Type | Public company |
---|---|
NYSE: MEE | |
Industry | Coal |
Founded | 1920 in Richmond, Virginia |
Fate | Acquired by Alpha Natural Resources |
Headquarters | Richmond, Virginia, U.S. |
Key people | Baxter Phillips, President and CEO Christopher Adkins, SVP & COO John Poma, VP & CAO Shane Harvey, VP & General Counsel |
Revenue | US$2.69 billion (2009) [1] |
US$104.4 million (2009) [1] | |
Number of employees | approx. 5,850 [2] |
Website | www.alphanr.com |
Massey Energy Company was a coal extractor in the United States with substantial operations in West Virginia, Kentucky and Virginia. By revenue, it was the fourth largest producer of coal in the United States and the largest coal producer in Central Appalachia. [3] By coal production weight, it was the sixth largest producer of coal in the United States. [4]
Massey's mines yielded around 40 million tons annually. The company controlled 2.3 billion tons of proven and probable coal reserves in Southern West Virginia, Eastern Kentucky, Southwest Virginia and Tennessee or about a third of all Central Appalachian reserves. [5] It employed approximately 5,850 people, [2] and operated 35 underground mines and 12 surface mines. [6]
Massey Energy owned and operated Upper Big Branch Mine where 29 miners were killed in April 2010. The Mine Safety and Health Administration found that the company's culture of favoring production over safety contributed to flagrant safety violations that caused the coal dust explosion. On December 6, 2011 the Mine Safety and Health Administration announced a $10,825,368 levy against Massey, the largest monetary penalty imposed by the agency in history.
The resulting $10.8 million in total was from 369 citations and orders. Following Alpha Natural Resources' acquisition, Alpha additionally settled Massey's potential criminal liabilities for $209 million. [7] [8] [9]
In January 2011, it was announced that Massey Energy company would be bought by competitor Alpha Natural Resources for $7.1 billion. [10] More than 99% of Massey shareholders and 98% of Alpha shareholders voted in favor of the acquisition and courts in Delaware and West Virginia [11] agreed with the shareholders' vote.
A.T. Massey incorporated the A.T. Massey Coal Company in 1920 as a coal brokering business in Richmond, Virginia, and served as the company's first president. A.T. Massey acquired its first mining operation in 1945 and expanded its business to include coal mining and processing. Five generations of the Massey family headed the company, including Evan Massey in 1945, William E. Massey in 1962, and E. Morgan Massey in 1972. [12]
St. Joe Minerals acquired controlling interest in A.T. Massey in 1974. Six years later, St. Joe Minerals sold 50% of its interest in A. T. Massey to Royal Dutch Shell, forming the Massey Coal Partnership to run the company. [13] In 1981, the Fluor Corporation acquired St. Joe Minerals. [12] In 1984, the United Mine Workers of America went on strike against A.T. Massey, sparking a series of confrontations documented in the film Mine War on Blackberry Creek. Fluor and Royal Dutch Shell dissolved the Massey Coal Partnership in 1987, with each entity assuming ownership of half of the operations. Fluor changed the name of the operations it owned back to A. T. Massey Coal Company, initiating a period of significant growth through acquisitions. [14] [15]
In 1992, Don Blankenship was appointed President, Chairman and CEO of A.T. Massey Coal Company; he served as the Chairman and CEO of Massey for 18 years. Blankenship oversaw continued company growth, including several more acquisitions and the establishment of several subsidiaries. [16] [17]
A.T. Massey completed a reverse spin-off from Fluor Corporation in 2000 and was renamed Massey Energy Company. [18] As of 2010, Massey Energy produced, processed, and sold bituminous coal of steam and metallurgical grades, primarily of low sulfur content, through its 22 processing and shipping centers, called "resource groups," many of which received coal from multiple coal mines. [16]
On Dec. 31, 2010, longtime CEO Don Blankenship stepped down, and was replaced as CEO by Massey President Baxter F. Phillips Jr. [19]
On June 1, 2011, shareholders of Alpha Natural Resources agreed to buy Massey Energy for $7.1 billion, making it the nation's largest metallurgical coal company. Some shareholder groups had tried to block the sale claiming that Massey managers had engineered the sale of the company to protect themselves from liabilities and had arranged new management jobs with Alpha. [20]
In response to a prolonged citizen campaign on the environment, on May 29, 2009 Ohio State University President E. Gordon Gee announced his resignation from the Board of Massey Energy. [21] Gee had said he believed he could do more environmental good on the board than off it. [22]
There are 23 coal mining sites run by Massey Energy. There are 16 sites located in West Virginia, five in Kentucky, and one in Virginia. The organization's headquarters was located in Richmond, VA. Locations in West Virginia: Delbarton, Elk Run, Greun Valley, Guyandotte, Independence, Logan, County, Mammoth, Marfork, Nicholas Energy, Progress Energy, Rawl, Republic Energy, and Stirrat. Locations in Kentucky: Long Fork, Martin County, New Ridge, and Sidney. Locations in Virginia: Knox Creek. [23]
In January 2008, the company agreed to a $20 million settlement with the U.S. Environmental Protection Agency (EPA) to resolve thousands of violations of the Clean Water Act for routinely polluting waterways in Kentucky and West Virginia with coal slurry and wastewater. Although this was the largest Clean Water Act settlement, the violations were estimated to have fines on the order of $2.4 billion. [24]
In October 2000, a coal slurry impoundment owned by Martin County Coal Company, a Massey Energy subsidiary in Martin County, Kentucky, suddenly breached into an abandoned mine below it and released over 200 million gallons of coal slurry into two mountain streams, Coldwater Creek and Wolf Creek. [25] The Martin County coal slurry spill was called the worst ever environmental disaster in the southeastern United States by the EPA. The spill smothered all aquatic life in the streams and left residents with contaminated drinking water. Cleanup costs for the spill were approximately $50 million. [26]
On January 19, 2006, a belt line fire killed miners Don I. Bragg, 33, and Ellery Elvis Hatfield, 47, at Massey's Aracoma Alma Number 1 Mine in Logan County, West Virginia. Efforts to fight the fire were hampered by inadequate fire extinguishers, fire hose couplings which did not match the water line, and a lack of water in the lines. [27] On December 22, 2008, Massey Energy agreed to pay $4.2 million in civil and criminal penalties for the accident. [28] It is the largest financial settlement in the coal industry's history. [29] The Charleston (WV) Gazette reported on January 15, 2009 that Aracoma widows Delorice Bragg and Freda Hatfield urged U.S. District Judge John T. Copenhaver to reject Massey's plea bargain and fine for the accident. [30] Widow Bragg stated that it was clear "that Massey executives expected the Alma Mine to emphasize production over the safety of the coal miners inside."
On February 1, 2006, bulldozer operator Paul K. Moss, 58, of Sissonville, West Virginia died when his machine ruptured a 16-inch (410 mm) natural gas line at Elk Run Coal Co.'s Black Castle surface mine. [31] The bulldozer was immediately engulfed in flames. According to the Mine Safety and Health Administration report, operator Moss exited the cab but his body was found behind the blade. Massey Energy was fined $2.5 million after a federal judge accepted the company's guilty plea to 10 criminal charges for the fire. A U.S. District approved a plea deal despite a provision sparing Massey officials and the Richmond, Va., coal company from prosecution. The agreement also required Aracoma to pay a $1.7 million fine for civil violations found by the federal Mine Safety and Health Administration. [32]
On October 8, 2008, Steven Cain, 32, of Comfort, West Virginia was killed at Massey Energy's Independence Coal Justice No. 1 Mine when he was crushed by a railcar. A Mine Safety and Health Administration report [33] concludes Cain was killed because Massey managers assigned him a dangerous job, although he had “little mining experience and minimal training.” [34]
In 2009, the federal Mine Safety and Health Administration cited Massey Energy's Upper Big Branch coal mine for 495 violations and proposed $911,802 in fines. [35]
On April 5, 2010, an explosion at Massey owned Performance Coal Co. mine in Montcoal, West Virginia resulted in the deaths of 29 miners. The explosion, which has become known as the Upper Big Branch Mine disaster, is the worst mining disaster in 40 years, with a greater loss of life than in any mining accident since the 1970s. The federal Mine Safety and Health Administration (MSHA) released its final report on December 6, 2011, concluding that flagrant safety violations contributed to a coal dust explosion. It issued 369 citations at that time, assessing $10.8 million in penalties. Investigators also noted the historical record of safety violations at the Upper Big Branch mine, which amassed more than 1,100 violations in the past three years, many of them serious, including 50 of them in March 2010 for violations including improper ventilation of methane and poor escape routes. Federal regulators had ordered portions of the mine closed 60 times over the year preceding the explosion. [36] It was claimed, that the FBI had launched a probe investigating the possible bribery of federal officials overseeing mining industry regulation by Massey Energy. [37] [38]
In June 2009, a Raleigh County judge granted a preliminary injunction to block anti-mountaintop removal activists from further protests on some Massey Energy sites. [39] [40]
In 1998, Hugh Caperton filed a lawsuit against A.T. Massey Coal Company alleging that Massey fraudulently canceled a coal supply contract with Harman Mining, resulting in its going out of business. In 2007, when the case came before the West Virginia Supreme Court, Caperton petitioned for Justice Benjamin to recuse himself. Benjamin declined and was ultimately part of the 3 to 2 majority that overturned the jury's $50 million verdict. In November 2008, the United States Supreme Court agreed to hear the appeal. [41] Wal-Mart, PepsiCo, Intel Corporation, Lockheed Martin, Common Cause and Public Citizen filed briefs in the case urging the United States Supreme Court to reject the West Virginia Supreme Court's decision. The briefs contended that Justice Brent Benjamin was biased in the case. [42] On June 8, 2009, The US Supreme Court agreed 5–4, sending the case back to the West Virginia Supreme Court, [43] and forcing Justice Benjamin to recuse himself from the case. The New York Times opined that the case involved "egregious ethical myopia" on the part of Justice Benjamin. [44]
In February 2003, a judge ordered Massey to pay the residents of Sylvester, West Virginia $473,000 to settle complaints that coal dust from Massey's Elk Run Processing Plant had caused health problems and lowered property values in the nearby town. [45] In addition, the payment to the residents of Sylvester, Massey Energy was ordered to construct a cloth dome over their coal processing plant to reduce the dust. [46]
On September 16, 2004, a civil jury ordered Massey to pay $1.54 million in damages to 245 residents of Mingo County, W. Va., who lost their water wells after Massey had mined beneath the homes. The jury concluded that Massey acted “with malicious, willful, wanton, reckless or intentional disregard for plaintiffs’ rights.” [47]
In 2005, Wheeling, W.Va.-based steelmaker Wheeling-Pittsburgh Steel sued Virginia-based Massey Energy claiming Massey failed to deliver on a contract of 104,000 tons of coal monthly. In July 2007, a Circuit Court in Brooke County, W.Va. upheld the jury award of more than $267 million, including accrued interest. Massey appealed the case to the US Supreme Court, which declined to hear the appeal in December 2008. [48]
In 2005, some residents of Raleigh County, West Virginia, complained that Massey's Goals Coal Company was endangering the health and well-being of students at the adjacent Marsh Fork Elementary School.[ citation needed ] In July 2005, the West Virginia Division of Environmental Protection revoked a permit for construction of a coal silo near the school. However, some local employees and residents supported Massey Energy by arguing that the economic benefits received from the company outweigh the environmental impact to the area. 30 non-violent protestors were arrested, including actress Daryl Hannah, NASA climatologist James E. Hansen, and former West Virginia Congressman Ken Hechler. In June 2009, the West Virginia Supreme Court concluded that the Massey was allowed to build their second silo; "We therefore find that the circuit court did not err, and properly affirmed the decision of the West Virginia Surface Mine Board." [49]
In December 2008, residents of Prenter, West Virginia filed a lawsuit claiming that underground slurry injection from a Massey coal facility, and other coal preparation plants, contaminated their underground water supply. On June 12, 2012, a confidential settlement was reached between Massey Energy and the residents of Prenter, West Virginia. [50] [51]
On Oct 30, 2009, Fayette County West Virginia Judge Paul Blake ruled in an age discrimination lawsuit that more than 200 miners who were not rehired after Massey Energy Co. bought a bankrupt West Virginia mine were entitled to a settlement of $8.75 million. The suit covers 229 miners, including 82 union miners. Massey has been ordered to rehire the miners. Under the terms of the settlement, the 82 union miners will each receive $38,000. The remaining miners will receive $19,000. [52]
Among Massey Energy's contributions to the community are an annual Christmas Extravaganza for local children, [53] financial assistance to local schools, [54] and $1 million in college and post-graduate scholarships. [55] Massey co-sponsors the Appalachian Leadership and Education Foundation (ALEF) [56] and in 1997 formed Doctors for our Communities with Marshall University, providing MD student loans that are waived if the recipient practices medicine for a minimum of seven years in Massey's operating region. [57] The Massey Cancer Center of Virginia Commonwealth University is named in honor of William E. Massey for his financial endowment. [58]
In 2005, Massey established the Family Wellness Center that offers medical services to employees' families in McDowell and Logan county in West Virginia, who often lack access to primary care physicians and health care facilities. [59] A Harvard study found that these counties' life expectancies average among the 25 worst in the United States. [60]
A mining accident is an accident that occurs during the process of mining minerals or metals. Thousands of miners die from mining accidents each year, especially from underground coal mining, although accidents also occur in hard rock mining. Coal mining is considered much more hazardous than hard rock mining due to flat-lying rock strata, generally incompetent rock, the presence of methane gas, and coal dust. Most of the deaths these days occur in developing countries, and rural parts of developed countries where safety measures are not practiced as fully. A mining disaster is an incident where there are five or more fatalities.
The Mine Safety and Health Administration (MSHA) is a large agency of the United States Department of Labor which administers the provisions of the Federal Mine Safety and Health Act of 1977 to enforce compliance with mandatory safety and health standards as a means to eliminate fatal accidents, to reduce the frequency and severity of nonfatal accidents, to minimize health hazards, and to promote improved safety and health conditions in the nation's mines. MSHA carries out the mandates of the Mine Act at all mining and mineral processing operations in the United States, regardless of size, number of employees, commodity mined, or method of extraction. David Zatezalo was sworn in as Assistant Secretary of Labor for Mine Safety and Health, and head of MSHA, on November 30, 2017. He served until January 20, 2021. Jeannette Galanais served as Acting Assistant Secretary by President Joe Biden on February 1, 2021 until Christopher Williamson took office on April 11, 2022.
Donald Leon Blankenship is an American business executive, political candidate, and convicted criminal. He was chairman and CEO of the Massey Energy Company—the sixth-largest coal company in the United States—from 2000 until 2010 when an explosion at Massey's Upper Big Branch Mine resulted in the death of 29 workers. He was imprisoned for 1 year for conspiring to violate federal mine safety standards.
International Coal Group, Inc. (ICG), is a company headquartered in Teays Valley, West Virginia that was incorporated in May 2004 by WL Ross & Co for the sole purpose of acquiring certain assets of Horizon. ICG eventually operated 12 mining complexes in Northern and Central Appalachia and one complex in the Illinois Basin. In November 2005, ICG had a stock offering on the New York Stock Exchange. In 2011 ICG became a subsidiary of Arch Coal, Inc in 2011.
The Sago Mine disaster was a coal mine explosion on January 2, 2006, at the Sago Mine in Sago, West Virginia, United States, near the Upshur County seat of Buckhannon. The blast and collapse trapped 13 miners for nearly two days; only one survived. It was the worst mining disaster in the United States since the Jim Walter Resources Mine disaster in Alabama on September 23, 2001, and the worst disaster in West Virginia since the 1968 Farmington Mine disaster. It was exceeded four years later by the Upper Big Branch Mine disaster, also a coal mine explosion in West Virginia, which killed 29 miners in April 2010.
The Aracoma Alma Mine accident occurred when a conveyor belt in the Aracoma Alma Mine No. 1 at Melville in Logan County, West Virginia, caught fire. The conveyor belt ignited on the morning of January 19, 2006, pouring smoke through the gaps in the wall and into the fresh air passageway that the miners were supposed to use for their escape, obscuring their vision and ultimately leading to the death of two of them. The two men, Ellery Hatfield, 47 and Don Bragg, 33, died of carbon monoxide poisoning when they became separated from 10 other members of their crew. The others held hands and edged through the air intake amid dense smoke.
The Martin County coal slurry spill was a mining accident that occurred after midnight on October 11, 2000, when the bottom of a coal slurry impoundment owned by Massey Energy in Martin County, Kentucky, broke into an abandoned underground mine below. The slurry came out of the mine openings, sending an estimated 306 million US gallons of slurry down two tributaries of the Tug Fork River. By morning, Wolf Creek was oozing with the black waste; on Coldwater Fork, a 10-foot-wide (3.0 m) stream became a 100-yard (91 m) expanse of thick slurry.
Elliott E. "Spike" Maynard was an American lawyer and former judge from West Virginia. In 1996 he was elected as a Democrat to the Supreme Court of Appeals of West Virginia. A judge of West Virginia's 30th Judicial Circuit for over 16 years, he was elected as a Democrat to a 12-year term on the Supreme Court of Appeals of West Virginia in 1996.
The Crandall Canyon Mine, formerly Genwal Mine, was an underground bituminous coal mine in northwestern Emery County, Utah.
Robert Edward Murray was an American mining engineer and businessman. He founded and was the chief executive officer of Murray Energy, a mining corporation based in St. Clairsville, Ohio, until it filed for bankruptcy. Murray was criticized for his denial of climate change, his actions following the Crandall Canyon Mine collapse, and for several large SLAPP suits he initiated. Multiple allegations of sexual misconduct were brought against him in 2014 and 2016, which were later settled out of court.
Patriot Coal Corporation was a coal-mining company based in St. Louis, Missouri in the United States. The company is a spin-off of most of the Eastern U.S. operations of Peabody Energy.
The Upper Big Branch Mine disaster occurred on April 5, 2010 roughly 1,000 feet (300 m) underground in Raleigh County, West Virginia at Massey Energy's Upper Big Branch coal mine located in Montcoal. Twenty-nine out of thirty-one miners at the site were killed. The coal dust explosion occurred at 3:27 pm. The accident was the worst in the United States since 1970, when 38 miners were killed at Finley Coal Company's No. 15 and 16 mines in Hyden, Kentucky. A state funded independent investigation later found Massey Energy directly responsible for the blast.
Climate Ground Zero (CGZ), founded in February 2009, is a non-violent civil disobedience campaign against mountaintop removal mining based in the southern coalfields of West Virginia. According to their website, Climate Ground Zero believes “that the irrevocable destruction of the mountains of Appalachia and its accompanying toll on the air, water, and lives of Appalachians necessitates continued and direct action". The organization seeks to end mountaintop removal mining by drawing attention to the issue through protests involving trespass on the property of mining companies. By locking down to machinery on mine sites, occupying trees in the blast zone, or blockading haul roads to mine sites, protesters associated with Climate Ground Zero directly interfere with mining practices. Other protests draw attention to the alleged negligence of regulatory agencies such as the West Virginia Department of Environmental Protection (WVDEP) or the federal Environmental Protection Agency (EPA) by occupying the offices of these governmental organizations. Climate Ground Zero has been referenced in the New York Times, Los Angeles Times, Washington Post, Democracy Now, and the Associated Press.
Alpha Metallurgical Resources is a large American producer of metallurgical coal for the industrial production of steel and iron and low-sulfur thermal coal to fuel steam boilers for the production of electrical power. In November, 2018 the company was acquired by Contura Energy. The company also provides industry services relating to equipment repairs, road construction and logistics, with domestic operations and coal reserves within the states of Virginia, West Virginia, Kentucky, Wyoming, Utah, Illinois, Tennessee, and Pennsylvania. Alpha Natural Resources does not produce all of the coal it sells; much of the coal sold by Alpha Natural Resources is purchased from independent mining operations and then resold in the worldwide market.
Environmental issues in Appalachia, a cultural region in the Eastern United States, include long term and ongoing environmental impact from human activity, and specific incidents of environmental harm such as environmental disasters related to mining. A mountainous area with significant coal deposits, many environmental issues in the region are related to coal and gas extraction. Some extraction practices, particularly surface mining, have met significant resistance locally and at times have received international attention.
American Consolidated Natural Resources, previously known as Murray Energy, is a US-based coal mining company. It is the fourth largest coal producer in the country, and the largest privately-owned coal company. Founded in 1988 by Robert E. Murray, the company filed for bankruptcy in 2019. The company gained notoriety following the collapse of the Crandall Canyon Mine in 2007, following a number of citations and fines for safety practices at the site.
J. Davitt McAteer is an American lawyer, author, and activist from Fairmont, West Virginia. McAteer was appointed to the position of assistant secretary for the Mine Safety and Health Administration from 1993 to 2000 under President Bill Clinton. Throughout his career, McAteer has been an advocate for safe working conditions for miners, particularly in the coal industry. After the Upper Big Branch Mine disaster of 2010, where an explosion caused by negligence led to the death of 29 miners, McAteer Served on Governor Earl Ray Tomblin's independent investigation panel to determine the cause of the explosion. McAteer is the author of "Monongah: The Tragic Story of the 1907 Monongah Mine Disaster".
Jack Spadaro is an American mining engineer. He is from West Virginia and is known for bringing attention to oversights of the government in relation to the Martin County coal slurry spill and whistleblowing on the subsequent downplaying of the role of the government and Massey Energy in the disaster.
Alpha Metallurgical Resources, formerly Contura Energy, is a leading coal supplier with underground and surface coal mining complexes across Northern and Central Appalachia. Contura owns large coal basins in Pennsylvania, Virginia and West Virginia which supply both metallurgical coal to produce steel and thermal coal to generate power.
The Martin County water crisis is an on-going public health crisis that began in 2000, when a coal slurry spill contaminated the area’s water supply with cancer-causing disinfection byproducts and coliform bacteria. Residents report the water having a strong smell of chlorine, discoloration, odd taste, sediment and irritation/burning when in contact with skin. The contamination was caused by the spillage of approximately 300 million gallons of arsenic and mercury concentrated coal sludge into an abandoned underground mine and two tributaries of the Tug Fork River by local coal company Massey Energy Company on October 11, 2000. According to the Environmental Protection Agency (EPA), the spill was one of the worst environmental disasters ever in the southern United States.
[T]he properties of A.T. Massey Coal Company were divided between its parents, Fluor Corporation and Royal Dutch Shell. Massey was the eighth-largest U.S. producer in 1986
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