Triad Mining Agrees to Resolve Clean Water Act Violations and Restore Affected Waterways in Indiana

WASHINGTON – Triad Mining Inc., the owner and operator of 31 surface mines in Appalachia and Indiana, has agreed to pay a penalty and to restore affected waterways for failing to obtain the required Clean Water Act (CWA) permit for stream impacts caused by its surface mining operation in Indiana, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA). Since 2002, Triad's mining operation has resulted in the unpermitted excavation and filling of more than 53,000 feet of streams that flow into the White River.

 “With this settlement, Triad will achieve compliance with the nation’s Clean Water Act and be held accountable for its unpermitted discharges into streams of the White River watershed,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “Triad must also undertake restoration efforts and mitigate impacts from its mining activities by enhancing stream beds and creating buffer areas that will benefit aquatic life and recreational resources for the people of Indiana.”

 “Protecting America’s waters is one of EPA’s top priorities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will ensure that waterways impacted by unpermitted mining operations are restored and can again benefit the state of Indiana and the surrounding communities.”

Triad, a subsidiary of James River Coal Company, obtained the required Surface Mining Control and Reclamation Act permits from the state of Indiana for its mining operations, but never obtained the required CWA permit for the site, despite the fact that its surface mining operation involved excavating coal seams located directly below stream beds.

On March 24, 2008, the Army Corps of Engineers issued a cease and desist order requiring Triad to stop its unauthorized stream-filling activities. Triad continued its mining practices until the Army Corps of Engineers sent a second order on June 24, 2009, which Triad complied with. Since the second order was issued, Triad has continued mining, but has avoided additional impacts to streams.  

Under the settlement, Triad must restore 34,906 linear feet of streams and enhance 4,330 linear feet of stream bed to address and mitigate impacts to stream beds caused by its mining activities. Triad will also create and maintain 66 acres of forested buffer areas and nine acres of forested wetland to protect the restored streams. Triad will also pay a $810,171 civil penalty.    

The proposed settlement, lodged in the U.S. District Court for the Southern District of Indiana, is subject to a 30-day comment period and final court approval.

Gary, Indiana Wastewater Treatment Operator and Managers Charged with Conspiracy and Violating the Clean Water Act

WASHINGTON—United Water Services Inc., the former contract operator of the Gary Sanitary District wastewater treatment works in Gary, Indiana, and two of its employees were charged today with conspiracy and felony violations of the Clean Water Act in a 26-count indictment returned by a federal grand jury, the Justice Department announced today.

United Water Services Inc., and employees Dwain L. Bowie, and Gregory A. Ciaccio, have been charged with manipulating daily wastewater sampling methods by turning up disinfectant treatment levels shortly before sampling, then turning them down shortly after sampling.

United Water Services entered into a 10-year contract to operate the Gary Sanitary District wastewater treatment works in 1998, in exchange for $9 million annually. United Water’s contract was renewed in May 2008. As contract operator, United Water handled the operation and maintenance of the treatment works, and was responsible for environmental compliance. To ensure compliance with the discharge permit, United Water was required to take periodic representative wastewater samples, including a daily sample to determine the concentration of E. coli bacteria in the wastewater.

According to the indictment, the defendants conspired to tamper with E. coli monitoring methods by turning up levels of disinfectant dosing prior to E. coli sampling. The indictment states that the defendants would avoid taking E. coli samples until disinfectants had reached elevated levels, which in turn were expected to lead to reduced E. coli levels. Immediately after sampling, the indictment alleges, the defendants turned down disinfectant levels, thus reducing the amount of treatment chemicals they used.

Dwain Bowie was United Water’s Project Manager for the Gary facility beginning in 2002, and was in charge of the Gary operation. Gregory Ciaccio joined Bowie’s staff in July 2003, and eventually was made the Plant Superintendent, in charge of day-to-day operations.

The Clean Water Act makes it a felony to tamper with required monitoring methods at a permitted facility like the Gary Sanitary District. If convicted, Bowie and Ciaccio face up to five years in prison on the conspiracy count and two years on each of the Clean Water Act counts, as well as a criminal fine of up to $250,000 for each count. The company may also face fines and/or probation.

The allegations in the indictment are mere accusations and all persons are presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the Northern District of Indiana Environmental Crimes Task Force, including agents from the Criminal Investigation Division of the U.S. Environmental Protection Agency, the FBI, and the Indiana State Police. The case is being prosecuted by the U.S. Attorney’s Office for the Northern District of Indiana and the Justice Department’s Environmental Crimes Section.