Five environmental groups that alleged in March that Kentucky coal company Nally & Hamilton Enterprises committed 12,000 violations of the Clean Water Act by submitting fraudulent water-pollution reports are asking a judge to scuttle a proposed settlement in which the company would pay $507,000 in fines. Bill Estep and Beth Musgrave of the Lexington Herald-Leader report representatives from the groups said in a court motion that the settlement is "too small and will not deter further violations" by the company.
The groups, Kentuckians for the Commonwealth, Appalachian Voices, Kentucky Riverkeeper and Waterkeeper Alliance, claim the settlement has other problems, including: "state regulators apparently did not investigate whether Nally & Hamilton's violations resulted from fraud; the agreement does not address whether the company's actions covered up serious pollution discharges; and it does not specify what the company must do to fix problems."
After the groups uncovered the 12,000 reports, which in many cases repeated the same or virtually the same figures from month to month, the state Energy and Environment Cabinet filed an administrative complaint against the company in May. The motion by the environmental groups suggests state regulators negotiated a proposed settlement without including the groups and cabinet Secretary Len Peters signed the settlement ignoring their objections, report Estep and Musgrave. The environmental groups said the state's agreement doesn't explain the reasons for the low settlement, which is less than 1 percent of the total potential penalty.
If Franklin Circuit Judge Phillip Shepherd sets aside the deal, the groups want to be more involved in negotiating a better settlement, their attorney, Burke Christensen of Richmond, told Estep and Musgrave. Cabinet spokesman Dick Brown told them the groups' motion is "without merit." (Read more)
The groups, Kentuckians for the Commonwealth, Appalachian Voices, Kentucky Riverkeeper and Waterkeeper Alliance, claim the settlement has other problems, including: "state regulators apparently did not investigate whether Nally & Hamilton's violations resulted from fraud; the agreement does not address whether the company's actions covered up serious pollution discharges; and it does not specify what the company must do to fix problems."
After the groups uncovered the 12,000 reports, which in many cases repeated the same or virtually the same figures from month to month, the state Energy and Environment Cabinet filed an administrative complaint against the company in May. The motion by the environmental groups suggests state regulators negotiated a proposed settlement without including the groups and cabinet Secretary Len Peters signed the settlement ignoring their objections, report Estep and Musgrave. The environmental groups said the state's agreement doesn't explain the reasons for the low settlement, which is less than 1 percent of the total potential penalty.
If Franklin Circuit Judge Phillip Shepherd sets aside the deal, the groups want to be more involved in negotiating a better settlement, their attorney, Burke Christensen of Richmond, told Estep and Musgrave. Cabinet spokesman Dick Brown told them the groups' motion is "without merit." (Read more)
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