The state Energy and Environment Cabinet is in court this morning, along with lawyers representing two coal companies and environmental groups. The parties disagree about the amount of money the coal companies should pay for water pollution.The Energy and Environment Cabinet took the coal companies to court after environmental groups uncovered evidence that coal companies were falsely reporting the pollution they release in waterways. But the environmental groups—which include Appalachian Voices and Kentuckians for the Commonwealth—thought Kentucky’s penalties were too low, and were granted permission to intervene.Now, Judge Phillip Shepherd has ordered the parties back to court for a pretrial conference. They’ve been in mediation for the past few months, and if they haven’t reached an agreement, the decision is up to the judge.Shepherd wants the state to demonstrate it has the necessary staff and budget to make companies comply with the Clean Water Act. A year and a half ago, Secretary Len Peters admitted the departmentdidn’t have the resources to fully enforce all of the laws, as regulations increase.The Energy and Environment Cabinet declined to comment, but sent this statement: