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The man providing blood-soaked money to West Virginia Republicans really lacks any sense of shame:
If Don Blankenship had any sense of shame, he'd crawl into a mine and hide.
As CEO of Massey Energy, he has presided over a coal company that had thousands of violations in recent years, leading up to the April explosion that killed 29 of his miners. The company now faces a federal criminal investigation into what the government has called negligent and reckless practices.
But Blankenship must have no sense of shame, because he visited the National Press Club last week to complain about "knee-jerk political reactions" to mine deaths and to demand that the Obama administration lighten regulations on his dirty and dangerous company. "We need to let businesses function as businesses," an indignant Blankenship proclaimed. "Corporate business is what built America, in my opinion, and we need to let it thrive by, in a sense, leaving it alone."
The CEO was asked what he could have done to prevent the deadly explosion. "I probably should've sued MSHA" -- that's the federal Mine Safety and Health Administration -- "rather than waiting" until now, he said. In the future, he added, "you'll see not only coal companies but many companies resist the efforts of EPA and others that are impeding their ability to pursue their careers, or their happiness."
Poor CEO Blankenship. That mean federal government is not allowing him to pursue his happiness, just because his employees are dead. It brings to mind the sad plight of the BP CEO, Tony Hayward, who visited the Gulf Coast that his company has wrecked and complained that "I'd like my life back."
So would the dead miners and their families. Vote Republican if you want more dead miners because they are the people who would give Blankenship carte blanche to put profit ahead of people's lives.
The good news is Don Blankenship may finally be on his way to Federal Court.
The bad news... it's for the wrong reason.
The Charleston Daily Mail's Ry Rivard reports that Massey Energy is suing the U.S. Mine Health and Safety Administration (MSHA) for allegedly violating due process rights because they feel there is not an adequate process to challenge MSHA decisions.
The suit does not mention the Upper Big Branch (UBB) disaster specifically, but references issues related to mine ventilation, which are at the forefront of the ongoing UBB investigation.
It will be interesting to see how this plays out in the coming weeks. It seems like Massey is using the courts as part of its public relations strategy and attempting to shift the debate from their culpability to some complexities about regulations.
It reminds me of the advice my departed grandfather used to offer, "If you can't dazzle them with your brilliance, baffle them with bullshit."
Ken Ward Jr. atCoal Tattoo does a good job debunking and explaining Massey's latest spin in its PR campaign efforts at misdirection and misinformation.
While the bigger media new to the story is falling for it, Ward with his years of experiencing covering coal mining and Massey is able to provide context the Wall Street Journal and Reuters miss.
Now, the MSHA report that Massey posted online contains only a brief mention of degasification wells, and basically writes the whole idea off:
Experience suggests that locating and degassing floor methane zones through a drilling program was highly problematic.
But for some reason, Massey didn't post online this earlier MSHA report, dated March 4, which outlined steps that company had said it planned to take to deal with the methane outburst problem:
Mine personnel reported that in the subsequent longwall panel, degasification wells will be developed into the Lower Eagle seam in an attempt to decrease the potential for future outbursts. This appears to be a reasonable plan.
So did Massey do that? That's one thing investigators are looking into ... but not something that you'd know about if you read Massey's press releases or the media coverage generated by the company's PR campaign.
MSHA doesn't help itself in all of this. The agency has yet to explain how a former acting district manager who was involved in investigating the 2003 and 2004 incidents at Upper Big Branch could have ended up on the MSHA "internal review" team that is examining the agency's performance at the mine prior to the disaster.
Ward again calls for public hearings to shine some light on the investigation.
Of course, one way to deal with this problem of "selective release of information" by Massey would be for MSHA to reverse itself and begin conducting the entire investigation out in the open. If this happened, any spurious allegations by Massey could be defused with truth from witness testimony, and MSHA officials could provide context that ensures the media coverage is accurate and balanced. Or, at the very least, MSHA could come out of hiding and conduct periodic public and media briefings to answer questions about these issues.
It's clear from his actions that Massey CEO Don Blankenship doesn't care about the future of West Virginia, but a business expert doesn't think he's very good for Massey's corporate future either.
What is most striking about the leadership style of Don Blankenship, the CEO of Massey Energy, is his consistency. Years ago, Blankenship made statements that not only have come back to haunt him, they have cemented him as the "Anti-CSO."
By CSO, I mean Corporate Sustainability Officer. As I explained in my last post, part of the CEO's job is ensuring that everything a company does is sustainable. He must consider the positive and negative consequences of the company's actions, outside its normal business routines. That includes disastrous mine accidents that could result in devastating loss to families and communities, and environmental nightmares like the Gulf oil spill. Inherently, the job of CSO involves an appreciation of the importance of long-term planning.
snip
Blankenship represents the opposite of what an ideal CSO needs to be: visionary, supportive, and someone who understands that there is a direct connection between the health and safety of workers and the health and stability of company finances. Blankenship will be forced to understand that connection. In particular, in the area of legal fees, he will pay for his company's tarnished reputation and lousy employee retention. He will also have to live with the guilt of presiding over a company that employed 29 souls no longer on this earth.
Blankenship did not change after the 2006 Aracoma mine fire killed his workers. There's no reason to expect he will experience any sense of guilt over the latest deaths. To Blankenship, the deaths are just part of the cost of his doing business.
BECKLEY - Miners and families from the Upper Big Branch Mine on Monday described the Massey Energy operation as "a ticking time bomb," where safety problems were ignored and workers feared losing their jobs if they complained.
"I felt like I was working for the Gestapo at times," said continuous miner operator Stanley Stewart, who was on his way into Upper Big Branch when the April 5 explosion occurred.
snip
Stewart was among the witnesses this morning in Beckley at a field hearing of the House Committee on Education and Labor, which is investigating mine safety problems and the death of 29 workers at Upper Big Branch.
Much of the testimony is damning.
Gary Quarles, the father of fallen miner Gary Wayne Quarles, said he has also worked at Massey mines and that the company routinely fixes safety problems only when workers underground are tipped off ahead of time that federal Mine Safety and Health Administration inspectors are on their way.
"MSHA inspections at Massey did little to protect miners," Quarles said. "We absolutely looked to MSHA for leadership, particularly on safety issues, but MSHA has let us down many times."
Its been over a month since the Upper Big Branch Mine, a Massey Energy owned and operated mine, faced a disaster due to a methane related explosion that took 29 miners lives. It was a dark day for the state of West Virginia, the coal industry, and the entire country. To West Virginians, and even those not from the state, these fallen miners will be in our hearts forever.
Don Blankenship is the current Chairman, CEO, and head right-wing gun-toting thug in charge of Massey Energy. Massey is currently the 6th largest coal company in the United States by production. Blankenship, to most people, is seen as cold, dark, and very mysterious. If you need further convincing, watch this ABC News video of one of their correspondents attempting to evoke an interview from Blankenship. The video shows the ABC News rep wanting to ask Blankenship about pictures published in the New York Times of him with Former WV State Supreme Court Judge and Current Republican nominee for WV 3rd Congressional District Eliot "Spike" Maynard. Maynard was elected to the Supreme Court in WV.
Several news outlets have begun to report that Don Blankenship will testify this Thursday before the Senate HELP (Health, Education, Labor, and Pensions) Committee regarding the April 5, 2010 mine explosion in Raleigh County, West Virginia .
Mine blast: Don Blankenship, the head of Massey Energy Co., testifies before a Senate panel investigating the explosion that killed 29 workers at his company's coal mine in West Virginia.
Source: San Francisco Chronicle's SF Gate
Blankenship, 60, plans to appear before the Labor and Health and Human Services subcommittee of the Senate Appropriations Committee, on May 20 in Washington, his first appearance before Congress since the explosion.
Massey said last month that it expects a second-quarter charge of as much as $212 million for the accident, more than twice its 2009 earnings.
The costs will include $80 million to $150 million for benefits for families of the miners, rescue and recovery efforts, insurance deductibles, legal and other contingencies, Massey said. The value of the damaged equipment, development and mineral rights is an additional $62 million.
Source: Businessweek.com
With the pieces still being picked up in rural West Virginia, Blankenship has a slew of problems on his hands. Massey Energy has seen its stock slump since the disaster (big shocker there) and he is constantly being questioned about the incident and his lack of care for safety violations and hazardous working conditions. It has seen a -21.7% change YTD with their stocks recently plummeting 10% after a possibility of a criminal investigation was mentioned, and 40% since the disaster.
NEW YORK (CNNMoney.com) - Shares of Massey Energy plunged about 10% Monday after a report surfaced over the weekend indicated the coal mining company may face a criminal investigation.
Federal prosecutors are investigating possible "willful criminal activity" by "directors, officers and agents" of Massey subsidiary Performance Coal at the Upper Big Branch coal mine where an explosion killed 29 workers last month, The Wall Street Journal reported on Saturday.
A Bloomberg report on Monday claimed that some large Massey shareholders will seek to block the re-election of three company board members at the meeting.
Another report by the Wall Street Journal on Monday said a congressional committee will vote on Wednesday on whether to give the House Education and Labor Committee deposition power to call witnesses in for questioning on the case.
Massey shares have fallen about 40% since the mine explosion on April 5.
Source: CNN Money
More interesting news for Massey Energy, in what seems to be an effort to obtain transparency in lieu of shady business, as they have now declared that they will declassify their board of directors. This according to the Wall Street Journal, the board is proposing to introduce the idea to shareholders etc. and potentially even make the process more democratic.
Massey Energy Co. said its board plans to propose that directors stand for election every year for one-year terms.
Chairman and Chief Executive Don Blankenship and lead independent director Admiral Bobby R. Inman said the move to declassify the board of the coal producer was a result of stockholder input and the board's ongoing review of Massey's corporate governance policies.
A classified board, where classes of directors generally are elected for three-year terms and only a portion of the directors stands for election each year, is harder to dislodge through the shareholder meeting process.
The board plans to hold a special shareholder meeting in the next three to six months where it will propose that stockholders approve declassification.
Source: Wall Street Journal
Blankenship has seen his fair share of controversy, as I have detailed in several previous blogs in wake of the Upper Big Branch Mine Disaster, and this proves there isn't an end in sight. Blankenship, amidst numerous calls to step down and many claims of injustice and fraud, refuses to forgo his position as CEO of Massey. Its hard to tell whether this is simply Blanky trying to play a game and manipulate his business further, saving his butt from criminal allegations, or just plain stubbornness. My personal opinion? He needs to step down. Futher even, he needs to be criminally indicted. Too often, CEO fat cats like Blank are left alone to ravage whatever gets in their way in the holy name of money.
Massey Energy chief executive Don Blankenship, whose Richmond-based company is under investigation after a deadly explosion at its Upper Big Branch coal mine in West Virginia, said he has no plans to resign.
"Whatever happened at UBB is something that needs to be figured out, but it's not the result of my management style," Blankenship, 60, said in an interview.
From The Washington Post, as reported by Bloomberg
An end is not in sight for this ongoing Blankenship conundrum, which can be seen as good news and bad news. I want resolution. I hope that one day this man will receive the proper justice brought to him, not on a silver platter, but closer to a penitentiary meal tray.
He doesn't represent the values and culture of Appalachia, he represents the coal industry and corporate greed. I for one will not stand for this. The question still remains, will the people of Congress and those in higher powers finally grow a pair and do something about corrupt and greedy tycoons like Blankenship? Or will they let this case slither away like a cunning snake, deep into the elusive tall grass it will await yet another prey who is unbeknownst to their presence.
Someone is going to mine the coal while we're still a carbon-based economy. That's the reality. Many of us here would love to see the state preparing for the future by offering concessions and incentives to those building wind and solar panel manufacturing plants, investing in research that could help make West Virginia's universities the cutting edge schools for renewable energy so that the state could become the center of energy solutions the way the Research Triangle in North Carolina is a leader in pharmaceutical and biotech research.
But until then, companies run by men careless with the lives of their workers do not need to operate in our state. Other companies can run them. Senator Robert C. Byrd is right.
First and foremost, the coal industry must respect the miner and his family. A single miner's life is certainly worth the expense and effort required to enhance safety. West Virginia has some of the highest quality coal in the world, and mining it should be considered a privilege, not a right. Any company that establishes a pattern of negligence resulting in injuries and death should be replaced by a company that conducts business more responsibly. No doubt many energy companies are keen for a chance to produce West Virginia coal.
The Charleston Daily Mail reports on Blankenship's appearance on WOWK's wingnutty "Decision Makers" program:
CHARLESTON, W.Va.--Massey CEO Don Blankenship said in a weekend TV interview that "evil people" have ascended the ranks of power in the United States and implied Sen. Jay Rockefeller was among them.
In an appearance on the WBOY and WOWK show "Decision Makers," Blankenship was asked about the impact of Rockefeller's comments that Massey was a "rogue" operator.
Rockefeller, D-W.Va., was being critical of Massey and Blankenship following the explosion last month at the company's Upper Big Branch mine that killed 29.
In the past, Rockefeller has gone out of his way to regurgitate the War on CoalTM hysteria and attack the Obama administration's environmental protection efforts.
It appears it did little good for him.
A mild defense of the EPA got Rep. Rahall's face printed on Massey-distributed "Nick Joe is anti-coal" signs. Accurately stating the case on mine safety has made Rockefeller fall out of favor with Blankenship.
It's time for Rockefeller and other officials to realize Blankenship will never be satisified with anything less than 100% obedience. The constant attempts to pander to him are just embarrassing.
Sources familiar with the investigation say the FBI is looking into possible bribery of officials of the Mine Safety and Health Administration, the federal agency that inspects and regulates mining. The sources say FBI agents are also exploring potential criminal negligence on the part of Massey Energy, the owner of the Upper Big Branch mine.
On May 18th, Massey Energy will be holding its annual shareholders meeting at the Jefferson Hotel in Richmond.
A Facebook group has been set up to organize a demonstration that day, beginning at 12 noon. To join the Facebook group, search for "Massey annual stockholders protest."
I've got several friends together and we're going to drive down that day and join the demonstration. It would be awesome if we could get a crowd!
Let's drive home the message - in front of national media - that the clock has run out on Don "Robber Baron" Blankenship and his ongoing criminal enterprise.
This comes from ThinkProgress. This is about the worst thing you could read. What kind of pure scum would even go this far? It is one thing for the previous events to occur, you'd think that there would be some soul left in Blankenship and Massey to allow the poor miners time to grieve and attend the funerals of their families and friends.
Massey Energy, the Virginia-based coal giant that runs the Upper Big Branch Mine, has denied time off for miners to attend their friends' funerals; has rejected makeshift memorials outside the mine site; and, in at least one case, required a worker to go on shift even though the fate of a relative - one of the victims of the April 5 disaster - remained unknown at the time, according to some family members and other sources familiar with those episodes. In short, the company might be taking heat for putting profits and efficiency above its workers, but it doesn't appear to have changed its tune in the wake of the worst mining tragedy in 40 years.
Rejecting makeshift memorials? This isn't a concentration camp, this is a place of employment. It sad that the miners who lost their lives cannot even be commemorated by their fellow miners. Not even allowing someone time off to attend the funeral of a relative is cruel and unjust.
Somedays I wonder if those who make these decisions can even feel human emotion...
Massey CEO Don Blankenship's team of corporate attorneys plea bargained an "unusual" probation sentence of 3 years from what the judge felt were criminal felony offenses committed during the 2006 fire at Aracoma's Number One mine which caused the deaths of miners Elvis Hatfield and Don Bragg. And even though his company was penalized $25 million, it apparently meant little more than a slap on the wrist since Blankenship personally pulled down at least $129.2 million in salary, bonuses, and perks between 1999 and 2008.
That sentence was handed down in 2009, so Massey's CEO is apparently still under probation. But U.S. Attorney Charles Miller's plea agreement severely limited Blankenship's probation to violations which could occur within the Aracoma Number One mine only, so any criminal negligence or malfeasance which may or may not have caused the deaths at Upper Big Branch apparently wouldn't count.
Lucky for Blankenship that Miller is a holdover from the controversial group of Bush appointees for U.S. District attorney positions across the country.
"There's something wrong with a regulatory system that doesn't quickly address repetitive violations, said Davitt McAteer, a former federal mine safety chief who investigated the Sago and Aracoma mine disasters.
"When you see a mine that continues to have large numbers of citations and penalties month after month, the curative effect has not taken hold, and that needs to be put in place somehow," McAteer said.
Taken in context, what Mr. McAteer strongly implies is that either the regulations aren't being enforced, or that the fines simply aren't stiff enough to persuade Massey to stop. Friends of mine who are in a position to know tell me that the problem is actually a combination of both, and that coal operators are tag-team gaming the system based on an industry-wide cost/ benefit analysis which sorely undervalues human life.
Supporting what my friends have told me is the report that there is currently a backlog of around 16,000 challenges to violations by a number of mine operators.
Last Monday was one of the saddest and most disturbing days in West Virginia history. The Upper Big Branch Mine explosion has thus far taken the lives of 25 brave and hard-working people, while 4 still remain missing. I recently have picked up the use of my Twitter account that I got last year but have yet to habitually use. The past week I have followed Ken Ward, a veteran Charleston Gazette journalist who has been covering the situation basically 24/7 since it happened.
Four eight-man teams are at a staging area within the mine, he said. Two teams will advance to check on the final refuge chamber, the only hope for survival for the four miners who are still unaccounted for.
Visibility inside the mine is limited to about 100 feet, because after Monday's massive explosion, there is probably dust in the air and the walls are charred black, making it harder to see. The refuge chamber is located in a cross cut, meaning that rescue teams would need to be almost on top of it before they can tell whether it has been deployed, an obvious indication that there are miners inside.
If there is no one inside the chamber, the mission immediately shifts to recovering the bodies of dead miners and taking them out of the mine.
The only hope of finding survivors will be in the final "rescue chamber" that has yet to be checked. The chambers are designed to be a safe haven after a situation like this occurs, where there is enough oxygen for a group of miners to survive for roughly 4 days. They have checked all but one chamber. We are still praying that there will be a miracle.
The hopes are growing dimmer and Governor Joe Manchin has begun to accept this realization.
Gov. Manchin: "Our journey is about to end"
This story is sad, and as a West Virginian I can vouch that the whole state feels a significant sadness in our hearts. The pain the families of the fallen miners must be unimaginable.
But the question remains is, where will we go from here? How can a disaster such as this be prevented? What will the families of the miners, and the miners who were not on duty do for work now? (because it has to be assumed that the Upper Big Branch Mine will be shut down indefinitely)
President Obama has called for a full investigation and is requesting a detailed report be on his desk by next week, but will he pursue the issue? We can only hope.
For a small town with limited resources like Montcoal, WV... where will they go from this? The mine ity of the residents. The coal mine life to many there.
The people of this community face the worst part of this situation. The hard working community has to face the heartbreak of losing so many wonderful people to such a horrific disaster, and now have to worry what they will do after this situation clears. The mine is finished indefinitely. Where will they go, what will they do for work?
To me the whole situation does a grave injustice to the hard-working families that inhabit the community, and the people who were unfairly affected by the disaster.
My heart goes out to the families affected, the miners lost, the miners who look to move on, and to the entire state of West Virginia. For the people of Montcoal, if you are reading this, the entire state of West Virginia loves you and care about you, and wishes the best. As a small state, there is a certain connection felt when tragedy strikes to unite. We are West Virginians, therefore we all care about you and your families. My prayers go out to all those affected by the disaster, and to the families. I pray that there is justice brought to the situation, and that the families of the miners and the miners themselves may eventually find peace.
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