Massey Energy Company is a large
coalCoal is a readily combustible black or brownish-black sedimentary rock normally occurring in rock strata in layers or veins called coal beds. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
extractor in the United States with substantial operations in
West VirginiaWest Virginia is a state in the Appalachian and Mid-Atlantic regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, and Pennsylvania and Maryland to the northeast...
,
KentuckyThe Commonwealth of Kentucky is a state located in the East Central United States of America. Kentucky is a Southern state situated in the Upland South, although the state is infrequently placed, geographically and culturally, in the Midwest. Kentucky is one of four U.S. states constituted as a...
,
VirginiaThe Commonwealth of Virginia is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" because it is the birthplace of eight U.S. presidents. The geography and climate of the state are shaped by the Blue...
and
TennesseeTennessee is a state located in the Southeastern United States. According to the 2008 census, it has a population of 6,214,888, an increase of nearly 9.5% since 2000. Tennessee is the 14th fastest growing state in the US and is ranked 17th by population. It is ranked 36th by total land area. In...
. By revenue, it is the fourth largest producer of coal in the United States and the largest coal producer in Central Appalachia. Massey's mines yield around 40 million tons annually. The company controls 2.3 billion tons of proven and probable coal reserves in Southern
West VirginiaWest Virginia is a state in the Appalachian and Mid-Atlantic regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, and Pennsylvania and Maryland to the northeast...
, Eastern
KentuckyThe Commonwealth of Kentucky is a state located in the East Central United States of America. Kentucky is a Southern state situated in the Upland South, although the state is infrequently placed, geographically and culturally, in the Midwest. Kentucky is one of four U.S. states constituted as a...
, Southwest
VirginiaThe Commonwealth of Virginia is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" because it is the birthplace of eight U.S. presidents. The geography and climate of the state are shaped by the Blue...
and
TennesseeTennessee is a state located in the Southeastern United States. According to the 2008 census, it has a population of 6,214,888, an increase of nearly 9.5% since 2000. Tennessee is the 14th fastest growing state in the US and is ranked 17th by population. It is ranked 36th by total land area. In...
or about a third of all Central Appalachian reserves. It currently employs approximately 5,400 people and operates 35 underground mines and 12 surface mines.
History
A.T. Massey incorporated the A.T. Massey Coal Company in 1920 as a coal brokering business in Richmond, Va., and served as the company’s first president. A.T. Massey acquired its first mining operation in 1945 and expanded its business to include coal mining and processing. Several members of the Massey family succeeded A.T. Massey as company president, including Evan Massey in 1945, William E. Massey in 1962 and E. Morgan Massey in 1972.
St. Joe Minerals acquired a majority interest in A.T. Massey in 1974. Six years later, St. Joe Minerals formed the Massey Coal Partnership, along with
Royal Dutch ShellRoyal Dutch Shell plc, commonly known simply as Shell, is a multinational petroleum company of Dutch and British origins. One of the six "supermajors" , Shell was listed as the world's largest corporation for 2009 by Fortune...
. In 1981, the Fluor Corporation acquired St. Joe Minerals. In 1984, the United Mine Workers of America went on strike against A.T. Massey, sparking a series of confrontations documented in the film
Mine War on Blackberry Creek and in 1987, the Massey Coal Partnership was reorganized into A.T. Massey Coal Company, a wholly owned mining subsidiary of Fluor Corporation, initiating a period of significant growth through acquisitions.
A.T. Massey completed a reverse spin-off from Fluor Corporation in 2000 and was renamed Massey Energy Company. Today, Massey Energy produces, processes, and sells bituminous coal of steam and metallurgical grades, primarily of low sulfur content, through its 22 processing and shipping centers, called "resource groups," many of which receive coal from multiple coal mines.
Massey currently operates 35 underground mines and 12 surface mines in
West VirginiaWest Virginia is a state in the Appalachian and Mid-Atlantic regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, and Pennsylvania and Maryland to the northeast...
,
KentuckyThe Commonwealth of Kentucky is a state located in the East Central United States of America. Kentucky is a Southern state situated in the Upland South, although the state is infrequently placed, geographically and culturally, in the Midwest. Kentucky is one of four U.S. states constituted as a...
and
VirginiaThe Commonwealth of Virginia is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" because it is the birthplace of eight U.S. presidents. The geography and climate of the state are shaped by the Blue...
. In 2007, Massey announced a strategic alliance with Essar Mineral Resources Ltd., a member of
Essar GroupThe Essar Group , is a multinational conglomerate and a leading global player in the sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, and Construction...
of
IndiaIndia, officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal...
, to jointly evaluate and develop select business opportunities on a project-by-project basis.
The company recently promoted several executives to new positions. In November 2008, Massey promoted Baxter Phillips Jr., formerly executive vice president and chief administrative officer, to president, a position previously held by Massey Chairman and CEO Don Blankenship. Phillips’ new position will focus on Massey Energy's strategic growth plans and will continue to manage sales, finance, human resources, information systems and investor relations at the company's
RichmondRichmond is the capital of the Commonwealth of Virginia, in the United States. Like all Virginia municipalities incorporated as cities, it is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...
headquarters.
In January 2009, the company promoted John M. Poma to vice president and chief administrative officer, Jeffrey M. Gillenwater to vice president of human resources and Steve Sears to vice president of sales and marketing, nearly a year after promoting Shane Harvey to general counsel.
Board of directors
- Don Blankenship
Donald Leon Blankenship is the Chairman and CEO of Massey Energy Co., the fourth largest coal company in the United States. He has served in these roles since November 30, 2000...
, chairman and CEO, Massey Energy
- James B. Crawford, former chairman and CEO, James River Coal Company
- General Robert H. Foglesong
General Robert H. "Doc" Foglesong formerly of Williamson, West Virginia is a former President of Mississippi State University. He served in the United States Air Force from April 1972 until retirement as general in February 2006...
, retired four-star general, U.S. Air Force
- Richard M. Gabrys, former vice chairman, Deloitte & Touche LLP
- Admiral Bobby Inman, former director, National Security Agency
The National Security Agency/Central Security Service is a cryptologic intelligence agency of the United States government, administered as part of the United States Department of Defense. Created on November 4, 1952 by President Harry S...
- Barbara, Lady Judge, chairman, United Kingdom Atomic Energy Authority
The United Kingdom Atomic Energy Authority was established in 1954 as a statutory corporation to oversee and pioneer the development of nuclear energy within the United Kingdom...
- Dan R. Moore, chairman, Moore Group, Inc.
- Baxter F. Phillips Jr., president, Massey Energy
- Stanley C. Suboleski, former commissioner, Federal Mine Safety and Health Review Commission
The Federal Mine Safety and Health Review Commission is an independent adjudicative agency of the United States Government that provides administrative trial and appellate review of legal disputes arising under the Federal Mine Safety and Health Amendments Act, or Mine Act, of 1977.Under the Mine...
In response to a prolonged citizen campaign on the environment, on May 29, 2009 Ohio State University President E. Gordon Gee announced his resignation from the Board of Massey Energy Gee had said he believed he could do more environmental good on the board than off it.
Competitors
Top Massey Energy competitors are :
- Arch Coal
Arch Coal is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S. - second only to Peabody Energy and claims to supply...
- CONSOL Energy
CONSOL Energy Inc. is the largest producer of high-BTU bituminous coal in the United States. It is one of the US's largest coal mining companies, along with Peabody Energy and Arch Coal...
- Peabody Energy
Peabody Energy Corporation , previously Peabody Coal Company, is the largest private-sector coal company in the world The company is headquartered in Downtown St. Louis, Missouri....
Community service
Massey Energy supports the health, education and cultural enrichment of children and adults in Central Appalachia through the sponsorship of medical and mining education, community projects and sporting events.
Much of Massey's community and philanthropic efforts are managed by the company's Spousal Groups, which organize school programs and volunteers, assist the elderly by providing meals and visiting nursing homes, and plan the annual Christmas Extravaganza for local children.
Corporate social responsibility report
Massey released its inaugural Corporate Social Responsibility Report in the fall of 2008. The report provides an overview of Massey Energy's corporate commitment to and accomplishments in improving the safety of coal mining, protecting the environment and serving the community. Coal mine operator Massey Energy issues 32-page corporate responsibility report. Associated Press Newswire. The full report is available on Massey's corporate Web site.
Support of education
Massey's Partners in Education program provides financial assistance for academic materials, recreational equipment and building improvements as well as provides volunteers at primary and secondary schools throughout Appalachia. Participant schools include Scott High School and Van Junior/Senior High School; Sacred Heart and Williamson Middle Schools; and Marsh Fork, Johns Creek and Southside Elementary Schools.
In May 2008, Massey announced it would donate more than $1 million in college and post-graduate scholarships to help students from Central Appalachia communities pursue engineering and health care degrees. The funds will be distributed to dozens of students over the next five years.
In addition, Massey is a prominent sponsor of the Appalachian Leadership and Education Foundation (ALEF), a non-profit organization that allows young men and women from Appalachia to pursue higher education though scholarship and leadership curricula. Over the years, Massey has sponsored numerous scholarships for local students through ALEF. Massey board member General Robert Foglesong is the founder of ALEF and presently serves as the foundation’s executive director.
Massey Energy formed Doctors for our Communities with Marshall University in 1997 to provide financial assistance to incoming M.D. degree candidates in the Marshall University School of Medicine. Massey forgives all loans made through the program as long as the recipient practices medicine for a minimum of seven years in Massey’s operating region.
Massey donated $250,000 to Marshall to assist in renovations of the Fred and Christine Shewey Athletic Building.
Massey pledged more than $300,000 to the
University of KentuckyThe University of Kentucky, also known as UK, is a public, co-educational, university, and is also the state's land-grant university, located in Lexington, Kentucky...
(UK) in 2007 to assist with enhancements to the UK Department of Mining Engineering's laboratory facilities, provide annual tuition assistance to four UK engineering students, and support the university's Society for Mining, Metallurgy and Exploration student chapter. UK named Massey Energy a John Bryan Bowman Fellow in recognition of the company’s generous support.
Massey Energy has donated a total of $80,000 to the struggling town of Cedar Grove. The town will use $75,000 to finish building a new park in the center of town, and the remaining $5,000 for athletic activities for middle school children and field trips for the grade school children.
Family Wellness Center
Massey established the Family Wellness Center in 2005 to serve Massey families in southern West Virginia, recognizing that residents in rural areas often lack access to primary care physicians and health care facilities. The Family Wellness Center offers comprehensive medical services including lab work, x-rays and cardiac testing. McDowell and Logan county in West Virgina rank among the 25 worst countywide life expectancy averages in the United States according to a study by
Harvard UniversityHarvard University is a private university located in Cambridge, Massachusetts and a member of the Ivy League. Founded in 1636 by the colonial Massachusetts legislature, Harvard is the oldest institution of higher learning in the United States and currently comprises ten separate academic units...
. Many attribute this to the nature of mining operations.
Court rulings
In 2005, Wheeling, W.Va.-based steelmaker Wheeling-Pittsburgh Steel sued Massey Energy claiming Massey failed to deliver on a contract of 104,000 tons of coal monthly. In July 2007, a Circuit Court in Brooke County, W.Va. upheld the jury award of more than $267 million, including accrued interest. Massey appealed the case to the US Supreme Court, which declined to hear the appeal in December, 2008 .
In November 2008, the Supreme Court agreed to hear the appeal of a
$77 million caseCaperton v. A. T. Massey Coal Co. was a 2009 decision by United States Supreme Court dealing with the circumstances under which a judge has a duty to recuse himself from a case.- History :...
against Massey brought by Harman Mining. The suit alleges contract interference by Massey drove Harman out of business..
Wal-MartWal-Mart Stores, Inc. is an American public corporation that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and...
,
PepsiCoPepsiCo, Incorporated is a Fortune 500, American multinational corporation headquartered in Purchase, NY with interests in manufacturing and marketing a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods...
,
Intel CorporationIntel is the world's largest semiconductor chip maker, based on revenue. The company is the inventor of the x86 series of microprocessors, the processors found in most personal computers. Intel was founded on July 18, 1968, as Integrated Electronics Corporation and based in Santa Clara,...
,
Lockheed MartinLockheed Martin is a multinational aerospace manufacturer, global security and advanced technology company formed in 1995 by the merger of Lockheed with Martin Marietta. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area. Lockheed Martin employs 146,000 people...
,
Common CauseCommon Cause is a nonpartisan, nonprofit citizens' lobby and advocacy organization. The organization was founded in 1970 by Republican former cabinet secretary under Lyndon Johnson John W. Gardner with a mission focused on making U.S. political institutions more open and accountable.Common Cause's...
and
Public Citizen-Introduction:Public Citizen is a non-partisan, politically left-of-center, non-profit public interest 'advocacy organization' based in Washington, D.C., with a branch in Austin, Texas...
filed briefs in the case urging the Supreme Court to throw out the West Virginia Supreme Court decision in favor of Massey. The corporations contended that Justice Brent Benjamin was biased in the case. On June 8, 2009, The US Supreme Court agreed 5-4, sending the case back to the West Virginia Supreme Court, and forcing Justice Benjamin to recuse himself from the case. The New York Times opined that the case involved "egregious ethical myopia" on the part of Justice Benjamin.
Lawsuits
In 2005, some residents of
Raleigh County, West VirginiaRaleigh County, founded in 1850, is located in the U.S. state of West Virginia. As of 2000, the population was 79,220. Its county seat is Beckley.-History:Raleigh County was formed on January 23, 1850 from portions of Fayette County....
, complained that Massey's Goals Coal Company was endangering the health and well-being of students at the adjacent Marsh Fork Elementary School. In July 2005, the West Virginia Division of Environmental Protection revoked a permit for construction of a coal silo near the school. However, some local employees and residents support Massey Energy by arguing that the economic benefits received from the company outweigh the environmental impact to the area. At a protest against the coal silo on June 23, 2009, anti-mountaintop removal activist . 30 non-violent protestors were arrested, including actress
Daryl HannahDaryl Christine Hannah is an American film actress. After making her screen debut in 1978, Hannah starred in a number of Hollywood films throughout the 1980s notably Blade Runner, Splash, Wall Street and Roxanne and in 2003-4 received acclaim for her role in the Kill Bill series.-Early life:Hannah...
,
NASAThe National Aeronautics and Space Administration is an agency of the United States government, responsible for the nation's public space program. NASA was established by the National Aeronautics and Space Act on July 29, 1958, replacing its predecessor, the National Advisory Committee for...
climatologist
James HansenJames E. Hansen heads the NASA Goddard Institute for Space Studies in New York City, a part of the Goddard Space Flight Center in Greenbelt, Maryland, Earth Sciences Division. He has held this position since 1981...
, and former West Virginia Congressman
Ken HechlerKenneth William Hechler --whose baptismal name was officially changed by court order to Ken Hechler -- was a long-serving West Virginia politician....
. In June 2009, the West Virgina Supreme Court concluded that the Massey was allowed to build their second silo; "We therefore find that the circuit court did not err, and properly affirmed the decision of the West Virginia Surface Mine Board."
In February 2003 a judge ordered Massey to pay the residents of Sylvester,
West VirginiaWest Virginia is a state in the Appalachian and Mid-Atlantic regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, and Pennsylvania and Maryland to the northeast...
$473,000 to settle complaints that coal dust from Massey's Elk Run Processing Plant had caused health problems and lowered property values in the nearby town. The judge also ordered Massey to construct a cloth dome over their facility to reduce the dust.
On September 16, 2004, a civil jury ordered Massey to pay $1.54 million in damages to 245 residents of Mingo County, W. Va., who lost their water wells after Massey had mined beneath the homes. The jury concluded that Massey acted “with malicious, willful, wanton, reckless or intentional disregard for plaintiffs’ rights.”
In December, 2008 residents of Prenter, West Virginia filed a lawsuit claiming that underground slurry injection from a Massey coal facility and other coal preparation plants contaminated their underground water supply
Environmental record
In early 2008, the company agreed to a $20 million settlement with the U.S. Environmental Protection Agency (EPA) to resolve thousands of violations of the
Clean Water ActThe Clean Water Act is the primary federal law in the United States governing water pollution. Commonly abbreviated as the CWA, the act established the goals of eliminating releases to water of high amounts of toxic substances, eliminating additional water pollution by 1985, and ensuring that...
for routinely polluting waterways in Kentucky and West Virginia with coal slurry and wastewater. Although this was the largest Clean Water Act settlement, the violations were estimated to have fines on the order of $2.4 billion. Over 700 miles of rivers and streams in the coalfields have been buried by the waste rock left over from mountaintop removal, a method of strip mining coal which requires the blowing up of mountain tops, removing from 500 to of mountaintop in the process. This method of coal mining has created some of the worst environmental disasters in the Mississippi area in regards to the poisoning of waterways, the flooding of local communities, and the destruction of the biodiversity of the
Appalachian MountainsThe Appalachian Mountains , often called the Appalachians, are a vast system of mountains in eastern North America. Definitions vary on the precise boundaries of the Appalachians...
in West Virginia, Virginia, Kentucky, and Tennessee.
In October 2000, a Massey Energy subsidiary in Martin County, Kentucky accidentally released 306 million gallons of coal slurry waste from an impoundment into two mountain streams, Coldwater Creek and Wolf Creek (see photo right). The
Martin County sludge spillThe Martin County Sludge Spill was an accident that occurred after midnight on October 11, 2000 when the bottom of a coal sludge impoundment owned by Massey Energy in Martin County, Kentucky, USA, broke into an abandoned underground mine below...
was called the worst ever environmental disaster in the southeastern United States by the EPA. The spill smothered all aquatic life in the streams and left residents with contaminated drinking water. Cleanup costs for the spill were approximately $50 million.
Mine safety
On January 19, 2006 a belt line fire killed miners Don I. Bragg, 33, and Ellery Elvis Hatfield, 47, at Massey's Aracoma Alma Number 1 Mine in
Logan County, West VirginiaLogan County is a county located in the U.S. state of West Virginia. As of 2000, the population was 37,710. Its county seat is Logan.Logan County was formed in 1824 from parts of Giles, Tazewell, Cabell, and Kanawha counties. It is named for Chief Logan, famous Native American chief of the Mingo...
. Efforts to fight the fire were hampered by inadequate fire extinguishers, fire house couplings which did not match the water line, and a lack of water in the lines . On December 22, 2008 Massey Energy agreed to pay $4.2 million in civil and criminal penalties for the accident. It is the largest financial settlement in the coal industry's history.
On Jan. 15, 2009 the Charleston (WV) Gazette reported that Aracoma widows Delorice Bragg and Freda Hatfield urged U.S. District Judge John T. Copenhaver to reject Massey's plea bargain and fine for the accident .
Widow Bragg stated that it was clear "that Massey executives much farther up the line expected the Alma Mine to emphasize production over the safety of the coal miners inside."
On February 1, 2006, bulldozer operator Paul K. Moss, 58, of Sissonville
West VirginiaWest Virginia is a state in the Appalachian and Mid-Atlantic regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, and Pennsylvania and Maryland to the northeast...
died when his machine ruptured a natural gas line at Elk Run Coal Co.'s Black Castle surface mine . The bulldozer was immediately engulfed in flames. According to the
Mine Safety and Health AdministrationThe Mine Safety and Health Administration is an agency of the United States Department of Labor which administers the provisions of the Federal Mine Safety and Health Act of 1977 to enforce compliance with mandatory safety and health standards as a means to eliminate fatal accidents, to reduce...
report, operator Moss exited the cab but his body was found behind the blade.
On Oct 8, 2008 Steven Cain, 32, of Comfort, West Virginia was killed at Massey Energy's Independence Coal Justice No. 1 Mine when he was crushed by a railcar. A
Mine Safety and Health AdministrationThe Mine Safety and Health Administration is an agency of the United States Department of Labor which administers the provisions of the Federal Mine Safety and Health Act of 1977 to enforce compliance with mandatory safety and health standards as a means to eliminate fatal accidents, to reduce...
report concludes Cain was killed because Massey managers assigned him a dangerous job, although he had “little mining experience and minimal training.”
Massey's Safety Policy as stated on its website: "Safety is the top priority for every Massey member. No coal company can succeed over the long term without a total commitment to safety and a significant investment in the necessary training, equipment and personnel. We strive to remain an industry leader in safety by developing new technologies and employing effective training programs to reduce accidents and improve safety for all of the hard-working men and women of Massey Energy."
EPA complaint
In January 2008, the
United States Department of JusticeThe United States Department of Justice is a Cabinet department in the United States government designed to enforce the law and defend the interests of the United States according to the law and to ensure fair and impartial administration of justice for all Americans...
ordered Massey to pay fines totaling $30 million as part of an agreement resulting from a May 2007 complaint filed by the U.S. Environmental Protection Agency.
Protests
In 2009, there have been fourteen trespassing incidents at Massey mines in West Virginia. Protests have involved activists going onto mine sites, chaining themselves to heavy equipment, blocking roads, occupying two trees to stop blasting, and putting up large banners. In June 2009, a Raleigh County judge granted a preliminary injunction to block anti-mountaintop removal activists from further peaceful protests on some Massey Energy sites.
See also
- Aracoma Alma Mine accident
The Aracoma Alma Mine accident occurred when a conveyor belt in the Aracoma Alma Mine No. 1 at Melville in Logan County, West Virginia caught fire...
- Martin County sludge spill
The Martin County Sludge Spill was an accident that occurred after midnight on October 11, 2000 when the bottom of a coal sludge impoundment owned by Massey Energy in Martin County, Kentucky, USA, broke into an abandoned underground mine below...
- Mountaintop removal
Mountaintop removal mining , often referred to as mountaintop mining , is a form of surface mining that involves the mining of the summit or summit ridge of a mountain. Entire coal seams are removed from the top of a mountain, hill or ridge by removing the overburden above them, leaving a flat...
Other sources
- Shnayerson, Michael
Michael Beahan Shnayerson is an American journalist and contributing editor for Vanity Fair magazine. He is the author of several books and over 75 Vanity Fair stories since 1986. Two of his pieces for the magazine have been developed into films...
(2008), Coal RiverCoal River: How a Few Brave Americans Took on a Powerful Company–and the Federal Government–to Save the Land They Love is a 2008 book by Michael Shnayerson. The book is a work of investigative journalism which describes an environmental controversy in southern West Virginia, where coal companies...
, New York, New York: Farrar, Straus and GirouxFarrar, Straus and Giroux is an American book publishing company, founded in 1946 by Roger W. Straus, Jr. and John Chipman Farrar. Known primarily as Farrar, Straus in its first decade of existence, the company was renamed several times, including Farrar, Straus and Young and Farrar, Straus and...
.
External links