Massey Energy Offers $35 Million To Settle Coal Slurry Pollution Case

After seven years, Massey Energy Co. is offering a $35 million settlement to hundreds of West Virginians who claim coal slurry has poisoned drinking wells near their homes. 

Although Massey's lawyers said the financials would not be disclosed, the AP obtained a letter Massey sent to offer millions more in addition to the existing $5 million medical monitoring fund set by Massey subsidiary, Rawl Sales & Processing.

After lawyer fees, the payout would average $50,000 per plaintiff. However, amounts will vary based on the severity of each person's health effects.

Circuit Judge Alan Moats said that he and other lawyers involved with the case worked long hours to create an agreement. It was the third formal attempt to settle the case.

"It was a huge team effort," said Moats. "[It] shows justice can be done and cases can be officially moved even if they are cases like this."

Slurry is the wastewater produced after coal is washed. The plaintiffs claim that over 1.4 billion gallons of the toxic liquid was dumped into abandoned mines between 1978 and 1987, eventually finding its way into wells used for drinking water.

Residents say the slurry turned their drinking water shades of red, brown and black. They claim the pollution of heavy metals coincided with an increase in cancer and birth defects in their towns.

The plaintiffs are currently under a gag order, however a statement was issued by their council.

“After a seven-year long fight and looking after one another, the good people of Rawl, Lick Creek, Merrimac, and Sprigg have achieved a settlement,’’ said lawyer Bruce Stanley.

The medical monitoring plan was specifically mentioned as giving the plaintiffs "a fighting chance against potential future diseases."

A settlement hearing has been set for Sept. 29.