Exhibit 99.5
Environmental Regulation in Central Appalachia
M. Shane Harvey
Senior Corporate Counsel September 27, 2005
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The Mining Process
The “Easy Part” . . .
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The Mining Process
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The Mining Process
Steep Terrain
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The Mining Process
Timbering
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The Mining Process
Overburden Removal
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The Mining Process
Coal Removal
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The Mining Process
Sediment Control
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The Mining Process
Reclamation
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The Mining Process
AOC and the “swell factor”
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The Mining Process
Valley Fills
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The Regulatory Process
The “Hard Part” . . .
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The Regulatory Process
Regulations from A to Z . . .
Agencies
OSM WVDMR KYDMSRE ATF
MSHA WVOMHST KYDMM VADMME
EPA WVDWR WVDWM WVDAQ
USFW WVDFW KYDNR KYDAQ
USACE KYDOW VADEQ
Laws
SMCRA WVHWMA WVSMCRA SWDA
CWA KYCWA WVWPCA HWMA
SEA KYAPCA MINE ACT CAA
ESA KYSCMA TSCA WVAPCA
EPCRA VACMSRA SDWA VACWA
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The Regulatory Process
The Major Permits:
Surface Mining Permit
Issued by state surface mining agency
Addresses surface disturbance, reclamation
Oversight from OSM
Input from citizens, environmental groups
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The Regulatory Process
The Major Permits (cont’d)
NPDES permit
Applies “effluent limits” (ppm)
Addresses “point source discharges”
Issued by states with EPA oversight
Input from citizens, environmental groups
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The Regulatory Process
The Major Permits (cont’d)
404 Permit
Allows filling of waters of US
Applies to valley fills, impoundments
Oversight by EPA, USFWS
Issued by Army Corps of Engineers
Input from citizens, environmental groups
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The Regulatory Process
The Major Permits (cont’d)
401 Certification
Certifies that 404 Permit for filling does not violate state water quality standards
Issued by State
Input by EPA, citizens, environmental groups
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The BAD NEWS
The “Hard Part” has become Harder . . .
Many recent regulatory and legal challenges
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TIMBERING
Indiana Bat
Cerulean Warbler
Forest Fragmentation
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OVERBURDEN REMOVAL
Allegations of flooding
Selenium
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SEDIMENT CONTROL
Anti-Degradation
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RECLAMATION
AOC
Bonding
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VALLEY FILLS
“Waste” or Fill?
NWP or Individual Permits?
Buffer Zones
Erosion Control
Mitigation
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PERMIT TIMES
Surface Mining Permit
NPDES Permit
404 Permit
+ 401 Permit
1.5 – 2.5 Years
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THE GOOD NEWS (for MEE)
The “Hard Part” has become Harder . . .
Barriers to entry
Mining has become more sophisticated
Must be well-funded, knowledgeable
Permit “lag times”
MEE applied for permits while others didn’t
More permits “in the pipeline”
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In Summary
The regulation of mining in Central Appalachia has become tougher
This has presented barriers to others that Massey is equipped to clear
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Doing the Right Thing. with Energy
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