2016-04-13_HYDROLOGY - C2009087 - Laserfiche WebLink

Home Browse Search

EXHIBIT B Part IV - Application of Mitigating Circumstances Part V- Economic Benefit Consideration Amount in Dollars Line Economic Benefit 22 $151000.00 Justification: Economic benefit represents the financial gains that a violator accrues by delaying and/or avoiding pollution control expenditures. While economic benefit is typically calculated based on avoided or delayed investments associated with capital improvements, an economic benefit evaluation also includes costs associated with engineering, administration, legal, and other costs associated with preventing and/or responding to instances of non-compliance. In this case, Peabody did not achieve compliance with the selenium effluent limitation by investments in capital pollution control equipment. Instead Peabody pursued a regulatory alternative (temporary modification) to address the non- compliance. While treatment may be the ultimate solution, it is not appropriate to estimate treatment costs for the purposes of calculating the economic benefit component in this case. However, the Division has determined that Peabody did realize an economic benefit by avoiding expenditures on administrative, engineering, and legal fees prior to or immediately in response of the violations. Because the Division does not have adequate information to make a quantitative determination of economic benefit, the Division chose to make an alternate determination of economic benefit. In accordance with Part C.2.a. of the Civil Penalty Policy, the Division chose to "move W' the initial fault Category 2 assignment to a Category 3. The Division Peabody Penalty Computation Worksheet Page 5 of 6 Mitigating Circumstances % Base Penalty Decrease Amount in Dollars Line 16 Factor A: Adhering to a Compliance Schedule -15% -$8,661.00 Justification: Peabody met all of the compliance requirements outlined in the NOV/CDO within acceptable time periods. For the purposes of this penalty calculation, the Division has reduced the base penalty by the maximum allowed 15%. Line 17 Factor B: Steps Taken Beyond Required Actions 0% $0.00 Justification: Line 18 Factor C: Environmental Compliance Project 0% $0.00 Justification: Line 19 Factor D: Other Mitigating Circumstances 0% $0.00 Justification: Line 20 Sum of Lines 16 through Line 19 0% $0.00 Line 21 Adjusted Base Penalty Total (Sum of Line 15 + Line 20) $49,082.00 Part V- Economic Benefit Consideration Amount in Dollars Line Economic Benefit 22 $151000.00 Justification: Economic benefit represents the financial gains that a violator accrues by delaying and/or avoiding pollution control expenditures. While economic benefit is typically calculated based on avoided or delayed investments associated with capital improvements, an economic benefit evaluation also includes costs associated with engineering, administration, legal, and other costs associated with preventing and/or responding to instances of non-compliance. In this case, Peabody did not achieve compliance with the selenium effluent limitation by investments in capital pollution control equipment. Instead Peabody pursued a regulatory alternative (temporary modification) to address the non- compliance. While treatment may be the ultimate solution, it is not appropriate to estimate treatment costs for the purposes of calculating the economic benefit component in this case. However, the Division has determined that Peabody did realize an economic benefit by avoiding expenditures on administrative, engineering, and legal fees prior to or immediately in response of the violations. Because the Division does not have adequate information to make a quantitative determination of economic benefit, the Division chose to make an alternate determination of economic benefit. In accordance with Part C.2.a. of the Civil Penalty Policy, the Division chose to "move W' the initial fault Category 2 assignment to a Category 3. The Division Peabody Penalty Computation Worksheet Page 5 of 6