DTE Energy 2012 Annual Report Download - page 23

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Table of Contents
Unresolved Staff Comments
None.
Legal Proceedings
We are involved in certain legal, regulatory, administrative and environmental proceedings before various courts, arbitration panels and governmental
agencies concerning matters arising in the ordinary course of business. These proceedings include certain contract disputes, environmental reviews and
investigations, audits, inquiries from various regulators, and pending judicial matters. We cannot predict the final disposition of such proceedings. We
regularly review legal matters and record provisions for claims that are considered probable of loss. The resolution of pending proceedings is not expected to
have a material effect on our operations or financial statements in the periods they are resolved.
In July 2009, DTE Energy received a Notice of Violation (NOV)/Finding of Violation (FOV) from the EPA alleging, among other things, that five of DTE
Electric's power plants violated New Source Performance standards, Prevention of Significant Deterioration requirements, and operating permit requirements
under the Clean Air Act. In June 2010, the EPA issued a NOV/FOV making similar allegations related to a recent project and outage at Unit 2 of the Monroe
Power Plant.
In August 2010, the United States Department of Justice, at the request of EPA, brought a civil suit in the U.S. District Court for the Eastern District of
Michigan against DTE Energy and DTE Electric, related to the June 2010 NOV/FOV and the outage work performed at Unit 2 of the Monroe Power Plant, but
not relating to the July 2009 NOV/FOV. Among other relief, the EPA requested the court to require DTE Electric to install and operate the best available control
technology at Unit 2 of the Monroe Power Plant. Further, the EPA requested the court to issue a preliminary injunction to require DTE Electric to (i) begin the
process of obtaining the necessary permits for the Monroe Unit 2 modification and (ii) offset the pollution from Monroe Unit 2 through emissions reductions
from DTE Electric's fleet of coal-fired power plants until the new control equipment is operating. On August 23, 2011, the U.S. District Court judge granted
DTE Energy's motion for summary judgment in the civil case, dismissing the case and entering judgment in favor of DTE Energy and DTE Electric. On
October 20, 2011, the EPA caused to be filed a Notice of Appeal to the U.S. Court of Appeals for the Sixth Circuit. Oral arguments at the Court of Appeals
were held on November 27, 2012 and a decision is expected in early 2013.
DTE Energy and DTE Electric believe that the plants identified by the EPA, including Unit 2 of the Monroe Power Plant, have complied with all
applicable federal environmental regulations. Depending upon the outcome of discussions with the EPA regarding the two NOVs/FOVs, DTE Electric could be
required to install additional pollution control equipment at some or all of the power plants in question, implement early retirement of facilities where control
equipment is not economical, engage in supplemental environmental programs, and/or pay fines. DTE Energy and DTE Electric cannot predict the financial
impact or outcome of these matters, or the timing of its resolution.
In October 2010, the Company received a Notice of Violation from the Michigan Department of Natural Resources (MDNRE) alleging that the Michigan
coke battery facility violated the visible emission readings and quench water sampling requirements under applicable National Emissions Standards for
Hazardous Air Pollutants regulations. This Notice of Violation resulted from the Company self reporting to the MDNRE and the EPA questionable activities by
an employee of a contractor hired by the Company to perform visible emissions readings and quench water sampling. The information provided by the
contractor was used by the Company in filing certain reports with the MDNRE and the EPA. The Company has ceased using the contractor for these
activities, has retained a new certified contractor to perform the required activities and implemented standard operating procedures designed to prevent a
reoccurrence of such a situation. At this time, the Company cannot predict the outcome or financial impact of this issue.
For additional discussion on legal matters, see Notes 11 and 19 of the Notes to Consolidated Financial Statements in Item 8 of this Report.
Mine Safety Disclosures
Not applicable.
21