The Pennsylvania Department of Environmental Protection, Rosebud Mining and St. Michael Land Co. Inc. (SMLC) have entered into a First Amendment to a December 2012 Consent Order and Agreement between them.
Under that deal, Rosebud agreed to finance, construct, and operate a treatment facility (the ”St. Michael Treatment Facility”) to treat previously untreated abandoned mine discharges from a large underground mine pool known as the Berwind Mine Pool. Neither Rosebud nor SMLC had any legal obligation to treat this pool, but this deal allowed Rosebud to mine additional coal reserves at its Mine 78 in Paint Township, Cambria County, the DEP said in a notice published on the Oct. 17 Pennsylvania Bulletin.
Since that time, Rosebud has constructed and tested the St. Michael Treatment Facility and is now operating it. The company has also commenced Active Mining Operations consistent with the provisions of the 2012 agreement and made the initial $1,000,000 payment into a trust.
There are additional coal reserves in the Upper Freeport coal seam at Mine 78 that could potentially be mined in the future if Rosebud applies for and the department approves a modification, renewal or revision to the existing mine permit. Rosebud has asked, and the department has agreed, to modify the 2012 agreement to include the Upper Freeport coal seam to ensure that the liability limitations in the 2012 agreement apply to Rosebud’s mining of the Upper Freeport coal seam at Mine 78.