Jun. 10—DANVILLE — The state of Illinois has resolved a lawsuit against a power company that ran a power station that allegedly polluted the Vermilion River.

Attorney General Kwame Raoul announced Friday a consent order with Dynegy Midwest Generation LLC that requires the company to close three ponds at its now-shuttered Vermilion Power Station and remove an estimated 3 million cubic yards of dumped coal ash near the Middle Fork of the Vermilion River produced by operations at the station.

The order was signed by Vermilion County Judge Tom O'Shaughnessy and resolves a 2021 lawsuit brought by the state alleging that Dynegy's disposal of coal ash led to groundwater pollution surrounding the power plant and created a public nuisance.

The consent order also requires Dynegy to comply with the statutory and regulatory framework governing coal combustion residual surface impoundments, to continue implementation of the Dewatering Plan and Groundwater Collection Trench Plan at the site, to complete a safety emergency response plan, and continue ongoing riverbank inspections.

The company was also ordered to pay a $100,000 civil penalty and fund two beneficial environmental projects totaling $400,000.

Besides Raoul's office, also involved in the negotiated settlement of the suit was the office of Vermilion County State's Attorney Jacqueline Lacy, the Illinois Environmental Protection Agency, the Illinois Department of Natural Resources, Dynegy and Prairie Rivers Network, represented by EarthJustice.

"While the Vermilion Power Station was operating, Dynegy dumped coal ash generated during operations, which endangered the surrounding environment and the Vermilion River, our state's only national scenic river," Raoul said.

"This consent order will result in cleanup of this natural area, and I appreciate Vermilion County State's Attorney Lacy's partnership on this important issue. I will continue to work with the Illinois Environmental Protection Agency to hold companies accountable when they violate our environmental laws."

Lacy said the order not only penalizes Dynegy but should ensure the future safety of the Middle Fork.

"The Middle Fork is a popular location for outdoor recreational activity, and has been designated as Illinois' only National Scenic River under the Federal National Wild and Scenic Rivers Act," she noted.

The Illinois Environmental Protection Agency referred the matter to Raoul's office for prosecution.

"Illinois EPA's work on this issue will continue as we review Dynegy's proposed coal ash impoundment closure plans to ensure the protection of groundwater, public health, and our natural resources," said EPA Director John Kim.

Dynegy owns the property in Oakwood where a coal-fired Vermilion Power Station operated until November 2011. The company burned coal to generate electricity, resulting in the creation of coal ash that Dynegy dumped in human-made ponds at the site.

Coal ash can contain a number of harmful byproducts that can contaminate groundwater and the nearby Middle Fork of the Vermilion River. The river's banks continue to steadily erode, and Raoul's lawsuit alleged the proximity of the coal-ash ponds in the floodplain further threatened the river's well-being.

Raoul's office is responsible for enforcing Illinois' environmental protection laws and has recovered millions of dollars from polluters and required companies to initiate improvement projects in communities impacted by pollution.

Bureau Chief Stephen Sylvester and Senior Assistant Attorney General Kathryn Pamenter handled the case for Raoul's Environmental Enforcement Division.