AP reported that Massey Energy Co has offered USD 35 million to settle a lawsuit with hundreds of southern West Virginia residents who say the company poisoned their drinking water with coal slurry.

The settlement proposed last month is confidential, but Associated Press obtained a letter sent to the plaintiffs that lays out some details. It said that the USD 35 million is in addition to USD 5 million that Massey and a subsidiary, Rawl Sales & Processing, had previously agreed to put into a medical monitoring fund.

Massey is now owned by Virginia based Alpha Natural Resources. The letter doesn't say how much the lawyers are seeking. The attorneys refused comment, citing a court imposed gag order.

A hearing on the settlement and its distribution is set for September 29th 2011 in Charleston.

(Sourced from Associated Press)