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Justices at the U.S. Supreme Court voted 5-4 June 29 against the U.S. Environmental Protection Agency's (EPA) landmark Mercury and Air Toxic Standards (MATS) outlines, ruling that the Obama administration's push to limit mercury and pollutant emissions from coal-fired power plants failed to consider costs and compli- ance issues. The five conservatives of the court voted in the majority: Justice A ntonin Scalia; Chief Justice John Roberts; Justice Anthony Kennedy; Justice Clarence Thomas; and Justice Samuel Alito. MATS will remain in effect for now as the case moves to appeals, where a decision will be made whether or not to entirely toss the regula- tions out. The MATS rules, a majority of which went into effect in April, have an impact on about 600 power facilities nationwide; most of those complexes are already in compliance or have been retired as a result of the incoming regulations. The EPA had initially esti- mated costs at $9.6 billion per year. The agency could not fully quantify the benefits of reducing power plants' emissions of haz- ardous air pollutants; to the extent it could, it estimated that these benefits were worth $4 to $6 million per year. Pro-mining and utility groups as well as 21 U.S. states filed an appeal after an appeals court upheld the rules last June. Those groups, too, also focused on how much the costs would exceed esti- mates, including the increased costs for mines and miners, related businesses and even utility customers. Delivering the opinion of the court, Justice Scalia said that a Clean Air Act provision dictating that the EPA could regulate power if it found it "appropriate and necessary" should be interpreted as cost consideration, though the agency had already decided it did not have to consider such figures at that stage. "The agency must consider cost — including, most importantly, cost of compliance — before deciding whether regulation is appropriate and necessary," Scalia wrote in the group's note. Those justices dissenting said that the EPA could have consid- ered costs later. Those in dissent included Justices Elena Kagan, Ruth Bader Ginsburg, Stephen Breyer and Sonia Sotomayor. The EPA, which said it was reviewing the ruling, responded somewhat indignantly to the decision. "EPA is disappointed that the Supreme Court did not uphold the rule, but this rule was issued more than three years ago, investments have been made and most plants are already well on their way to compliance," agency spokeswoman Melissa Harrison said in a statement. The industry has clearly responded positively, including the National Mining Association (NMA). "Today's decision by the Supreme Court is a vindication of common sense that is missing i n m u c h o f t h e a d m i n i s t r a t i o n ' s r e g u l a t o r y a c t i o n s , " N M A President and CEO Hal Quinn said. "The decision effectively puts the EPA on notice: reckless rule-making that ignores the cost to consumers is unreasonable and won't be tolerated. It recognizes what the administration has ignored: that every regulatory benefit n e w s 4 www.coalage.com July 2015 B R E A K I N G N E W S Alliance Picks Up Remaining White Oak Stake Alliance Resources Partners (ARLP) will take a 100% interest control of Illinois subsidiary White Oak Resources in a transaction valued at $50 mil- lion deal. When the transaction closes, ARLP's Alliance WOR Processing LLC will assume operating control of the White Oak mine No. 1 longwall opera- tion, and Alliance will own all of the coal reserves currently leased at White Oak, as well as the prep plant and loading facilities. Post-deal, the company estimates cost synergies at White Oak of $12 million to $18 million annually beginning in 2016. "Strategically, owning 100% of White Oak and assuming operating con- trol of the White Oak mine No. 1 enhances our already strong presence in the Illinois Basin," President and CEO Joe Craft said. "The White Oak mine is a world-class, low-cost longwall operation with an extensive reserve base. It will be an attractive addition to our asset portfolio and provide ARLP increased flexibility to service our existing customer base and the opportuni- ty to expand into additional markets." In the near-term, Craft said that holding all of White Oak gives it a greater optionality to optimize production to match current market condi- tions. "Longer term, the ability to add a second longwall at White Oak gives us an additional platform to increase our coal volumes should market condi- tions allow," he added. White Oak No. 1, located in Hamilton County, pro- duces coal from the Herrin No. 6 seam. It currently produces approximately 6 million tons annually. Supreme Court Rules Against EPA on MATS Source: SNL Energy