DEQ, Duke Energy Reach $20 Mln Groundwater Contamination Settlement

In March, DEQ-then known as the North Carolina Department of Environmental and Natural Resources (DENR)- levied a $25 million fine against Duke Energy for groundwater contamination from coal ash at its Sutton Facility. In response, the company appealed the fine to the Office of Administrative Hearings, citing a number of instances where evidence demonstrates that the regulator acted contrary to state law, the agency’s own rules, policies and procedures and the longstanding interpretation of the regulations. “This agreement holds Duke Energy accountable for past groundwater contamination and mandates that Duke Energy expeditiously clean up polluted groundwater near its coal ash sites”, said DEQ Secretary Donald van der Vaart. In 2013, Duke closed the plant’s coal operations and opened a $600 million natural gas facility.

However, Duke Energy spokeswoman Paige Sheehan said the company hasn’t determined how much the accelerated cleanups will cost.

Duke Energy made a statement saying they will put this issue behind them and said, “we are making progress wherever possible, including these actions in recent months”.

The settlement includes Duke Energy paying $7 million in fines and penalties for past groundwater contamination at all of its 14 coal ash facilities, as well as $10 to $15 million to speed up clean-up at the four sites previously.

“Our chief goal is to protect the environment and public health while requiring corrective action to restore groundwater quality”. Groundwater tests are underway to learn whether ash has also contaminated private wells near the power plants.

Announced plans to retire the coal-fired Asheville Plant (Asheville, N.C.) in four to five years and modernize our generation and transmission system in Western North Carolina and Upstate South Carolina – significantly reducing environmental impacts, improving system reliability and minimizing long-term costs to customers.

But the company argued that a 2011 state policy encouraged remediation actions for ash pond leaks in lieu of fines.

The DEQ says the settlement requirements are in addition to what’s required by under coal ash management act.

The Sutton Plant – located north of Wilmington along the Cape Fear River – opened in 1954 as a coal facility.

The legislature a year ago ordered Duke to close all 32 of its coal ash ponds by 2029, a few sooner than others, including the pond at the Riverbend plant near Charlotte.