Mine owner must maintain water treatment bond

Associated Press

SALT LAKE CITY (AP) - Utah regulators are refusing to ease up on a requirement that the owner of a coal mine where nine people died in 2007 make a payment guarantee to treat polluted groundwater spilling from the site.

The Utah Board of Oil, Gas & Mining has ruled that Genwal Resources Inc. must maintain a $720,000 reclamation bond to treat the water. Genwal sought to reduce the amount to $480,000 and transfer the difference into an account to be used for water treatment at the Crandall Canyon mine.

But state regulators say the higher bond amount is necessary to guarantee treatment continues if the company ever goes under.

Genwal pleaded guilty to a pair of misdemeanor safety violations in March and paid a $500,000 fine for the 2007 collapse at the site that killed nine people.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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