Four things you need to know about the UMWA-Peabody/Patriot deal

The United Mine Workers of America has reached a settlement with Peabody Energy and Patriot Coal that will help to cover health care benefits for retired miners.

Background:

  • Magnum Coal Company purchased certain Arch Coal operations in 2005
  • Patriot Coal purchased Magnum Coal Company in 2008
  • Patriot Coal was spun off from Peabody in 2007
  • Patriot Chapter 11 bankruptcy reorganization on July 9, 2012
  • In May of this year, a ruling allowed Patriot to quit paying health care benefits for retirees and established a VEBA account with initial Patriot contribution of $15 million

Here are four things you need to know about the new deal:

  1. The agreement provides more than $400 million to provide health coverage for retirees affected by the bankruptcy of Patriot Coal.

    The money will go into the Voluntary Employee Benefit Association or VEBA account.

    Peabody will make payments totaling $310 million over the next four years, and proceeds will be  applied to future retiree health care benefits.

    Patriot has agreed to contribute $15 million to the VEBA in 2014, with up to an additional $60 million to be paid into the fund over the following three years.

  2. The union has agreed to give up its 35 percent stock as part of this new deal.

    UMWA was given 35 percent equity stake in Patriot in May as part of a ruling. The same ruling established the VEBA account.

  3. UMWA continues to look to Congress to assist in securing additional funds for health care benefits.

    Rep. David McKinley introduced a bill in the house that currently has 24 co-sponsors from both parties and a bill introduced by Sen. Jay Rockefeller currently has six co-sponsors.

  4. UMWA is still hoping to come to an agreement with Arch Coal, another company that formed Patriot. 

Patriot has reached a final deal with Arch Coal. According to a release, Patriot will receive $5 million in cash and a release of a $16 million letter of credit posted in Arch’s name as part of the deal.

In a release issued just after midnight Thursday morning, UMWA president Cecil E. Roberts said he was pleased.

“This is a significant amount of money that will help maintain health care for thousands of retirees who earned those benefits though years of labor in America’s coal mines,” Roberts said.

“This settlement will also help Patriot emerge from bankruptcy and continue to provide jobs for our members and~thousands of others in West Virginia and Kentucky.”

Patriot President and Chief Executive Officer Bennett K. Hatfield echoed the union’s satisfaction.

“I am pleased that we have been able to reach agreements that provide the UMWA with hundreds of million of dollars in retiree healthcare funding,” Hatifield said.

“The best result for the UMWA and its members is for Patriot to emerge from bankruptcy as a healthy company that will continue to provide jobs and benefits, and we are now on track to achieve that goal.”

This deal still needs approval by federal bankruptcy judge Kathy Surratt-States. The judge is expected to make that decision early next month.
 

Group appeals PSC order approving billion-dollar power plant deal

West Virginia Citizen Action Group says it will appeal the approval of a $1.1 billion deal for the sale of the Harrison Power Station.

The Public Service Commission approved the transaction late Monday, saying it would reduce Mon Power rates by $16 million a year.
 
     The deal involves Ohio-based FirstEnergy subsidiaries Mon Power and Potomac Edison, and affiliate Allegheny Energy Supply.
 
     Mon Power is buying the 80 percent of the 1,984-megawatt plant that it doesn’t currently own. In exchange, Mon Power will sell 8 percent of its interest in the Pleasants Power Station to Allegheny Energy Supply.
 
     Opponents say the transaction is inflated by $257 million and is bad for consumers.
 
     West Virginia Citizen Action says that price markup ruling violates stipulations of the merger agreement and contradicts commission policy.
 

UMWA: 'check on your buddy' during government shutdown

The United Mine Workers is reminding miners to stay safe during the government shut down. Three miners died in just as many days over the weekend. 

UMWA president Cecil Roberts is urging all miners to be especially careful at work.

Roberts said, “check on your buddy,” and “watch each other’s back.”

On Friday 62-year-old Roger R. King from Moundsville was killed after an accident at CONSOL Energy’s McElroy mine in Marshall County. He was employed as a longwall maintenance coordinator and had 42 years of mining experience.

A miner from Illinois died Saturday and another from Wyoming on Sunday. The investigations are ongoing.

This is the first time in 10 years that three miners have died three days in a row.

The deaths have occurred since the federal government shutdown began early last week. The standoff in Washington has cut back the number of mine inspectors—those working at the mining academy and field offices where specialists evaluate ventilation and roof control plans.

In the statement Roberts said he’s not trying to draw premature conclusions, but said, “it is extremely troubling that within a week after the federal government shutdown caused the normal system of mine safety inspection and enforcement to come to a halt, three miners are dead.”

MSHA sent out a release on Monday urging operators to follow safety regulations. Joe Main, assistant secretary of labor for mine safety and health said the rash in deaths “is a red flag.”

Could the federal shutdown set back mine safety progress?

The federal Mine Safety and Health Administration is inevitably affected by the standoff in Washington. MSHA is partially open with less than half the…

The federal Mine Safety and Health Administration is inevitably affected by the standoff in Washington. MSHA is partially open with less than half the staff.

A letter from the Department of Labor Solicitor Patricia Smith, indicates that MSHA is operating with less than 1,000 employees, that’s less than half the full staff. The shutdown has cut back the number of mine inspectors—those working at the mining academy and field offices where specialists evaluate ventilation and roof control plans.

Since the federal shutdown, communication with the MSHA is limited. They did, however, issue a release Monday to urge mine operators to follow regulations and ensure safe practices, and to remind miners to report hazards.

One mine safety advocate worries the shutdown will only further clog the system.

Sam Petsonk is with the non-profit organization Mountain State Justice. He’s directing a new project called the Miners’ Safety and Health project.  

Petsonk grew up in Morgantown and was working for the late Senator Robert C. Byrd when 29 men died at the Upper Big Branch disaster. Petsonk says the disaster was a wakeup call to action.  

“The federal system had failed to prevent that disaster,” Petsonk said. “I recognize that unless there is real time information provided by miners to mining companies and to the state and federal regulators the system can’t identify and stop this sort of challenges that mines encounter.”

In 2010, the late Senator Robert C. Byrd secured more than $22 million to help the federal officials deal with a mine safety appeals backlog. While MSHA has made progress, Pestonk points out that even with full staff, it’s tough to keep up.

“MSHA has an immense amount of work to do,” he said. “They do it well but this type of cutback were it to last for any amount of time would threaten the progress we’ve made on mine safety in this country.”

Federal law requires underground mines to be inspected four times a year, while surface mines are required to have two inspections per year.

According to a letter from Assistant Secretary Joe Main, the limited staff has cut back on ‘routine’ inspections. It appears that staff is limited to work on inspections of targeted mines, investigations of accidents, miners’ complaints, mine sample analysis, building securities, information technology support, mine safety plan approvals, and mine emergency readiness.

This concerns Petsonk.

“The shutdown may jeopardize this type of critical oversight and enforcement activity,” he said. “I’m not suggesting there’s any emergency that should alarm miners or their families. But unfortunately during a lull in oversight, some operators have in the past have been tempted to make changes or shortcuts without proper third party review or approval by MSHA.”

MSHA investigations indicate that these types of activities have contributed to deaths in the past.

MSHA has a layered approach to oversight and with some of those layers missing; Petsonk worries that any progress in improving mine safety culture will be jeopardized. 

“We have this complex system because this is a complex industry,” he said. “The checks and balances when they’re not in place unfortunately oversights can arise and unprincipled operators or unprincipled actors can try to take advantage and the consequences of that could be tragic it’s something that we don’t’ need to deal with. It’s a risk that we don’t’ need to incur.”

Three coal miners, including one from West Virginia, died this past weekend:

  • On Friday 62-year-old Roger R. King from Moundsville was killed after an accident at CONSOL Energy’s McElroy mine in Marshall County. He was employed as a longwall maintenance coordinator. King, who had 42 years of mining experience with 17 years  at the McElroy mine, was killed while assisting in setting up the panline on a new longwall face. King was standing in the face conveyor, facing the tailgate side of the section, when the accident occurred. According to a release from MSHA, a pulley was attached to a section of the conveyor and a scoop was being used to pull the chain. The device failed, came loose and struck King in the back of the head. 
  • Another miner died on Saturday at the Pattiki mine in Illinois. MSHA said this accident involved a golf cart used to travel underground. The golf cart rolled over and pinned the victim underneath. 
  • At the Bridger Coal mine in Wyoming, a dozer operator was killed on Sunday. MSHA said the dozer went over a 150-foot highwall. The operator began searching for the victim at the end of the night when no one heard from the miner. The dozer and victim were found at the bottom of the highwall.

MSHA Assistant Secretary Joe Main said this is the first time in 10 years that the mining industry has suffered three deaths three days in a row.
“Three miners killed on three consecutive days is extremely troubling,” said Main. “The fact that that this occurred over the weekend, when there may be a greater expectation an MSHA inspector would not be present, is a red flag.”

Meanwhile, the annual TRAMS or Training Resources Applied to Mining Conference is scheduled for next week in Beaver. But that’s not likely to happen if the shutdown continues.

Safety professionals from around the country typically attend the TRAM conference.

Petsonk said despite the shutdown, and short staff, miners would do well to remember that they still have the right to refuse and report unsafe conditions.

“During the shutdown the message to miners is the same as it always is,” Pestonk said. “The system will not work without your active involvement. Keep your eyes open file complaints participate in the system. The Mine Act is intended to work only with your support and it’s critical during the shutdown as it always is perhaps even more so.”

MSHA was not available for further comments because of the government shut down.

W.Va. miner killed on Friday identified

Update Monday October 7 9:00 a.m.

Leslie Fitzwater with the state Office of Miner’s Health Safety and training says 62-year-old Roger R. King from Moundsville died Friday. 

King died Friday after an accident at CONSOL Energy’s McElroy mine in Marshall County. He was employed as a longwall maintenance coordinator.

King had 42 years of mining experience with 17 years experience at McElroy mine.

According to an email from the The West Virginia Office of Miner’s Health Safety and Training the accident happened around  1 o’clock Friday afternoon.
 
The state mine safety office says preliminary information indicates the miner suffered a head injury while underground. Exactly what happened was not immediately clear.

King died on the way to the hospital.
 
Pennsylvania-based CONSOL didn’t immediately comment.

Information from the federal Mine Safety and Health Administration was not available right away because of the government shutdown.

“It is a terrible tragedy when the dangers that can accompany mining result in the loss of life,” said Governor Tomblin in a written statement.

“This miner and his family remain in the prayers and thoughts of Joanne and I, just as they surely do with all West Virginians.”
 

Where's the best place to leaf peep this weekend?

State foresters recommend heading to the high country this weekend to see foliage at its peak. Perennial foliage hotspots, including Dolly Sods, Blackwater Falls and Canaan Valley are reportedly either at peak or expected to peak over the next few days. In Pocahontas County, favorite foliage spots like Cheat Mountain, Snowshoe and the headwaters of the Greenbrier River are getting close to peak. The Highland Scenic Highway has good but scattered color.

The Silver Lake area of Preston County is approximately 60 percent peak and another recommended destination this weekend.

Pendleton County’s Spruce Knob is between 50 percent and 75 percent peak. A variety of yellow, orange and red hues are reportedly well worth the trip. The Allegheny Front and North Mountain also are must-see destinations.

Foresters in Morgan County report an abundance of color along the Cacapon River. The recommended drive is State Route 9 from Berkeley Springs toward Paw Paw, with a stop at the Panorama Overlook. The overlook includes views of three states, West Virginia, Maryland and Pennsylvania, as well as the Potomac and Cacapon Rivers.

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