Blankenship indicted on multiple charges Violations of safety standards led to UBB explosion that took the lives of 29 miners BECKLEY — Former Massey Energy CEO Donald L. Blankenship has been indicted for four criminal offenses, including conspiracy to violate mandatory federal mine safety and health standards, conspiracy to impede federal mine safety officials, making false statements to the U.S. Securities and Exchange Commission and securities fraud. A federal grand jury returned the indictments Thursday, according to U.S. Attorney Booth Goodwin. Violations of safety practices led to an explosion April 5, 2010, at Massey Energy’s Upper Big Branch Mine, located in Raleigh County near Whitesville, which took the lives of 29 miners. According to a report given in September to the legislative committee on Labor and Worker Safety Issues, the explosion was “man-made” and “could have been prevented. The report said failures of three basic safety practices caused the explosion: Properly functioning ventilation system, adherence to federal and state rock dusting standards and proper maintenance of safety features on mine machinery. Between Jan. 1, 2008, and April 9, 2010, UBB was cited approximately 835 times for violations of federal mine safety and health standards, one of the highest levels of safety-law violations of any Massey mine. The indictment said 319 violations were especially serious, and 283 violations were related to mine ventilation, which is necessary to prevent explosions and fires in mines, and to minimize deaths and injuries in the event of an explosion or fire. “Blankenship knew that UBB was committing hundreds of safety-law violations every year,” the indictment said. “Yet he fostered and participated in an understanding that perpetuated UBB’s practice of routine safety violations in order to produce more coal, avoid the costs of following safety laws and make more money.” UBB, which produced metallurgical coal used for manufacturing steel, was important to Massey’s financial performance, the indictment said. In 2009, the UBB-centered group of mines generated approximately $331 million in revenues, approximately 14 percent of Massey’s approximately $2.3 billion in revenue, and in 2010, the UBB-centered mines accounted for 16 percent of revenues with $432 million. The indictment alleges Blankenship conspired to commit and cause routine, willful violations of mandatory federal mine safety and health standards. It also alleges Blankenship was part of a conspiracy to impede and hinder federal mine safety officials from carrying out their duties at UBB by providing advance warning of federal mine safety inspection activities, so their underground operations could conceal and cover up safety violations that they routinely committed. The indictment further alleges that after the April 5, 2010, explosion, Blankenship made and caused to be made false statements and representations to the SEC concerning Massey Energy’s safety practices prior to the explosion. Additionally, the indictment alleges that, after this explosion, Blankenship made and caused to be made materially false statements and representations, as well as materially misleading omissions, in connection with the purchase and sale of Massey Energy stock. Massey was acquired by Alpha Natural Resources in 2011. In a release Thursday, Alpha called Blankenship’s indictment a “significant milestone.” Alpha noted Blankenship left Massey the year before Alpha acquired the company, and has been fully cooperative with the UBB investigation. Alpha said the company has worked toward a safer workplace and has invested $80 million in added safety measures and next generation safety equipment across the company. “What happened at UBB will never be forgotten,” the Alpha release said. “We can only hope that the outcome of the upcoming proceedings that were announced today will provide some level of comfort and closure for the families of the fallen miners and to the larger community where we live and operate.” Blankenship did not release a statement after the indictment was released Thursday, but his attorney, William W. Taylor III, said his client is “entirely innocent of these charges.” “He will fight them and he will be acquitted,” Taylor said. He continued, “Don Blankenship has been a tireless advocate for mine safety. His outspoken criticism of powerful bureaucrats has earned this indictment. He will not yield to their effort to silence him. He will not be intimidated.” While an indictment is only an allegation, Blankenship could face up to 31 years in prison if he’s found guilty. Four other people connected to the mine have been convicted of federal charges, including former UBB mine superintendent Gary May, Massey executive David C. Hughart, former Massey security chief Hughie Elbert Stover and former UBB mine employee Thomas Harrah. U.S. Sen. Joe Manchin said he has always had “complete faith” that justice would be served. “Don Blankenship’s indictment today is the first step in providing some peace to the families of the Upper Big Branch miners who lost their lives.” U.S. Sen. Jay Rockefeller said the UBB families have cried out for justice for the past four years for their loved ones lost. “(Thursday’s) indictment of former Massey Energy CEO Don Blankenship is another step toward justice. But let me be clear: In my view, Don Blankenship, and the mines he once operated, treated miners and their safety with callousness and open disregard. As he goes to trial, he will be treated far fairer and with more dignity than he ever treated the miners he employed. And, frankly, it’s more than he deserves.” President of the West Virginia Coal Association Bill Raney did not offer a comment. United Mine Workers of America International President Cecil E. Roberts said no other company had even half as many fatalities during that time at the Massey mines, and no other company compared with Massey’s record of health and safety violations. “Don Blankenship’s blatant disregard for mine safety and health laws was tragically brought to the nation’s attention,” Roberts said. “All Americans learned what we in the coalfields already knew: For coal miners, working for Massey meant putting your life and your limbs at risk. Indeed, far too many suffered just that fate.” Roberts commended the U.S. Attorney’s Office for following through on its commitment to take the UBB investigation to the top of the Massey corporate structure. “Finally, a strong message has been sent to every other coal operator who chooses to violate the law and put the lives of miners at risk. Let justice be served.” The FBI and the U.S. Department of Labor’s Office of Inspector General are in charge of the investigation. U.S. Attorney Goodwin, counsel to the U.S. Attorney Steven Ruby, and Assistant U.S. Attorney Gabriele Wohl are handling the prosecution. Posted: Friday, November 14, 2014 3:41 am By Wendy Holdren | For the Times West Virginian Wendy Holdren is a reporter for The (Beckley) Register-Herald. timeswv/news/blankenship-indicted-on-multiple-charges/article_2b8a984e-6bda-11e4-af7e-839cedb91772.html?mode=image
Posted on: Fri, 14 Nov 2014 13:53:29 +0000
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