Patriot Coal Corp. (PCX) will pay a $6.5 million fine to settle
violations of the Clean Water Act, the third-largest for discharge
permit violations.
The company has also agreed to what the federal government and
West Virginia called "extensive measures" to ensure it complies
with the Clean Water Act at mines in the state. Steps include
starting a company-wide compliance system and conducting regular
internal and third-party audits.
Patriot Coal will also perform five stream-restoration projects
in local waters.
The state and federal governments had filed a joint complaint
alleging Patriot violated its Clean Water Act permits more than
1,400 times from 2003 through 2007. They said Patriot allegedly
discharged excess amounts of metals, sediment and pollutants into
rivers and streams in West Virginia.
Last month, Patriot said it was idling four mines in Central
Appalachia and cutting 400 jobs amid softening demand. It had
already shuttered one mine earlier last month because of high costs
and weak market conditions.
Patriot's shares were recently up 2.5% at $4.86. The stock has
lost two-thirds of its value in the last three months.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com