOR AMERIKOHL MINING, INC.:             FOR THE COMMONWEALTH OF

                                                                        PENNSYLVANIA, DEPARTMENT OF

                                                                        ENVIRONMENTAL PROTECTION:

 

 

_______________________________          ________________________________

John M. Stilley                                                  Javed I. Mirza

President                                                          District Mining Manager

 

 

_______________________________          ________________________________

Name                                                               Michael J. Heilman

Attorney for Amerikohl Mining, Inc.                  Assistant Counsel

 


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