ILLINOIS POLLUTION CONTROL BOARD
    August 22, 1991
    ZEIGLER COAL COMPANY,
    Petitioner,
    PCB 91—12
    v.
    )
    (Variance)
    )
    ILLINOIS ENVIRONMENTAL
    PROTECTION AGENCY,
    )
    Respondent.
    KEITH PELUCHETTE APPEARED ON BEHALF OF THE PETITIONER; and LISA
    ELIS MORENO APPEARED
    ON BEHALF OF THE RESPONDENT.
    OPINION AND ORDER OF THE BOARD (by J.D. Duinelle):
    This matter is before the Board on petitioner’s (“Ziegler”)
    request for variance filed on January 22, 1991. Ziegler seeks a
    variance from 35 Ill. Adm. Code 406.203(c) (1) (A) for its NPDES
    discharge point as it relates to the company’s mining operation in
    Randolph County. Hearing was held on July 10, 1991 and many local
    citizens in addition to representatives of the Randolph County Farm
    Bureau participated. In its variance recommendation of May 17,
    1991 the Agency supported granting this petition contingent upon
    certain conditions.
    FACTS
    The petitioner owns and operates the Ziegler Spartan
    underground mine and adjacent Central Cleaning Plant, a coal
    preparation plant serving several mines, located near Sparta,
    Randolph County,, Illinois. The mine employs approximately 260
    people and has an annual production of approximately 1,000,000 tons
    of clean subbituminous coal. The mine and preparation plant are
    covered by NPDES Permit #1L0055824, last issued on April 20, 1987.
    This permit covers outfall 001, the discharge from a lime slurry
    treatment system installed pursuant to IEPA v. Ziec~ler Coal
    Company, PCB 75-280 to treat acid mine runoff from the coarse
    refuse disposal area (“gob pile”).
    The area tributary to outfall 001 consists of acid runoff
    (average pH, 2.6) from both a 70.2-acre active refuse disposal area
    which drains into Mine Lake No. 1, which also functions as the
    treatment system collection basin and a 14.8 acre area which drains
    into Mine Lake No. 2. The drainage from Mine Lake No. 2 is pumped
    into Lake No. 1. Treatment consists of sodium hydroxide
    neutralization in a flash mixer to raise the pH of the drainage and
    to precipitate metals and assist settling in a two—cell
    sedimentation basin, before discharge via outfall 001 to Mary’s
    River, which is tributary to the Mississippi River.
    125—331

    2
    DISCUSSION
    In its variance petition, Ziegler seeks relief from the 3,500
    mg/l sulfate water quality limitations of 35 Ill. Adm. Code
    406.203(c) (1) (A) for NPDES outfall 001 at its Spartan mine. Under
    the provisions of 35 Ill. Adm. Code 406.202, mine discharges are
    prohibited from causing violations of the sulfate water quality
    standard of 3500 mg/l established by 35 Ill. Adm. Code 302.208(e).
    Section 406.203 further sets out procedures whereby alternative
    water qu,ality-based permit conditions may be established by the
    Illinois, Environmental Protection Agency (“Agency”) for mine—
    related discharges of sulfates. Under subsection (c), a discharger
    may be allowed an alternative standard upon the following
    demonstration:
    1. the discharge will not cause an adverse effect on the
    environment in and around the receiving stream, by either
    demonstrating that the discharge will contain 3,500 mg/i
    or less sulfates (subsection (c) (1) (A)) or through
    performance of an actual stream study (subsection
    2. the discharge will not adversely affect any public water
    supply; and
    3. good mining practices designed to minimize discharges of
    sulfates (or other relevant parameters) are being
    employed.
    The problem which confronts Ziegler is directly related to its
    operations. In order to produce a clean product, the company must
    wash its coal. The refuse from this cleansing contains pyrite
    materials such as iron and inangenese, and is stored in an area of
    ten acres referred to as a “gob pile”. As these pyritic materials
    are exposed to oxygen, sulfuric acid is created. When rain falls
    on the gob pile, the sulfuric acid drains into a collection basin.
    Acidity is balanced by the sodium hydroxide and the metals are
    settled in holding ponds, but the sulfates remain in the water.
    Moreover, the amount of sulfuric acid which drains into Ziegler’s
    collection basin is directly related to rainfall amounts. When
    rainfall is sporadic, the runoff produced by the gob pile is more
    concentrated because a longer period of oxidation has produced more
    sulfuric acid.
    As a result, Ziegler has been unable to adhere to the 3,500
    mg/l mandated by 35 Ill. Admn. Code 406.203(c) (1) (A). The chart
    below sets forth the sulfate discharges by Ziegler over the last
    two years.
    MONTH
    AVERAGE FLOW/MGD
    SULFATE mg/i (MAX)
    1991
    Feb
    No Flow
    4232
    Jan
    Not Reported
    2957
    1990
    Dec
    125—332

    3
    Nov
    0.288
    3555
    Oct
    0.495
    3383
    Sept
    0.416
    3295
    Aug
    Not Reported
    4553
    July
    Not Reported
    No Flow
    June
    No Flow
    No Flow
    May
    0.960
    4573
    April
    0.960
    4241
    March
    No Flow
    No Flow
    Feb
    0.960
    3455
    Jan
    0.960
    3444
    1989
    Dec
    No Flow
    No Flow
    Nov
    0.960
    3519
    Oct
    0.960
    3368
    Sept
    0.969
    3649
    Aug
    0.960
    3786
    July
    No Flow
    No Flow
    June
    0.960
    3342
    May
    No Flow
    No Flow
    April
    0.960
    2846
    March
    0.960
    2673
    Feb
    0.960
    3390
    Jan
    0.960
    3345
    In order to resolve this situation, the company has proposed
    a stream study pursuant to Section 406.203(c) (1) (B) of the Code.
    Once this study is finalized, Ziegler would either have the terms
    of its NPDES permit altered or petition the Board for an adjusted
    standard. It is the company’s position that a stream study is the
    best possible environmental and engineering alternative.
    Ziegler has taken this position after a long history of
    sulfate problems. From 1980 until 1986, the company used lime in
    order to reduce its effluent discharge. While sometimes effective,
    this practice produced a great deal of sludge within the holding
    ponds, thereby creating a constant removal problem. In addition,
    the sulfate emissions were in excess of 3,500 mg/l. Consequently,
    the company constructed a flash mixer which consists of sodium
    hydroxide neutralization at a cost of approximately $150,000.
    Although this process has served the company better than lime
    treatment, Ziegler has been unable to comply with the 3,500 mg/I
    standard in accordance with its NPDES permit. The one other option
    which the company has considered, but has determined to be
    infeasible, is water dilution from its fresh water lake. Ziegler
    has rejected this alternative because this reservoir remains its
    only fresh water source and is used for other needs.
    The Agency agrees with Ziegler’s analysis. Joyce Munie, a
    Permit Section Manager for the Agency in the Mine Pollution Control
    Program, testified that the Agency has been aware of the company’s
    problems for a long period of time and it was the Agency that
    125—333

    4
    initially recommended a stream study. Ms. Munie explained that the
    purpose of the stream study was to look at the biota of the
    waterway in addition to the downstream uses and ensure that the
    emissions from Ziegler’s source will not impact negatively upon the
    naturally occurring organisms. Ms. Munie also pointed out that
    physical treatments such as distillation or reverse osmosis could
    reduce the company’s sulfate emissions, but that the cost of these
    measures would effectively shut the company down.
    In addition to the petitioner and the Agency, many citizens
    participated in the hearing. Mr. Steve Staliman, Mr. Fred
    Schupbach, Mr. Robert Robertson, Mr. Rudy Eggemeyer, Mr. Paul
    Robertson and Mr. Kenneth Baird all asked relevant questions and
    their participation aided the Board in assessing the instant case.
    In general, these citizens were concerned that the quality of the
    stream remain intact and not regress to the state it was in prior
    to the regulations which became effective in 1984. Some of these
    citizens have cattle who drink the water downstream and were
    concerned about the long-term effects of sulfate ingestion. Other
    concerns articulated were in the nature of untreated drainage
    ditches which flowed into the tributary, whether the study would
    be objective and whether a larger standard of permissible sulfate
    emissions would result in more pollution. (Tr. at 73—99).
    Of particular concern to the Board is a question posed by Mr.
    Stallman; namely, why Ziegler’s gob pile has to be so large? (Tr.
    at 82—83). For example, Larry Harp, Environmental Manager for
    Ziegler testified that to date, the company has covered at least
    45 acres of gob. (Tr. at 33). The company places dirt over the
    pile and then seeds, thereby precluding runoff by preventing
    oxidation. Mr. Stallman wanted to know why Ziegler could not make
    smaller gob piles and cover them promptly and therefore prevent the
    problem at its source. The answer furnished by Mr. Harp was, at
    best, incomplete. As a result of this questioning, the Board is
    very interested in this aspect and will address it as one of the
    conditions to insure that the company is doing everything possible
    to limit the transformation of coal refuse into sulfuric acid.
    HARDSHIP
    Based on the testimony of the company coupled with that of the
    Agency, the Board finds that for Ziegler to immediately comply with
    the sulfate limitations of its NPDES permit constitutes an
    arbitrary or unreasonable hardship. The company has already. used
    lime. Given the problems inherent with that practice, Ziegler
    constructed its current flash mixer at a cost of $150,000. This
    too has failed to produce the desired effect. Moreover, the Agency
    testified that the physical treatments available to the company
    (distillation and reverse osmosis) would be so costly that it would
    shut operations down. Taken together, these factors clearly
    indicate an arbitrary or unreasonable hardship.
    125—334

    5
    ENVIRONMENTAL IMPACT
    The
    environmental impact is largely unknown. Ziegler
    represents that, in the past,, it has done informal studies which
    indicate that even when its sulfate emissions are above 3,500 mg/i,
    three hundred to four hundred feet downstream the sulfates were
    measured between 500 and 600 mg/l. It is the company’s assertion
    that is the dilution which takes place in the stream renders the
    sulfates innocuous. The company therefore believes that a stream
    impact s~udywill reveal no damage to the aquatic biota of the
    waterway. While the Board welcomes a study of the stream, we are
    not convinced of Ziegler’s assertations. The Agency also expressed
    reservations about the company’ s claims. (Rec. at 3). As part of
    the conditions within this variance, we will mandate that the study
    include readings downstream where cattle are watered. Moreover,
    we will insist that there be readings taken before and after
    discharges are released from the holding ponds which exceed the
    3,500 mg/i standard for sulfate.
    CONCLUS IONS
    Based on the information before us, we are convinced that
    Ziegler is acting in good faith and at the behest of its neighbors.
    We find that the company has presented adequate proof, that absent
    a variance, it would suffer an arbitrary or unreasonable hardship.
    We also find that the issuance of a variance comports with federal
    law in this case. It should also be noted that while the
    environmental impact is unknown, the record indicates that Ziegler
    has exceeded the sulfate standard for quite some time. Within this
    timeframe, there have been no ill effects directly traced to the
    sulfate emissions. In fact, Mr. Schüpbach, who lives 1—1/2 miles
    downstream from Ziegler’s emission source, stated that the water
    quality of the stream has improved of late. (Tr. at 71).
    At the same time, questions still remain. What effect will
    the accumulation of sulfates have upon the river and how will it
    affect those who live nearby? Does the apparent lack of short-
    term effects thus far negate the possibility of long-term damage?
    Aside from exceeding the sulfate standard, can the company alter
    its gob pile policy to prevent excess oxidation and thus the
    creation of sulfuric acid? These issues need to be resolved and
    solutions can only be accomplished with more information.
    Accordingly, the Board will grant Ziegler a variance from the terms
    of 35 Iii. Adm. Code Section 406.203(c)(1)(A). Additionally, we
    will request information from the company in regards to its policy
    vis-a-vis the gob piles.
    This constitutes the Board’s findings of fact and conclusions
    of law in this matter.
    ORDER
    125—335

    6
    Ziegler Coal Company is hereby granted a variance from 35 Ill.
    Adm. Code 406.203(c) (1) (A) for a period of 18 months from the date
    of this Order, subject to the following conditions:
    a. Petitioner shall conduct an intensive 12-month stream study
    to determine whether its high-sulfate effluent will cause an
    adverse effect on the environmental in and around Mary’s
    River, the receiving stream. Prior to commencement of the
    study Petitioner shall submit to •the Agency a detailed plan
    of study which shall address examination of the following:
    1. Upstream and downstream flows during wet and dry whether
    along with concentrations of sulfates in each instance;
    2. Concentration of sulfates in the upstream and downstream
    flows for each outfall and any combined effec~ts of
    multiple outfails;
    3. The quantity and quality of the discharge from outfall
    001;
    4. The effects the receiving stream may have upon its
    downstream waters after confluence;
    5. Upstream and downstream biota;
    6. Comparison of the receiving stream with a similar stream
    unaffected by sulfates;
    7. Any other relevant information which is particular to
    this discharge.
    b. Concurrently with the intensive stream study, petitioner shall
    conduct a study addressing the alternatives for the reduction
    of sulfate in the discharge water from outfall 001, including:
    1. .The dilution of treated water prior to discharge;
    2. The utilization water containing elevated sulfate levels
    as make—up water for the coal preparation plant!
    3. The company shall, within 90 days of this variance,
    submit a report to the Board and the Agency as to why
    modification of the existing coarse refuse disposal plan
    to minimize exposed refuse surfaces and decrease acid
    mine drainage surface runoff and seepage cannot be
    achieved at the source;
    4. A determination of whether changing the reagent utilized
    in the acid mine drainage treatment process will
    influence the concentration of sulfates in the discharge
    water.
    125—33 6

    7
    c. Upon completion of the stream and sulfate reduction studies
    Ziegler shall submit to the Agency either:
    1. An NPDES permit application requesting an. increase in the
    applicable limitation for sulfates, in accordance with
    35 Ill. Adm. Code 406.203(c) (1) (B); or
    2. An NPDES permit application which includes a compliance
    plan to reduce sulfate concentration s to 3,500 mg/i or
    less, in accordance with 35 Ill. Adm. Code
    406.203(c) (1) (A).
    d. Petitioner shall submit to the Agency quarterly progress
    reports beginning 90 days after issuance of the Board’s final
    order. All reports required under this variance shall be sent
    to the Agency as follows:
    Joyce Munie, Permit Manager
    Mine Pollution Control Program
    Illinois Environmental Protection Agency
    2200 Churchill Road, P0 Box 19276
    Springfield,
    Illinois
    62794—9276
    e. During the term of the variance the concentration of sulfates
    in the discharge from outfall 001 shall not exceed 4,600 mg/i.
    f. Special attention shall be taken so that readings are taken
    downstream when sulfate emissions exceed the current limit.
    g. Under no circumstances will Zeigler Coal Company alter its
    current treatment process in reliance on this variance.
    Within 45 days after the date of this Opinion and Order
    Petitioner shall execute and forward to:
    Stephen C. Ewart
    Division of Legal Counsel
    Illinois Environmental Protection Agency
    2200 Churchill Road, P.O. Box 19276
    Springfield, Illinois 62794—9276
    a certificate of acceptance of this variance by which it agrees to
    be bound by the terms and conditions contained herein. The 45 day
    period shall be in abeyance for any period during which the fl~atter
    is appealed. This variance will be void if the Petitioner fails
    to execute and forward the certificate within the 45 day period.
    The form of the certification shall be as follows:
    CERTIFICATION
    I, (We),
    ,
    having read the Opinion and
    125—33 7

    8
    Order of the Illinois Pollution Control Board, in PCB 91—12, dated
    August 22, 1991, understand and accept the said Opinion and Order,
    realizing that such acceptance renders all terms and conditions
    thereto binding and enforceable.
    Petitioner
    By: Authorized Agent
    Title
    Date
    Section 41 of the Environmental Protection Act (Ill. Rev.
    Stat. 1989, ch. 111-1/2 par. 1041) provides for appeal of final
    orders of the Board within 35 days. The Rules of the Supreme Court
    of Illinois establish filing requirements.
    IT IS SO ORDERED.
    I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control
    Board, hereby certify that/the above Opinion and Order was adopted
    on the
    ~ day of ~?~k-
    ~
    ,
    1991
    by a vote of
    7~’
    Dorothy M. G~n, Clerk
    Illinois Pollution Control Board
    125— 338

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