Grant for proposed coal mine approved

The Greene County Commissioners voted 2-1 Monday to approve a grant which would allow the Lily Group to purchase $1 million in equipment for Landree Mine, proposed near Jasonville.

"I feel like it's time to move on with this," Commission President Bart Beard said, following two meetings in a month spent debating over the proposal.

However, the move didn't come without Beard's two fellow commissioners expressing considerable concerns.

Should the mine pass environmental permitting, it could create 100 jobs, a condition of the no-match Office of Community and Rural Affairs grant.

Commissioners aren't sure that will occur. They reserved the right, on the advice of attorney Marilyn Hartman, to withdraw their sponsorship should environmental permits not pass muster.

They also requested Lily Group and CamCo, the low bidder, who was awarded the contract to manufacture the underground mining equipment, be informed the commission won't release the grant until all requirements are met.

That means that if the companies assume the risk, not the county, for any expenses incurred before the grant is freed up. If the mine fails to meet environmental permitting as necessary, the grant could be taken away.

The deadline for the environment permits is June 30, while the grant itself must be closed out by April 30, 2011.

The county assumes no liability for the debt, per the discussion. Lily plans to open an underground coal mine south of Jasonville, by spring of 2010 which would create up to 100 new jobs, said Lily CEO Rick Risinger.

The refurbished mining equipment will take up to six months to manufacture. Thus, ordering the equipment now could save delays later which might hold up jobs, he said.

"We have to act," Risinger said. "We're willing to assume all liability. not asking the county to assume any liability."

Commissioner Kermit Holtsclaw, who seconded Beard's motion to sign the grant, nonetheless raised concerns the company might not have their environmental permits approved.

"I went to see the DNR, and they told me your application had so many deficiencies in it that they sent it back to you," he said.

Holtsclaw reported DNR officials also said word of that returned application reached Risinger the Friday before a commission meeting two weeks ago, questioning why he'd represented the process as being further along.

"You knew it had been rejected when you came in here," Commissioner Steve Lindsey said. "Why did you represent to us that it had been approved?"

Risinger said he hadn't.

"I never represented that the permit was approved. It was deemed administratively complete."

However, Risinger said the company continues to work with the DNR and the U.S. Department of Fish and Wildlife. Several issues remain, "some of which we can't get into at this time," he said.

"There are things going on there that we are not at liberty to discuss at this time," Risinger said, adding not all involve the mine.

Holtsclaw also expressed concern he's heard from lawmakers that the proposed mine is intended for "short-term" use.

"I don't know who gave you that impression," Risinger said, adding the mine's operating life is intended to last between 15 and 20 years.

Holtsclaw didn't say which legislator had suggested the mine won't last long.

Lindsey, the sole commissioner to vote against awarding the grant Monday, questioned Risinger further, suggesting the mine's proposed use of the money has changed from providing electrical supplies to buying equipment.

"That's what you've all decided to do with the money this week, at least," Lindsey said.

Originally, the grant was intended to assist with the cost of running electrical service to the mine site by Duke Energy, Inc., said Joan Bethell, the executive director for the Greene County Economic Development Corp., who has been assisting in the effort.

That proposal was changed, however. Now, the company plans to pay for the cost of the electrical line installation through Duke. That plan could have substantial benefits for the city of Jasonville, which Risinger said would rebuild part the infrastructure of its electrical service, increasing its power supply capacity at the company's cost with the addition of a 138,000-volt power line.

"Jasonville's pretty well tapped out right now," he said. "It's win-win for everybody."