Coal Age

JUL-AUG 2017

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July/August 2017 www.coalage.com 7 news continued and mining methods are suitable for the conditions and roof/rib control methods are adequate for the depth of cover. EPA, US Army Move to Rescind Clean Water Rule On June 27, the Environmental Protection Agency (EPA), the U.S. Army and the Army Corps of Engineers announced they were pro- posing a rule to rescind the Clean Water Rule and re-codify the reg- ulatory text that existed prior to 2015 defining "waters of the Unit- ed States" or WOTUS. This action would provide certainty in the interim, pending a second rulemaking in which the agencies will engage in a substantive re-evaluation of the definition of WOTUS. "We are taking significant action to return power to the states and provide regulatory certainty to our nation's farmers and busi- nesses," said Administrator Scott Pruitt. "This is the first step in the two-step process to redefine 'waters of the U.S.' and we are committed to moving through this re-evaluation to quickly pro- vide regulatory certainty, in a way that is thoughtful, transparent and collaborative with other agencies and the public." This proposed rule follows the February 28 Presidential Executive Order to review the WOTUS Rule. The rule will recodify the identical regulatory text that was in place prior to the 2015 Clean Water Rule and is currently in place as a result of the U.S. Court of Appeals for the Sixth Circuit's stay of the 2015 rule. When finalized, the rule will not change current practice with respect to how the definition applies. The agencies have also begun deliberations and outreach in- volving a re-evaluation and revision of the definition of "waters of the United States" in accordance with the Executive Order. "The army, together with the Corps of Engineers, is committed to working closely with and supporting the EPA on these rulemak- ings," said Douglas Lamont, senior official of the Army for Civil Works. "As we go through the rulemaking process, we will continue to make the implementation of the Clean Water Act Section 404 reg- ulatory program as transparent as possible for the regulated public." National Mining Association President and CEO applaud- ed the proposal. "This sets in motion a welcome correction to a deeply problematic regulation that ignored the careful balance that Congress struck between federal and state water regulation and constitutional limits on federal authority," Quinn said. "Under the guise of clarifying federal Clean Water Act juris- diction, the WOTUS rule impermissibly expanded federal juris- diction to virtually any standing body of water — from roadside drainage ditches to local green energy projects." Deer Run Could Restart Production Before Year End Foresight Energy is in the process of reopening its long-idled Deer Run longwall mine in southern Illinois and the steam coal oper- ation could resume production before the end of 2017. A spokes- man for the St. Louis-based company acknowledged in June that Foresight is taking the steps necessary to begin mining coal at Deer Run again. The mine, also known as Hillsboro, is located near the community of Hillsboro in Montgomery County, Illinois. Although the spokesman would not say exactly when Deer Run might be in production again, an official with the Illinois De- partment of Mines and Minerals' Office of Mines and Minerals indicated that it could be before the end of this year. The federal Mine Safety and Health Administration ap- proved Foresight's request to re-enter the mine for the first time Group and Shanxi Coking Coal Group have struggled to balance their books, despite the rebound in coal prices. Industry insiders now expect a series of mergers or restructuring to solve debt prob- lems that are "extremely high" in these key players. "Debt asset ratios of the three groups are up to 70% to 80%," said Zhang Min, an analyst from Sublime China Information Group." They have borrowed a large amount of money from banks and other lenders to diversify their operations, not only during the downturn period (2010-2015), but also during the prosperous time (2000-2009)." The problem, according to Zhang, is that Shanxi's coal gi- ants are involved in too many other businesses, such as the coal-to-chemical sector and the real estate industry, as well as tourism and agriculture. "This has caused problems because they have high interest payments (after borrowing from banks to buy new acquisitions) every month, which leads to higher costs," she said. Shanxi is the largest coal producing province in China, but the industry badly needs to reform. Coal Operator is Fine for Obed Mountain Mine Spill in Canada Prairie Mines & Royalty ULC (formerly known as Coal Valley Re- sources Inc.) pleaded guilty in Alberta Provincial Court to two counts of violating the Fisheries Act. Judge C.D. Gardner sentenced the company to pay monetary penalties totaling $3.5 million. A portion of the fine ($1.15 million) will be placed into a trust to be managed by the University of Alberta to create the Alberta East Slopes Fish Habitat and Native Fish Recovery Research Fund. A to- tal of $2.15 million will be directed to the Environmental Damages Fund. On October 31, 2013, a dike that was holding back a large vol- ume of wastewater at the Obed Mountain mine failed, resulting in more than 670 million liters of contaminated water and sediment (made up of coal, clay and sand) spilling into the Apetowun Creek and Plante Creek and additionally impacting the Athabasca River. This case is an example of a successfully coordinated multi- year joint investigation by Fisheries and Oceans Canada, Environ- ment and Climate Change Canada, and the province of Alberta. Prairie Mines & Royalty ULC pleaded guilty to one count of carrying on a work, undertaking or activity that resulted in in the harmful alteration or disruption, or the destruction, of fish habitat in contravention of s.35(1) of the Fisheries Act; and one count of depositing or permitting the deposit of a deleterious substance of any type in water frequented by fish in contravention of s.36(3) of the Fisheries Act. In addition to the penalties under the Fisheries Act, Prairie Mines & Royalty ULC has pleaded guilty to one count under Alber- ta's Environmental Protection and Enhancement Act. Korea's Taekwang to Build Thermal Power Plant in Northern Vietnam Korea's Taekwang Power Holdings Co. secured an approval from the Vietnamese government on building a 1,200-megatwatt (MW) thermal power plant in Nam Dinh, a province south of Hanoi, ac- cording to Maeil Business News Korea. The project is worth $2.3 billion and is expected to take five years to complete. Once the plant starts running, the company will sell electricity generated from the thermal power plant to the Vietnamese government for 25 years and hand over the rights afterward. Continued on p. 9... Continued from p. 6...

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