(Reuters) - Patriot Coal Corp said it will pay $7.5 million in civil penalties to the federal government and the West Virginia Land Trust to resolve claims related to a consent decree it signed.
The company signed a consent decree with three environmental bodies to resolve claims under the Clean Water Act relating to its mining activities in West Virginia.
"This settlement provides a comprehensive framework for Patriot to address selenium across our properties going forward," the company said in a statement.
Patriot, which idled two units and three contractor-operated mines in Southern West Virginia last week, signed the decree with the Ohio Valley Environmental Coalition Inc, the West Virginia Highlands Conservancy Inc and the Sierra Club.
Shares of the company closed at $7.66 on Wednesday on the New York stock Exchange.
(Reporting by Durba Ghosh in Bangalore; Editing by Gopakumar Warrier)