San Juan Mine and San Juan Generating Station settle case at $10M

The owners of San Juan Generating Station and San Juan Mine filed a $10 million court settlement Wednesday with the Sierra Club to settle allegations of water pollution coming from the power plant and coal mine. The companies agreed to expand a system to recover groundwater and build a slurry wall to keep coal byproducts out of water. "This is definitely a great step forward for protecting clean water, especially in this area of the state," said Rachele Huennekens, a San Francisco-based spokeswoman for the Sierra Club. The companies also agreed to fund several projects aimed at improving water quality in the area. The projects include river restoration efforts on the Navajo Nation, a regional microbial source study and a selenium reduction study. Mine operator BHP Billiton New Mexico Coal Co. and power plant operator Public Service Co. of New Mexico agreed to the settlement, filed in U.S. District Court in New Mexico. It must be approved by a judge to take effect. "While we disagree with the suit's allegations, we recognize there is value in a settlement that avoids further litigation and provides additional environmental benefits," PNM Resources chief executive Pat Collawn said in a prepared statement. "Rather than litigating the case, it is more prudent to settle and use the funds to invest in an additional water recovery system that would augment the current system and add value and functionality." The settlement amounts to an estimated $10.2 million, PNM said. If approved, approximately $6 million will fund the water recovery system and $2 million will pay for the other environmental projects. Another $2.2 million will cover Sierra Club's attorney and expert fees...more