A new company, Genesis Group LLC, is seeking a wastewater permit from the Kentucky Department for Environmental Protection on a coal mine project located in the western portion of Letcher County on Walter’s Branch.
The proposed operation is a surface/highwall job in the Hazard #4 and Hazard #4 Rider coal seams, said a socioeconomic report on the projected signed by company President James Smith and released by the DEP on April 28. The project will employ about 20 people and would also be covered by Kentucky Department for Natural Resources mine permit #867-0505.
“This operation is estimated to produce approximately 54,000 clean tons per year for two years,” said the report. “At a current sales price of $78/ton, the total annual revenue generated from this operation is estimated to be $4.21 million. The severance tax rate for coal companies is approximately 4.5 percent and it is estimated that this project area will generate almost $190,000 in severance taxes for Letcher County annually. The post-mining land use will also increase the property values by improving accessibility and usable land after mining.”
Genesis Group currently has no operations listed with the U.S. Mine Safety and Health Administration. The company was only entered in the U.S. Office of Surface Mining’s ownership and control database in November 2011, with OSM data showing these company owners: James Smith, 30%; Paul Riddell, 30%; Martha Smith, 30%; and Charles Goodpaster, 9%. The OSM database shows #867-0505 as the company’s only pending mine permit application, with no issued mine permits in its name.