Corporate Buyouts of Mines Play Part in Safety Issues

West Virginia was the second largest producer ofWeirton Steel Co., all in bankruptcy at the time.
coal in the United States in 2005, producing 160However, the deals depended on the United
million tons or 13% of total production, whileSteelworkers Union agreeing to contract
Wyoming was number one, producing 380 millionconcessions and billions of dollars in unfunded
tons, approximately 35% of the nation's total coalpension benefits which were ultimately dumped on
production. However, the coal produced by Westthe federal pension benefits program by Ross and
Virginia is more in demand than that which isnow paid by the U.S. taxpayers.Unlike the steel
produced in western states as it is considered abusiness, however, coal mining is dependent upon
cleaner burning coal.With demand for alternativesafety measures necessary to execute every
energy sources in the U.S. at an all time high, the24-hours, requiring constant follow-up. It can mean
price of coal doubled over the past two years, asthe difference between life and death. The
natural gas and oil prices have sky rocketed withlearning curve has changed with investors who did
supplies diminishing, especially in the wake ofnot originate from the mining industry and running
Hurricane Katrina in the Gulf of Mexico in Augustmining operations, some of which have been
of 2005. The Gulf produces nearly 40% of theclosed for years, and housing a host of unsafe
nation's natural gas and refines nearly 30% of theconditions much less present in a maintained mine.
nation's oil and is still hampered by the storm'sIn addition, many unskilled miners are coming into
devastation. In 2006, coal is expected to providethe workforce in non-union environments and lax
over 50% of the energy necessary for U.S.federal government oversight, in which many
electric utilities and speculators expect the futurecitations and fines in very small amounts are doled
of the coal industry to extend its growth overout, rarely if ever shutting down a mine for
the next decade, returning to its rate ofunsafe working conditions.Much has been publicized
production prior to the 1970's.The tragedies of theabout the number of citations Sago Mine received
2005 hurricane season along the Gulf Coast asin 2005. MSHA levied 208 citations, orders and/or
well as the subsequent flooding of New Orleans,safeguards. Half of the citations were for
LA served to expose flawed emergency services"significant violations" which generally commanded
systems on all levels of government in addition tofines between $60.00 and $440.00. The fines
failed levee maintenance. Victims who enduredtotaled approximately $25,000. However, in the
Hurricane Katrina and Hurricane Rita as well as11-week review ending December 22, 2005 and
several other storms in Louisiana, Mississippi, partsthree times in a period of five days, MSHA cited
of Texas as well as Florida, have been promisedthe mine for 46 alleged violations with 18 deemed
that government and its respective agencies"unwarrantable failures" and with three still pending.
would be examined and mistakes made would beAccording to Ben Hatfield, President of ICG, all
corrected. Yet it remains to be seen if properviolations were corrected; however, the MSHA
funding oversight will be followed through or ifhas yet to publicly release any documents nor will
indeed lessons will be learned.Similarly, the miningcomment on the three pending violations.Serious
explosion of Sago Mine in Tallmansville, WVA, inviolations which Sago was cited for included failing
which 12 miners lost their lives on January 2,to enforce an adequate ventilation plan, key to
2006, with one surviving miner who still remains inpreventing the buildup of methane gases which
a coma as of a week later, will be steeped inoccur naturally underground, failing to conduct
paperwork and months of several independentsafety inspections before each 8-hour shift, 11
investigations, including federal and state hearings.roof collapses over the course of the past year
While it would appear that running a miningand dangerous buildup of flammable coal dust.While
operation is fairly straight forward, the fact thatthe ICG has skirted answering questions thus far,
the work in this underground mine is done 25Ben Hatfield did lay blame on the inherited
stories below the surface of the earth, makes itproblems from the Anker group. But also
ripe for facts to be less than forthcoming. Butimportant to the upcoming investigations will be if
maybe the legacy of the tragedy of Sago willthere were continued failure of safety inspections
unveil the real cost of the purchase of miningand prior to entering the mine over the New
operations in the 21st century, by investors withYear's weekend, at which time the mine was shut
little or no interest in the history of mining or itsfor two days. Closed mines can be deadly
real inherent risks.The evolution of miningespecially during winter, when methane
technology as well as the work of the United Mineaccumulates faster due to cold temperatures and
Workers Association (UMWA) has led the way forchanges in barometric pressure.In addition, Sago
miners' safety rights vastly improving the lives ofdid not keep a rescue team on site, like a good
miners throughout the U.S. The UMWA wasmany operations due. And speculation of the
largely responsible for the advent of the Federaldelay in getting a team together was further
Coal Mine Health and Safety Act of 1969, knownhampered by federal and state workers who
as the Coal Act, which established health andwould normally be available, were not since
safety standards for miners both in undergroundJanuary 2nd was an observed Monday holiday
and above-ground mines. The Bureau of Minesfollowing New Year's Day. Since Sago chose to
was given the power to levy fines and criminalopen knowing that it was a state and federal
penalties on mines in violation of the law. Inholiday it may have put its crews at unnecessary
addition, free chest x-rays were available forrisk, as it took 11 hours for a rescue team to be
underground miners as well as a compensationassembled. That will also be examined by the
fund.The Coal Act was amended in 1977 in whatseveral investigations already having been
is now known as the Federal Mine Safety andannounced.The MSHA will conduct its own
Health Act, or the Mine Act, which is the prevailinginvestigation, and West Virginia Governor, Joe
legislation today. The Mine Act helpedManchin, III, has hired former Director of MSHA
strengthened the Coal Act with betterunder President Clinton, J. Javitt McAteer, to be
enforcement of its statutes and combined federalspecial advisor to the investigation for the state
safety and health regulations for all mines, coalof West Virginia. The White House will lodge
and non-coal, under the same piece of legislation.another investigation with requests by Senators
In addition, a new agency within the Departmentand the House Representatives calling for hearings
of Labor, known as the Mine Safety and Healthon Sago as well as on mine safety.Similar to the
Administration (MSHA) was established with adiscovered cuts in the funding of levee
director appointed by the president of the U.S.Themaintenance after Hurricane Katrina hit New
UMWA was founded in Columbus, OH in 1890 withOrleans, funding for MSHA for 2006 was cut $5
the merger of the Knights of Labor Trademillion from 2005. The agency also has seen a
Assembly No. 135 and the National Progressivedecrease of 170 staffers since 2001. Also, 17
Union of Miners and Mine Laborers. Its initialproposed standards to further protect miners'
constitution "barred discrimination based on race,safety and health were denied by MSHA. The
religion, or national origin." It was a leader inentire budget for MSHA for 2006 is $280 million. It
fighting racism and ethnic discrimination before theis expected that its appropriations will be
turn of the 20th century. Also included in theirreviewed.Senator Robert Byrd (D-WVA) has
early fights, the UMWA fought for the 8-hour dayannounced that the first Congressional hearing on
in 1898, followed by collective bargaining rights inthe Sago Mine will be held on January 19, 2005,
1933, health and retirement benefits in 1946 andwhich will include federal and state mine safety
the eventual health and safety protectionsofficials, labor and business representatives as well
resulting in federal legislation in 1969.And perhapsas academic experts in mine safety testifying.
most important to the UMWA's accomplishmentsSenator Ted Kennedy (D-MA) as well as Senator
was its plowing the way for the National IndustrialJay Rockefeller (D-WVA) have also called for a
Recovery Act, which granted workers the rightseries of Senate hearings on the broader issues
to form unions and bargain collectively with theirimpacting mine safety. Representative George
employers. And after the success of organizingMiller (D-CA) and ranking member of the House
the nation's coal miners, the UMWA extended itsEducation and Workforce Committee has
work to the steel and auto industries in order torequested all documents relevant to the Sago
help those workers organize.While fatalities in themine disaster from Labor Secretary, Elaine Chao.
mines have fallen significantly over the pastRep. Miller expects to hold hearings after the
century and working conditions improved, by theSenate hearings. No reports for any of the
1980's many of the smaller mines went out ofinvestigations, however, are expected before July
business, with more nuclear power plants coming2006.The Government Accountability Office in
online and the with the oil crisis of the 1970's2003 found that over the past decade, inspectors
supposedly over. Coal became less of a necessity.had often failed to ensure that violations were
Many mines which remained opened decided tocorrected by deadlines. In addition, there has been
hire only non-union personnel. With fewer jobscriticism that political appointees running MSHA are
available in rural communities, workers becameprimarily former mining executives from the
willing to forego union benefits and guaranteedprivate sector, and there exists a fundamental
pension plans. They sacrificed the transparencyconflict of interest in issuing citations and such
with management regarding safety concernsdiminutive fines. Further, the Congress has not
which the union provided them and without fearheld one hearing in either the Senate or House on
of retribution.Today, according to Cecil E. Roberts,mining safety issues since 2001.On September 23,
President of the UMWA, only 32-35% of all mines2001, 13 coal miners died at the Jim Walter
are union shops. With the majority of today'sResources (JWR) Blue Creek No. 5 mine in
miners comprised of an aging workforce in theirBrookwood, Alabama. In June 2003, the Federal
late 40's and 50's facing retirement, cash bonusesMine Safety and Health Administration fined
and higher salaries are luring the next generation,Walter Industries more than $400,000 for eight
now in their 20's. In the past 20 years as minessafety violations that "directly contributed" to the
shut down and union-busting was rampant,2001 accident. The company subsequently
workers were headed to other cities for moreappealed the fine. In November of 2005, an
lucrative manufacturing jobs. But with steel millsadministrative law judge on behalf of MSHA threw
on the decline, textile mills losing out to overseasout six of the eight safety violations and slashed
manufacturing and impending layoffs ofthe fines to $3,000. Let us hope that history does
automakers, the coalmines are becoming the lastnot repeat itself and that we learn from this crisis.
bastion for those living in communities where theHere is but one more opportunity to do right by
average salary is $25,000. Non-union miners canour miners. They deserve at least that
look forward to earning twice thatmuch.Diane M. Grassi is a freelance columnist,
amount.However, the recent history of the Sagoreporting and writing commentary on current
Mine as well as others its size is not unlike thatevents of the day providing honest and often
which has become of other major industries inpolitically incorrect assessments. From U.S. public
the 21st century, with individual companies and itspolicy to Major League Baseball, she is an eclectic
workers left victim to bankruptcy or corporatethinker, and demanding of her readers to reflect
takeover. The Sago Mine, which had 145on their own thinking patterns from an alternative
employees prior to January 2nd, was operated byperspective. Whether you agree with her or not,
Anker West Virginia Mining Co. until NovemberDiane M. Grassi will have you coming back to note
2005. The International Coal Group Inc. (ICG),her opinions, and if at best she wakes you up,
purchased it in April 2005, and completed itsthen her goal will have been accomplished.
purchase in November 2005 at which point it tookMs. Grassi is featured with the online publications:
over Sago's operation.Famed New YorkNew Media Journal.us; American Chronicle; Mich
investment financier and billionaire, Wilbur Ross,News.com; the Federal Observer; Opinions
formed ICG in May 2004, now listed on the NYEditorials; the Conservative Voice; the Las Vegas
Stock Exchange, buying up coalmines belonging toPenny Press; the Sierra Times as well as many
Horizon Natural Resources. One of those holdingsothers. She also writes regular columns on Major
was the Sago Mine. Ross' purchase of SagoLeague Baseball where she is a featured online
followed his fray into the steel industry, foundingcolumnist with The Diamond Angle Baseball Ezine
the International Steel Group Inc. and buyingand Sports-Central.org. Ms.
Bethlehem Steel Corp., Acme Steel Co. and