Alpha Natural Resources Reaches Agreement with United States Attorney's Office for the Southern District of West Virginia and the United States Department of Justice; Resolves Civil Proceedings with the Mine Safety and Health Administration
Alpha Provides Update on Massey Integration and Safety Improvements
BRISTOL, Va., Dec. 6, 2011 /PRNewswire/ -- Alpha Natural Resources
has entered into a Non-Prosecution Agreement with the United States Attorney's Office for the Southern District of West Virginia (USAO SDWV) and the United States Department of Justice (DOJ). Alpha has also reached a comprehensive settlement with the Mine Safety and Health Administration (MSHA).The Non-Prosecution Agreement and the settlement resolve a criminal investigation and regulatory civil proceedings against Massey Energy Company (Massey) and its affiliates relating to the tragic explosion at Upper Big Branch Mine (UBB) on April 5, 2010, as well as other health and safety and related issues at Massey. At the time of the explosion UBB was owned by Performance Coal Company, an affiliate of Massey Energy Company. The agreement does not resolve any individual responsibilities related to the UBB tragedy.
Alpha acquired Massey on June 1, 2011, over a year after the UBB explosion. Since acquiring Massey, Alpha has cooperated fully with the USAO SDWV, the DOJ and MSHA, and has implemented extensive measures to improve health and safety at legacy Massey operations.
Under the terms of the Non-Prosecution Agreement, Alpha has agreed to invest in additional measures designed to improve miner health and safety, including funding a trust that will be established to fund mine health and safety research; resolving MSHA's pending civil proceedings involving Massey before it was acquired by Alpha; and providing restitution to the families of the fallen miners and two individuals injured in the explosion. More specifically, the Non-Prosecution Agreement reflects Alpha's commitment:
-- to pay $34.8 million in connection with the resolution of outstanding
citations, violations, and orders related to MSHA's investigation
arising from the UBB explosion and other non-UBB related matters
involving legacy Massey entities prior to Alpha's acquisition of Massey
on June 1, 2011.
-- to pay $46.5 million to families of the fallen miners and two
individuals affected by the UBB explosion, of which $16.5 million has
already been paid as part of or will be paid as part of settlements and
anticipated settlements, in accordance with the Non-Prosecution
Agreement;
-- to establish a $48 million trust to fund research and development
projects designed to improve mine health and safety;
-- to invest $80 million over the next two years in added safety measures
at legacy Massey mines and Alpha mines, including ongoing safety skills
and compliance training, construction of a state-of-the-art safety
training facility, and the development and installation of
next-generation mine safety equipment;
Kevin Crutchfield, CEO of Alpha Natural Resources, said: 'From the outset, Alpha has cooperated fully with all regulatory and enforcement agencies and we believe the agreements we've reached represent the best path forward for everyone. We're particularly pleased that a substantial portion of the settlement is going towards furthering miner safety, which has always been Alpha's guiding principle. We're mindful that the Justice Department investigation arose from a terrible tragedy which took the lives of 29 miners. Our thoughts will always be with the fallen miners and our sympathies with their families.'
Update on Massey Integration and Safety Improvements
Alpha Natural Resources acknowledges today's release of the Mine Safety and Health Administration's final report on the Upper Big Branch mine tragedy. Alpha is conducting its own independent review of the mine explosion and will consider MSHA's findings and the findings of other reports in its review.
Since acquiring Massey Energy and its properties this past June, Alpha has undertaken numerous activities that reinforce a commitment to safety and doing what is right.
1. Alpha has implemented its behavior-based
safety culture and accompanying training
program, known as 'Running Right,' to
all of the former Massey operations.
Massey's work force of over 7,000 people
has been trained in the Running Right
safety process. The Running Right
process is built on transparency and
empowering employees to make safety and
workplace improvements. Employees are
encouraged to speak up by submitting
suggestions and then participating in
developing and implementing action
plans. In the first four months after
acquiring Massey, Alpha devoted over
60,000 hours of training to this effort,
and safety performance has improved as a
result of miners contributing to the
Running Right process.
Alpha has begun a second phase of
training specifically targeting those
with supervisory responsibilities,
focused on two fronts: Running Right
leadership and safety compliance. Since
June 1, 450 supervisors have completed
leadership training and more than 1,000
certified mine examiners have completed
safety skills training and extensive
safety compliance training.
Alpha has also conducted emergency
response training for mine foremen,
superintendents, safety staff and
management in all its business units.
2. Alpha has devoted considerable resources
to review mine plans at all the former
Massey operations. Those reviews have
included ventilation surveys and
modeling at underground mine sites, as
well as analysis of geological,
structural and roof support. To help
expedite this work, the company has
hired additional technical services
professionals and additional safety
specialists.
3. Alpha has hired a team of external
experts, including specialists in mine
accident investigations, to conduct an
independent review of the UBB accident.
This team has commenced its
investigation and is following a
comprehensive work plan including a
review of all published reports on the
accident. Alpha hopes that all of the
previously completed reports and the
review will help the mining industry
learn as much as possible from the UBB
accident.
Alpha is dedicated to being a safe and responsible operator. Through our Running Right process we give every employee a voice in safety and the ability to drive significant improvements. We believe empowering employees closest to the work and giving them the opportunity and resources to make safety improvements is the most effective way to develop a sustainably safe work site.
About Alpha Natural Resources
Alpha Natural Resources
is a leading supplier and exporter of metallurgical coal used in the steel-making process and is a major supplier of thermal coal to electric utilities and manufacturing industries across the country. The company, through its affiliates, employs approximately 14,000 people and operates approximately 150 mines and 35 coal preparation facilities in the regions of Northern and Central Appalachia and the Powder River Basin. More information about Alpha can be found on the company's website at www.alphanr.com.Forward-Looking Statements
Statements in this press release which are not statements of historical fact are 'forward-looking statements' within the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance. Many factors could cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking-statements. These factors are discussed in detail in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in our other filings with the SEC. We make forward-looking statements based on currently available information, and we assume no obligation to update the statements made today or contained in our Annual Report or other filings due to changes in underlying factors, new information, future developments, or otherwise, except as required by law.
Alpha Natural Resources
CONTACT: Ted Pile of Alpha Natural Resources, 1-276-623-2920,
tpile@alphanr.com
Web site: http://www.alphanr.com/
