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Sierra Club brokers coal-waste deal

PNM, mining company agree to settlement

Updated: Wednesday, 28 Mar 2012, 4:46 PM MDT
Published : Wednesday, 28 Mar 2012, 4:38 PM MDT

ALBUQUERQUE (AP) - One of the nation's largest environmental groups has brokered a $10.2 million settlement with New Mexico's largest electric utility and a BHP Billiton mining company over the disposal of millions of tons of coal combustion waste.

The Sierra Club sued in 2010 to stop the disposal in unlined pits of waste leftover from burning coal at the San Juan Generating Station. The group claimed toxins from the waste were leaching into surrounding ground and surface water.

Public Service Company of New Mexico, the plant's operator, and San Juan Coal Co. contend testing and seismic pictures show there was no water contamination due to the coal ash.

The settlement calls for PNM and the mine to build structures to prevent any contaminants from reaching the San Juan River.

The settlement was filed in court Wednesday and needs approval from a federal judge.

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