October 9, 1998  Genwal Coal Company Inc.

Two Huntington, Utah, mining companies have agreed to pay over $200,000 to settle claims asserted in a qui tam action filed by John Donnelly, one of the company’s former employees.

The allegations of the case were that Genwal Coal Company Inc. and Castle Valley Resources Inc. knowingly submitted false reports to the government and thereby underpaid royalties due to the government for coal extracted from federal land in 1990 and 1991. All coal mined from federal property, except for coal unavoidably lost, is subject to a royalty.

As part of the settlement, Mr. Donnelly will receive nearly $40,000 for having filed the qui tam case.

See U.S. Dept of Justice Press Release 10/9/98

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