Alcoa (NYSE:AA) to Appeal Revocation of Water License

Alcoa's (NYSE:AA) subsidiary Alcoa Power Generating Inc., is researching the process to appeal the decision by the NC Division of Water Quality to revoke their water quality certification, which would have allowed them to manage hydroelectric dams on the Yadkin River and near Badin Lake for another 50 years.

Alcoa spokesman Mike Belwood said, “It’s important that we protect our legal rights,” adding lawyers of the company are investigating how to move ahead with an appeal procedurally.

Director of the NC Division of Water Quality, Coleen Sullins, alleged Alcoa “intentionally withheld information material to determining the project’s ability to meet the state’s water quality standards for dissolved oxygen.”

Sullins added, “The process of certification relies on applicants submitting accurate and comprehensive information to the division. When they do not, revocation is warranted.”

All of this is based upon sifting through thousands of e-mails and finding a total of four which appear to sugget Alcoa was deliberately withholding information.

Belwood responded, saying, “The e-mail conversations should be put in perspective. They were just a few conversations among thousands that occurred over many years and represent the discussions of a team working on a very complex project. Over the course of many years, we never lost sight of the fact that we are required to meet water quality standards and our objective the entire time was to develop a plan that would do so.”