McPeek Energy permits new deep mine in Pike County, Ky.

McPeek Energy Inc. is seeking a wastewater permit from the Kentucky Department for Environmental Protection on a new deep mine in Pike County that would produce over 2.1 million tons of coal over its lifetime.

The DEP put out for public comment on June 30 a socioeconomic report on the project written by the company and signed by company President Jerry McPeek Jr. This project would also be covered by Kentucky Department for Natural Resources mine permit #898-4199.

“The permittee is proposing contour and auger/thin-seam mining of the Elkhorn #1, #2 and #3 coal seams,” said the report. “The proposed operation will be located near the community of Collins in Pike County, Kentucky. The proposed operation will be confined to two, relatively small regions since the operation will mostly involve underground mining. The first surface disturbance related to the operation will be limited to Jude Fork of Fords Branch. The second surface disturbance related to the operation will be limited to Shelby Creek. The proposed deep mine permit boundary will encompass approximately 255 acres of the Elkhorn #2 coal seam. The surface disturbance associated with the face-up construction and proposed contour and auger/thin-seam mining in the Jude Fork area is approximately 15.3 acres. The surface disturbance associated with the proposed contour and auger/thin-seam mining in the Shelby Creek area is approximately 36.8 acres.”

The proposed deep mine will employee approximately 10 to 15 personnel to maintain the mine site for approximately five years. The company calculated tax revenue from this project for government based on an assumed sales price of $80/ton and life-of-mine production of 2.136 million tons. “The numbers above reflect that the revenue generated from the proposed mine site will produce a total increase in the tax base in the amount of $10,863,550,” said the report. “This proposed deep mine will improve the local community primarily through coal severance tax funds returned to the community to improve roads, infrastructure and education.”

The U.S. Mine Safety and Health Administration database shows McPeek Energy as controlled by Jerry and Eric McPeek and that it has one listed operation with that agency, the newly-registered AML Refuse Site surface area in Pike County.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.