OFFICE OF SURFACE MINING RECLAMATION & ENFORCEMENT For Release May 22, 1992 Alan Cole (202) 208-2719 SURFACE MINING VIOLATION CASES SETTLED WITH MAJOR COAL COMPANY Federal surface mine regulators and a major coal company today announced resolution of a large number of old surface mining enforcement cases, clearing the way for company affiliates to get new permits. The Interior Department's Office of Surface Mining Reclamation and Enforcement (OSM) and the A.T. Massey Coal Company said that the agreement is the culmination of negotiations over six months aimed at resolving the cases. The agreement was concluded after A.T. Massey Coal Company provided a list of over 300 mine sites for review by OSM. The company agreed to assist in the reclamation of one site in Tennessee, pay $6,750 in civil penalties, and pay about $179,000 into the Abandoned Mine Reclamation Fund. In exchange, OSM is closing the books on the violations and the debts covered by the agreement. In addition, Massey and its affiliates will not be blocked from receiving new coal mining permits. OSM Director Harry M. Snyder hailed the agreement as a positive resolution of potentially serious disputes that otherwise could have involved the government ~nd the coal company in court action that would have been costly and time-consuming for both parties. "Negotiators on both sides are to be commended for facing the pertinent issues head-on, sticking to them, and seeing the discussions through to a successful conclusion, Snyder said. "A.T. Massey's willingness to accept responsibility for these cases, and the company's forthrightness in working out a practical agreement with federal surface mining regulators, are extremely welcome," Snyder added. "The government negotiators are to be congratulated as well for their work in reaching a fair, workable agreement." The potential dispute between the regulators and the coal company centered on the issue of "ownership and control" as defined by OSM regulations. The Surface Mining Control and Reclamation Act blocks the issuance of permits if the applicants are responsible for unresolved violations or unpaid fees and fines. Permits are also blocked whenever an applicant has certain ownership or control relationships with a person or entity responsible for outstanding violations. In the agreement, Massey denies that it or its subsidiaries actually owned or controlled any of the companies with violations linked to it by OSM. However, to resolve the matter and avoid costly litigation, Massey agreed to accept OSM's ownership and control definitions, limiting that acceptance to the purposes of the agreement with OSM only. -DOI-