Section 401 Certification

• Client: Power company
• Date: October 2009
• Location: Illinois

Summary:

Due to continuing drought like conditions, Schiff Hardin's client, a power company, needed to obtain approval for the movement of additional water to a manmade lake that was used as a cooling source for its power plant.

The project had been stalled for close to two years due to concern with the quality of the water that would be transferred from a nearby creek into the lake. The pollutant of concern, however, was attributable to years of farming and other sources in the area and not the power plant operations. State regulators sought to have our client treat the creek water prior to transfer at a cost of over $100 million. The continued failure of the state government to approve the project would have resulted in a temporary shut down of the power plant, or grave damage to the ecosystem of the lake due to declining lake water levels. Prior to either situation occurring, our client also would have been required to terminate a lease with the state's Department of Natural Resources, and prohibit the extensive use of the lake for recreational purposes.

In a case of first impression in Illinois, our attorneys were able to successfully negotiate an approach that did not require costly water treatment and allowed for the state approval of the project to proceed. Federal approval followed shortly thereafter without triggering any negative consequences.