Coal News 200805

ep. George Miller (D-Calif),

Chairman of the House

Education and Labor

Committee, has released the findings

of his investigation into the August 6,

2007 tragedy at the Crandall Canyon

Mine near Huntington, Utah.

In a prepared statement, Miller said,

“Based on our experts’ analysis, I am

able to conclude that is likely that the

tragedy was the result of a flawed plan

while conducting retreat mining in the

area of the mine where the deaths

occurred. Therefore, also based on this

analysis, I am able to conclude that the

plan should never have been submitted

by the mine operator, and should never

have been approved by the U.S. Mine

Safety and Health Administration.

Continuing, the Miller statement

added, “Based on the work of our

Committee staff, I was concerned that

the mine operator may have willfully

misled MSHA about information that

could have affected MSHA’s decision to approve the mining plans for the South Barrier. As a result, I made a referral to the U.S. Department of Justice.”The statement said that the first ques-tion this investigation sought to answer was whether it was prudent for MSHA to have approved this plan. The Committee engaged the services of Norwest Corporation and based on their analysis, the plan that UtahAmerican Energy submitted and

that MSHA approved would probably

have been successful if the Main West

pillars were in pristine condition.Pristine pillars likely would have been

strong enough to help support the South Barrier on one side and the North

Barrier on the other side while the barri-ers were retreat mined. The Norwest analysis, however, concluded that it was unlikely that the pillars in Main West were in pristine condition. Notes from the U.S. Bureau of Land Management indicated there had already been deterioration in the pil-lars. In March 2007, there had been a severe bump which temporarily shut down the mine and forced the operator to end retreat mining of the North Barrier.The next question the investigation sought to answer was, given the danger of the plan, why did MSHA approve it?The Miller statement there are at least two possible reasons. First, based on the work of the Committee staff, Miller believes that UtahAmerican Energy may have deliberately downplayed the extent of the March bump in its conver-sations with MSHA staff. Second, Miller believes that MSHA failed to do its due diligence. The Committee counsel deposed current and former officials from MSHA District 9. One of the depo-nents was Allyn Davis, the District 9Supervisor who said, “The photos that I saw and the description that I got from Laine Addair don’t match.” Davis saw the photos months after the March bump. Addair, the General Manager of Crandall Canyon, evoked his Fifth Amendment right against self-incrimi-nation in refusing to answer questions at a deposition before the Committee,and so did six other officials. According to the Miller statement, Davis’ state-ment and other indications that UtahAmerican Energy may have misled MSHA prompted Miller to make a crim-inal referral to the U.S. Department of Justice.The statement said, “The fact that UtahAmerican Energy may have misled MSHA in no way absolves the agency of its decision to approve the deadly retreat mining plan amendments.MSHA officials must not sit on their hands and wait for mine operators to bring information to them.” The report described the severe March bump as “the red flag” and said that MSHA should have known about the bump and looked more critically into it.“Clearly, MSHA needs additional resources, including more inspectors and the technology to better challenge assumptions made by mine operators and their consultants,” said the state-ment, which concluded “the findings of his investigation demonstrate that the Crandall Canyon tragedy might have been avoided at several key moments.They suggest that the mine operator did not act in the interests of the safety of its employees and that MSHA failed these miners and their families.”See Norwest Report Page 27.

Volume 5 Number https://www.doczj.com/doc/d76869351.html, June 2008

Inside

Crisis Mgmt Seminar

Page 6Psychological Impacts

Page 10Media and a Crisis

Page 11CMA Report Part Two

Page 12The Right Energy Balance

Page 13CMA Safety Awards

Page 22Norwest Crandall Report Page 27

Miller Releases Crandall Canyon Report

By Bill Reid

Managing Editor

R Crandall Canyon Main West Map n his zeal to create a political

sensation before the completion

of the official investigation being

conducted by the federal Mine Safety

and Health Administration,

Representative George Miller (D-CA)

held a press conference today to dis-

close his unfounded conclusions

from his effort to concoct a criminal

referral concerning the tragedy that

occurred at the Crandall Canyon Mine last August. As with many of his prior statements, there is no credible basis for Mr. Miller’s reckless allega-tions. They are merely political grandstanding as he continues to play to his constituents. We are con-fident that any impartial investigator will reject Mr. Miller’s allegations. “Mr. Miller sent a letter last month to the Justice Department recom-mending a criminal investigation of Laine Adair, the General Manager at Genwal Resources’ Crandall Canyon Mine. This callous inference is based on a radically incomplete review of the facts by Mr. Miller and ignores contradictory records and prior investigators’ findings. “Laine Adair is an honest and plain-speaking man whose integrity and professionalism are well-estab-lished in the Utah mining community where he has worked for over thirty years. Genwal Resources stands behind Mr. Adair, and we believe https://www.doczj.com/doc/d76869351.html,ler’s efforts to impugn Mr. Adair and other individuals through today’s announcement is deplorable.“Genwal Resources declines fur-ther comment at this time in view of ongoing investigations of this mat-ter.”

I Statement on Behalf of Genwal Resources

By Its Counsel, Kevin Anderson

“

Coal News

MSHA Issues Final Abandoned Area Sealing

Rule

MSHA has recently issued the final rule governing the sealing of abandoned areas in underground coal mines that will apply to all seals constructed after October 21, 2008. The final rule maintains the distinction between seals of at least 50 psi overpressure that are monitored and maintained inert, and those of at least 120 psi over-pressure that are not monitored. However, unlike the proposed rule, the final rule imposes more strin-gent requirements on seal design and monitoring and includes spe-cific provisions related to seals constructed to separate an active longwall panel from a previously mined panel. The final rule also requires the installation of a sam-pling pipe in each new seal con-structed and requires that each sampling pipe and approved sam-pling location be sampled at least every 24 hours, unless an alterna-tive is approved by an MSHA District Manager.

The final rule also requires the collection of an immediate second sample when an initial sample behind a 50 psi seal indicates an oxygen concentration 10% or greater and methane concentration between 4.5% and 17%. The rule also mandates the removal of all persons from an entire mine or affected area as approved by a District Manager or ventilation plan. In addition, the rule allows operators to seek alternative meth-ods to determine the composition of the environment behind a seal where a demonstrated history of carbon dioxide exists. Friends of Coal

Auto Fair

July 18-20

This year the Friends of Coal Auto Fair celebrates its Fifth Anniversary with its coal influence increasing substantially since the event’s second year when it became known as the Friends of Coal Auto Fair.

Headlining this year’s concert on July 19 is Randy Travis and the Auto Fair is held at the YMCA Youth Sports Complex, Beckley, West Virginia. The event has two purpos-es. First, the proceeds each year are used to pay the expenses to maintain the YMCA Sports Complex

and to support the valuable work of

the YMCA. Second, the Friends of

Coal Auto Fair reminds everyone of

coal’s impact on everyday life and

pays tribute to those in the coal

industry.

Last year more than 85,000 peo-

ple attended the event over three

days that brought together a major

car show with the weekend concert

to create an excellent family event.

As well as YMCA Chief Executive Jim

Gilchrist III, some of those heavily

involved in planning the activity

include Jack Fairchild of Fairchild

International, Steve Antoline of

Terex Superior HIghwall Miners,

and Steve Walker from Walker

Equipment the CAT Dealer. Warren

Hylton of Patience Coal and the

founder of Friends of Coal is also an

enthusiastic participant.

Further information can be

found at www.friendsof-

https://www.doczj.com/doc/d76869351.html,.

EIA Tracks

Increase in

Coal Use

According to a preliminary 2007

review, EIA estimates that coal use

has increased 1.5% in 2007, driven

by a nearly 2% jump in coal use by

the electric power sector.

EIA says that there has been a

massive spike in U.S. coal exports

which have increased in 2007 by

9.5 million tons or 19.2%. Total

U.S. coal exports in 2007 were

59.2 million tons, a level not

reached since 1998. Totaled U.S.

steam coal exports increased in

2007 to 27 million tons, a jump of

nearly 22%, marking the fifth con-

secutive year of growth.

Metallurgical coal exports

increased in 2007 by 17%, with

domestic producers shipping

approximately 32 million tons. The

growth in exports for 2007 far out-

stripped a marginal increased in

coal imports of 0.3%.

DOE Takes Next

Step with

Restructured

FutureGen

Approach

The U.S. Department of Energy

(DOE) has released a draft Funding

Opportunity Announcement (FOA)

to solicit public input on the

demonstration of multiple commer-

cial scale IGCC or other clean coal

power plants equipped with cutting

edge carbon capture and storage

(CCS) technology. The FOA is part of

DOE’s restructured approach to

funding the FutureGen project.

The release of the FOA preceded

a Senate Subcommittee Hearing at

which the FutureGen Alliance

emphasized the need for DOE to

abandon the restructured

FutureGen approach and instead

help fund construction of the

FutureGen plant in Mattoon,

Illinois.

DOE said the draft FOA is meant

to provide an opportunity for public

review and comment of DOE’s

restructured FutureGen strategy.

Ultimately, DOE said such input

“will be considered in the develop-

ment of the final solicitation, which

DOE expects to release in mid-sum-

mer 2008, with selection of proj-

ects targeted for December 2008.

Polar Bear Listed

as Threatened

Species

Secretary of the Interior Dirk

Kempthorn will list the Polar Bear

as a threatened species under the

Endangered Species Act (ESA). A

decision to list a species as threat-

ened under the ESA means that the

species is likely to become endan-

gered in the foreseeable future.

This listing is significant because

it is the first listing of its kind based

on the effects of global warming.

The Secretary based his decision

on three critical findings: that sea

ice is vital to Polar Bear survival;

that sea ice habitat has dramatical-

ly melted in recent decades; and

that computer models predict that

sea ice is likely to recede further in

the future. These factors have

resulted in a prediction that the

bears will become an endangered

species within the next 45 years.

As part of this decision, the

Secretary has implemented a plan

in an attempt to prevent the power-

ful legal protections that are trig-

gered by the Polar Bear’s listing

from being misused as a backdoor

mechanism to address climate

change and harm the economy by

improperly impeding federally per-

mitted projects in areas outside the

species habitat. NMA played a key

role in getting this plan included.

MSHA Issues

Precautions for

the Use of ARMPS

Program

As the result of the Crandall

Canyon disaster, MSHA has issued

precautions for the use of the

analysis of retreat mining pillar sta-

bility (ARMPS) computer program

in a Program Information Bulletin

(PIB). The purpose of the bulletin is

to alert the mining community to

precautions that should be taken

when the ARMPS computer pro-

gram is used, especially older ver-

sions. The PIB also provides notice

that an updated program is avail-

able that incorporates warning

messages that correspond to sever-

al of these issues. The latest ver-

sion is available at the NIOSH web-

site,

https://www.doczj.com/doc/d76869351.html,/niosh/mining/prod-

ucts/product6.htm.

The ARMPS program was devel-

oped by NIOSH and the former U.S.

Bureau of Mines to assist the min-

ing industry in evaluating ground

stability during pillar recovery oper-

ations. Based on panel geometry

and several addition user inputs,

the program calculates stability

factors that could be compared to a

relatively large database of both

successful and unsuccessful case

histories. The program was first

introduced in 1995, and then mod-

ified substantially in 2002 when

additional case studies under

deeper overburden and the original

data set were included and corre-

sponding design criteria were intro-

duced.

ARMPS was again updated in

February 2008. NIOSH recom-

mends that 900 psi be used for

coal strength in the ARMPS pro-

gram if comparisons are to be

made with the ARMPS database

and the recommended stability fac-

tors. MSHA strongly encourages

mine operators to use the updated

program.

Sasol CTL Fuels

Certified for

International

Aviation Use

Sasol, the world’s leading pro-

ducer of coal-to-liquid (CTL) trans-

portation fuels, has announced

that it has become the first compa-

ny to receive international approval

for its 100% synthetic jet fuel pro-

duced by its proprietary CTL

process.

Sasol Chief Executive Pat Davies

said, “This approval by internation-

al aviation fuel authorities recog-

nizes the absolute need to develop

aviation fuel from feedstocks other

than crude oil in order to meet the

world’s growing needs.”

DOE Awards $126

Million for Two

Carbon Storage

Projects

The U.S. Department of Energy

(DOE) will provide more than $126

million to the West Coast Regional

Carbon Sequestration Partnership

(WEST CARB), and the Midwest

Regional Carbon Sequestration

Partnership (MRCSP). The funding

will be used to help launch DOE’s

fifth and sixth large scale carbon

storage projects.

The partnerships, which are part

of DOE’s Regional Carbon

Sequestration Partnership, will

conduct large volume tests in

California and Ohio in order to

demonstrate the ability of the geo-

logic formation to safely, perma-

nently, and economically store

more than 1 million tons of carbon

dioxide. DOE plans to invest

$126.6 million in the two projects

over the next ten years, while indus-

try partners will provide $56.6 mil-

lion in costs shared funds.

Collectively, the formation to be

tested during the third phase of the

partnership’s program have the

potential to store more than 100

years of CO2 emissions from all

major point sources in North

America. Such tests will help pro-

vide the confidence and build the

infrastructure necessary to com-

mercialize these technologies. DOE

said that the new projects are

designed to demonstrate the entire

CO2 injection process from pre-

injection characterization, to injec-

tion process monitoring and post-

injection monitoring.

KCA and COA

Sponsor Pro-Coal

Bus Tour

The Kentucky Coal Association

(KCA) and Coal Operators and

Associates (COA) are partnering to

promote the vital role coal plays in

meeting America’s energy needs by

sponsoring a nationwide bus tour of

country music group Halfway to

Hazard. The band is the opening act

for a cross country tour by county

star Tim McGraw. Halfway to

Hazard’s bus will be outfitted with

the Friends of Coal logo and the

message “Kentucky Coal, Energy

for America.” The bus will be travel-

ing across the nation this year, and

the band will promote the positive

image of Kentucky coal at all of its

appearances.

106 Tamarack Street Bluefield, WV 24701 – 4573

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publication of inaccurate or

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Coal News.

The Editor’s View

oal demand is expected to

reach a new record this year,

despite the lagging domestic

economy, according to the Mid-Year

Forecast of the National Mining

Association (see article page 4).

The forecast says that coal

demand will reach 1.218 billion

tons, up 1.8% from 2007. Total

domestic consumption will be up

1.4% from last year, but exports are

expected to increase by 33.4% from

2007, or an estimated jump of 60

million tons. Constrained global

coal supply is allowing the United

States to become a more significant

supplier of metallurgical and steam

coal into the Atlantic, and in some

cases, Pacific Basins. Some

observers estimate that global coal

demand will outstrip supply by 25 to

35 million metric tonnes, and this

supply deficit may continue to grow

through 2010.

According to the NMA forecast,

the projected demand will be met by

expanded production in Western

coalfields, with production from

Eastern coal states remaining

unchanged from January’s projec-

tions, and imports declining to an

estimated 32 million tons.

Production in the East for the year is

expected to be 480 million tons, or

0.6% above that of 2007. While pro-

duction in the West will be 693 mil-

lion tons, up 3.7% from last year.

Thus, total production will be 1.173

billion tons, up 2.4% from 2007.

Imports are expected to fall to 32

million tons or an 11.8% reduction.

Thus, total coal supply will be 1.218

billion tons, exceeding the previous

record established in 2006 when

total demand reached 1.202 billion

tons.

Meanwhile, although average spot

coal prices for PRB coal are falling

slightly to about $14 per ton, those

in the Illinois Basin, Northern

Appalachia, and Central Appalachia

are rising to $58, $105, and

$100.90 per ton, respectively.

All this is excellent news for all of

those in the coal industry, and for all

of those who supply equipment and

provide products and services to the

industry. Manufacturers are again

quoting record order books, and

deliveries for items like continuous

miners have gone out to 12 months.

While the rest of the economy is in a

slump, coal is once again going

great guns. Even though there are

difficulties ahead, most notably

being the challenge of carbon con-

straint legislation, the demand for

American coal is expected to contin-

ue to increase. Coal is the world’s

fastest growing fuel source during

the past five years, and that growth

is expected to continue driven by the

expanding economies of coal con-

suming nations, notably, China and

India, as well as this country.

Coal’s share of electrical genera-

tion is expected to be 50% again in

the United States. Some 8 gigawatts

of new coal fueled plants are esti-

mated to be in advanced stages of

development, which will require

about 25 million tons of additional

incremental annual coal demand.

An additional 16.5 gigawatts of new

coal fueled capacity are also now

under construction. These are

expected to require nearly 59 million

tons of new annual coal supply with

75% of this needed before the end of

2010. It is exceedingly encouraging

to note the strong financial perform-

ance of operators in the coal indus-

try and the exciting outlook ahead

for world coal.

Mining Matters

C

Bill Reid

billreid007@https://www.doczj.com/doc/d76869351.html,

atriot Coal Corporation

President & Chief Executive

Officer Richard M. Whiting

told stockholders that Patriot has

a very bright future and is poised

to participate in the strong coal

markets and record coal prices.

Whiting highlighted the compa-

ny’s activities in 2007, as it pre-

pared for the spin-off from

Peabody Energy, established a

strong management team and

Board of Directors to lead Patriot

forward, and completed the steps

necessary to transition into an

independent public company. At

the operating level, the company

achieved record safety perform-

ance in 2007, ending the year with

a rate of 4.0 incidents per

200,000 man-hours, significantly

below the national average of

6.98.

“Looking forward, as a new

company, we have developed a

vision that we believe will lead

Patriot to be a great company. We

intend to achieve an industry-

leading position by managing our

company well, running our opera-

tions in a safe, low-cost & effi-

cient manner, executing favorable

sales & trading transactions, and

maintaining a conservative finan-

cial stance. By running our busi-

ness with these key principles in

mind, we believe we can create

significant shareholder value,”

said Whiting.

Whiting discussed the robust

coal markets, and why the strong

markets have created such an

ideal time for the spin-off. The

imbalance in global supply and

demand of coal is unprecedented.

China and India, in particular, are

major causes of the imbalance. As

China and India increase their

standards of living, they are using

more coal — for electricity and for

steelmaking.

“If China and India would

increase their per capita electrici-

ty consumption to 7,000 kWh,

which is about the midpoint

between Russia’s and Japan’s

rates, assuming 75% of the elec-

tricity is coal-fired, additional coal

consumption would approximate

4 billion annual tonnes,” contin-

ued Whiting. “Moreover, driven by

China’s 225% increase in steel

production since 2001, worldwide

steel production has increased

65% during that same time peri-

od, after years of flat production

growth.”

The global supply/demand

dynamics have resulted in record-

high coal prices. Since May of last

year, Appalachian thermal coal

pricing has increased over 100%,

and metallurgical coal pricing has

risen over 200%. The company

believes that market fundamen-

tals are setting the stage for a sus-

tained re-basing of all energy

prices, including coal, well above

historical levels.

Whiting also highlighted the

company’s proposed acquisition

of Magnum Coal Company.

“Together, we will benefit from

economies of size, scale and

scope. We will further diversify our

production and asset base. And,

we will be able to better optimize

our mining operations and coal

sales portfolios.” With the

enhanced production and com-

mercial opportunities Patriot sees

in 2008, Whiting reiterated the

company’s 2008 guidance, which

shows significant improvements

over 2007. Excluding the effects of

the Magnum acquisition, for

2008, the company anticipates

sales volumes in the range of 23.0

to 25.0 million tons, EBITDA

between $115 and $145 million,

and earnings per share in the

range of $0.95 to $1.30. Patriot Coal President & CEO Highlights Accomplishments and Outlook

P

Rick Whiting

NMA Mid-Year Forecast Projects Record Demand for Coal in 2008emand for U.S. coal will reach

a new record in 2008 despite a

lagging domestic economy,”

National Mining Association (NMA)

President & CEO Kraig R. Naasz said

upon release of the association’s mid-

year forecast for coal demand and pro-

duction. “Throughout 2008, coal will

continue to supply 50 percent of the

electricity generated for America’s

power grid.”

“Coal exports are on the rise thanks

to robust growth in overseas demand,”

Naasz added. An estimated 79 million

tons-15 million tons more than pro-jected in January-are expected to be exported in 2008. Total demand for U.S. coal is expect-ed to reach 1.218 billion tons in 2008,surpassing the previous record estab-lished in 2006 when total demand (domestic consumption and exports)reached 1.202 billion tons of coal. The projected demand will be met by expanded production in Western coal fields, with production from Eastern coal states remaining unchanged from January’s projections and imports declining somewhat to an estimated 32 million tons. NMA’s forecast for coal is based on projections reported by the associa-tion’s member companies. The mid-year analysis was conducted to account for the potential impacts of a slowing U.S. economy and growing global demand for coal. “Our forecast reflects the powerful underlying conditions that continue to drive demand for U.S. coal including its relative affordability, domestic abundance and reliability as a provider of electricity. Further, metallurgical coal remains a vital component of the infrastructure development that is underway in rapidly developing coun-tries around the globe,” continued Naasz.“Record demand for U.S. coal is good news for the roughly 525,000American’s who rely on coal for high-wage jobs and benefits in mining and with companies that make mining equipment and provide valuable serv-ices to U.S. coal producers. At a time when so many consumers are con-cerned about their economic well-being and rising energy prices, coal remains a true American success

story,” Naasz emphasized.

D Kraig R. Naasz MSHA Small Mines Office Helps Small Operators Make Large Safety Gains

ccording to the MSHA, smaller mining operations in the U.S.have seen a significant decline in the rate of fatal accidents in the five years since MSHA established its Small Mines Office. Between 2003and 2007, mine operations receiving direct assistance from the agency’s Small Mines Office have experienced a 66 percent reduction in their fatality incidence rate (i.e., the number of fatalities per 200,000 hours worked).Prior to 2003, smaller mining opera-tions, those which employed five or fewer miners, tended to experience a higher rate of fatal accidents than their larger counterparts.

“MSHA’s Small Mines Office has

clearly played a major role in assisting

small mine operators in reducing the

workplace hazards that can cause

deadly mining accidents,” said

Richard E. Stickler, acting assistant

secretary of labor for mine safety and

health. “These efforts have demon-

strated that good health and safety

practices need not be expensive, time-

consuming or complicated.”

Since its inception, MSHA’s Small

Mines Office has helped operators of

more than 6,500 U.S. mines develop

written safety and health programs tai-lored to fit their specific mining opera-tion. Over the five-year period, these small operations reduced their fatal incidence rate by 66 percent - from .053 (2000-2002) to .018 per 200,000 work hours (2003-2007). By comparison, the group of small mining operations that did not request direct assistance from the Small Mines Office saw a smaller reduction in their fatality rate for the same time periods, from .053 to .045. Larger mining operations - mines with more than five employees - reduced their fatality rate from .021 to .017 for the same time period. Kevin Burns, manager of the Small Mines Office, indicated that a primary reason for the success with reducing fatal incidence rates at small mining operations was the agency’s “robust enforcement efforts coupled with a dose of assistance that increases their ability to comply with MSHA safety and health regulations.” Small mining operations with five or fewer employ-ees represent about 50 percent of all U.S. mining operations.For further information, please visit the MSHA Web site at https://www.doczj.com/doc/d76869351.html,.A Richard E. Stickler

Massey Establishes New Central Appalachia Scholarship Fund

assey Energy Chairman and CEO Don Blankenship has announced that Massey Energy will put more than $1 million into college and post-graduate scholarships to assist stu-dents from Central Appalachia communities pursue engineering and health care degrees.The funds will be allocated over the next

five years and help dozens of deserving students.“This is the best investment Massey Energy can make today in Central Appalachia,” Blankenship said.“These funds will help some of our brightest students, who need financial assistance, achieve their

goals of pursuing a higher educa-

tion.”

Massey has a long history of con-

tributing to education and student

scholarship programs.In 1997,

Massey established Doctors for Our

Communities, a scholarship pro-

gram designed to financially sup-

port medical students.The pro-

gram encourages doctors to prac-

tice in Massey’s operating region.

Blankenship said the newly creat-

ed scholarship funding will focus on

engineering and health care

because of needs in Appalachia.

“We need more health care profes-sionals in our areas of operation -

from nurses and technicians to physicians.At the same time, the mining industry has a great demand for engineers to manage and lead operations.”Massey Energy has already begun talks with the West Virginia University Foundation and academ-ic leaders at WVU about scholar-ships and other projects that could help engineering and medical stu-dents learn and stay in West Virginia.“We are excited about the possibilities and share Massey Energy’s enthusiasm for providing more professional opportunities for our graduates in West Virginia,”said Professor Gene V. Cilento,Dean of the WVU College of Engineering and Mineral Resources.“West Virginia, and southern West Virginia in particular,needs more quality health care pro-fessionals and we look forward to working with Massey Energy to make that happen,” added Dr. Fred R. Butcher, WVU Interim Vice President for Health Sciences.Massey Energy plans to announce details about its scholarship pro-gram and application procedures in the near future.M Don L. Blankenship

he Kentucky Society of

Professional Engineers has

named Marco M. Rajkovich, Jr as its 2008 Recipient of the Achievement in Mining Award. He is a member of the Lexington, Kentucky law firm of Rajkovich, Williams, Kilpatrick & True, PLLC and concentrates his practice in the areas of mine safety and health, mineral and energy and administrative law. He is a Licensed Professional Engineer –Mining, a Licensed Professional Land Surveyor and Certified Underground Mine Foreman in Kentucky. Prior to his law career, he was with U.S. Steel Mining Company, Inc., serving in various positions in engineering as well as production.

Rajkovich, a native of Lynch, Kentucky, is a 1977 graduate of the University of Kentucky College of Engineering where he earned a

BS degree in Civil Engineering

with the Mining Option and was a

member of Chi Epsilon Civil

Engineering Honorary. He is a

1987 graduate of the UK College

of Law where he was a member of

the Journal of Mineral Law &

Policy. He is an author, contribu-

tor to The Coal Mining Reference

Book (1997), frequent speaker at

various mining industry conven-

tions, meetings and seminars and

has been a guest lecturer at the

UK College of Engineering,

College of Law and the Chase Law

School of Northern Kentucky.

Rajkovich is authorized by the

Kentucky Board of Licensure of

Professional Engineers and Land

Surveyors as an instructor on

ethics and minimum technical

standards and has given national

presentations on ethics for the

National Society of Professional

Engineers.

Throughout his career, he has

been involved in representation

of mining and land-holding com-

panies in several mine explo-

sions, disasters, major accident

litigation and mineral law issues

in both federal and Kentucky

state courts, and administrative

tribunals, some of which have

gained national prominence. He

has argued cases before the

Federal Mine Safety and Health

Review Commission and the

Court of Appeals of Kentucky.

Rajkovich is a six-time recipi-

ent of the KSPE President’s

Award, former Chair of the PE in

Mining Practice Group of KSPE,

member of the Kentucky

Geological Survey Advisory

Board, member of the Jessamine

County Joint Planning

Commission, the NRCC 2005

Business Man of the Year, recipi-

ent of the NRCC 2006

Congressional Medal of

Distinction and is named in Best

Lawyers in America.

Throughout his career, he has

devoted time to civic, religious

and charitable endeavors. He

was appointed Defender of the

Bond, in perpetuity, by the

Vatican for the Roman Catholic

Diocese of Lexington, Kentucky

Tribunal and was appointed by

the General Director of Regnum

Christi, an international lay

Catholic Movement, as Assistant

of the Men’s Section Director for

Kentucky. He has served as an

officer and director of the

Kentucky Engineering

Foundation, a member of the

Executive Committee and Trustee

of the Energy & Mineral Law

Foundation, a director of the

Kentucky Coal Association and

member of the KCA Health and

Safety Committee.

He is married to Kathleen

Baumgartner Rajkovich and is the

son of Helen L. Rajkovich and the

late Marco M. Rajkovich, Sr.

T Rajkovich Announced as Recipient of Achievement in Mining Award

Marco M. Rajkovich, Jr.

Meeting Report

Crisis Management in Mining ponsored by the University of Kentucky Mining Engineering Foundation and the Department of Mining Engineering,a Professional Development Seminar Crisis Management in the Coal Industry was held at the UK Department of Mining Engineering. The seminar was one of the 2008 spring events in the department which included the Mining Engineering Foundation Distinguished Lecture, the Mining Engineering Foundation Luncheon and Board Meeting, and the 26th Annual Department of Mining Engineering Dinner which recog-nized the graduating class of 2008.The Seminar was co-chaired by G.T. Lineberry and Rick Honaker of the UK Department of Mining Engineering. The speakers included Patrick Gallagher, President and CEO, Susan Lavenski, Senior Vice President, and Kevin Hall, Senior

Vice President, all of Charles Ryan

Associates; Richard A. Marlow,

Director – Safety Awareness, CON-

SOL Energy; Charles Grace,

Assistant District Manager, District

7, MSHA; Johnny Greene, Executive

Director, Office of Mine Safety and

Licensing, Commonwealth of

Kentucky; Marco Rajkovich,

Rajkovich, Williams, Kilpatrick &

True, PLLC; Kathleen M. Kowalski-

Prakofler, Senior Psychologist,

NIOSH; and Roger Alford,

Associated Press Correspondent.

A crisis is an unplanned event that

impacts the safety of mine person-

nel or the continuity of operations.

An effective and timely response is

critical to contain, control, and mit-igate the situation. The response typically follows a well-documented management plan and involves well-trained personnel in an effort

to ensure that the event is resolved with minimum risk to the safety of the mineworkers and response per-sonnel. Coordinating efforts with state and federal agencies are a required component of the crisis resolution, as well as relaying status information to the general public. The speakers were experts repre-senting the various agencies and components needed to address the management of a crisis in the min-ing industry. The seminar, which drew in attendance of around 100,targeted the interests of mining per-sonnel, consultants, government officials, and others serving the mining industry.S G.T. Lineberry Mine Crisis Management Practices

atrick Gallagher, President and CEO; Susan Lavenski,Senior Vice President; and Kevin Hall, Senior Vice President, all with Charles Ryan Associates, gave a presentation Mine Crisis Management Practices to the Professional Development Seminar on Crisis Management in the Mining Industry. Charles Ryan Associates (CRA)carry out a range of services from the first notification to the first media call, to gathering the team at the site of the crisis and establish-ing a war room, preparing and deliv-ering messages to employees, fami-lies, and outside audiences, and then developing and implementing a management strategy. These serv-ices include a wide range of experi-ences, from multi-billion dollar national litigation in the court room,to issues facing their public utility clients.The approach to each challenge is to design and implement a com-munications program tailored to the issue. Using an integrated approach, CRA employ a full range of communication strategies. Crises can take on a personality of their own if not addressed quickly and efficiently, and there is an urgency for this type of communication.Tools are available to assess situa-tions in order to hit the ground run-ning as soon as a client calls. This requires a full understanding of the psychological facts of fear, anger,and denial that accompany complex and emotional based issues.The presenters described the “13Principles of Crisis Leadership”which help steer the team forward in each phase of the process. CRA works with the corporate communi-cations team to maintain a steady flow of information to core con-stituents and customers. They work closely with the media to make sure that the messages are reaching designated targets, and they train spokespersons to operate credibly and effectively in a variety of set-tings which include heated public sessions and live interviews with the media. During the entire process the necessary steps are taken to protect and even build the integrity of the corporate brand. The 13Principles of Crisis Leadership are as follows:1. Issues of life and personal safety must take precedence over every-thing else.2. Timely, accurate information is the lifeblood for managing a crisis –

and very difficult to obtain. 3. Rapid response is essential, but media pressure must not skew deci-sions.4. Crisis Management requires a team approach.5. People are usually very forgiving,but they will not tolerate arrogance,indifference, or gross incompe-tence.6. To emerge from a crisis with your reputation intact, an organization must respond in a manner that is 100% consistent with its image.7. The magnitude of the crisis dic-tates the level of the person who responds.8. It is not enough to be legally or scientifically correct, the public insists on and is entitled to more. 9. Government and the media will expand their roles in a crisis if there is a public perception that the organization is not doing all it should do.10. All key audiences revise their image of any organization after it experiences a crisis.11. A major crisis will have a pro-found and long-term impact on an organization and its leaders.12. Remember the Chaos Theory:unusual events tend to cluster.13. In every crisis, there is a point in which there is an opportunity for positive improvement over the orga-nization’s pre-crisis position.In addition, the CRA Team has developed a software package called Global Alert Link (GAL) which is a one-of-a-kind web-based man-agement system specifically built to deal with crisis, litigation and issue-based events. It includes planning to create a strategy that can be launched immediately; coordinat-ing to orchestrate global teams regardless of their location; manag-ing to make better decisions with better information; and communi-cating to send information to the entire team instantly.GAL allows a strategy to be launched quickly so that critical sit-uations can be controlled. Critical

information can be accessed at crit-

ical times providing instant access

to everything needed to manage

and resolve problems. This includes

critical contacts, action items, and

the complete knowledge base of

details needed. Information can be

monitored with the automated mon-

itoring service which keeps an eye

on news reports, government

action, and legal developments

around the world that are appropri-

ate. The global team can be easily

managed with project management

systems to manage the team and

the tasks they are performing from a

computer. The system assigns

tasks, gives status updates, can

hold conferences, and share infor-

mation easily.

Effective and efficient communi-

cation is the basis of the GAL capa-

bilities. This allows getting the word

out and the flexibility to click one

button and have a message deliv-

ered via e-mail, text message, page,

or even a phone call to those who

need to know. The system uses

broadcast alerts through e-mail,

telephone, pager, or PDA. Real time

communications provides a secure

electronic chat, voice call, or video

conference. GAL provides a number

of scheduled and automated alerts

and communications. This might

include team updates of status

changes, responsibility reminders,

and meeting bulletins.

For further information con-

tact Kevin Hall, 877-342-

0161, or

khall@https://www.doczj.com/doc/d76869351.html,.P Kevin Hall, Susan Lavenski and Patrick Gallagher Rick Honnaker

CONSOL Energy’s Crisis Management Plan

ichard A. Marlowe, Director –

Safety Awareness, CONSOL

Energy, gave a presentation to the Professional Development Seminar, Crisis Management in the Mining Industry, entitled CONSOL Energy’s Crisis Management Plan.

Marlowe defined the Crisis Management Plan, which included define a crisis, prevention, prepara-

tion, and implementation. In defin-

ing a crisis, a crisis for one person

may not be a crisis for another. For

example, a breakage at a belt con-

veyor joint may delay production,

but is not necessarily a crisis for

everyone.

Marlowe emphasized the impor-

tance of preventing a crisis from

occurring in the first instance. He

referred to CONSOL’s new philoso-

phy on safety which is with regard to

accidents, the only acceptable

number is Absolute ZERO. The safe-

ty emphasis at CONSOL includes

technology, cameras, and CO moni-

toring.

Turning to the subject of prepara-

tion, Marlowe said that CONSOL

now has four Fire Prevention

Managers. Everyone in the company

has to complete biannual hands-on

firefighting (see Figure 1 and 2).

He also referred to smoke training

(see Figure 3), as well as MERD,

and mine rescue training (see

Figure 4).

CONSOL maintains their

Communication Center at the Ohio

Valley Operations facility at

Moundsville, West Virginia. The

Communication Center will be relo-

cated to the new headquarters

building at South Pointe when it is

occupied later this year. The Center

was established primarily to assist

in the management of emergency

situations (see Figures 5 and 6).

This remains as its primary function,

but it is also utilized to facilitate

daily activities of the company.

There has not been an event that

meets the full definition of a crisis to

require implementation of the Crisis

Plan, but the Communication

Center has been used in emergency

situations to facilitate management

control. It is manned 24/7/365.

The CONSOL Crisis Management

Manual together with site facts are

available on the CONSOL intranet

with complete hard copies at the

communication center and corpo-

rate office. The Crisis Management

Manual covers the topics of what to

do in the event of a crisis, emer-

gency procedures for your location,

management notification proce-

dure, safety notification procedure,

crisis notification center, crisis

checklist, crisis communication

plan, and location spokesperson.

In the event of a crisis, the follow-

ing is undertaken:

?Implement emergency procedures;

?Notify management;

?Notify safety;

?Call crisis notification center;

?Go through crisis checklist;

The crisis checklist includes:

?Implement emergency procedures,

ensure employee and public safety,

protect property;

?Provide a designated area for news

media;

?Log all incoming and outgoing tele-

phone calls, as well as significant

activity, visitors, and news media.

For further information con-

tact Rick Marlowe, rickmar-

lowe@https://www.doczj.com/doc/d76869351.html,,

412-831-4055.

R

Rick Marlowe

Fig 1 Biannual Hands On Firefighting

Fig 3 Smoke Training

Fig 5 CONSOL Communication Center

Fig 2 Firefighting in Undergroud Gallery

Fig 4 Mine Rescue Training

Fig 6 Provides Data on All Operations

An MSHA Perspective of Crisis Management harles Grace, Assistant

District Manager, District

7, MSHA gave a presenta-

tion MSHA’s Crisis

Management Plan in which he

shared personal experiences and

insights in viewing and managing

crises over the years from his own

perspective as an accident inves-

tigator, and from participating in

many rescue and recovery opera-

tions.

Nearly everything MSHA does

could be considered crisis man-

agement. From plans to enforce-

ment, MSHA looks at the worst

that could happen – potential

crises – and what can be done to

either prevent or mitigate any

given hazard. Mostly, however,

the real crises, the ones that get

attention, are those associated

with mine accidents, and what

are termed as incidents.

Mine accidents are referenced

several places in the Act, the

MINER Act, and the implementing

Regulations, but more specifical-ly under 103-k of the Mine Act,and under Part 50 of the

Regulations. Also, both of these

references point to the investiga-

tion of these events.

All MSHA accident investiga-

tions are centered on performing

one essential task to find out

what happened and why it hap-

pened, in hopes of preventing a

similar occurrence. Most of these

investigations involve enforce-

ment actions, but that is not the

purpose of the investigation

itself. Violations are issued in an accident investigation normally because certain actions or non-actions by the mine operator or contractor were at the root cause of the accident and were viola-tions of the Mine or MINER Act, or of the implementing Regulations.Grace said that the first acci-dent that he worked on was back in the 80’s when he had just joined MSHA. It was a triple fatal-ity and it involved, as one of the victims, a boyhood friend, who was killed by a roof fall. It was hard knowing that he saw the boy’s family on nearly a daily basis and couldn’t reveal what he knew about what had happened.It is extremely important that while conducting an accident investigation that particular find-ings are not discussed with fami-ly members or other outside par-ties, and that inquiries be dis-creet to prevent jeopardizing the investigation and the rights of the surviving family members. Before the investigation is complete, it is still open and facts may come to light which may change an entire perception as to causes. When the MSHA report is released it is the official opinion, but not until and not before. Initially, and outside the inves-tigations, incidents are going on in real time. At that point it’s not at all clear either what has hap-pened, or if it is, the true extent and total circumstances are still unknown. These are the tough ones, where quick judgment calls must frequently be made affect-ing people’s safety. These are onsite situations, involving a fair-ly large group of people from MSHA, the state authority, the company, other law enforcement agencies, and firefighters/EMT personnel. Also, there may fre-quently be family members pres-ent. Whether it’s a rescue opera-tion where miners are presumed living in the absence of other information, or whether it’s a recovery operation where miners are presumed dead based upon visual or other evidence, this is truly the classic crisis situation. During each such event, there will always be an MSHA senior official on-site. This is usually a District Manager, or an Assistant District Manager, normally from the District which has oversight authority for the mining in ques-tion. Whoever this individual may be, he or she has their hands full.He or she is basically responsible for everything that goes on at the site from assuring the safety of all involved in the rescue or recovery effort, to coordinating with the State authorities and the mine operator, keeping the site secure,press releases, keeping Headquarters advised of progress or lack thereof, coordi-nating manpower and supplies over the duration of the incident,preserving evidence and the acci-dent scene, etc. With all of this responsibility, it’s frequently hard to maintain focus and to always display the most professional demeanor, “but we have to – it’s our job,” said Grace. One of the hardest things to do is to remain calm and focused in these situations. One also has to remain somewhat detached so that the whole picture can be seen, but at the same time not overlook what may be important details. These are not things that can be completely taught in a classroom but must be fully expe-rienced in real time, over and over again until one really begins to feel competent and trusts one’s own judgment. The learning expe-rience may not be pleasant and people depend upon you for their lives.Grace offered advice for those who should ever be unfortunate enough to be involved in a rescue or recovery operation.?Protect the rescuers or the recov-ery people first and foremost,their safety, and the success or failure of the effort, depends in large part about how much atten-tion is devoted to this particular facet; ?Keep focused on the victims and their families. Mentally placing oneself in their situation can help bring about better decisions;?Surround yourself with the best people that you can – those whom you trust and have proved themselves worthy of it in the past;?Be aware of who these people are and do your best to under-stand the interests of others present;?Do your best to once again put yourself in their shoes, in light of their own needs, duties and responsibilities, but never never forget what your own job is;?Take a deep breath and keep your composure. Never let them see you sweat. Lack of self-assuredness, lack of focus and failure to show calm in the storm of one of these events is self-defeating and can lead to lack of confidence by those who rely on you and need your input. Showing indecision, or becoming so affected by what is going on around you that you can’t func-tion properly, can have cata-strophic consequences.Dealing with family members is of particular importance. One of the hardest things to do is deal-ing with family members of the victims, particularly those who are highly emotional or even hys-terical. It’s extremely hard to remain focused on one’s duties,remain cool and collected, and manage the coordination of a res-cue/recovery operation when you must also be in fairly constant close contact with the family members of the victims. Some people are sponges for emotion and soak it up. If you yourself become emotionally charged up,it can be severely distracting. To maintain some small breathing space from these situations can be critical to the safety of person-nel at the site, ensuring proper procedures are followed, and ulti-mately the success or failure of the operation. Because of the duties and responsibilities in one of these major events, particularly pro-tecting the rescue or recovery teams, the MSHA folks had to pri-oritize their duties, which fre-quently led to slighting or even appearing to ignore the family members. Also, some may have intentionally distanced them-selves from family members because they didn’t want to soak up any of that emotion which could adversely affect decision-making.Today, each major incident or accident will now have one or more Family Liaisons as members of MSHA’s on-site team. These individuals stay close to the fam-ily and help coordinate in provid-ing the families with regular updates of progress and informa-tion. Also, they keep the on-site Managers apprised of any partic-ulars going on with the families and obtain personal and identifi-cation information for the victims on an as needed basis. The Family Liaison Members receive a significant amount of training in grief and bereavement counsel-ing before assuming these duties.The training is normally conduct-ed at the Mine Academy and these persons are now highly val-ued members of the teams, help-ing them do a better job.

C Charles Grace “Nearly

everything

MSHA

does could

be consid-

ered crisis

manage-

ment.”

“One of the hardest things to do is to remain calm and focused in these situations.”“Dealing with family members is of particular importance and those who are emotional.”

Legalities of Managing a Mine Crisis

arco Rajkovich,Rajkovich, Williams,Kilpatrick, & True, PLLC,gave a presentation to the Crisis Management Seminar entitled Legalities of Managing a Mine Crisis . Rajkovich stressed that with regard to a mine crisis there could be both civil and criminal liabilities. In addition it should be remembered that every regulatory agency most likely has the power to issue violations and impose penalties. Legal advice should be sought.Federal criminal charges are brought by the U.S. Attorney and state criminal charges are brought by the State Attorney

General. With regard to federal

investigations, interviews are

usually voluntary and some indi-

viduals could be targets.

Interviewees are entitled to have

representation. Representatives

under the Mine Act can be any

person, and can be any attorney.

The company can provide sepa-

rate counsel for the interviewee

and can pay legal fees and

expenses. There must be no con-

flict of interest unless it is

waived. In United States v. White

Buck Coal Company, Criminal

Action No. 2:06-0014, U.S.

District Court, Southern District of West Virginia (January 16,2007), the Court will ascertain whether the conflict robs the client of an effective advocate,and ascertain whether allowing counsel to proceed will cause observers to question the fair-ness or integrity of the proceed-ings. With regard to state investiga-tions, there is no “double jeop-ardy” as to federal investigations.This could be a joint investigation with a federal agency and could result in charges against the company or individuals or both.The consequences of a state’s charge could be suspicion of rev-ocation of the mine license, sus-pension or revocation of the fore-man’s certification or miner’s certification, monetary penalties,and criminal prosecution.Rajkovich referred to conspiracy charges including RICO, and no “double jeopardy”. Rajkovich said after the crisis,preserve the scene, preserve the documents, and always tell the truth. Remember, too, that civil lawsuits are a possibility involv-ing wrongful death civil suits, per-sonal injury civil suits, and prop-erty damage claims.For further information contact Marco M.Rajkovich, J

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athleen M. Kowalski-Trakofler,Research Psychologist, NIOSH,gave a presentation to the Crisis Management in the Mining Industry Professional Development Seminar at the UK Department of Mining Engineering. Mining is a dangerous occupation,as shown in Figure 1, and in 2005there were 2,063 coal mining opera-tions across the country. Coal mining disaster incidents and fatalities 1900-2007 is shown in Figure 2.Psychology is the scientific study of human behavior. Psychologists have studied human behavior under stress,including escape, first responder behavior, and issues related to a com-mand center. The mining environment is inherently dangerous. In the event of an incident, hazards increase and miners, responders, and manage-ment are under duress. There are four psychological phases of disasters. ?Initial impact phase – fear, anxiety;?Heroic phase – survivors help each other;?Disillusionment phase – resentment and frustration (at officials, company,and agencies);?Reconstruction phase.Stress is a basic human instinctual response. It is the survival response –the fight or flight response. It has phys-ical, cognitive, emotional, and behav-ioral symptoms. The physical reac-tions to stress are shown in Figure 3,and the disease response is shown in Figure 4. The psychological impacts on personnel in a mine disaster are normal people responding to an exceptional situation. The psychologi-cal effects are not pathological, and

they are not mental illnesses.Understanding the natural, normal,

human responses to danger provides

the Command Center leadership, the escapees, and the mine rescue team responders with an ability to be more

resilient in an emergency situation.

There are two types of stress.Cumulative stress involves the daily hassles of life with slow erosion.

Traumatic incident stress includes

exposure to a trauma, a catastrophic event, or severe injury. The Quecreek inundation incident on July 24-28,

2002 is an example and Crandall

Canyon in Utah is another one.Traumatic incidents can produce

unusually strong emotional reactions and may interfere with the ability to

function for a while. Strong reactions are normal reactions to extraordinary

situations.There are a number of short term

symptoms. These are cognitive,

behavioral, and emotional. They

include denial, numbness, withdraw-

al, depression, avoidance, feeling

overwhelmed, difficulty concentrat-

ing, anger, relationship problems,

increased alcohol consumption,

change in sexual functioning, and

change in eating habits.

There are also long term symptoms

which are cognitive, behavioral, and

emotional. These include: fearfulness,

flashbacks, high anxiety, exaggerated

startle responses, sleep disturbance,

feelings of guilt, irritability, and may

lead to a diagnosis of post-traumatic

stress disorder (PTSD) after three

months.

A traumatic incident may lead to

acute stress disorder or post-traumat-

ic incident stress syndrome (PTSD).

Escapees, other miners, mine rescue

team members, command personnel,and officials are at increased risk of acute stress disorder, depression, or PTSD. It has been suggested that the most vulnerable time emotionally is from six months to one year after the event. There is increased fear of rages,self-destructive behavior, and even suicide. Of the five senses, smell lasts the longest in memory. Thus, even many years after a mine disaster, a smell can trigger a flashback. The visu-al sense is next and can also trigger a flashback. Command Center issues are exceedingly important (see Figure 5). These include research on judg-ment and decision making under duress, as well as shifts, sleep, and nutrition, in addition to leadership in escape. Constantly unpredictable,hazardous environments, and emer-gency situations demand heightened judgment and decision making skills.Stress is one of the factors that deci-sion makers must contend with in most life and death situations, natural or man-made. Recent research is looking at decision making under duress. Key issues with stress include

perception, compromised judgment,and focus of attention. Stress is affected by perception. The ability to cope with stress is depen-dant upon an individual’s perception or an interpretation of an event (see Figure 6). Stress restricts cue sam-pling, both improved performance and performance degradation are associated with stress. Stressed S focus on the general outline of the problem; non-stressed S rely on in-depth analysis. Successful response teams are adaptive and their mode of communication changes.Setting shifts for Command Center personnel is a must. Providing ade-quate rest, hydration, and nutrition is important. Suggestions include: eat and sleep regularly, maintain as nor-mal a schedule as possible and adhere to the team schedule and rota-tion. Make sure that you drink plenty of fluids such as water and juices. Try to eat a variety of foods and increase your intake of complex carbohydrates (for example, breads and muffins made with whole grains, granola bars). Whenever possible, take breaks away from the work area. Eat and drink in the cleanest area available.With regard to leadership, NIOSH research has determined the charac-teristics of individuals who led miners out of smoke-filled mines. These were:aware, knowledgeable; decisive, yet flexible; open to input from others;calming influence; gain followers’ con-fidence; logical decision makers; and allow leadership to develop naturally. Many lessons were learned from 9/11. Stress affects the responders’judgment about their own health and safety. Many times responders,including Command Center personnel do not recognize the need to take care of themselves and to monitor their own emotional health. They can become part of the problem. NIOSH Publication No. 2002-107 provides suggestions for emergency response workers. These include: pace yourself,watch out for each other, maintain regular eating and sleeping habits,drink plenty of fluids, recognize and accept what you cannot change, and communicate with home. Mining communities are rural and are usually self-contained and have self-sufficient people. There is a stigma of mental health. Psychological needs are left to local, rural, mental health centers where disaster mental health response and knowledge is limited.In the future, training will emphasize building a resilient mining workforce.This will include pre-event training –expectations training, as well as post-event training – information and dis-aster mental health support. Kowalski-Trakofler concluded as fol-lows. Psychologically, preparation is the most important activity in which to engage to mitigate the effects of a dis-aster. Information lowers anxiety, and planning quiets fears. All mine emer-gency response training should include the human response to trau-matic incidents so individuals can be prepared and understand what they are experiencing. Accepting the nor-mal feelings and understandings how to intervene with one’s self and with others can support a successful escape. After an event, intervention can mitigate longer term reactions.For further information, e-mail kkowalski@https://www.doczj.com/doc/d76869351.html,.K Psychological Impacts on Managing a Mine Crisis

Kathleen Kowalski-Trakofler Fig 1 Mining is a Dangerous Occupation Fig 2 Coal Mining Disaster Incidents and Fatalities Fig 3 Physical Reaction to Stress

Fig 4 The Disease Response Fig 5 Command Center Issues are Important Fig 6 Stress is Affected by Perception

oger Alford, Associated

Press Correspondent,

Frankfort Bureau, gave a presentation to the Crisis Management Professional Development Seminar entitled The Media and a Mine Crisis. Alford provided a per-spective of a mine crisis from the media’s point of view. It is their job to report on the facts in a timely manner.

Associated Press scanners are constantly monitoring radio frequencies. Thus, when a mine disaster or crisis occurs, emer-gency teams will be contacted. This will be known to the press.

A reporter will be immediately dispatched to the scene. It is common for the Associated Press (AP) to send out a one sentence alert on radio and TV.

The reporters will immedi-

ately check MSHA for the mine

safety record, as well as getting

into corporate records, list of

directors, etc. It is important

that on the scene the mine sup-

plies a spokesperson.

Alford supplied a suggested

list in dealing with the media in

a crisis.

?Work with reporters, not

against them;

?Coal companies should

offer a balanced view;

?Provide visual aids, maps,

diagrams, etc.;

?Provide reasonable access

to the site;

?Arrange for a family

spokesperson such as a cler-

gyman;

?Release ID’s, hometowns,

ages of victims;

?Conduct regular briefings to

fill the news media time

slots;

?Bring out experts;

?Speak clearly, avoid jargon

such as ribs, etc.;

?Show no sarcasm, no jokes;

?Do not be coy or cagy;

?Distribute fact sheets and

comply with photo requests;

?Prepare interview sheets;

?Never speculate, and do not

give up to pressure;

?Always return phone calls

and messages;

?Understand deadlines of

the different media;

?Correct bad information

immediately.

When asked by a member of

the audience how to deal with

bad press, Alford said, “Select

a reporter you trust and give

him a lot of good information.”

On occasions where access is

limited, pool reporting is used

where one TV cameraman, one

still cameraman, and one

reporter are selected to repre-

sent all of the media. It is

important that they be given

maximum access and coopera-

tion.

R The Media and a Mine Crisis

Roger Alford

al Quinn, Executive VP and

General Council, National

Mining Association, gave a

presentation to the National

Western Mining Conference and

Exhibition entitled The Perfect Storm: Mine Safety Legislation, Mining Law Reform, and Climate Policy –How They Will Affect Mining?“The U.S. mining industry does

indeed appear to be entering a

rare confluence of events that will

determine our future,” said Quinn,

who listed a number of events. ?”Around the country, environmen-tal organizations and their lawyers

are circuling new coal plants, like

sharks moving for the kill;

?In Washington, much like here in Colorado, we are already feeling gale force winds from a changing political climate – a gale that with-in a year could rise to hurricane status;

?Mine safety regulations have affected costs and productivity at our operations – and new meas-ures may prove costlier still;?Meanwhile, we are looking down the barrel of a House-passed min-ing law reform bill with a proposed royalty that would be the world’s highest; and

?At the same time all of this going on, we face a political nor’easter with Senate climate change bills that threaten to arbitrarily curb coal’s use and impair our nation’s global competitiveness because they do not provide for the techno-logical pathway to emissions reductions.”

Quinn returned to the first of three major issues facing the industry – mine safety. The mining industry’s safety record does not warrant the kind of draconian measures featured in the House-passed bill by Rep. George Miller of California. That’s why his bill will not become law.

Over the past decade the indus-try’s number of injuries has dropped by more than 46%. Since 1970, for example, the coal indus-try has reduced fatalities by 81%, while increasing production by 89%, with 2005 being the safest year on record for U.S. mining. After the Sago Mine tragedy, NMA moved on its own to create the independent Mine Safety Technology and Training Commission with its recommenda-tions issued in December 2006

being implemented in mines

across the country. The industry

also put forth a set of specific

mine safety principles which led to

the MINER Act enacted in 2006.

About $260 million have been

spent to date in implementing

these measures, and this amount

will increase as newer technology

becomes available.

House Education and Labor

Committee Chairman Miller

opposed the MINER Act and his ill-

conceived supplemental legisla-

tion will not enhance the actual

safety of miners, and would divert

industry and government

resources from implementing the

recent updates to the mine safety

law. Many Senators, including

Senators Jay Rockefeller of West

Virginia and Mitch McConnell of

Kentucky agree that until we have

had time to comply with the cur-

rent law and assess its effective-

ness, additional requirements are

premature.

After reviewing the Mining Law

reform for the minerals side of the

industry, Quinn turned to climate

change, the third major political

challenge confronting the indus-

try. Coal is an enormously valuable

domestic resource for a country

that expects its electricity demand

to grow significantly over the same

time that the world’s demand for

energy is expected to rise by an

extraordinary 50% by 2030. There

is increased competition around

the world for available energy

reserves. Seven year ago China

was a net energy exporter, and

today, it’s an enormous energy

importer taking 40% of the world’s

annual oil production increases.

This trend will only continue as

more bicycles are traded in for

BMWs. By 2030, Europe will rely

on Russia for 70% of its energy

needs. Luckily, the United States

does not have to import coal or

worry about a foreign government

nationalizing it. Coal is available,

accessible, and there is lots of it.

Coal must obviously remain a

large part of this nation’s energy

mix.

Regarding the question how to

mitigate climate change, Quinn

said that the answer is “very care-

fully”. The way climate change is

responded to need not conflict

with the response to the energy

demand question. The coal indus-

try does not quarrel with the objec-

tive of addressing greenhouse gas

emissions. It does object to the

means some propose for dealing

with this important issue, espe-

cially if they ignore technology.

The legislation proposed by

Senators Joe Liebermann and John

Warner mandates very aggressive

CO2 reductions over the next

decade that will drive energy costs

up and jobs off-shore. It contains

no meaningful provisions for miti-

gating the impact on carbon inten-

sive industries, or the economy as

a whole. It does not provide the

ambitious funding needed to

accelerate the development and

deployment of carbon capture and

storage technology, and it fails to

synchronize the imposition of con-

trols with the anticipated avail-

ability of carbon capture and stor-

age technology. According to CRA

International, the bill would accel-

erate the nation’s deindustrializa-

tion and cost up to 2.3 million

jobs, raising wholesale electricity

prices as much as 65% by 2015. It

would cost the average family of

four about $3,500 a year.

Meanwhile, in the House,

Congressmen John Dingell of

Michigan and Rick Boucher of

Virginia who chair the committee

and subcommittee of jurisdiction,

intend to take up climate change

legislation later this year. Their

caution is understandable and the

closer Congress looks at imposing

mandatory controls, at their com-

plexity and cost, the less certain it

is that controls alone are the

answer. There is no assurance that

sufficient investment will flow to

carbon capture technologies, so

long as power companies can

switch to other fuels – despite

their costs compared to coal.

The European Union’s experi-

ence with the Kyoto Treaty offers

little encouragement that such a

system will work as well in practice

as it does in theory. Already, eight

member countries have sued or

planned to sue the European

Commission for tightening caps on

emissions, and Japan is falling

behind its promised emissions

reductions.

Mandatory controls such as

those currently being proposed

will do little to improve the envi-

ronment. Reducing U.S. emissions

will not have any meaningful

impact on atmospheric green-

house gas concentrations when

emissions from China and India

already surpass our own. This is

not a reason for doing nothing, but

it is a reason for carefully examin-

ing the cost and benefits of what-

ever we do.

Thankfully, some in Congress

are turning to a major policy tenet

of the National Mining

Association, namely that a tech-

nology pathway should be built,

and any mandatory carbon con-

trols must be synchronized with

that technology pathway.

Specifically, we should remove

regulatory impediments to

improve power plant efficiency

and accelerate funding for the

development and deployment of

carbon capture and storage tech-

nology. Most experts believe the

U.S. should be investing far more

in CCS technology. They recom-

mend an investment of at least $2

billion annually for the next 15

years over and above what the fed-

eral government is currently

spending. This would buy a lot of

value for a nation so heavily

dependant on coal to secure its

energy future. This funding would

be for basic R&D on carbon cap-

ture and storage, but also for the

large scale demonstration proj-

ects needed for new and existing

power plants.

Now that the Administration has

withdrawn its promised support

for the FutureGen project, a more

reliable means of funding this

important technology must be

found quickly. As some suggest,

global warming is the greatest

threat confronting our planet, then

we should embark today on the

equivalent of the Apollo Project to

develop the CCS technology to

generate near emissions free elec-

tricity from coal. We know the

technology works. Thanks largely

to clean coal technology, U.S.

power plants have reduced emis-

sions of conventional pollutants by

40% since 1970, while tripling

coal use to generate electricity. A

new power plant built today emits

90% fewer pollutants than the

plant it typically replaces.

A sufficient commitment of dol-

lars and ingenuity would have

equal success in reducing green-

house gas emissions and at the

same time, more incentives are

needed to ease the cost of

installing advanced clean coal

technologies such as coal gasifi-

cation and ultra super critical pul-

verized coal. These technologies

can enhance the efficiency of coal

plants, so that less carbon is emit-

ted for every Btu of energy pro-

duced. In fact, each efficiency gain

of 2% yields a 5% reduction in

CO2.

NMA believes it is critically

important that policymakers not

put the cart of mandatory controls

before the technology horse and

expects to see legislation advanc-

ing a technology centered solution

for climate change introduced

shortly. Such a technology

roadmap can lead to the contin-

ued and socially responsible use

of our country’s unrivaled coal

reserves, while providing

Americans with economic prosper-

ity and security in an increasingly

unsettled world.

“So to sum up: mine

safety…mining law reform… and

climate change are three different

storm systems gathering force

over the U.S. A fourth system may

be brewing in the elections this

fall,” said Quinn. “Meteorologists

may call this a perfect storm, but

for those of us in its path, it will

more likely be a test of how well we

work together. If “mining matters”

to you then join us up top on the

deck.”

H

The Perfect Storm

Hal Quinn

Meeting Report Part Two

Editor’s Note

Last month's Coal News

contained Part 1 of the

Meeting Report of the

110th Annual National

Western Mining Conference

and Exhibition sponsored

by the Colorado Mining

Association.

This month's Coal News

contains Part 2 of the

Meeting Report which can

be found on pages 12-24.

im Sims, Western Business

Roundtable, gave a presenta-

tion Finding the Right Balance to the National Western Mining Conference and Exhibition.

Sims said that the rules of sub-stitution are:

1. There is no substitute for growing the entire energy pie;

2. Substituting one resource for another is bad policy;

3. Substituting domestic energy for foreign energy is good policy;

4. Some substitutions cost con-sumers more dollars.

The energy pie must grow, as shown in Figures 1-3. China and India are now key drivers of global demand (see Figure 4). China is on track to increase its per capita energy use an outstanding 88% in the next ten years developing power plants at a rate of more than one per week. India is on a fast track for growth, increasing its per capita energy use by 36%, as millions experience the benefit of electricity for the first time.

Those who say renewables can replace all fossil fuels now are not telling the truth. Renewables can’t generate adequate power and

aren’t baseload. Renewables actu-

ally need fossil fuels.

Colorado’s need for electricity

will increase significantly by 2025

by as much as 4900 MW. By 2025

Colorado will need 2,280 MW of

baseload power, 1,540 MW of

intermediate power, and 1,080 MW

of peaking power.

Renewables need fossil energy

as intermittent renewables require

baseload backup. Gas power plants

cycle hundreds of times in a month

to match winds variability. The can-

cellation of the Kansas coal plant

killed wind development. Dozens of

gigawatts can be met with only six

things, coal, natural gas, nuclear,

hydropower, imports, and negative

economic growth.

Option 1 coal is shown in Figure

5. Btu conversion and gasification

from coal includes steel electricity,

industrial gas, pipeline syngas,

specialty chemicals, ethanol,

diesel, jet fuel, and hydrogen. It

also involves CO2 capture and

sequestration. There are also a

number of other innovative

advances, which will be commer-

cialized in the next 20 years. CO2

sequestration timelines are shown

in Figure 6.

The second option is natural gas.

If the benefits of natural gas for

electricity generation and other

uses is required in the future, it is

necessary to continue to drill and

produce natural gas. In the Rocky

Mountain region there are an esti-

mated 167 trillion cubic feet of

undiscovered, technically recover-

able, federal resources.

Option 3 is foreign energy. As the

economy grows, we need more

energy from all sources, including

the fossil fuels that now meet more

than 80% of all U.S. energy needs.

Discouraging production of

American oil and gas forces the

reliance more on foreign imports,

even assuming a lot more energy

conservation. Some of these for-

eign nations that gladly take petro-

leum dollars are led by dictators

that support foreign terror groups

aligned against America. The more

petro-dollars that are sent over-

seas, the more we indirectly sup-

port the very terrorists that our

brave men and women in uniform

are currently fighting. Substitutions

cost money. The Utah cap-and-

trade study indicated 33% coal dis-

placement and 66% coal displace-

ment. With those state output was

reduced $5.7 billion and $14.1 bil-

lion respectively, household income

was reduced $2.2 billion and $5.3

billion respectively, and jobs lost

were 45,800, and 111,600 respec-

tively.

There are possibly three climate

change outcomes. Outcome 1, we

mitigate climate change, mitigate

temperatures by 1-2 degrees by

2100, decarbonize economy, slow

economic growth, and raise costs

on consumers. Outcome 2, we

don’t affect climate, but decar-

bonize the economy, slow econom-

ic growth, and raise costs on con-

sumers. Outcome 3, we don’t affect

climate, but we screw up our power

systems so badly that this is what

we deliver to America.

Sims offered final thoughts.

Good substitutions are domestic

energy for foreign energy, conserva-

tion for energy use, low-cost

options for high-cost options. Bad

substitutions are one resource for

another, high-cost options for low-

cost options, and economic growth

vs. conservation. The biggest threat

is system reliability and undermin-

ing the ability to keep the lights on.

The biggest challenge is ensuring

that government regulations don’t

outpace technological capabilities.

There is a moral imperative that we

must be honest with consumers

about the cost increases that are

coming, as they will adversely

affect low-income families the

most.

J

Finding the Right Energy Balance

Jim Sims

Fig 1 Primary Energy Use by Fuel (Quadrillion Btu)

Fig 2 Delivered Energy Use by Fuel Fig 3 Energy Use Per Capita and Per Dollar of GDP

Fig 4 China and India are Key Drivers

Fig 5 Option 1: Coal Fig 6 C0

2

Sequestration Timelines

kip Arnold, Executive Director, Energy Outreach Colorado, gave a presenta-tion Climate Policy and its Potential Impact on Low-Income Energy Consumers to the National Western Mining Conference and Exhibition.The mission of Energy Outreach Colorado is helping all Coloradans afford home energy. The organiza-tion was established in 1989 with a statewide fuel fund and raises $7-$11 million per year. Since 1989 it has distributed over $80 million to clients. The organization has a number of programs. Cash assistance is dis-

tributed statewide and year around. LEAP provides private

funds to the state program. Other

programs include energy efficiency

for affordable housing, energy effi-ciency for non-profit facilities, and energy conservation education.

There is also advocacy for progres-

sive energy policies.

In Colorado, 366,000 house-holds qualify for energy assistance.This amounts to 22% of all house-

holds. The average low-income

household pays 17%-20% of their

total income for home energy. Many pay in excess of 50% of their total income. The average Colorado

household pays about 6% of their

total income for home energy. The

percent of Colorado county house-holds below 184.9% of poverty is shown in

Figure 1

. Winter home energy prices are shown in Figure 2. Assistance from LEAP is shown in Figure 3.Winter home energy prices looking forward are shown in Figure 4. The low-income impact looking forward is shown in Figure 5.There are severe consequences of energy poverty, and the Home Energy Bill is at the top of the stack.In order to pay for home energy,many income limited households must sacrifice other needs, includ-ing: skip meals, forego medications or medical care, suffer from exces-sive cold or heat, use unsafe meth-ods to heat their home such as a kitchen oven or space heater, or abandon their home.The evidence of this impact is illustrated by the 2005 NEDA study in which 38% of LIHEAP recipients did without medical care, and 30%skipped prescription medicine. In the United Way 211 study, energy assistance was found to be the sec-ond most frequent request. In the 2006 Colorado Homeless Study,completed by the University of Colorado Health Science Center, it was found that the inability to pay utility bills was the second leading cause of homelessness in Colorado. The 2007 Boston University School of Medicine Study found that energy poverty contributes to childhood under-nourishment, obesity, and hospital-ization.Arnold mentioned energy policy initiatives. Renewable portfolio standards increase the amount of renewable sources for overall elec-tric production and reduced natural gas usage. Demand side manage-ment programs reduce both natural gas and electricity consumption through incentives for customers to install various energy efficiency measures. Carbon reduction legis-lation may be cap-and-trade or a carbon tax. There is federal and

state energy assistance support,but federal LIHEAP funds are con-tinually at risk, and Colorado is potentially eliminating bill payment support. There is potential impact of energy policies on vulnerable populations. This can result in increased home energy costs,reduced assistance to vulnerable households, and an inability to access programs. The solutions are shown in Figure 6.Arnold provided a summary. The entire state is affected by energy poverty, both urban and rural com-munities. In Colorado, home energy prices will increase at a far faster rate than the rest of the country.Not unlike the canary in the coal mine, low-income families feel energy cost increases first, and they feel it the hardest. Energy assistance can prevent, or at least postpone, other family hardships,reducing demands on other social services. Federal and state bill pay-ment assistance must continue and increase. Long-term prevention of the problem such as energy effi-ciency and renewables is effective,but low-income families must be included. Low-income households must be a part of all energy policy discussions.For further information con-tact Skip Arnold,sarnold@https://www.doczj.com/doc/d76869351.html,,https://www.doczj.com/doc/d76869351.html,.S Climate Policy and its Impact on Energy Consumers Skip Arnold Fig 5 Future Low-Income Impact Fig 1 Colorado County Households Below Poverty Level

Fig 3 Assistance From LEAP

Fig 6 The Solutions

Fig 2 Winter Home Energy Prices Fig 4 Future Winter Home Energy Prices

Featured Speakers Include:

Richard E. Stickler, Acting Assistant Secretary of Labor for Mine Safety and Health, MSHA J. Brett Harvey, President and CEO, CONSOL Energy, Inc.

Dr. Jeffrey Kohler, Director, Office of Mine Safety and Health Research, NIOSH

Michael J. Quillen, Chairman, Alpha Natural Resources, Inc.

James W. Roberts, NMA Chairman and Chairman and CEO, Foundation Coal Holdings, Inc.

and Richard M. Whiting, President and CEO, Patriot Coal Corporation

Further Details On Next Pages

August 26-27, 2008

Bluefield Coal Symposium

According to the National Mining Association Mid-Year Coal Production Forecast, coal demand will reach a new record in 2008, despite a lagging domestic economy, with total demand for U.S. coal expected to reach 1.218 billion tons this year. Against this background, and following the success of the Symposium two years ago, the Bluefield Coal Symposium is being held Tuesday, August 26 through Wednesday, August 27, 2008.

Sponsored by the Greater Bluefield Chamber of Commerce, the Bluefield Coal

Symposium is being held at the Holiday Inn,

Bluefield, West Virginia with the theme

Coal Mine Safety: The Road to Zero

Harm.

A very formidable list of speakers has

been assembled to present their experi-

ences in mine safety, with four techni-

cal sessions over two days. The

Bluefield Coal Symposium promis-

es to be one of the major events in

the coal calendar in 2008.

Bill Reid, Chair,

Bluefield Coal Symposium.

George McGonagle,

Vice Chair, Economic

Enhancement Division.

Randy Deason,

Chairman of the

Board.Monday, August 25, 2008

1:30Exhibitors Set-Up

Golf Tee Times Available

5:00 Registration

Opens

6:00 Informal Reception by the Pool

6:30 Welcome

7:00 Dinner on your Own

Tuesday, August 26, 2008

7:00Speakers Breakfast

(Conference Room)

8:00 Session 1: Mine Safety

The Road to Zero

11:30 Adjourn for Lunch

12:00 Lunch

1:00 Welcome by Randy Deason, Chairman

of the Board and Introduction of

Luncheon Speaker, Richard E.

Stickler, Acting Assistant Secretary

of Labor for Mine Safety and Health,

MSHA, who will speak on “Progress

with the MINER Act of 2006”.

2:00Session 2: Mine Safety

New Technology & the

Manufacturer

5:00 Adjourn

6:00 Reception (David’s at the Club)

7:00 Dinner

8:00Address by Brett Harvey, President

and CEO, CONSOL Energy, Inc. who

will speak on “The Science and

Culture of Safety”.

Wednesday, August 27, 2008

8:00 Session 3: Mining

Legislation and Training

Session

11:30 Adjourn for Lunch

1:00 Introduction of Luncheon

Speaker Michael J. Quillen,

Chairman, Alpha Natural

Resources Inc.

2:00Session4: Practical

Progress in Mine Safety

5:00Adjourn

6:00 Reception (David’s at the

Club)

7:00 Dinner

8:00 Address by Richard M.

Whiting, President and CEO, Patriot

Coal Corporation, “Only in

Appalachia”

9:30Adjourn

Session 1 Mine Safety The Road

to Zero, Tuesday Morning, August 26

Keynote Address: “The Road to Zero

Harm”by Dr. Jeffrey Kohler, Director, Office of

Mine Safety & Health Research, NIOSH.

“A Statistical Analysis of Coal Mining

Accidents”by Speaker from NIOSH.

“Eliminating Mining Accidents”by John

M. Gallick, Vice President Safety and Health,

Foundation Coal Corporation

“Communication and Tracking

Initiatives”by David Snyder MS, PE, Office of

Mine Safety and Health, NIOSH

“Coal Mine Sealing Strategies”by John

Feddock, PE, Senior Vice President, Marshall

Miller & Associates, Inc.

“Emergency Underground Mine

Shelters” by TBA

Session 2 Mine Safety New

Technology and the Manufacturer,

Tuesday Afternoon, August 26

“Progress in Mine Rescue Work”by

Kenneth A. Murray, Deputy Administrator, Coal

Mine Safety and Health, MSHA

“Progress in Mine Safety at Bucyrus”

Speaker TBA

“Safety Progress at Joy Global”by Mike

Adamczyk, Vice President – Global

Engineering, Joy Mining Machinery

“Safety Solutions Through Mining

Equipment Design and Development”

by Bart Ferrero, Safety & Sustainable Project

Manager, Caterpillar Global Mining.

“Safety the Komatsu Way” by speaker

from Komatsu

Session 3 Mining Legislation and

Training, Wednesday Morning,

August 27

Keynote Address: “Coal: Safe, Secure and

Sensible”by James W. Roberts,Chairman,

National Mining Association and Chairman

and CEO, Foundation Coal Holdings, Inc.

Symposium - Bluefield, WV ?Golf - Bluefield, VA Bluefield Coal Symposium Golf - Fincastle Country Club Monday, August 25 - Tee Times Available

T reat yourself to a round of golf at the beautiful but demanding links at Fincastle County Club in Bluefield, Virginia. Accuracy is a must on this tight 18-hole, par 70 course. The small greens pose addi-tional challenges due to their slope and speed. Difficult pin placements and numerous sand traps will quickly punish any errant shot. Call (276) 322-4342 to set your tee time for a great afternoon.

“Pennsylvania Mine Safety Legislation”

by George Ellis, President and CEO,

Pennsylvania Coal Association

“Coal Counts in Kentucky”by Bill K. Caylor,

President, Kentucky Coal Association

“Virginia Coal Regulation – A Traditional

Approach with a Forward Look”by Tommy

Hudson, President, The Virginia Coal

Association, Inc.

“West Virginia Coal – We’re Getting

Better”by Bill Raney, President, West Virginia

Coal Association

“Safety Training That Works”by Jim Dean,

Director, West Virginia University, Extension &

Outreach

Session 4 Practical Progress in Mine

Safety, Wednesday Afternoon, August

27

“Progress in Reducing Ground Control

Accidents”by NIOSH speaker to be

advised.

“Safety with a Double T”by Elizabeth S.

Chamberlin, Vice President of Safety and

Training, Massey Energy Co.

“Safety Observations at Alpha Natural

Resources”by Allen Dupree, Vice President –

Health and Safety, Alpha Natural Resources

“Making Absolute Zero Safety Happen”

by Lou Barletta, Jr., Vice President – Safety,

CONSOL Energy

“Progress with Mine Safety at Patriot”

by Speaker from Patriot Coal Corporation Up to 13 PDH Credits May Be Earned.

Exhibits

A limited number of 10 wide

exhibit booths are available.

Call for reservations.Brett Harvey CONSOL Energy Richard E. Stickler MSHA Jeffery Kohler NIOSH Jim Roberts Foundation Coal Mike Quillen Alpha Natural Resources Rick Whiting Patriot Coal

t a ceremony held at the Westin Hotel Denver, the Colorado Mining Association (CMA) hon-ored winners of the Environmental Stewardship and Pollution Prevention Awards for 2007. Stuart A. Sanderson,CMA President, praised the award win-ners and the success of the program. “I am particularly pleased to announce that a record number of eleven (11) par-ticipants received recognition this year,with seven coal mines, three metals mines and one administrative office earning awards,” he said. Ten of this year’s winners received spe-cial recognition as senior participants in the program, thus earning the CMA’s nomination for the Colorado Department of Public Health and Environment’s (CDPHE) Environmental Leadership Program (ELP). CMA developed the award winning program under a grant from the CDPHE’s Pollution Prevention Program.The association developed a first-ever code of pollution prevention and best management practices for the mining industry in Colorado. Companies volun-tarily participating in the program must submit a detailed certification demon-strating that they have complied with applicable protocols designed to pro-tect the environment by reducing or eliminating the use of toxic chemicals,recycling, reuse, conservation, and other best management practices. In 2003, CMA, the first mining indus-try trade association to develop such a program, earned a “Friend of EPA award.” In presenting the award, EPA Region VIII Administrator Robbie Roberts told CMA members that “the program directly supports and assists EPA in performing its mission to protect public health and the environment.”James Martin, Executive Director,Colorado Department of Public Health & Environment, participated in the

awards ceremony.

The CDPHE also specifically endorses

the code of practices developed by the

industry and participated in the awards

program. Its logo is affixed to each of the

certificates presented at the ceremony.

The ceremony took place during CMA’s

110th National Western Mining

Conference & Exhibition.

Innovative recycling programs, water

conservation, use of solar and other

energy efficient technologies to reduce

greenhouse gas emissions, and eco-

friendly solutions in mine site reclama-

tion highlighted this year’s environmen-

tal achievements.

Several coal mines, including

OxBow Mining s Elk Creek

Mine , also received recognition for

aggressive recycling of used oil, batter-

ies, drums, fluorescent light tubes, and

even printer cartridges. The Trapper

Mine recycled 18,000 gallons of used

engine and hydraulic oil as an additive

to blasting agents. The company active-

ly practices the conservation, recycling and reuse of chemicals and products.Mountain Coal Company has recycling programs for metal, wire, and electrical cable as well as used oil,which becomes a fuel source in energy recovery. A large compactor is utilized to reduce the volume of solid waste placed in the local landfill. Twentymile Coal Company recycles over 1 mil-lion pounds of petroleum products and steel annually. Rio Tinto Energy America s Colowyo Mine is testing and using more environmentally friendly fuel addi-tives and installed 5 minute shutdown timers on its trucks and other mobile equipment to prevent idling, all in an effort to reduce greenhouse gases. The Trapper Mine s award winning reclamation has increased forage pro-duction at the site by 500%, helping in the absorption of atmospheric carbon dioxide. Blue Mountain Energy’s Deserado Mine uses an all electric train to transport coal from the mine to the power plant, avoiding the emissions associated with diesel. T wentymile Coal Company s reclamation and land management programs resulted in a national award for “Excellence in Reclamation,” recognizing wildlife man-agement and habitat enhancement for sharp-tailed grouse. T wentymile Coal Company conserves energy by reducing conveyor belt run-times and by designing substa-tions and transmission lines to reduce voltage drops and line losses. Water conservation was achieved as the mine recycled about 17.5 million gallons.Blue Mountain Energy’s Deserado Mine pumps water to inactive workings for storage; as a result, the mine has not discharged any water from the site in 10years of operation. Colorado Mining Association 2007Pollution Prevention Awards in coal and a description of their activities follows. Bowie Resources, LLC Bowie No. 2 Mine Paonia,CO Participant CMA welcomes Bowie to the program this year for certifying that it has met all of the protocols of the Environmental Stewardship and Pollution Prevention Program. Blue Mountain Energy Deserado Mine Rangely, CO Senior Participant with Special Recognition This mine deserves special recogni-tion for reducing emissions and pollu-tants, by what it calls “complete enclo-sure transport of coal from portal to

loadout.” Crushers, screeners, the wash

circuit, conveyors, and the 25,000 ton

coal storage building are completely

enclosed to minimize emissions. The

mine uses an all electric train to trans-

port coal to the power plant, avoiding

the emissions associated with diesel,

including greenhouse gas emissions.

The company carefully evaluates chemi-

cals used in operations and has imple-

mented a program to evaluate alterna-

tive products that will lower the environ-

mental impact. The mine conserves

water through a coal bypass system that

reduces the amount of coal requiring

washing; during mining the company

pumps water to inactive workings for

conservation. As a result, the company

has not discharged water from the site in

10 years of operation. The company also A Environmental Stewardship Awards Earned by Mining Companies

Stuart Sanderson

Blue Mountain Energy, Deserado Mine, Rangely, CO - Senior Participant

Bowie No. 2 Mine, Paonia, CO - Participant Mountain Coal Company, West Elk Mine, Somerset, CO - Senior Participant

achieved success in reintroducing the

black footed ferret, an endangered

species, to Colorado.

Mountain Coal Company

West Elk Mine Somerset, CO

Senior Participant with

Special Recognition

The company actively practices the

conservation, recycling and reuse of

chemicals and products. Mountain Coal

has recycling programs for metal, wire,

and electrical cable as well as used oil,

which becomes a fuel source in energy

recovery. Grease totes are re-used. A

large compactor is utilized to reduce the

volume of solid waste placed in the local

landfill.

Oxbow Mining, LLC

Elk Creek Mine, Somerset, CO

Senior Participant with

Special Recognition

The mine provides an online web

based service to maintain a list of haz-

ardous materials located at the mine

site. The company screens and enters

new products into the database. The

company obtains lubricants in the

largest containers appropriate for the

site to reduce the waste stream. The

company uses doubled walled tanks for

storage. The mine recycles used oil, bat-

teries, drums, scrap metal, fluorescent

light tubes, and uses recycled products whenever possible. The company uses dust suppressants to reduce water use and has reconstructed the bathhouse to

employ low-flow water fixtures. Rio Tinto Energy America Colowyo Mine Meeker,

CO Senior Participant with Special Recognition Award The mine has developed its own

Health Safety and Improvement Process to comply with the Corporate

Pollution prevention and Waste Minimization Program established in 1995. Comprehensive mandatory test-ing is required before any materials are shipped off site, including all waste oil,

antifreeze, batteries and solvents. The recycling program regularly monitors waste streams for toxicity. The compa-ny’s procurement policy regularly requires the testing and comparison of products used at the mine with poten-tially more eco-friendly alternatives. The company requires all employees to undergo Environmental Awareness Training, with a goal of eliminating any preventable release of unapproved materials into the environment. The company is completely revising its reclamation plan to use software that will even more closely restore lands to their approximate original topography,above and beyond the requirements of current law. The company is working with the National Audubon Society to identify and preserve all sites that pro-vide habitat for birds. The company is collaborating with the University of Idaho on a habitat study of Northern Grouse and Columbian Sharptail grouse. Colowyo is actively pursuing new tech-nologies and establishing site wide pro-tocols to aid in reducing greenhouse gas emissions on site, including the testing of more environmentally friendly fuel additives. The mine implements a regu-lar maintenance schedule for all mobile equipment to minimize fuel waste and energy use. Colowyo has also installed 5minute shutdown timers on a substan-tial portion of its equipment fleet, to minimize the amount of idle time. The company has established an overall tar-get for greenhouse gas emissions. Trapper Mining Inc.Trapper Mine Craig, CO

Senior Participant with Special Recognition The company’s Waste Management Program includes the recycling of 18,000 gallons of used engine and hydraulic oil as an additive to blasting agents. The addition of used oil and sol-vents to the diesel fuel mixture also reduces the amount of diesel needed for blasting agents. The company recycles all products where it is economically feasible to do so, including used toner cartridges, aluminum, scrap metal, flu-orescent bulbs, batteries and tires. The use of magnesium chloride as a dust suppressant on haul roads has saved the use of 8-10 million gallons of water annually. Trapper continues to reduce waste and releases of toxic pollutants by removing all underground storage tanks to prevent leakage. The company also uses bulk spray solvents in lieu of aerosol sprays. Finally, the company has recently replaced several of the large diesel serv-ice trucks on the site with newer vehicles that use lower sulfur products. The com-pany’s reclamation of the site, for which it has received national recognition, has increased forage production rates at five times that which existed before mining,helping in the absorption of atmospher-ic carbon dioxide. T wentymile Coal Company Foidel Creek Mine Oak Creek, CO Senior Participant with Special Recognition The mine’s general goals are to avoid the use of hazardous materials that gen-erate a hazardous waste stream, where feasible to do so; energy conservation;smart water use and conservation; and effective land management and recla-mation. A pre-screening process and monthly tracking of chemical use helps meet waste management goals. The mine conserves energy through a mine-wide program to limit conveyor belt run-times (used for coal transfer from the active mining area); design substations and transmission lines to reduce volt-age drops and line losses; and use high-efficiency motors. Water conservation is achieved by storing and recycling mine inflows to the underground mine water system; about 17.5 million gallons of water are recycled annually. The compa-ny also partners with grazing lessees and the Colorado Division of Wildlife to manage reclaimed lands for multiple-use, and to evaluate/enhance reestab-lishment of sharptail grouse habitat on reclaimed mined lands and transplant grouse to other areas to increase overall populations. Oxbow Mining, LLC, Elk Creek Mine, Somerset, CO - Senior Participant Rio Tinto Energy America, Colowyo Mine, Meeker, CO - Sr. Participant Award Trapper Mining Inc, Trapper Mine, Craig, CO - Senior Participant Twentymile Coal Company, Foidel Creek Mine - Senior Participant

aul M. Seby, Partner, Moye

White, LLP, spoke on

Challenges to

Colorado’s Mining Industry

to the Annual National Western

Mining Conference and

Exhibition.

“Uncertainty threatens a strong

mining industry,” he said.

“Political uncertainty, regulatory

uncertainty, and economic uncer-

tainty.” Managing uncertainty

can be via democratic branches

of government and telling min-

ing’s positive story that it is

socially valuable and critical.

Sometimes it is necessary via

judicial review. This is unfortu-

nate, but sometimes necessary

when a lot is at stake.

There are anti-mining special

interests efforts to thwart respon-

sible hard rock and coal mining.

These involve anti-mining actions

taken by certain Colorado coun-

ties, and the question when does

the county authority go too far.

Seby turned to the long and

winding roadless case. In 2001

4.4 million acres of U.S. forest

service lands were off-limits. On

September 20, 2006, a magis-trate judge of the U.S. District Court declared that the state’s petition rule violated NEPA and the ESA. The Court enjoined implementation of the state’s petition rule, reinstated the road-less rule, and further enjoined the USDA from taking any further action contrary to the roadless rule without undertaking environ-mental analysis consistent with this opinion. The roadless rule constitutes an administrative designation of inventory roadless areas as de facto wilderness areas in violation of the Wilderness Act. A nationwide injunction against enforcement of the roadless rule is the proper remedy, said Seby.Turning to coal severance tax litigation, Seby said that mining companies in Colorado currently pay nearly $9 million annually in severance taxes as a result of their coal mining activities. These taxes are used to fund important state and local government pro-grams as well as the state school system, geological hazard detec-tion, and avalanche prediction and prevention. On December 30,2007, the Colorado Department of Revenue adopted regulation 39-29-106 and increased the severance tax rate on coal by imposing a quarterly adjusted rate based on the producer price index (PPI). The Colorado Mining Association and six individual companies seek a judicial decla-ration that the tax regulation con-stitutes an increase in the tax rate or a tax policy change which,because it was not subject to a vote by the Colorado electorate,violates the Colorado constitu-

tion. By increasing the production cost for all current and future coal production, the Tax Regulation effectively increases the required sales price for Colorado coal and places it at a competitive disad-vantage in interstate markets. By 1992, the voters of Colorado approved the taxpayer Bill of Rights to state’s constitution,commonly known as the Tabor Amendment. Tabor requires voter approval of any new tax, tax rate increase or tax policy change,that results in a net tax revenue gain. Tabor removed control over tax increases from state and local governments and placed that authority exclusively with the Colorado electorate. The pre-ferred interpretation of issues involving the Colorado Constitution is that which “shall reasonably restrain most the growth of government”. Section 1of the amendment states that Tabor supersedes all conflicting state constitutional and statutory provisions.From 1977 to 1993, the coal severance tax rate was subject to a percentage change increase or decrease based upon the per-centage change in the PPI, result-ing in the quarterly fluctuation in the coal severance tax rate. After the enactment of Tabor, the Department announced on April 7, 1993, that it would change its policy of imposing the quarterly indexed adjustment to the rate of the coal severance tax. It reaf-firmed its policy again in 1998, a 15-year policy. The tax regulation reimplements the quarterly indexed adjustment mechanism and increases the rate of tax.The department failed to con-duct any fiscal analysis of the rulemaking. During the rulemak-ing, mining parties commissioned a fiscal analysis of the tax regula-tion by Dr. Tucker Hart-Adams. Dr.Adams’ fiscal analysis found that the tax regulation will result in at least a 33.3% increase in the sev-erance tax rate, and a 29.2% real increase in the coal severance tax revenues, a change contrary to the department’s long-standing interpretation of Tabor’s impact on the indexing provisions.P Challenges to Colorado’s Mining Industry would like to offer my congrat-ulations to everybody who is

being honored today for out-

standing reclamation and envi-

ronmental stewardship, and the

work you’ve done in mining safe-

ty,” said Governor Bill Ritter in

addressing the Closing Awards

Luncheon of the annual National

Western Mining Conference and

Exhibition sponsored by CMA. “By

acknowledging those who you are

honoring today you are doing an

important job in helping us

achieve that balance between

industrial development and pro-

tecting the environment.

“I’ve been talking for a couple

of years about a thing called the

New Energy Economy. This means

moving ahead with renewable

energy sources, wind, sun, and

biofuels. We’ve made great

strides with this in Colorado over

the past year. We’re bringing in

new businesses in Colorado

based on our renewable energy

economy, but at the same time I

emphasize the importance of the

extractive industries, and in par-

ticular today our mining industry

for Colorado’s economy.

“Let’s take coal for example.Coal provides 74% of Colorado’s

electricity. In 2006 Colorado pro-duced more than 36 million tons of coal and provided more than 2,000 jobs. Colorado is ranked 7th amongst coal producing states. We are one of the best coal producing states and we had one of the best coal producing years ever. Production of coal we understand is vital to our econo-my, and it’s use will continue to provide us energy for years to come. By being thoughtful and by doing our best to protect health,safety, and our environment, all of you today being honored exem-plify a vital component in our New Energy Economy.”Ritter pointed out that Colorado mining is not just about coal. It’s been mined in this state and the entire West for many many decades, but this year is the 150th anniversary of the Gold Rush in Colorado. Colorado is sit-ting on vast mineral resources and will continue to be a leader in these resources.“We in Colorado are blessed with abundant coal supplies and we think the time has come for us to find new ways of using coal to meet our energy needs. Coal has given us affordable, reliable elec-tricity in abundance here in Colorado, and elsewhere, as well.Coal is a large part of Colorado’s energy picture today, but people need to think differently about coal, and I want to work with you as we look at new technologies like IGCC, carbon sequestration.We believe an entirely new market will emerge around transporting and sequestering the CO2 that is captured. “Some months ago I met with Governor Freudenstal of Wyoming

along with the Governors of West Virginia and Utah to talk about taking the new technologies from the lab to the field, and in this discussion we brought in the President of Basin Electric with his plan for a new coal fired plant in Wyoming. We also brought in the investment bank UBS with their expert on energy technology.What he said was in order for us to move forward in IGCC, carbon sequestration, federal support is absolutely key here. No company wants to assume the financial risks of being the first company to build the new technology. “We are lobbying our congres-sional delegation and the Secretary of Energy and the utili-ties in our states to add IGCC plants. Excel is continuing to investigate this and they may include, if economically feasible,in their 2009 filing. You may be surprised and disappointed with the Department of Energy’s deci-sion to pull back on the FutureGen project. I, along with other governors, are going to press Secretary Bodman to shift resources to demonstration IGCC projects at various sites around the country, and we need to build at least one if not two plants using Western coal at altitude.“By 2030 it is forecast that coal will retain its position as the world’s largest fuel for power gen-eration with a 39% share of the total electricity market that will nearly double the annual output from 18 trillion to 35 trillion kilo-watt hours. As a result of clean coal technology however, total carbon emissions from coal burn-ing plants can be less than half of what they are today. Coal is clear-ly part of our future. We and my administration look forward to working with you and your associ-ation as we look at how we move forward, both as a state, and also while we urge the federal govern-ment to do what is necessary to provide the capital funding so that these projects can demon-strate how coal can be gasified at altitude and that Western coal can play a role in that. We need to make sure that the federal gov-ernment is involved in that and involved in a meaningful way,”said Ritter.

I

Governor Bill Ritter’s Address

Paul M. Seby Gov. Bill Ritter “