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Sullivan coal mining companies to get help from the state for $ 1 million for the procurement of mining equipment for underground mine workers. Grants intended to improve the mining exploration activities. But commissioners Southern Indiana Development Commission does not believe aid will be used properly.

The commissioners were unsure of the grant’s actual use and there was no one at the meeting from Southern Indiana Development Commission or the mine company that could answer specific questions they had.

Consequently, the resolution won’t be considered until the commissioner’s next meeting on Nov. 2 after they have had a chance to be updated on the project.

However, the delay is not expected to curtail the project.

Lily Group, Inc. plans to open an underground coal mine, south of Jasonville, by the spring of 2010 that will create up to 100 new jobs.

The company is seeking a $1 million grant to purchase equipment through the Indiana Office of Community and Rural Affairs’ Disaster Recovery II/Economic Development Job Creation grant program for the proposed Landree Mine.

The county commissioners have agreed to be the sponsoring agency for this no-match grant.

Michelle Carrico, a spokesperson for SIDC, told the commissioners that she expected the grant to be finalized by the “end of the day” on Monday. Carrico said she had few details about the project because she was appearing at the meeting on behalf of SIDC executive director Greg Jones, who was ill, and had been working closely with the grant and the mine developers.

“We don’t have to do anything,” commissioner’s president Bart Beard said. “We can wait two weeks.”

The commissioner’s voted 2-0-1 to table the resolution with commissioner Steve Lindsey abstaining.

Originally, the grant was being sought to assist with the cost of running electrical service to the mine site by Duke Energy, Inc., according to the commissioners.

However, that proposal was amended and now the company will pay for the cost of the electrical line installation and is seeking assistance for the equipment purchase through this grant, Greene County Economic Development Corporation Executive Director Joan Bethell told the Greene County Daily World.

Bethell said she plans to address the Greene County Council on Oct. 26 and request a tax abatement for the firm.

Carrico did present the commissioners with three equipment quotes for the Lily Group mining project.

The low bid was from Kammco LLC in the amount of $1,010,000. WW Electric/Webster LLC bid $1,096,000 while Custom Engineering Company, Inc. bid $1,195,00.

Lily Group, Inc. (LGI) is a development stage company in the energy resource industry that has been formed to hold, explore, develop, operate, and manage natural resource properties, with an initial focus on coal exploration.

Lily Group was founded in the fall of 2007 by Rick Risinger to develop, operate, and open access to a known coal reserve located in Greene County.

Lily Group (LGI) had acquired a mineral deed encompassing approximately 1,400 acres of coal. LGI is currently nearing the end of the permitting phase and intends to mine and sell coal from this property — known as the Landree Mine — in the first quarter of 2010.

Lily Group has also secured the rights to mine the coal adjacent to the Lily Group Property — the WPPLP Property — from Western Pocahontas Properties Limited Partnership. This acquisition adds another 1,400 approximate acres of coal in the Landree Mine. In total, LGI controls 2,800 acres of coal.

At a later phase, LGI also anticipates the mining an estimated recoverable reserve of 15.5 million tons.

The coal is to be accessed by slope to a depth which ranges from 114 to 175 feet, with an average of 130 feet. Coal thickness ranges from 1.96 to 4.84 feet, according to information from the company.

Bethell said the opening of this mine will be welcome news to the Greene County area.

“This (grant) will help them (Lily Group) get a good start and get the business off the ground,” Bethell said. “They are anticipating about 100 jobs and the average pay is over $50,000 (per year).

“We’ve got miners here (in Greene County) who need work.”

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