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This is a text-only version of the document "Wildcat Hills Mine (Eagle Valley Pit) - NPDES Permit Fact Sheet - 2010". To see the original version of the document click here.

NPDES Permit No. IL0072664 Notice No. 5601c Public Notice Beginning Date: Public Notice Ending Date:

August 16, 2010

September 15, 2010

National Pollutant Discharge Elimination System (NPDES) Permit Program Draft Renewed and Modified NPDES Permit to Discharge into Waters of the State Public Notice/Fact Sheet Issued By: Illinois Environmental Protection Agency Bureau of Water, Division of Water Pollution Control Permit Section 1021 North Grand Avenue East Post Office Box 19276 Springfield, Illinois 62794-9276 217/782-0610 Name and Address of Discharger: Peabody Arclar Mining, L.L.C. 7100 Eagle Crest Blvd. Evansville, IN 47715 Name and Address of Facility: Peabody Arclar Mining, L.L.C. Wildcat Hills Mine – Eagle Valley Pit Equality, IL 62934 4.5 miles south of Equality, Illinois (Gallatin County)

The Illinois Environmental Protection Agency (IEPA) has made a tentative determination to issue an NPDES permit to discharge into waters of the state and has prepared a draft permit and associated fact sheet for the above named discharger. The Public Notice period will begin and end on the dates indicated in the heading of this Public Notice/Fact Sheet. Comments will be accepted until the Public Notice period ending date indicated above, unless a request for an extension of the original comment period is granted by the Agency. Interested persons are invited to submit written comments on the draft permit to the IEPA at the above address. Commentors shall provide his or her name and address and the nature of the issues proposed to be raised and the evidence proposed to be presented with regards to those issues. Commentors may include a request for public hearing. The NPDES permit and notice number(s) must appear on each comment page. The application, engineer's review notes, Public Notice/Fact Sheet, draft permit, comments received, and other documents are available for inspection and may be copied at the IEPA between 9:30 a.m. and 3:30 p.m. Monday through Friday when scheduled by the interested person. As provided in Section 309.115(a) of the Act, any person may submit a request for a public hearing and if such written comments or requests indicate a significant degree of public interest in the draft permit, the permitting authority may, at its discretion, hold a public hearing. The Agency shall issue public notice of such hearing no less than thirty (30) days prior to the date of such hearing in the manner described by Sections 309.109 through 309.112 of the Act for public notice. The Agency's responses to written and/or oral comments will be provided in the Responsiveness Summary provided when the final permit is issued. The applicant operates an existing surface coal mine (SIC 1221). Mine operations result in reclamation area discharges and stormwater discharges. Public comments are invited on the following proposed modifications incorporated into this Permit renewal: Permit was transferred from Black Beauty Coal Company to Sugar Camp Coal, L.L.C., to Arclar Company, L.L.C., to Peabody Arclar Company, L.L.C., and facility name was changed from Wildcat Hills Mine to Wildcat Hills Mine – Eagle Valley Pit. Removal of Outfalls 008, 009, 011, 013, 014, 015, 021, and 022 from the permit because the similarly numbered basins have not and will not be constructed. Outfalls 001, 002, 003, 006 and 012 have been reclassified as stormwater outfalls. Outfalls 004, 005, 007, 016 and 020 have been reclassified as reclamation area drainage. Addition of 22.2 acres on which surface mining activities were conducted will now be recognized in the permit. Modifications to Basins 002, 003 (Phase II), 005 (Phase II), 012 (Phase II) and to the discharge structures of Basins 006 and 007.

Public Notice/Fact Sheet - Page 2 - NPDES Permit No. IL0072664

Operations plan changes including construction of permanent access roads, removal of temporary drainage ditches and construction of post-mining drainage ditches and/or diversions. Post-mining land use changes of wildlife and cropland areas which will result in 94.4 acres of additional water resources.

Public Notice/Fact Sheet - Page 3 - NPDES Permit No. IL0072664

This facility has ten (10) existing discharges which are located in Gallatin County, Illinois. The following information identifies the discharge points, receiving streams, and stream classifications: Receiving Stream Unnamed tributary to Sugarcamp Branch Unnamed tributary to Sugarcamp Branch Unnamed tributary to Sugarcamp Branch Sugarcamp Branch Unnamed tributary to Eagle Creek Unnamed tributary to Sugarcamp Branch Sugarcamp Branch Unnamed tributary to Sugarcamp Branch Sugarcamp Branch Sugarcamp Branch Latitude (North) 37° 24’ 40” 37° 24’ 21” 37° 24’ 10” 37° 24’ 18” 37° 23’ 44” 37° 24’ 04” 37° 24’ 20” 37° 23’ 43” 37° 24’ 11” 37° 24’ 11” Longitude (West) 88° 12’ 42” 88° 12’ 18” 88° 12’ 44” 88° 12’ 07” 88° 12’ 06” 88° 12’ 37” 88° 12’ 07” 88° 12’ 38” 88° 11’ 45” 88° 12’ 04” Stream Classification General Use

Outfall 001

002

General Use

003

General Use

004 005

General Use General Use

006

General Use

007 012

General Use General Use

016 020

General Use General Use

The stream segment ATE_02 of Sugarcamp Branch receiving the flow from the unnamed tributary into which Outfalls 001, 002, 003, 006 and 012 discharge is not on the 2006 or the partially approved 2008 303(d) list of impaired waters. The stream segment ATE_02 of Sugarcamp Branch receiving the discharge from Outfalls 004, 007, 016 and 020 is not on the 2006 or the partially approved 2008 303(d) list of impaired waters. The stream segment ATE_03 of Eagle Creek receiving the flow from the unnamed tributary into which Outfall 005 discharges is not on the 2006 or the partially approved 2008 303(d) list of impaired waters.

Public Notice/Fact Sheet - Page 4 - NPDES Permit No. IL0072664

The reclamation area discharges from this facility shall be monitored and limited at all times as follows: Outfall(1): 004, 007 Parameters Discharge Condition I II III IV pH (S.U.) 6.5-9.0 6.0-9.0 6.0-9.0 6.5-9.0 Sulfate(2) (mg/l) 500 500 500 500 Chloride (mg/l) 500 500 500 500 Hardness Monitor only Monitor only Monitor only Monitor only Settleable Solids (ml/l) 0.5 0.5 0.5

I II

Dry weather discharge (base flow, if present) from the outfall. In accordance with 35 Ill. Adm. Code 406.109(b), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period less than or equal to the 10-year, 24 hour precipitation event (or snowmelt or equivalent volume) shall comply with the indicated limitations. The 10-year, 24-hour precipitation event for this area is considered to be 5.21 inches. In accordance with 35 Ill. Adm. Code 406.109(c), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period greater than the 10-year, 24-hour precipitation event (or snowmelt of equivalent volume) shall comply with the indicated limitations instead of those in 35 Ill. Adm. Code 406.109(b). Discharges continuing 24 hours after cessation of precipitation event that resulted in discharge. For reclamation area discharges, monitoring requirements and permit limitations of Discharge Condition IV are identical to Discharge Condition I to which the outfall discharge has reverted.

III

(1) (2)

Effluent limitations for reclamation area discharges are contained in 35 Ill. Adm. Code 406.109. Sulfate water quality standards and effluent limitations determined in accordance with 35 Ill. Adm. Code 302.208(h).

Public Notice/Fact Sheet - Page 5 - NPDES Permit No. IL0072664

The reclamation area discharges from this facility shall be monitored and limited at all times as follows: Outfall(1): 005, 016 Parameters Discharge Condition I II III IV pH (S.U.) 6.5-9.0 6.0-9.0 6.0-9.0 6.5-9.0 Sulfate(2) (mg/l) 2000 2000 2000 2000 Chloride (mg/l) 500 500 500 500 Hardness Monitor only Monitor only Monitor only Monitor only Settleable Solids (ml/l) 0.5 0.5 0.5

I II

III

(1) (2)

Public Notice/Fact Sheet - Page 6 - NPDES Permit No. IL0072664

The reclamation area discharges from this facility shall be monitored and limited at all times as follows: Outfall(1): 020 Parameters Discharge Condition I II III IV pH (S.U.) 6.5-9.0 6.0-9.0 6.0-9.0 6.5-9.0 Sulfate(2) (mg/l) 635 635 635 635 Chloride (mg/l) 500 500 500 500 Hardness Monitor only Monitor only Monitor only Monitor only Settleable Solids (ml/l) 0.5 0.5 0.5

I II

III

(1) (2)

Public Notice/Fact Sheet - Page 7 - NPDES Permit No. IL0072664

The stormwater discharges from this facility shall be monitored and limited at all times as follows: Outfall(1): 001, 002, 003, 006, 012 Parameters pH (S.U.) 6.0-9.0 (1) Settleable Solids (ml/l) 0.5

Stormwater effluent limitations for all Discharge Conditions are established pursuant to 40 CFR 122.26, and IEPA correspondence to the industry dated July 31, 1992, with sample frequency for stormwater discharges being once per year.

To assist you in identifying the location of the discharges, please refer to the attached map. The permit area for this facility is located in Sections 4, 5, 6, 7, 8, 9, 16 and 17, Township 10 South, Range 8 East, 3rd P.M., Gallatin County, Illinois.

NPDES Permit No. IL0072664 Illinois Environmental Protection Agency Division of Water Pollution Control 1021 North Grand Avenue, East P.O. Box 19276 Springfield, Illinois 62794-9276 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM Renewed and Modified NPDES Permit

Expiration Date:

Issue Date: Effective Date:

Name and Address of Permittee: Peabody Arclar Mining, L.L.C. 7100 Eagle Crest Blvd. Evansville, IN 47715

Facility Name and Address: Peabody Arclar Mining, L.L.C. Wildcat Hills Mine – Eagle Valley Pit Equality, IL 62934 4.5 miles south of Equality, Illinois (Gallatin County) Receiving waters Unnamed tributary to Sugarcamp Branch

Discharge Number and Classification: 001, 002, 003, 006, 012 004, 007, 016, 020 005 Stormwater Discharges

Reclamation Area Drainage

Sugarcamp Branch

Reclamation Area Drainage

Unnamed tributary to Eagle Creek

In compliance with the provisions of the Illinois Environmental Protection Act, Subtitle C and/or Subtitle D Rules and Regulations of the Illinois Pollution Control Board, and the Clean Water Act, the above-named permittee is hereby authorized to discharge at the above location to the above-named receiving stream in accordance with the standard conditions and attachments herein. Permittee is not authorized to discharge after the above expiration date. In order to receive authorization to discharge beyond the expiration date, the permittee shall submit the proper application as required by the Illinois Environmental Protection Agency (IEPA) not later than 180 days prior to the expiration date.

Ronald E. Morse, Manager Mine Pollution Control Program Bureau of Water REM:LDC:jkb/5601c/08-11-10

Page 2 NPDES Coal Mine Permit NPDES Permit No. IL0072664 Effluent Limitations and Monitoring

From the effective date of this Permit until the expiration date, the effluent of the following discharge shall be monitored and limited at all times as follows: Outfalls*: 004, 007 (Reclamation Area Drainage) Parameters Discharge Condition pH** (S.U.) *** 6.5-9.0 Sulfate (mg/l) *** 500 Chloride (mg/l) *** 500 Hardness *** Monitor only Monitor only Monitor only Monitor only Flow (MGD) Measure When Sampling Measure When Sampling Measure When Sampling Measure When Sampling Settleable Solids (ml/l) *** 0.5

6.0-9.0

500

0.5

III

6.0-9.0

500

6.5-9.0

500

0.5

I II

Dry weather discharge (base flow, if present) from the outfall. In accordance with 35 Ill. Adm. Code 406.109(b), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period less than or equal to the 10-year, 24-hour precipitation event (or snowmelt or equivalent volume) shall comply with the indicated limitations. The 10-year, 24-hour precipitation event for this area is considered to be 5.21 inches. In accordance with 35 Ill. Adm. Code 406.109(c), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period greater than the 10-year, 24-hour precipitation event (or snowmelt of equivalent volume) shall comply with the indicated limitations instead of those in 35 Ill. Adm. Code 406.109(b). Discharges continuing 24 hours after cessation of precipitation event that resulted in discharge. For reclamation area discharges, monitoring requirements and permit limitations of Discharge Condition IV are identical to Discharge Condition I to which the outfall discharge has reverted.

III

Sampling during all Discharge Conditions shall be performed utilizing the grab sampling method. A "no flow" situation is not considered to be a sample of the discharge. *** One sample per month (1/month) shall be collected if and/or when a discharge occurs under either Discharge Condition I, II or IV and analyzed for the parameters identified in the table above. In addition, at least three (3) grab samples shall be taken each quarter from separate precipitation events under Discharge Condition III and analyzed for parameters indicated in the above table. For quarters in which there are less than 3 such precipitation events, a grab sample of the discharge shall be required whenever such precipitation event(s) occur(s). The water quality standards for sulfate and chloride must be met in discharges from the above referenced outfall as well as in the receiving stream. _________________________________________________________________________________________________________ * The Permittee is subject to the limitations, and monitoring and reporting requirements of Special Condition No. 12 for the discharges from Outfalls 004 and 007 and Sugarcamp Branch receiving such discharges. ** No discharge is allowed from any above referenced permitted outfall during "low flow" or "no flow" conditions in the receiving stream unless such discharge meets the water quality standards of 35 Ill. Adm. Code 302.204 for pH.

Page 3 NPDES Coal Mine Permit NPDES Permit No. IL0072664 Effluent Limitations and Monitoring

From the effective date of this Permit until the expiration date, the effluent of the following discharge shall be monitored and limited at all times as follows: Outfalls*: 005, 016 (Reclamation Area Drainage) Parameters Discharge Condition pH** (S.U.) *** 6.5-9.0 Sulfate (mg/l) *** 2000 Chloride (mg/l) *** 500 Hardness *** Monitor only Monitor only Monitor only Monitor only Flow (MGD) Measure When Sampling Measure When Sampling Measure When Sampling Measure When Sampling Settleable Solids (ml/l) *** 0.5

6.0-9.0

2000

500

0.5

III

6.0-9.0

2000

500

6.5-9.0

2000

500

0.5

I II

Dry weather discharge (base flow, if present) from the outfall. In accordance with 35 Ill. Adm. Code 406.109(b), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period less than or equal to the 10-year, 24-hour precipitation event (or snowmelt or equivalent volume) shall comply with the indicated limitations. The 10-year, 24-hour precipitation event for this area is considered to be 5.21 inches. In accordance with 35 Ill. Adm. Code 406.109(c), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period greater than the 10-year, 24-hour precipitation event (or snowmelt of equivalent volume) shall comply with the indicated limitations instead of those in 35 Ill. Adm. Code 406.109(b). Discharges continuing 24 hours after cessation of precipitation event that resulted in discharge. For reclamation area discharges, monitoring requirements and permit limitations of Discharge Condition IV are identical to Discharge Condition I to which the outfall discharge has reverted.

III

Sampling during all Discharge Conditions shall be performed utilizing the grab sampling method. A "no flow" situation is not considered to be a sample of the discharge. *** One sample per month (1/month) shall be collected if and/or when a discharge occurs under either Discharge Condition I, II or IV and analyzed for the parameters identified in the table above. In addition, at least three (3) grab samples shall be taken each quarter from separate precipitation events under Discharge Condition III and analyzed for parameters indicated in the above table. For quarters in which there are less than 3 such precipitation events, a grab sample of the discharge shall be required whenever such precipitation event(s) occur(s). The water quality standards for sulfate and chloride must be met in discharges from the above referenced outfall as well as in the receiving stream. _________________________________________________________________________________________________________ * The Permittee is subject to the limitations, and monitoring and reporting requirements of Special Condition No. 12 for the discharges from Outfalls 005 and 016 and the unnamed tributary to Eagle Creek and Sugarcamp Branch receiving such discharges. ** No discharge is allowed from any above referenced permitted outfall during "low flow" or "no flow" conditions in the receiving stream unless such discharge meets the water quality standards of 35 Ill. Adm. Code 302.204 for pH.

Page 4 NPDES Coal Mine Permit NPDES Permit No. IL0072664 Effluent Limitations and Monitoring

From the effective date of this Permit until the expiration date, the effluent of the following discharge shall be monitored and limited at all times as follows: Outfall*: 020 (Reclamation Area Drainage) Parameters Discharge Condition pH** (S.U.) *** 6.5-9.0 Sulfate (mg/l) *** 635 Chloride (mg/l) *** 500 Hardness *** Monitor only Monitor only Monitor only Monitor only Flow (MGD) Measure When Sampling Measure When Sampling Measure When Sampling Measure When Sampling Settleable Solids (ml/l) *** 0.5

6.0-9.0

635

500

0.5

III

6.0-9.0

635

500

6.5-9.0

635

500

0.5

I II

Dry weather discharge (base flow, if present) from the outfall. In accordance with 35 Ill. Adm. Code 406.109(b), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period less than or equal to the 10-year, 24-hour precipitation event (or snowmelt or equivalent volume) shall comply with the indicated limitations. The 10-year, 24-hour precipitation event for this area is considered to be 5.21 inches. In accordance with 35 Ill. Adm. Code 406.109(c), any discharge or increase in the volume of a discharge caused by precipitation within any 24-hour period greater than the 10-year, 24-hour precipitation event (or snowmelt of equivalent volume) shall comply with the indicated limitations instead of those in 35 Ill. Adm. Code 406.109(b). Discharges continuing 24 hours after cessation of precipitation event that resulted in discharge. For reclamation area discharges, monitoring requirements and permit limitations of Discharge Condition IV are identical to Discharge Condition I to which the outfall discharge has reverted.

III

Sampling during all Discharge Conditions shall be performed utilizing the grab sampling method. A "no flow" situation is not considered to be a sample of the discharge. *** One sample per month (1/month) shall be collected if and/or when a discharge occurs under either Discharge Condition I, II or IV and analyzed for the parameters identified in the table above. In addition, at least three (3) grab samples shall be taken each quarter from separate precipitation events under Discharge Condition III and analyzed for parameters indicated in the above table. For quarters in which there are less than 3 such precipitation events, a grab sample of the discharge shall be required whenever such precipitation event(s) occur(s). The water quality standards for sulfate and chloride must be met in discharges from the above referenced outfall as well as in the receiving stream. _________________________________________________________________________________________________________ * The Permittee is subject to the limitations, and monitoring and reporting requirements of Special Condition No. 12 for the discharges from Outfall 020 and Sugarcamp Branch receiving such discharges. ** No discharge is allowed from any above referenced permitted outfall during "low flow" or "no flow" conditions in the receiving stream unless such discharge meets the water quality standards of 35 Ill. Adm. Code 302.204 for pH.

Page 5 NPDES Coal Mine Permit NPDES Permit No. IL0072664 Effluent Limitations and Monitoring

From the effective date of this Permit until the expiration date, the effluent of the following discharge shall be monitored and limited at all times as follows: Outfalls: 001, 002, 003, 006, 012 (Stormwater Discharge) Parameters pH* (S.U.) ** 6.0-9.0 Settleable Solids (ml/l) ** 0.5

Stormwater discharge monitoring is subject to the following reporting requirements: Analysis of samples must be submitted with second quarter Discharge Monitoring Reports. If discharges can be shown to be similar, a plan may be submitted by November 1 of each year preceding sampling to propose grouping of similar discharges and/or updated previously submitted groupings. If updating of a previously submitted plan is not necessary, a written notification to the Agency, indicating such is required. Upon approval from the Agency, one representative sample for each group may be submitted. Annual stormwater monitoring is required for all discharges until Final SMCRA Bond is released and approval to cease such monitoring is obtained from the Agency. ________________________________________________________________________________________________________ * No discharge is allowed from any above referenced permitted outfalls during "low flow" or "no flow" conditions in the receiving stream unless such discharge meets the water quality standards of 35 Ill. Adm. Code 302.204 for pH. ** One (1) sample per year shall be collected and analyzed for the indicated parameter; however, such sampling and analysis is required only if and/or when a discharge occurs from the individual Outfall(s) identified above.

Page 6 NPDES Coal Mine Permit NPDES Permit No. IL0072664 Effluent Limitations and Monitoring

Upon completion of Special Condition No. 10 and approval from the Agency, the effluent of the following discharge shall be monitored and limited at all times as follows: Outfalls: 004, 005, 007, 016, 020 (Stormwater Discharge) Parameters pH* (S.U.) ** 6.0-9.0 Settleable Solids (ml/l) ** 0.5

Page 7 NPDES Permit No. IL0072664 Construction Authorization No. 5263-03 C.A. Date: August 4, 2010

Authorization is hereby granted to the above designee to construct and operate the mine and mine refuse area described as follows: The facility is a surface mine consisting of approximately 2990.6 acres located in Sections 4, 5, 6, 7, 8, 9, 16 and 17, Township 10 South, Range 8 East, Gallatin County. The total area cited herein includes modifications discussed below. There is no ongoing or planned mining. Operations currently consist of reclamation activities but previously consisted of conventional strip mining, auger mining, and highwall mining. All coal was processed at Peabody Arclar Mining, L.L.C., preparation plant located at the Eagle Valley Mine approved under NPDES Permit No. IL0064203. During active mining at this facility, all refuse was returned to the active pit. As proposed and described in IEPA Log Nos. 9611-99, 9611-99-A and 2243-06, 22.2 acres is incorporated into this permit on which surface mining activities were conducted. This additional area is included in the total permit acreage cited above. Surface drainage control is provided by ten (10) sedimentation basins with discharges designated and located as indicated below: Location and receiving stream of the outfall at this facility is as follows: Outfall Number 001 002 003 004 005 006 007 012 016 020 Latitude DEG MIN 37° 24’ 37° 24’ 37° 24’ 37° 24’ 37° 23’ 37° 24’ 37° 24’ 37° 23’ 37° 24’ 37° 24’ SEC 40” 21” 10” 18” 44” 04” 20” 43” 11” 11” Longitude DEG MIN 88° 12’ 88° 12’ 88° 12’ 88° 12’ 88° 12’ 88° 12’ 88° 12’ 88° 12’ 88° 12’ 88° 12’ SEC 42” 18” 44” 07” 06” 37” 07” 38” 45” 04” Receiving Water Unnamed tributary to Sugarcamp Branch Unnamed tributary to Sugarcamp Branch Unnamed tributary to Sugarcamp Branch Sugarcamp Branch Unnamed tributary to Eagle Creek Unnamed tributary to Sugarcamp Branch Sugarcamp Branch Unnamed tributary to Sugarcamp Branch Sugarcamp Branch Sugarcamp Branch

Outfalls 001, 002, 003, 006, and 012 are hereby reclassified as stormwater discharges. Outfalls 004, 005, 007, 016 and 020 were reclassified as reclamation area drainage. Outfalls 008, 009, 011, 013, 014, 015, 021 and 022 are hereby removed from the permit as the basins and associated discharge structures were never built. Proposed basin 010 was never used and never received drainage from the affected area and is hereby removed from the permit. As proposed in IEPA Log Nos. 8207-00, 8208-00, 6255-02 and 8089-10, the permittee name was changed from Black Beauty Coal Company to Sugar Camp Coal, L.L.C., to Arclar Company, L.L.C., to Peabody Arclar Company, L.L.C. As proposed in IEPA Log Nos. 5408-03 and 5408-03-A, the facility name was changed from Wildcat Hills Mine to Wildcat Hills Mine – Eagle Valley Pit. As proposed and described in IEPA Log Nos. 8113-00 and 8113-00-A, the expansion of Basin 002, the construction of haulage road No. 5 and a temporary access road and the reorientation of Cut No. 5 are approved. As proposed and described in IEPA Log No. 8363-00, the removal of diversion ditches DD-1 and DD-2 is approved. As proposed and described in IEPA Log No. 7135-01, the construction of interior haul road 1A is approved. As proposed and described in IEPA Log Nos. 6328-02 and 6328-02-A, the construction of diversion CDD 007A is approved. As proposed and described in IEPA Log No. 6630-02, a post-mining land use change of 40.4 acres of non-crop wildlife to 40.4 acres of water within the IDNR OMM Permit No. 294 area is approved. Also, a post-mining land use change of cropland to result in an additional 9.5 acres of water within the IDNR OMM Permit No. 331 area is approved.

Page 8 NPDES Permit No. IL0072664 Construction Authorization No. 5263-03 C.A. Date: August 4, 2010

As proposed and described in IEPA Log No. 5248-03, post-mine land use change of 21.4 acres of non-cropland capable wildlife and 32.6 acres of non-cropland capable pasture to 54.0 acres of water within the IDNR OMM Permit Nos. 294 and 331 areas is approved. As proposed and described in IEPA Log No. 2319-06, the redesign and relocation of diversion ditch DD-4 Phase 3, the redesign of basin 003 Phase 2, the construction of Temporary Access Road/Kedron Road Bypass along with its required culverts are approved. As proposed and described in IEPA Log No. 2550-06, the relocation of the basin 006 spillway to the southwest corner of the basin is approved. As proposed and described in IEPA Log No. 1387-07, modifications to spillway SB 007 are approved. As proposed and described in IEPA Log No. 1398-07, modifications to sedimentation basin 012 Phase II are approved. As proposed and described in IEPA Log No. 0088-08, interior haulage road #5 is approved to be left as a permanent access road. As proposed and described in IEPA Log No. 9086-09, the as-built modifications for basin #5 phase II are approved. Groundwater monitoring for this facility shall be performed in accordance with Condition No. 12. All water remaining upon abandonment must meet the requirements of 35 Ill. Adm. Code 406.202. For the constituents not covered by Parts 302 or 303, all water remaining upon abandonment must meet the requirements of 35 Ill. Adm. Code 406.106. This Construction Authorization supersedes and replaces Construction Authorization No. 2253-96 and Supplemental Construction Authorization Nos. 2253-96-1, 2253-96-2 and 2253-96-3 previously issued for the herein permitted facilities. The abandonment plan shall be executed and completed in accordance with 35 Ill. Adm. Code 405.109. This Authorization is issued subject to the following Conditions. If such Conditions require additional or revised facilities, satisfactory engineering plan documents must be submitted to this Agency for review and approval to secure issuance of a Supplemental Authorization to Construct. 1. If any statement or representation is found to be incorrect, this permit may be revoked and the permittee thereupon waives all rights thereunder. The issuance of this permit (a) shall not be considered as in any manner affecting the title of the premises upon which the mine or mine refuse area is to be located; (b) does not release the permittee from any liability for damage to person or property caused by or resulting from the installation, maintenance or operation of the proposed facilities; (c) does not take into consideration the structural stability of any units or parts of the project; and (d) does not release the permittee from compliance with other applicable statutes of the State of Illinois, or with applicable local laws, regulations or ordinances. Final plans, specifications, application and supporting documents as submitted by the person indicated on Page 1 as approved shall constitute part of this permit and are located in the records of the Illinois Environmental Protection Agency. There shall be no deviations from the approved plans and specifications unless revised plans, specifications and application shall first have been submitted to the Illinois Environmental Protection Agency and a supplemental permit issued. The permit holder shall notify the Environmental Protection Agency (217/782-3637) immediately of an emergency at the mine or mine refuse area which causes or threatens to cause a sudden discharge of contaminants into the waters of Illinois and shall immediately undertake necessary corrective measures as required by 35 Ill. Adm. Code 405.111. (217/782-3637 for calls between the hours of 5:00 p.m. to 8:30 a.m. and on weekends.) The termination of an NPDES discharge monitoring point or cessation of monitoring of an NPDES discharge is not authorized by this Agency until the permittee submits adequate justification to show what alternate treatment is provided or that untreated drainage will meet applicable effluent and water quality standards.

Page 9 NPDES Permit No. IL0072664 Construction Authorization No. 5263-03 C.A. Date: August 4, 2010

Initial construction activities in areas to be disturbed shall be for collection and treatment facilities only. Prior to the start of other activities, surface drainage controls shall be constructed and operated to avoid violations of the Act or Subtitle D. At such time as runoff water is collected in the sedimentation pond, a sample shall be collected and analyzed, for the parameters designated as 1M through 15M under Part 5-C of Form 2C and the effluent parameters designated herein with the results sent to this Agency. Should additional treatment be necessary to meet the standards of 35 Ill. Adm. Code 406.106, a Supplemental Permit must be obtained. Discharge from ponds is not allowed unless applicable effluent and water quality standards are met in the basin discharge(s). This Agency must be informed in writing and an application submitted if drainage, which was previously classified as alkaline (pH greater than 6.0), becomes acid (pH less than 6.0) or ferruginous (base flow with an iron concentration greater than 10 mg/l). The type of drainage reporting to the basin should be reclassified in a manner consistent with the applicable rule of 35 Ill. Adm. Code 406 as amended in R84-29 at 11 Ill. Reg. 12899. The application should discuss the treatment method and demonstrate how the discharge will meet the applicable standards. A permittee has the obligation to add a settling aid if necessary to meet the suspended solids or settleable solids effluent standards. The selection of a settling aid and the application practice shall be in accordance with a. or b. below a. Alum (Al2(SO4)3), hydrated slime (Ca(OH)2), soda ash (Na2CO3), alkaline pit pumpage, acetylene production by-product (tested for impurities), and ground limestone are acceptable settling aids and are hereby permitted for alkaline mine drainage sedimentation ponds. Any other settling aids such as commercial flocculents and coagulants are permitted only on prior approval from the Agency. To obtain approval a permitted must demonstrate in writing to the Agency that such use will not cause a violation of the toxic substances standard of 35 Ill. Adm. Code 302.210 or of the appropriate effluent and water quality standards of 35 Ill. Adm. Code parts 302, 304, and 406.

10. A general plan for the nature and disposition of all liquids used to drill boreholes shall be filed with this Agency prior to any such operation. This plan should be filed at such time that the operator becomes aware of the need to drill unless the plan of operation was contained in a previously approved application. After settling, recirculation water which meets the requirements of 35 Ill. Adm. Code 406.106 and 406.202, may be discharged. The use of additives in the recirculation water which require treatment other than settling to comply with the Act will require a revised permit. 11. Any of the following shall be a violation of the provisions required under 35 Ill. Adm. Code 406.202: a. It is demonstrated that an adverse effect on the environment in and around the receiving stream has occurred or is likely to occur. It is demonstrated that the discharge has adversely affected or is likely to adversely affect any public water supply. The Agency determines that the permittee is not utilizing Good Mining Practices in accordance with 35 Ill. Adm. Code 406.204 which are fully described in detail in Sections 406.205, 406.206, 406.207 and 406.208 in order to minimize the discharge of total dissolved solids, chloride, sulfate, iron and manganese. To the extent practical, such Good Mining Practices shall be implemented to: i. Stop or minimize water from coming into contact with disturbed areas through the use of diversions and/or runoff controls (Section 406.205). Retention and control within the site of waters exposed to disturbed materials utilizing erosion controls, sedimentation controls, water reuse or recirculation, minimization of exposure to disturbed materials, etc. (Section 406.206). Control and treatment of waters discharged from the site by regulation of flow of discharges and/or routing of discharges to more suitable discharge locations (Section 406.207). Utilized unconventional practices to prevent the production or discharge of waters containing elevated contaminant concentrations such as diversion of groundwater prior to entry into a surface or underground mine, dewatering practices to remove clean water prior to contacting disturbed materials and/or any additional practices demonstrated to be effective in reducing contaminant levels in discharges (Section 406.208).

b. c.

ii.

iii.

iv.

Page 10 NPDES Permit No. IL0072664 Construction Authorization No. 5263-03 C.A. Date: August 4, 2010

12. Groundwater monitoring requirements for Well Nos. SCGW-002, 33MW-3 and 34MW-2 are as follows: a. Routine monitoring for the referenced wells shall be performed on a quarterly basis for the following list of constituents: Chloride Iron (dissolved) Iron (total) Manganese (dissolved) Manganese (total) Sulfate b. Total Dissolved Solids Hardness Acidity Alkalinity pH Water Elevation

Following completion of active mining and reclamation, post-mining monitoring of the above referenced wells shall consist of six (6) samples collected during a 12-month period (approximately bi-monthly) to determine post-mining concentrations. Post-mining monitoring shall include the following list of constituents: Aluminum Antimony Arsenic Barium Beryllium Boron Cadmium Chloride Chromium Cobalt Copper Cyanide Fluoride Iron (dissolved) Iron (total) Lead Manganese (dissolved) Manganese (total) Mercury Molybdenum Nickel Phenols Selenium Silver Sulfate Thallium Total Dissolved Solids Vanadium Zinc pH Acidity Alkalinity Hardness Water Elevation

Groundwater monitoring reports shall be submitted to the Agency in accordance with Special Condition Nos. 3 and 5 of this NPDES permit. A statistically valid representation of post-mining water quality required under condition No. 12(b) above shall be submitted utilizing the following method. This method shall be used to determine the upper 95 percent confidence limit for each parameter listed above. Should the Permittee determine that an alternate statistical method would be more appropriate based on the data being evaluated, the Permittee may request utilization of such alternate methodology. Upon approval from the Agency, the alternate methodology may be utilized to determine a statistically valid representation of background water quality. This method should be used to predict the confidence limit when single groundwater samples are taken from each monitoring (test) well. i. Determine the arithmetic mean

X b of each indicator parameter for the background sampling period. If more than

one background (upgradient) well is used, an equal number of samples must be taken from each well.

X Xb
Where:
1

X
2

... X

n
= Average background value for a given chemical parameter = Background values for each upgradient sample

n = the number of background samples taken

Page 11 NPDES Permit No. IL0072664 Construction Authorization No. 5263-03 C.A. Date: August 4, 2010

ii.

Calculate the background variance (Sb2) and standard deviation (Sb) for each parameter using the values (Xn) from each background sample of the upgradient well(s) as follows:

Xb )

Xb ) n 1

... (X

Xb )

Sb
iii.

Calculate the upper confidence limit using the following formula:

CL
Where:

t 1 1/n

CL = upper confidence limit prediction (upper and lower limits should be calculated for pH) t = one-tailed t value at the required significance level and at n-1 degrees of freedom from Table 1 (a two-tailed t value should be used for pH) iv. If the values of any routine parameter for any monitoring well exceed the upper confidence limit for that parameter, the permittee shall conclude that a statistically significant change has occurred at that well. When some of the background (upgradient) values are less than the Method Detection Limit (MDL), a value of onehalf (1/2) the MDL shall be substituted for each background value that is reported as less than the MDL. All other computations shall be calculated as given above.

Page 12 NPDES Permit No. IL0072664 Construction Authorization No. 5263-03 C.A. Date: August 4, 2010 If all the background (upgradient) values are less than the MDL for a given parameter, the Practical Quantitation Limit (PQL), as given in 35 Ill. Adm. Code Part 724 Appendix I shall be used to evaluate data from monitoring wells. If the analytical results from any monitoring well exceed two (2) times the PQL for any single parameter, or if they exceed the PQLs for two or more parameters, the permittee shall conclude that a statistically significant change has occurred.

Table 1 Standard t-Tables Level of Significance t-values (one-tail) 99% 95% 3.747 2.132 3.365 2.015 3.143 1.943 2.998 1.895 2.896 1.860 2.821 1.833 2.764 1.812 2.718 1.796 2.681 1.782 2.650 1.771 2.624 1.761 2.602 1.753 2.583 1.746 2.567 1.740 2.552 1.734 2.539 1.729 2.528 1.725 2.518 1.721 2.508 1.717 2.500 1.714 2.492 1.711 2.485 1.708 2.457 1.697 2.423 1.684 t-values (two-tail)* 99% 95% 4.604 2.776 4.032 2.571 3.707 2.447 3.499 2.365 3.355 2.306 3.250 2.262 3.169 2.228 3.106 2.201 3.055 2.179 3.012 2.160 2.977 2.145 2.947 2.131 2.921 2.120 2.898 2.110 2.878 2.101 2.861 2.093 2.845 2.086 2.831 2.080 2.819 2.074 2.807 2.069 2.797 2.064 2.787 2.060 2.750 2.042 2.704 2.021

Degrees of freedom 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 40

Adopted from Table III of "Statistical Tables for Biological Agricultural and Medical Research" (1947, R.A. Fisher and F. Yates). * For pH only when required.

Page 13 NPDES Permit No. IL0072664 Special Conditions Special Condition No. 1: No effluent from any mine related facility area under this permit shall, alone or in combination with other sources, cause a violation of any applicable water quality standard as set out in the Illinois Pollution Control Board Rules and Regulations, Subtitle C: Water Pollution. Special Condition No. 2: Samples taken in compliance with the effluent monitoring requirements shall be taken at a point representative of the discharge, but prior to entry into the receiving stream. Special Condition No. 3: All periodic monitoring and reporting forms, including Discharge Monitoring Report (DMR) forms, shall be submitted to the Agency according to the schedule outlined in Special Condition No. 4 or 5 below with one (1) copy forwarded to each of the following addresses: Illinois Environmental Protection Agency Division of Water Pollution Control 1021 North Grand Ave., East P.O. Box 19276 Springfield, IL 62794-9276 Attn: Compliance Assurance Section Should electronic filing be available and elected for any periodic monitoring and reporting requirements, the Agency shall be notified via correspondence or e-mail at such time that the electronic filing has been completed. Special Condition No. 4: Completed Discharge Monitoring Report (DMR) forms and stream monitoring results, shall be retained by the Permittee for a period of three (3) months and shall be mailed and received by the IEPA at the addresses indicated in Special Condition No. 3 above in accordance with the following schedule, unless otherwise specified by the permitting authority. Period January, February, March April, May, June July, August, September October, November, December Received by IEPA April 28 July 28 October 28 January 28 Illinois Environmental Protection Agency Mine Pollution Control Program 2309 West Main Street, Suite 116 Marion, Illinois 62959

The Permittee shall record discharge monitoring results on Discharge Monitoring Report forms (DMR's) using one such form for each applicable Discharge Condition each month. Special Condition No. 5: Completed periodic monitoring and reporting, other than DMR's and stream monitoring (i.e., groundwater monitoring, coal combustion waste analysis reports, etc.), shall be retained by the Permittee for a period of three (3) months and shall be mailed and received by the IEPA at the addresses indicated in Special Condition No. 3 above in accordance with the following schedule, unless otherwise specified by the permitting authority. Period January, February, March April, May, June July, August, September October, November, December Received by IEPA May 1 August 1 November 1 February 1

Special Condition No. 6: If an applicable effluent standard or limitation is promulgated under Sections 301(b)(2)(C) and (D), 304(b)(2), and 307(a)(2) of the Clean Water Act and that effluent standard or limitation is more stringent than any effluent limitation in the permit or controls a pollutant not limited in the NPDES Permit, the Agency shall revise or modify the permit in accordance with the more stringent standard or prohibition and shall so notify the permittee. Special Condition No. 7: The permittee shall notify the Agency in writing by certified mail within thirty days of abandonment, cessation, or suspension of active mining for thirty days or more unless caused by a labor dispute. During cessation or suspension of active mining, whether caused by a labor dispute or not, the permittee shall provide whatever interim impoundment, drainage diversion, and wastewater treatment is necessary to avoid violations of the Act or Subtitle D. Special Condition No. 8: Plans must be submitted to and approved by this Agency prior to construction of a sedimentation pond. At such time as runoff water is collected in the sedimentation pond, a sample shall be collected and analyzed for the parameters designated as 1M-15M under Part 5-C of Form 2C and the effluent parameters designated herein with the results sent to this Agency. Should additional treatment be necessary to meet these standards, a Supplemental Permit must also be obtained. Discharge from a pond is not allowed unless applicable effluent and water quality standards are met.

Page 14 NPDES Permit No. IL0072664 Special Conditions

Special Condition No. 9: The special reclamation area effluent standards of 35 Ill. Adm. Code 406.109 apply only on approval from the Agency. To obtain approval, a request form and supporting documentation shall be submitted 45 days prior to the month that the permittee wishes the discharge be classified as a reclamation area discharge. The Agency will notify the permittee upon approval of the change. Special Condition No. 10: The special stormwater effluent standards apply only on approval from the Agency. To obtain approval, a request with supporting documentation shall be submitted 45 days prior to the month that the permittee proposes the discharge to be classified as a stormwater discharge. The documentation supporting the request shall include analysis results indicating the discharge will consistently comply with reclamation area discharge effluent standards. The Agency will notify the permittee upon approval of the change. Special Condition No. 11: Annual stormwater monitoring is required for all discharges not reporting to a sediment basin until Final SMCRA Bond is released and approval to cease such monitoring is obtained from the Agency. A. B. Each discharge must be monitored for pH and settleable solids annually. Analysis of samples must be submitted with second quarter Discharge Monitoring Reports. A map with discharge locations must be included in this submittal. If discharges can be shown to be similar, a plan may be submitted by November 1 of each year preceding sampling to propose grouping of similar discharges and/or update previously submitted groupings. If updating of a previously submitted plan is not necessary, a written notification to the Agency indicating such is required. Upon approval from the Agency, one representative sample for each group may be submitted.

Special Condition No. 12: Sediment Pond Operation and Maintenance (Outfalls 004, 005, 007, 016 and 020): a. For discharges resulting from precipitation events, in addition to the alternate effluent (Discharge Condition Nos. II and III) monitoring requirements, as indicated on the applicable effluent pages of this Permit, discharges from Outfalls 004, 005, 007, 016 and 020 shall be monitored and reported for Discharge Rate, Sulfate, Chloride and Hardness. The following sampling and monitoring requirements are applicable to flow in Sugarcamp Branch and the unnamed tributary to Eagle Creek which receive discharges from Outfalls 004, 005, 007, 016 and 020. i. All sampling and monitoring required under 12(b)(ii) and (iii) below shall be performed during a discharge and monitoring event from the associated outfall. Sugarcamp Branch and the unnamed tributary to Eagle Creek shall be monitored and reported quarterly for Discharge Rate, Chloride, Sulfate and Hardness downstream of the associated outfall. This downstream monitoring shall be performed a sufficient distance downstream of the associated outfall to ensure that complete mixing has occurred. At such time that sufficient information has been collected regarding receiving stream flow characteristics and in-stream contaminant concentrations the permittee may request a re-evaluation of the monitoring frequency required herein for possible reduction or elimination. For the purpose of re-evaluating the downstream monitoring frequency of the receiving stream, "sufficient information" is defined as a minimum of ten (10) quarterly sampling events. In the event that downstream monitoring of the receiving waters is eliminated during the term of this permit based on an evaluation of the quarterly data, a minimum of three (3) additional samples analyzed for the parameters identified above must be submitted with the permit renewal application a minimum of 180 days prior to expiration of this permit. iii. Sugarcamp Branch and the unnamed tributary to Eagle Creek shall be monitored and reported annually for Discharge Rate, Chloride, Sulfate and Hardness upstream of the associated outfall.

ii.

Special Condition No. 13: Data collected in accordance with Special Condition No. 12 above will be utilized to evaluate the appropriateness of the effluent limits established in this Permit. Should the Agency's evaluation of this data indicate revised effluent limits are warranted; this permit may be reopened and modified to incorporate more appropriate effluent limitations. This data will also be used for determination of effluent limitations at the time of permit renewal.