This article originally provided by The Herald-Leader

October 26, 2000

Industries to bill coal firm for losses in sludge spill

By Roger Alford
ASSOCIATED PRESS

INEZ With coal sludge thickening water in the Big Sandy River, American Electric Power was forced to close down its massive generating plant a week and a half ago.

A few miles downstream, Marathon Ashland Petroleum has been bringing clean water in by barge to keep a crude-oil refinery operating.

Those and other industries heavily dependent on water are calculating their financial losses and will send the bill to Martin County Coal Corp., the company that has accepted responsibility for the release of 250 million gallons of sludge into the Big Sandy and its tributaries.

Yesterday, a toll-free number 888-900-4262 was set up to accept calls from businesses and residents who suffered damages from the black goo that escaped from a mountaintop impoundment Oct. 11.

The U.S. Environmental Protection Agency said the spill, which has wiped out aquatic life on at least two streams and fouled drinking water for residents along 60 miles of the Kentucky-West Virginia border, is one of the worst environmental disasters ever in the Southeast.

``We are insured,'' said Bill Marcum, a spokesman for Martin County Coal. ``The limits of that policy I'm not sure about.''

Marathon Ashland, which uses 7,500 gallons of water a minute in the refining process at the Catlettsburg plant, will try to recoup some of its costs associated with the sludge.

Chuck Rice, a spokesman for the refinery, declined to say how much the sludge has cost his company.

``All I can tell you is we are participating in ongoing discussions with Martin County Coal,'' he said.

Likewise, American Electric Power wouldn't talk about the costs it has incurred.

``It's a very expensive proposition to have a plant off line,'' said Pat Hemlepp, a spokesman for the electric company.

The greatest costs will be incurred by residents whose property has been covered by up to 8 feet of sludge, said Stephen Smith, executive director of the Southern Alliance for Clean Energy in Knoxville, Tenn.

``They clearly are owed compensation,'' Smith said. ``It's going to be difficult to put a price tag on it, but clearly their property values have plummeted. It's very apparent to us that they are being put in a severe hardship.''

Smith and other representatives of the alliance, an organization that deals with energy issues across the Southeast, visited the affected area on Friday and were startled at what they found.

``It's the worst thing we've ever seen,'' Smith said. ``It rivals the damage of the Alaska Valdez oil spill, except it's inland and it's in a sparsely populated area.''

The EPA said yesterday that results of tests it performed on water in the Big Sandy were consistent with the findings of the Kentucky Division of Water. In a short written statement, the agency said it found ``no acute toxicity levels'' in aquatic organisms used in the test.

``We're saying right now the water is safe,'' said Maleva Chamberlain, spokeswoman for the Division of Water. ``If we determine there's a long-term problem, we will let people know.''