http://www.thestar.com/Business/article/294957"Coal producer agrees to $30M for polluting", Jan. 17, 2007This article refers to Massey Energy Co., the fourth largest coal producer in the United States, agreeing to a $30 million settlement for their pollution over seven years. This company has polluted many streams and waterways and has also failed to control spills of coal slurry during operation. Under the agreement, they will pay $20 million in civil penalties and invest $10 million in pollution control improvements at their mining and coal facilities. Baxter F. Phillips Jr., the company’s executive vice president and chief administrative officer, said that the agreement will benefit the environment as well as the company’s shareholders.
Relationship to Ch. 3 – third-party effects
This article relates to the chapter because it shows the government intervening to reduce the negative third-party effects which is caused from the coal producer doing business. We learned that pollution has negative third-party effects. Since January 2000, Massey Energy Co. has violated the federal Clean Water Act at least 4500 times by releasing mining waste and sediment into streams and waterways. The government decided to intervene by getting the company to agree to a $30 million settlement. By intervening, the government should be able to reduce the negative third-party effects of the pollution caused by the coal producing company.
Even though the mine and coal facilities are located in the United States, it still has a large impact on me since pollution effects the entire world. Pollution can be transferred around the world through air and water. I am glad that the government finally intervened after seven years or else they would have continued polluting the water for even longer. Out of the $30 million settlement, I feel that the $10 million spent on pollution control is more beneficial to society because now the company will be able to dispose their waste correctly instead of discharging it into the water.
