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Proposal could nearly quadruple fines for mine safety violations

In response to the two West Virginia coal mine tragedies, Congress is scrutinizing safety regulations for underground mines and taking a stronger stance to ensure that they are enforced. 

As a result, a proposal between Congress and The White House was in the works at Aggregates Manager press time to increase fines for major violations of federal mine safety rules from $60,000 to $222,000. 

According a report in The Ithaca Times online edition, documents show that the current Bush Administration never followed through on a proposal to increase fines from coal operators who violate federal safety rules. Beginning with the 2004 financial year, the U.S. Department of Labor mentioned the fine in a short fact sheet that described its budget proposal, according to the online report. However, the proposal was never outlined in the agency’s actual budget proposal. 

In February 2004, MSHA increased the maximum amount for civil penalties from $55,000 to $60,000.

Rep. George Miller (D-Calif.) and Rep. Major Owens (D-N.Y.) have called on the Bush Administration “to dramatically increase fines against mining companies that repeatedly commit violations of federal safety laws, including violations considered ‘serious and substantial,’” according to a Jan. 25 online report from House’s Committee on Education and the Workforce. 

Miller and Owens sent a letter on Jan. 25 to U.S. Labor Secretary Elaine Chao urging her to begin the regulatory process for adjusting fines against mining companies within seven days. The letter noted that while Congress sets the cap for fines — now set at $60,000 — the Administration sets the floor and everything in between. Miller also noted that the Administration, despite its authority, rarely assesses fines of more than $10,000, according to the House committee’s report. 

These proposed raise in fines could be a concern to aggregates industry members that the aggregates segment of underground mining will be lumped with underground coal mines if there is an across-the-board ruling. 

However, Pam Whitted, vice president of governmental affairs for the National Stone, Sand & Gravel Association, says it’s hard to distinguish yourself between the different segments of mining when it comes to safety.

“Safety is just so important when you’re working in a risky industry, and mining is seen as a risky business” Whitted tells Aggregates Manager. When you have any fatalities or incidents that occur, you have members of Congress who want to see what MSHA is doing.” Additionally, attempting to oppose any increases by distinguishing differences in segments of the mining may not be looked upon favorably, especially when there have been recent fatalities, Whitted adds.  

In related news, the U.S. Mine Safety and Health Administration (MSHA) on Feb. 8 filed an unusual and precedent-setting lawsuit in the U.S. District Court for the Eastern District of Kentucky, seeking an injunction against mine operators who have chronically failed to pay assessed civil money penalties for violations of the Mine Act.  —By Tina Grady Barbaccia, Senior Editor

MSHA files lawsuit to force payment of penalties

The U.S. Mine Safety and Health Administration (MSHA) on Feb. 8 filed an unusual and precedent-setting lawsuit in the U.S. District Court for the Eastern District of Kentucky, seeking an injunction against mine operators who have chronically failed to pay assessed civil money penalties for violations of the Mine Act. The suit names both the mining company and its controlling owner.

“We will use every tool at our disposal to go after operators that refuse to pay their penalties for mine safety violations, and that includes holding the people who control them personally responsible,” says David G. Dye, acting administrator for MSHA, in a press release from the government agency. “The authority to assess and collect penalties is crucial to MSHA’s mission of protecting miners’ safety and health. We asked Congress to dramatically increase the penalties we can assess for egregious safety violations, and today’s lawsuit demonstrates that we are serious about exercising our authority to the full extent of the law.”

MSHA assessed numerous civil money penalties against Misty Mountain Mining and Midgard Mining for safety and health violations at the following sites:

Coal Mine No. 1 in 2003 and 2004—$6,998; Coal Mine No. 2 from 2003 through 2005—$36,201; Coal Mine No. 4 in 2004 and 2005—$28,524; and Coal Mine No. 5 in 2004 and 2005—$4,207. MSHA also assessed penalties against Midgard Mining in 2005 at its Mine No. 1 for $3,620 and Mine No. 2 (formerly Misty Mountain Mine No. 1) for $1,333. All of the mines are located in Pike County, Ky. 

In October 2005, Misty Mountain Mining and Stanley Osborne — who owns both Misty Mountain Mining and Midgard Mining — were ordered by an administrative law judge for the Federal Mine Safety and Health Review Commission to pay $10,000 in civil money penalties for discharging and discriminating against four miners who worked for Misty Mountain. This decision is currently under appeal. 

The complaint filed by MSHA asks that the operators be enjoined from failing to pay penalties for future violations of the Mine Safety and Health Act and be required to post a bond with the court to guarantee future compliance with the law.

Highway bottlenecks costing $8 billion per year

Bottlenecks on U.S. highways are causing a freight transportation crisis, costing trucking companies nearly $8 billion each year — $32.15 per hour — and causing truckers 243 million hours of delay, according to a Federal Highway Administration report released in January.

The report, “An Initial Assessment of Freight Bottlenecks on Highways,” found that analyzed four major types of highway freight bottleneck delays: highway interchanges, signalized intersections, steep grades, and lane reductions. Ranked by annual hours of delay for all trucks, the top cities for highway interchange bottlenecks included the following: Buffalo-Niagara Falls, N.Y.; Atlanta; Phoenix; Chicago; and Los Angeles.  

Overall, bottlenecks represent 40 percent of all congestion delays, followed by traffic incidents (25 percent), bad weather (15 percent), work zones (10 percent), poor signal timing (5 percent), and special events (5 percent), FHWA says in the report. Without major capacity investments, FHWA estimates “that by 2020, 29 percent of urban National Highway System routes will be congested or exceed capacity for much of the day, and 42 percent of National Highway System routes will be congested during peak periods.” By comparison, the agency said, only 10 percent of the urban National Highway System routes were congested in 1998. 

“The results in this report should not be surprising to anyone,” says Pete Ruane, president of the American Road & Transportation Builders Association in a press release, noting that nearly 75 percent of all freight in America is carried on highways. “The root cause of all traffic congestion is the failure of government at all levels to make the transportation capital investments necessary to keep pace with the mobility demands of a growing population and U.S. economy.” 

Mike Russell, spokesman for the American Trucking Associations, tells Aggregates Manager that this report “highlights clearer than ever the trouble spots so there can be [better] funding for improved highways…and we are able to put the money where it’s needed most.” —By Tina Grady Barbaccia, Senior Editor

MSHA assessing, evaluating underground
 mine emergency device

The U.S. Department of Labor’s Mine Safety and Health Administration is evaluating and testing a personal emergency device (PED) and a locator system for underground mines. Consolidated Coal Company and Peabody Coal Company have agreed to work with MSHA to test the systems.

Mine Site Technologies developed the PED in Australia. The system uses either a surface- or an underground-powered loop, which radiates a radio frequency signal enabling one-way communication to underground. The system dims and flashes a miner’s cap lamp for about 10 seconds, then sends a text message to the wearer. Individual, group, or broadcast messages can be sent. MSHA is currently surveying underground mines around the U.S. that use the PED to determine its effectiveness and discuss operational issues that have arisen in different mine environments. Of particular concern are the issues created by the underground antenna loop and the need to withdraw power in the event of a fire or explosion. 

A locator system (Tracker IV) from the same company is also being evaluated. This system enables identification of a miner’s location in an underground mine. The miner wears a transmitter that sends out a unique pulsed signal to receiver beacons strategically spaced underground. MSHA will be looking at possible concerns, including the potential for damage to the receivers by fire, explosion, or roof falls, which could compromise the ability to track and/or send messages on the data line. 

MSHA technical experts will also travel on a fact-finding mission to Australia before the end of February to research and evaluate the effectiveness of both the PED and Tracker systems at underground mines in that country, as well as to discuss how these mines have incorporated the systems into their emergency plans.

 

e-Briefs

Lafarge main stakeholder plans acquisitions

Lafarge North America’s majority stakeholder, Lafarge S.A., says it plans to make an offer to acquire all of Lafarge North America’s common stock and Lafarge Canada’s exchangeable preference shares that it does not currently own, the company announced on Feb. 6.

Lafarge S.A. currently owns about 53 percent of these combined shares.

Lafarge North America’s Board of Directors is expected to meet to review and consider this proposal and to make a recommendation to its stockholders.

Mexican cement dumping has 42-percent margin 

In an administrative review of the anti-dumping order on gray portland cement from Mexico, the U.S. Commerce Department calculated a dumping margin of 42 percent on imports of cement from August 2003 through July 2004.

This means that Mexican producers were charging its Mexico customers 42 percent more than customers from the United States.

The U.S. Commerce Department issued an anti-dumping order in August 1990, following findings by the government agency that cement from Mexico was being sold at dumped prices in the southern tier of the United States and findings by the U.S. International. Trade Commission that the dumped imports had materially injured U.S. Cement producers and their workers. As a result, the U.S. Commerce Department has conducted an annual administrative review to update the dumping margin calculation. Dumping margins have ranged from a high of 109 percent to a low of 37 percent. 

The root cause of the dumping problem is the closed Mexican cement market, with Mexico almost importing no cement, according to the Southern Tier Cement Committee. The STCC has been working with the U.S. Government to see whether an acceptable settlement of the cement dispute may be negotiated with Mexico.

National Stone, Sand & Gravel Association files comments to House
NEPA Task Force

The National Stone, Sand & Gravel Association today filed comments in response to findings and recommendations of the House Task Force on Updating the National Environmental Policy Act (NEPA). NSSGA encourages members of the NEPA Task Force continue its work and make needed updates in the Act.

“While NSSGA believes NEPA serves an important purpose, our members have found in practice that NEPA has moved away from the Congress’ original intent. Too often, the law has been used to slow or stop development of aggregate resources essential to communities and to the economic prosperity of America as a whole,” NSSGA Executive Vice President and COO Charles E. Hawkins III says in a press release from the organization. 

NSSGA member companies have testified at the Committee’s extensive field hearings.  Fixing the NEPA process is of vital importance to ensure a timely and adequate supply of aggregates for the country. NSSGA’s comments to the NEPA Task Force include increasing timeliness of the NEPA process, ensuring final decisions by NEPA are respected, mandating that involved parties in the review process have jurisdiction by law and promoting better federal agency coordination.

Sago tragedy prompts formation of mine safety, technology committee

The National Mining Association has formed the Mine Safety Technology and Training Commission and has chosen R. Larry Grayson, chairman and a Ph.D. professor of mining engineering at the University of Missouri-Rolla, to chair it.

National Mining Association (NMA) President and CEO Kraig R. Naasz announced the formation of the Mine Safety Technology and Training Commission and the selection of Dr. R. Larry Grayson, chairman and professor of mining engineering at the University of Missouri-Rolla, to chair the commission. NMA Vice President of Safety and Health Bruce Watzman detailed the commission’s purpose in testimony this morning before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education and Related Agencies at an oversight hearing on mine safety in the aftermath of the Sago Mine tragedy.

Sneak Preview
from the upcoming Management section in the March 2006 issue issue of Aggregates Manager.

Here Today but What about Tomorrow?

Planning and community relations are the keys to keeping pace
 with aggregate demand 

by Rick Zettler

The aggregate industry plays a vital role in the prosperity of the United States, Canada, and around the world. Producers provide the basic element that is essentially the building block for a community’s infrastructure. What else can provide the strength and stability for our roads, houses, warehouses, and factories? 

Try making concrete for walls or asphalt for highways without the properly graded aggregate mix design. Even farmers depend on aggregate to grow the food that is put on our tables.  

Despite the importance of aggregate, it’s still not a major concern for most communities. However, it’s certainly a nagging thought in the back of producers’ minds. The fact is that stone and aggregate are natural resources, and their supply is limited.

Protecting future resources

 Moving into the 21st century, aggregate producers face a number of challenges in an effort to keep pace with growing demand. First and foremost, producers must try to protect future aggregate resources from being developed for other community needs.

 The current housing boom is a mixed blessing for producers. Every house that is built requires, on average, 150 tons of aggregate and the roads within the development need 200 tons per block according to the Iowa Limestone Producers Association. But every new development could cover prime, aggregate deposits, if planning and zoning does not properly account for these natural resources.

 The ILPA reports that in Maryland roughly 80 percent of the state’s valuable stone and aggregate reserves have been lost to development. For this reason, states such as California and provinces such as Ontario now require cities to identify mining resources just like any other natural resource. The places where there are abundant stone and aggregate supplies may be depleted if they are not carefully planned for and reserved.

Planning is not enough 

Today’s producers not only need to be proactive and serve at the leadership level, they also must positively interact with the community as a whole to ease the permitting process. Expansive residential developments now encroach on the lands that were once left to the mine, making it even more difficult to get to existing aggregate reserves. 

“When our quarry started in the 1940s, we were just about the only thing within a five-mile radius,” says Steve Powell, president and general manager of Lee Crawford Quarry, Inc., Cedar Rapids, Iowa. “Now we are surrounded by schools and new housing developments, and the road outside our office has a vehicle count of 8,000 cars per day.” 

Close quarters among aggregate suppliers and residents mean that producers must be more proactive to neighbor concerns than ever before to achieve a peaceful coexistence. Otherwise the not-in-my-back-yard, more commonly referred to as NIMBY, attitude will be a crucial determining factor in the future operations of a quarry. And organizations opposing aggregate operation development have a new tool at their disposal to help organize. “The Internet has enabled anti-development groups to better organize,” Reagan says. 

In speaking to the ILPA, Tony Bauer, associate professor with the Landscape Architecture Department at Michigan State University, offers the industry some advice to help producers peacefully coexist with their neighbors. According to Bauer, “90 percent of the conflict that comes from experiencing the plant occurs within the first 15 to 20 feet.” He suggests creating a buffer within that area to block the line of sight to the quarry. This will eliminate a major source of difficulties that the industry has with communities.

The right stuff

Powell of the Lee Crawford Quarry learned first-hand the advantages of maintaining a positive image within the community. The quarry has operated in the northwest side of Cedar Rapids for more than 60 years, supplying aggregate to local contractors and businesses.

One of its largest customers is a worldwide agricultural processor of corn, soybeans, wheat, and cocoa. Crawford supplies this customer with a 3/8-inch minus dry limestone product for coal de-sulphurization. In this unique, two-way relationship, the fly ash byproduct of this process is then returned to Crawford, who uses the fly ash as part of its reclamation process.

“All quarries are supposed to fill in the holes as we go along, but, in my experience, few quarries are doing it,” Powell says. The fly ash program will help Crawford to fill in its current 300-acre site within 25 years.

Facing a projected quarry life of 10 years, in 2003 Crawford purchased 80 acres of land adjacent to its existing pit for expansion. A primary concern for the producer was the dry aggregate supply for its agricultural processing customer. Only the quarry’s high ledge is naturally dry enough to supply the required 3/8-inch minus limestone, and that was being depleted faster than the rest of Crawford’s saleable product. “Sixty feet of the new 80 acres is high ledge,” Powell says. The new land is projected to give Crawford an additional 30 operating years.  

Before developing plans to start operation on the new land, the producer had to obtain a conditional use permit. This was no small feat, as Taft Middle School and a new housing development were among the land’s closest neighbors.  

After Crawford’s lawyer advised Powell that the land would probably not receive a permit, he took the process into his own hands. Powell consulted with Joseph McGuire, an industry expert with fellow Iowa contracting company Cessford Construction Co. He then created a presentation for county officials.  

“I spent four months working on the PowerPoint presentation, which included a video, to explain what we do,” Powell recalls. “I covered why expanding the quarry was important for the community, and I included several land-use options after quarrying is completed.” Armed with this information, Powell went before the Linn County Planning and Zoning Board. After hearing all testimony, pro and con, the board unanimously approved the land use.  

The next stop was the Board of Adjustments, which at first appeared to be more of a problem than the Planning and Zoning Board. According to Powell, “I was told five minutes before the presentation that the chairperson of the Board of Adjustments was instrumental in shutting down another local quarry.”  

No decision was made at that October 2005 meeting. In between monthly meetings, Powell gave the chairperson a tour of the Crawford facilities and proposed expansion site. At the next scheduled meeting in November, the Board voted 5 to 0 in favor of granting a conditional-use permit.  

From start to finish, the entire process, including the time to create the presentation, took less than nine months. Incredibly, only four people spoke out against authorizing the conditional land use, one of which lived nowhere near the proposed site.  

Rather, neighbors as close as 250 feet from the quarry spoke in favor of the expansion. “One neighbor gave such a glowing testimony that the Board of Adjustments asked her if she worked for the quarry (which she did not),” Powell says.  

His personal approach to the permitting process showed his commitment to not only his company but also the community as a whole. “I was informed that one key to the quick and positive outcome was that I didn’t have a battery of lawyers behind me,” Powell explains.

Conditional victory

Although Crawford’s permitting process was relatively simple, there were some concessions that had to be made. The producer fixed holes in a fence between the new property and the school, which had been in disrepair for years. Additionally, Crawford installed a fence along the property’s adjacent road, E Avenue, and will construct a berm blocking the view of the quarry. 

One of the more costly concessions, however, lies in the land Crawford will not be able to quarry under the conditional-use permit. “The permit requires a 300-foot buffer zone between the quarry and Taft Middle School and E Avenue,” Powell says.  

While the buffer zone certainly means that a significant amount of mineable reserves are lost to the operation, the concession netted the Lee Crawford Quarry another 30 years of reserves — and that’s a tradeoff most producers would willingly take. 

Rick Zettler is president of Z-Comm, a company specializing in construction and aggregate equipment marketing, public relations, and freelance writing. He may be at 319-265-0052 or zcomm@mchsi.com .

For the complete version of this with photos and more, see the March 2006 of Aggregates Manager or visit www.aggman.com after the issue has been posted.

e-Products

Trommel for reclamation

Powerscreen has announced a new, compact trommel for reclamation, processing, and stockpiling topsoil and compost.

Powerscreen says the Phoenix 1200 sets up in less than 5 minutes and its drum is powered by a four-wheel friction drive that eliminates wear associated with conventional drives.

 

High-wear screen wire

W.S. Tyler has introduced a long life, small-diameter wire for high-wear screen applications. The company says its new Ty-Ger Wire is formed from a unique high-carbon alloy and engineered with a patented drawing process that gives it elasticity and high resistance to wear and tearing.

For more new products for the industry, check out the RollOuts section in each month’s print edition of Aggregates Manager.

Manufacturer e-News

The Mobile Crushing and Screening Group, consisting of Powerscreen, Terex Finlay, and Terex Pegson, formerly part of the Terex Construction Segment, will now be consolidated within the Terex Materials Processing & Mining Segment.

Additionally, the European telehandlers business of TerexLift, formerly part of the Terex Construction Segment, will now become part of the Terex Aerial Work Platforms Segment.


Westport, Ct.-based Terex Corp. announced on Jan. 10 that, effective at the start of the first quarter of 2006, it has realigned certain of its operations in an effort to strengthen its ability to service customers and to recognize certain organizational efficiencies.


Metso Minerals’ Nomination Committee is proposing an increase in the number of board members from six to seven. The committee is proposing that Christer Gardell, managing partner of Cevian Capital, and professor Yrjo Neuvo be elected as new members of the Metso board.

The committee is also proposing that the following current members of the board be re-elected: Svante Adde, Maija-Liisa Friman, Satu Huber, Matti Kavetvuo, and Jaakko Rauramo. Matti Kavetvuo is proposed to continue as chairman of the board and Jaakko Rauramo as vice chairman. Juhani Kuusi, who is currently member of Metso board, has announced that he will not be available for re-election.

Christer Gardell is the founder and Managing partner of Cevian Capital, a Swedish asset management company. He is currently chairman of the board of AB Lindex, a Swedish clothing retailer, and a board member of Skandia, a Nordic insurance and banking group.

Professor Yrjo Neuvo, Ph.D. (EE), held the position of chief technology officer, and member of the group executive board in Nokia from 1993-2005. He retired from his position on Jan.1. Previously he was Professor at Tampere University of Technology and National Research Professor at the Academy of Finland.

e-Quick Takes
Here’s a quick look at who has moved where within the industry.

PC Scale, Inc. has named Kenneth W. Good as president of PC Scale, Inc. Jack Wondowski, former president, will remain as COO. Since 2002, Good has worked with Waste Services, Inc., most recently serving as its CIO. Prior to 2002, Good was with Waste Management, Inc., where he was the company’s Eastern Area information technology manager for 16 years.


Extec Inc. appointed Ken Sauer as president of all North American operations following on a recent restructuring of Extec’s global activities. Prior to being promoted to this new position, Sauer worked for more than a decade as chief financial officer and operations manager for Extec’s operation in North America.

As president, Sauer will be responsible for all facets of Extec’s North American operations and these will include sales, after sales support and dealer appointments.


Robert (Rob) Reinhart, a welder at the National Lime & Stone Co.’s Findlay Plant, has been awarded the company’s Directors’ Award for outstanding leadership, motivation, and organizational skills in his community.

Reinhart, who has been employed at the Findlay Plant for 10 years, received a plaque and a $1,000 check from the company’s chairman of the board and CEO, Carleton P. Palmer III, at the company’s annual employees meeting.

National Lime & Stone Co. established the Directors’ Award in 1996 to recognize individual employees who demonstrate outstanding leadership, motivation, and organizational skills in their community, while inspiring co-workers to utilize their fullest potential for the betterment of themselves and the company.

Sponsored by:


Compiled by Tina Grady Barbaccia, Aggregates Manager Senior Editor.
To contact Tina about the newsletter content, send e-mail to
e-news@aggman.com or call
(630) 364-2306.

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