The inside scoop on industry news, views, and products
The inside scoop on industry news, views, and products
Vol. 3, No. 7
The House Budget committee last week approved a FY '08 budget plan with robust infrastructure funding. Within the $2.7 trillion spending outline were three things of particular interest to the transportation sector. First, the committee rejected administration proposals to cut $631 million in Revenue Aligned Budget Authority (RABA), the mechanism that aligns revenue into the Highway Trust Fund with outlays) funds. Next, the committee fully funded highways at the $40.2 billion level and mass transit at $9.7 billion as authorized under SAFETEA-LU for FY ‘08. Finally, the committee rejected the administration’s proposal to cap the Airport Improvement Program at $2.75 billion and proposed fully funding it at the authorized level of $3.8 billion. Recently, NSSGA sent a letter to members of the House Budget committee asking for full funding of SAFETEA-LU and urging rejection of proposals to cut RABA. NSSGA also was a signatory of a Transportation Construction Coalition letter to the entire House of Representatives urging members to support the budget proposal. The House is scheduled to consider the FY ‘08 budget resolution later this week. While the budget bill does not have the force of law, it does provide a general outline for the appropriating committees as the 13 annual spending bills are crafted.
DALLAS—The widow of a man killed in an explosion at a TXI facility in Midlothian, Texas, was awarded $18.9 million by a Dallas jury on March 24, culminating a month-long trial. The jury deliberated for almost two days before returning the unanimous verdict against Dallas-based TXI, one of the nation’s largest producers of bagged cement. Gordon Rutherford, 34, of Waxahachie, was killed in January 2003 while employed by Circle 4M Welding, a TXI contractor. According to the lawsuit filed by his wife, Amy, TXI directed Rutherford and a crew of three other welders to work in a location near an environmental scrubber that contained “extremely hazardous and flammable materials.” During the course of the work, 5.5 tons of combustible plastics caught on fire and engulfed Rutherford, according to a statement released by Amy Rutherford’s legal counsel, the law firm Heygood, Orr, Reyes & Bartolomei. Following the explosion, a construction crane malfunctioned and left Rutherford suspended 90 feet above the ground and unable to reach safety, according to the statement. The lawsuit alleged TXI acted with negligence and recklessness in failing to warn Rutherford and the other welders of the danger in working in that area. The other workers suffered burn injuries of varying severity and one was hospitalized. “TXI ignored basic safety principles by sending this team into a highly dangerous situation without adequate warning and without properly maintained equipment and fire extinguishing devices that might have saved Gordon Rutherford’s life,” said Michael Heygood of Heygood, Orr, Reyes & Bartolomei. “This trial was about determining how seriously companies should take plant safety. After hearing evidence for almost four weeks, the jury rejected the notion that industrial plants can maintain a blind eye to the dangers their workers face,” he said. Heygood, Orr, Reyes & Bartolomei alleged TXI knew about the combustible nature of the plastic in the scrubber due to a previous incident 18 months earlier when the plastic overheated and melted. A representative of the plastic manufacturer testified that he had previously recommended that TXI replace the plastic in the scrubber with stainless steel for many reasons, including the danger of overheating, according to the law firm’s statement, which noted the representative said that given the additional costs involved TXI decided to reject his recommendation. The Heygood, Orr, Reyes & Bartolomei statement also said plant safety managers were inexperienced in the safety issues involving large industrial plants, having never held a job in safety prior to being hired by TXI. “As a result of this verdict, industrial plants hopefully will understand the need to ensure they hire experienced safety professionals to overlook the operations of their facilities. Mrs. Rutherford hopes this verdict will save other lives,” said Robert Lee of Dallas’ Lee & Braziel, co-counsel for Amy Rutherford. TXI was represented in the case by Charles Hurd and Lee Thibodeaux with the Houston office of Fulbright & Jaworski. A message left late Friday [March 24] afternoon with the firm was not returned by press time Saturday [March 25]. (Source: The Daily Light, March 24, 2007, by staff reports)
“The secure and efficient movement of freight and people is the lifeblood of the American economy and should be the driving force behind development of a new federal transportation vision and strategic plan,” American Road & Transportation Builders Association (ARTBA) First Vice Chairman Charlie Potts told the National Surface Transportation and Policy Revenue Study Commission at a March 19 hearing on Capitol Hill. To meet that need, Potts, CEO of Indianapolis-based Heritage Construction and Materials, shared with the commission ARTBA’s recommendation for a new, bifurcated federal-aid highway program structure that would feature:
“We believe a clear separation between the ‘Critical Commerce Corridors’ program and the core highway and transit programs is necessary to ensure that strategic new capacity gets added to the national system and those being asked to financially support the 3C program see their investment being put into the infrastructure they directly benefit from,” Potts said. Potts rejected recent calls by anti-highway groups to reduce or eliminate the federal government’s role in transportation infrastructure-related activities. “It is puzzling why the federal role is even being debated,” he said. “Transportation is intertwined with, fosters, or impacts, virtually every major area of national interest, be it security, defense, economic growth, air and water quality, and even immigration. “China, India, and the European Union are not questioning whether there needs to be a strong federal role in transportation,” Potts told the commission. “They are making huge, strategic transportation investments designed to help them challenge — and beat — America in the global marketplace.” In addition to the 3C program, in the immediate term, the federal government should be boosting investment in transportation to shore up an aging infrastructure, the ARTBA first vice chairman noted. An ARTBA analysis of the recently-released U.S. Department of Transportation (U.S. DOT) 2006 “Conditions and Performance” (C&P) report finds the average annual gap during the next highway/transit bill reauthorization cycle between projected Highway Trust Fund revenues and the federal government’s share of highway infrastructure needs is $19 billion. Given the financial shortfall, an increase in the federal motor fuels excise is the only viable approach to filling this void in the short-term, Potts said. A fuels tax increase of 8.5 cents per gallon in FY 2010 and growing to 10 cents per gallon in FY 2015 is necessary to support the outlays necessary to meet the federal government’s share of the C&P report’s documented needs. “The states individually cannot meet these national transportation challenges. Nor should it be expected that the private sector is going to make, or facilitate, all of the enormous investments in new infrastructure capacity that are necessary for the U.S. to remain competitive in the future,” Potts said. “It will only happen with strong federal direction and leadership.” (Source: American Road & Transportation Builders Association) Construction of new homes rebounded in February after a big decline in the previous month, but building permits slid further, indicating more problems down the road for the troubled housing industry. The Commerce Department reported that construction of new homes and apartments rose by 9 percent in February to a seasonally adjusted annual rate of 1.525 million units. That represented a better-than-expected rebound after construction activity had plunged by 14.3 percent in January to the slowest pace in more than nine years. But builders’ applications for new permits, considered a more reliable gauge of future activity, continued falling in February, dropping by 2.5 percent to an annual rate of 1.532 million units. That marked the 12th decline in the past 13 months in building permits and underscored the construction industry’s steep slump. The 9 percent rebound in housing in February had been expected given that construction had fallen so much in January, a month when a return to more normal winter weather had pushed construction activity lower after an unusually warm December. After enjoying five boom years of record sales of new and existing homes, the housing industry has been mired for the past year in a steep slump as demand has fallen sharply and home prices, which had been surging, have stagnated. The housing slump has already dragged down overall economic growth. Financial markets have been thrown into a frenzy in the past several weeks over worries that rising mortgage defaults could threaten the financial health of lenders, especially those who had a major presence in the sub-prime market, which offered loans to people with weak credit histories. Normally, the Federal Reserve could be expected to cushion the credit crunch by cutting interest rates. However, the central bank is widely expected to keep rates unchanged at this week’s meeting out of concern that the slower economy has not sufficiently dampened inflation pressures. By region of the country, the gain in construction last month included an 18 percent jump in activity in the South, the biggest percentage gain in that region in nearly two years. Construction was also up strongly in the West, rising by 26.4 percent, the best showing since January 1997. Construction fell by 29.7 percent in the Northeast, the biggest one-month plunge in that region since December 1990. Construction also fell in the Midwest, dropping by 14.4 percent after an even bigger 16.4-percent drop in January. The National Association of Home Builders reported Monday that its survey of builder sentiment fell in early March, reflecting worries about the financing troubles in the sub-prime mortgage market. The builder confidence index dropped to 36, down from a February reading of 39. “Builders are uncertain about the consequences of tightening mortgage lending standards for their home sales down the line and some are already seeing effects of the sub-prime shakeout on current sales activity,” said David Seiders, chief economist for the home builders. The concern is that with banks and other lenders tightening up on loan requirements because of rising defaults, it will make it even harder for potential homebuyers to qualify for mortgages, reducing the demand for homes even more. In addition, the higher level of borrowers defaulting on their mortgages means even more supply dumped on the market (Source: Associated Press, March 20, 2007. By Martin Crutsinger, AP Economics)
As a follow-up to an earlier meeting with the White House Office of Management and Budget (OMB) in February concerning the proposed “Criteria and Procedures for Proposed Assessment of Civil Penalties” rule, the National Stone, Sand & Gravel Association (NSSGA), in partnership with the National Ready-Mix Concrete Association (NRMCA), submitted additional data to OMB on March 16. Throughout the months of February and March, NSSGA solicited its members to send in MSHA 1000-179 forms, the forms that illustrate penalty calculations for individual citations. NSSGA received more than 1,000 citation forms as a result of the request. Included in the pool were 243 section 104(a) enforcement actions that were categorized as “Significant and Substantial,” or S & S. Additionally, there were 18 enforcement actions deemed as an “unwarrantable failure” to comply with a mandatory safety or health standard found in Title 30 Code of Federal Regulations (Title 30 CFR. The results of the data analysis can be found by clicking here to view the letter from NSSGA and NRMCA to the Office of Information and Regulatory Affairs within OMB. NSSGA also provided comments on the proposed “Criteria and Procedures for Proposed Assessment of Civil Penalties” rule on both Oct. 20, 2006, and Nov. 7, 2006
The repeal or restructure of four federal motor fuel tax exemptions would generate an additional $1 billion in Highway Trust Fund (HTF) revenues annually and ensure there is sufficient funding to meet the investment levels called for in 2005’s SAFETEA-LU highway/transit law, the American Road & Transportation Builders Association (ARTBA) March 27 told a congressional panel. Under current law, the Federal Highway Administration projects a $700 million negative balance in the HTF highway account by the end of fiscal year 2009. ARTBA Vice President of Economics & Research Dr. Bill Buechner, a Harvard-trained economist, testified at a House Highways & Transit Subcommittee hearing called to review the viability of the current fuel tax and highway funding program. Buechner cited the exemptions identified by the congressional Joint Committee on Taxation for certain vehicles and buses used by state and local governments and nonprofit organizations. The exemptions for these vehicles, which cause the same wear and tear on highways as automobiles, cost the highway account of the HTF $1 billion a year, Buechner told the subcommittee. Buechner rejected calls from some groups that the highway program funding guarantees in SAFETEA-LU be suspended or the federal highway program cut. “Eliminating these highway account exemptions, which was previously endorsed by the Bush Administration and the U.S. Senate, would ensure the Highway Trust Fund has enough revenue to meet the commitments in SAFETEA-LU and prevent the next surface transportation reauthorization cycle from starting in a deficit situation in 2010,” Buechner said. During the hearing, the ARTBA economist also reiterated the association’s long-held policy position that the federal motor fuels excise tax continue to serve as the foundation for financing the highway/transit programs for the reauthorization of SAFETEA-LU and beyond. (Source: American Road & Transportation Builders Association)
First batch of EPA testing shows off-road diesel equipment meets pollution limits The U.S. Environmental Protection Agency (EPA) has finished the initial batch of emissions testing for construction, agricultural, and industrial diesel-powered engines to confirm that results supplied by engine manufacturers are accurate. This milestone marks the start of a series of “confirmatory” emissions testing to ensure that these non-road diesel engines meet the requirements of EPA’s “Clean Air Non-road Diesel Fuel” as early as 2008. EPA has conducted confirmatory testing on cars for decades. All off-road diesel engines tested at EPA’s National Vehicle and Fuel Emissions Laboratory during the initial round met their expected emissions limits. The second round of emissions testing is scheduled to begin this spring, according to a press release issued by EPA. The EPA says that off-road diesel engine testing is a part of its “commitment to ensuring that the tremendous public health benefits of the Clean Air Non-road Diesel Rule are achieved,” according to an EPA press release. General information about off-road diesel equipment may be accessed at www.epa.gov/non-road-diesel. National Surface Transportation Policy and Revenue Study Commission field hearing held The Congressionally chartered National Surface Transportation Policy and Revenue Study Commission held a field hearing on Capitol Hill March 19 to study ways to reduce traffic tie ups and future ways to fund new road, bridge and transit projects. At the hearing, members of the commission, including U.S. Secretary of Transportation Mary E. Peters, heard testimony from various national transportation stakeholders. The daylong hearing consisted of seven panels that included groups such as state and local elected officials, transportation system planners, highway users, transportation providers, infrastructure providers, unions, and policy analysts. The next field hearing is scheduled for Chicago on April 18 and 19. Program focuses on Future of America’s transportation network, meetings with federal policymakers With a battle expected about the fiscal year 2008 transportation appropriations bill and the future of the nation’s highway, transit and aviation programs at stake, transportation construction industry executives have many reasons to participate in the American Road & Transportation Builders Association (ARTBA) “Federal Issues Program,” scheduled for May 7-8 in the Nation’s Capital. Policy discussions, about the reauthorizations of SAFETEA-LU and VISION 100 (airport construction program), will be at the forefront during the ARTBA Board of Directors, Committee and Division meetings. The program will include an update on ARTBA’s efforts to build support for its “Critical Commerce Corridors” proposal, which is aimed at improving the safe and efficient movement of freight. Major decision makers at the Federal Highway Administration and the U.S. Environmental Protection Agency will also be on hand and meet with ARTBA members to share ideas and directly exchange viewpoints. The ARTBA program is being held in conjunction with the Transportation Construction Coalition Washington Fly-In, which begins in the afternoon of May 8 and continues on May 9. To view the full program and register online, visit the “meetings and events” section of www.artba.org. (Source: American Road & Transportation Builders Association) Lafarge employee airlifted to hospital after suspected gas inhalation CALGARY—Lafarge employee was released from hospital the evening of March 12 after being airlifted from the Exshaw cement plant to Foothills Hospital after he passed out from suspected gas inhalation that morning. The man, who is not being named, had been working in the limestone quarry when he began to feel ill, a Lafarge spokesperson said. “He was doing scheduled maintenance in our quarry in the crusher tunnel,” said Brad Watson, Lafarge environmental coordinator. “And as per normal procedures, he kept in touch with the operator.” The worker began to feel ill and he called the operator to alert him, Watson said. The tunnel is about 150 feet deep and on a shallow angle, which workers travel in and out of on foot, Watson said. “The quarry manager helped him with a self-breather,” Watson said. “As he came out of the tunnel, he passed out. The quarry manager called the fire department and the paramedics, who felt it was necessary that he fly to Foothills Hospital via STARS.” A self-breather is a small oxygen pack with about a 10 minutes supply of breathable oxygen for use in emergencies. Bighorn Emergency Services and Canmore EMS responded to the plant. “The patient may have come into contact with some kind of gas or a combination of gases,” Bighorn fire Chief Rick Lyster said. “He smelled gas and he contacted the plant control room. He was overcome. We stabilized him on the scene.” EMS and Canmore RCMP closed Highway 1A at both the east and west entries to Exshaw at 11:45 a.m. so that a STARS, (Shock Trauma Air Rescue Society) helicopter could land on the stretch of highway in front of the Fas Gas station. The man was driven via ambulance from the Exshaw plant a short distance to Highway 1A and the awaiting STARS helicopter. Traffic on the highway that passes through Exshaw was tied up for about half an hour. The worker was assessed at Foothills Hospital and showed no signs of elevated gas in his blood and his condition was stable, Watson said. The tunnel has been closed off as a precaution and an Occupational Health and Safety official has been called to the plant. The incident is still under investigation, Watson said. (Source: Aggregate Research Industries) Vulcan Materials gives $1,000 to “Partners in Service” campaign Vulcan Materials Co. has given $1,000 to the “Partners in Service” Campaign of the Community Council of the Georgia Mountain Research and Education Center. Malcolm Wardlaw, manager of the Blairsville operation, made the announcement. “Vulcan Materials strives to be good corporate citizens in the communities where we have operations. We are pleased to support our neighbors at the GMRE Center and applaud their efforts to improve the quality of life in the region,” Wardlaw said. Johnny Smith, supervisor of operations, said, “As a native of Union County, I am very aware of the value of the GMRE Center to the region. I am impressed with the number of local area students and adults who are benefiting from the programs and activities of the Community Council.” Vulcan Materials Co. leads the industry in the production of construction aggregates. The Blairsville operation, which employees 14 people, dates back to 1960 and was purchased by Vulcan in 1999. It is one of 162 stone quarries owned by the company. The operation provides aggregates for building and maintaining highways, water and sewer systems and residential, commercial and industrial building construction. Vulcan Materials says it is committed to social responsibility, which emphasizes community involvement, environmental stewardship, safety and health, and product usage. “We are grateful for the generous support of our friends at Vulcan Materials,” said Joe Garner, superintendent of the GMRE Center. “Their commitment to community involvement and education in particular is commendable. We appreciate their partnership with us.” The “Partners in Service” campaign is providing fourth-year funding for the work of the Community Council. The Council has three emphases of educational enrichment experiences for students from Union County and the region, outreach seminars for adults and significant preservation projects important to our mountain region. In less than three years, the Council’s programs and activities have served more than 7,500 students and adults. (Source: Union Sentinel, Blairsville, Ga.) Cemex breaks ground for $250 million operations expansion HOUSTON—Cemex USA President Gilberto Perez and Governor Rick Perry broke ground at a celebration signaling the official beginning of CEMEX’s Balcones cement operations expansion. Numerous state legislators, New Braunfels citizens and Cemex employees attended the event at the company’s New Braunfels location. “This expansion demonstrates a significant financial commitment to the community, a dedication to the environment, and allows Texas to be better positioned to meet its future needs for housing, roads, bridges, commercial buildings and other infrastructure facilities,” said Gilberto Perez, president of Cemex USA. “Today, we are one step closer to meeting the future construction needs of our region. Let’s get started.” “With more than 25 years doing business in Texas, Cemex is quite literally a key part of the foundation Texas relies on to build the future of our state,” said Gov. Rick Perry. “On behalf of all Texas families, I want to thank Cemex for bringing robust and responsible investment to our state.” Estimated at $250 million, all of the capital expenditures investment will be used for the expansion of the Cemex facility in Comal County. The project will add a second kiln to the operations, doubling the cement production capacity to 2.4 million tons to support the growing need for cement in Texas for everything from roads and bridges to hospitals, schools and other projects around the state. Even though the cement production will double, the operations’ emissions will not increase. Cemex will replace existing equipment and install state-of-the-art technology to protect the environment. More efficient dust control equipment and the installation of new NOx control technology to the existing kiln system will be completed. The new kiln will receive the latest technology in terms of emission levels and fuel efficiency. Additionally, a high-tech new finish mill with an energy efficient vertical roller mill, one of only a few in the United States, will be built. All of these items will allow the plant, when the new expansion is fully completed in 2008, to remain at current emissions levels and at the cutting edge of technology in the industry. The expansion will create new jobs at the Cemex operations. It will also bring in construction jobs during the project, resulting in a cash infusion of approximately $46 million to the local economy. Indirect full-time jobs will increase approximately 60 percent because of increased material shipping, maintenance, equipment operation and management needs for the project. Currently, at the Balcones cement and quarry operations, Cemex employs nearly 180 local men and women, with an annual payroll of more than $9 million. Across the state, more than 1,300 people work for Cemex supporting cement, ready-mix concrete, and aggregates operations in Texas communities. Hanson Pipe & Pre-cast opens Houston facility DALLAS—Hanson Pipe & Pre-cast announced the opening of their new, state-of-the-art, fully automated Houston facility. Some of the technology at the 100,000-square-foot Houston facility will be used for the very first time in the world. The facility is designed to produce considerable amounts of concrete pipe products, including those used for storm water drainage systems, sewers and water treatment, for the growing Houston market. The facility will be fully operational in March and a grand opening gala is planned to benefit the Houston Museum of Natural Science. Houston is one of Hanson’s largest markets in North America. Due to the city’s flat topography, proximity to the Gulf and the fact that it’s only about 40 feet above sea level, Houston is prone to hurricanes and this fuels demand for Hanson’s water control products. Hanson Pipe & Pre-cast is a division of Hanson PLC, a world leader in providing heavy building materials to the construction industry. Hanson Pipe & Pre-cast is North America’s largest manufacturer of concrete pipe and Pre-cast products, including residential and commercial building components, bridges, manholes and retaining walls; as well as being a premier producer of steel and pressurized pipe. “With the ability to produce, on average, one pipe per minute, the technology in this facility greatly increases our production efficiency while maintaining an environmentally friendly and safe workplace and providing the highest quality concrete pipe,” said Clifford Hahne, Hanson’s South Central region president. “We are proud to produce the infrastructure of much of the Houston area’s systems that keep the community safe and water clean.” A grand opening celebration on March 22 with Houston area community leaders and Hanson customers will mark the official opening of the new facility. Attendees will take part in a tour of the new facility and an evening of festivities. Hanson’s growth in Houston mirrors the manufacturing industry overall growth in Texas. According to a survey conducted by the Federal Reserve Bank of Dallas, the production index for manufacturing activity in January rose to 13.8; a marked increase from -5.2 in December. Positive index readings denote expansion while negative numbers signify contraction. The new facility, located at 11201 F.M. 529, and managed by Mike Cline, adds production capability to Hanson’s site in Jersey Village. The three facilities on that site currently employ approximately 250 people. Hanson also has a facility at 6800 Helmers Street in Houston that produces reinforced concrete pipe, pressure pipe, and corrugated steel pipe. MSHA launches “Stay Out-Stay Alive” campaign The U Mine Safety and Health Administration (MSHA) on March 20 launched its annual “Stay Out-Stay Alive” public safety campaign to warn outdoor enthusiasts, especially children, about the dangers of playing on mine property. Since 1999, more than 200 people have died in recreational accidents at surface and underground active and abandoned operations across the country. In 2006, at least 30 people ranging in age from 17 to 51 were fatally injured while trespassing on mine property. “There are about 500,000 abandoned mines and another 14,000 active operations throughout the United States,” said Richard E. Stickler, assistant secretary of labor for mine safety and health. “Many of them contain hidden hazards and, for those not trained to work in mines, the outcome can be deadly. That’s why we urge hikers, bikers, rock hounds and swimmers to ‘Stay Out and Stay Alive.’” During the month-long campaign, which runs March 19 through April 20, federal mine safety and health professionals will visit schools, scouting groups and other venues to talk to young people about the dangers of playing on mine property. Underground abandoned mines pose a number of hazards to the casual explorer, including hidden shafts that drop hundreds of feet down, and are covered by decayed and rotten boards that can give way under the slightest weight. Tunnels are prone to cave in and may contain deadly gases, flooded sections, and poisonous snakes and insects. Unused or misfired explosives, including blasting caps, can become highly unstable and be set off by the slightest disturbance or touch. While they may look innocuous, water-filled quarries may contain hidden dangers as well. In addition to slippery slopes and unstable rock ledges, the water often conceals old machinery and sharp objects left behind after a mining operation shuts down. Even expert swimmers may encounter trouble in the dangerously cold and deceptively deep waters. Old surface mines, often a popular spot for all terrain vehicle enthusiasts, are characterized by hills of loose materials in stockpiles or refuse heaps that can easily collapse and cause deadly rollovers. Dozens of federal and state agencies, private organizations, businesses and individuals are active partners in “Stay Out-Stay Alive,” which is in its ninth year. For further information about the national campaign, visit www.msha.gov. (Source: Mine Safety and Health Administration)
Texas Industries, Inc. announces results DALLAS—Texas Industries, Inc. announced the results of its call for redemption of all outstanding shares of TXI Capital Trust I’s 5.5 percent Shared Preference Redeemable Securities due 2028. Holders of approximately $98.0 million liquidation amount of the 5.5 percent trust securities converted their trust securities into 1,910,477 shares of TXI’s common stock before the redemption date. A total of approximately $0.9 million liquidation amount of the 5.5 percent trust securities were redeemed on the redemption date. As of March 26, 2007, all of TXI Capital Trust I’s 5.5 percent trust securities have been converted into shares of TXI common stock or redeemed. In conjunction therewith, all of TXI’s outstanding 5.5 percent convertible subordinated debentures were retired. TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregates, ready-mix concrete and concrete products. (Source: Aggregate Research Industries) MSHA publishes Final Part 100, “Criteria and Procedures for Proposed Assessment of Civil Penalties” The U.S. Mine Safety and Health Administration (MSHA) on March 22 published its final version of the 30 CFR Part 100 “Criteria and Procedures for Proposed Assessment of Civil Penalties” rule in the Federal Register. The penalty change was a requirement of the Mine Improvement and New Emergency Response (MINER) Act, which was signed into law on June 15, 2006. In the final rule, MSHA states that the penalties are an “across-the-board” change from the existing regulations. The rule goes on to state that “penalties increase more significantly for large mine operators, operators with a history of repeated violations of the same standard and for operators whose violations involve high degrees of negligence or gravity. The higher penalties in the final rules are intended to increase the incentives for mine operators to prevent and correct violations.” The final rule implements the following requirements of the MINER Act:
Other significant changes in the final rule include the following:
The final rule retains the 10-day time period to request a conference. Additionally, in regard to placing greater weight on the size of controlling entities, MSHA stated in the final rule language that it “agrees with comments in support of placing greater weight on controlling entities and accordingly has increased the maximum controller size penalty points from five to 10 penalties should be increased for controlling entities in order to influence all levels of decision-making.” The final rule is effective April 23.
Rinker acquires old quarries and sand mines Construction materials company Rinker Group has acquired three hard rock quarries and two sand mines as the company moves to further penetrate the fast growing region of north Queensland, Australia. The acquisition of the assets in Mackay, North Queensland, was made by the group’s subsidiary, Readymix. The assets will be a small bolt on to the company’s concrete plants in Mackay, Nebo and Sarina, Rinker Group said in a statement. The vendors are John and Pat Croyden, trading as JT & PA Croyden Pty Ltd (Croyden), a major supplier of aggregates and sand to Readymix for several years. The quarries will serve the local market with concrete aggregates and road base. The acquisition is expected to earn above its cost of capital within the first year. “The Mackay region is one of the fastest-growing areas in Queensland, and is experiencing strong economic growth, driven by demand for coal and other exports,” the company said. Readymix chief executive Peter James said the Croyden acquisition enabled Readymix to integrate backwards into aggregates and sand following the purchase of Edwards Concrete in 2003, which included the Sarina and Nebo concrete plants. The acquisition is amongst at least 50 undertaken by Rinker since 1998 at a cost of $US2 billion ($2.52 billion). The company had also spent $US1 billion ($1.26 billion) in the development of new quarries and operating plants and an expansion of the base business. It comes as Mexican cement giant Cemex recently moved to acquire Rinker Group with a hostile $US12 billion ($15 billion) bid, in what is among the country’s largest-ever takeover offers. (Source: Australian Associated Press, March 20, 2007, via news.com.au) Polaris announces first shipping and sales from the Orca Quarry VANCOUVER, B.C., Canada–-Polaris Minerals Corp.’s first Panamax-class bulk freighter will begin loading at the Orca Quarry on March 31, 2007 for shipment to San Francisco Bay. This announcement complements the first load of sand and gravel sold from the Orca Quarry, shipped by barge to the Vancouver area on March 22, 2007. The CSL Acadian, a new generation 79,000 ton capacity self-discharging vessel operated by CSL International Inc., will begin loading at Orca Quarry on March 31, 2007 and is expected to arrive in San Francisco Bay, on April 3, 2007. After anchoring at common anchorage #9, the ship will be met by a fleet of barges operated by, and on behalf of, Shamrock Materials, Inc. The ship will off-load approximately 33,000 tons of sand and gravel into the barges, which will be towed to Shamrock’s receiving terminal, located on the Petaluma River at Petaluma. Shamrock is a leading San Francisco Bay Area ready-mix concrete producer, and has a long term, exclusive supply and distribution agreement for Orca Quarry products within the Northern Bay area. “I am pleased to announce the commencement of shipments of sand and gravel from the Orca Quarry to California,” says Marco Romero, president and CEO of Polaris, in a press release from the company. “It is fitting that this shipment will meet the requirements of our first customer, Shamrock Materials, which has been a supporter of our business plan since 2005. “Shamrock has invested in an extremely efficient marine terminal dedicated to receiving sand and gravel from the Orca Quarry for decades to come. With each shipment of our high quality materials, we will be repaying that trust.” After lightering onto Shamrock’s barges, the partially-laden vessel will proceed to another customer’s terminal in the Bay Area to off-load the remainder of its cargo. “While our initial business plan was built around shipping construction aggregates into California using Panamax vessels, we are pleased to have commenced deliveries to our first customer in the Vancouver ready-mix concrete market,” Romero continues in the release. “On March 22, we loaded sand and gravel into our customer’s barges, which were the first sales under a five-year supply agreement.” To view recent images of the barges loading, please visit the photo gallery on Polaris’ Web site at http://www.polarmin.com/photogallery/orcasand_mar07B/orcasand_mar07B.php RMC Research Foundation releases pervious concrete studies Silver Spring, MD–The RMC Research Foundation announces the release of three pervious concrete studies. The reports, researched and prepared by the Stormwater Management Academy at the University of Central Florida, include “Construction and Maintenance Assessment of Pervious Concrete,” “Hydraulic Performance Assessment of Pervious Concrete Pavements for Stormwater Management Credit,” and “Compressive Strength of Pervious Concrete Pavements.” Funding for these studies was provided by the RMC Research Foundation, the Florida State Department of Transportation and by Rinker Materials. Executive summaries of these studies are available from our website. Hardcopies of the studies or electronic copies on CD are available upon request. Additional information about the RMC Research Foundation and those programs funded by it may be found at www.rmc-foundation.org.
Applications Paving the Way in the Northeast
by Tina Grady Barbaccia, Senior Editor If you’ve driven on highways in Pennsylvania, you’ve likely traveled on the work of James D. Morrissey, Inc. With headquarters in Philadelphia, the firm is one of the leading highway contractors in eastern Pennsylvania. From the construction of the famed Pennsylvania Turnpike during the 1950s to the Blue Route (Rte. 1-476) in the 1980s — and the rehabilitation of numerous other highways in recent years — James D. Morrissey, Inc. has been a hard-working innovator in highway construction methods and the use of the latest equipment. That tradition is evident in every part of the multi-level company, including the equipment the company uses in two of its quarries, run by sister company Eureka Stone Quarry, Inc. The quarries in Bucks County, Pa., northwest of Philadelphia, supply material to the company’s onsite asphalt and concrete plants, as well as to hundreds of customers in Pennsylvania and southern New Jersey. Creative problem solving
Founded by James D. Morrissey Sr.* more than 80 years ago, James D. Morrissey, Inc. and Eureka Stone Quarry, Inc., founded in 1954, have built a reputation for integrity and efficient project management. “As much as anyone we work with, the guys at Eureka Stone Quarry know how to get a job done right, and spend the time it takes to do that job,” says Greg Rauhauser, sales manager for Kemper Equipment, the Sandvik Mining & Construction dealer which works closely with Eureka Stone Quarry. Kemper Equipment is a Honey Brook, Pa.-based full-service distributor and manufacturer of aggregate equipment. A can-do attitude and a willingness to search for new solutions led Eureka Stone Quarry personnel to call Rauhauser two years ago about a production problem at the company’s Rush Valley I quarry in Wrightstown, Pa. A previous cone crusher used at the quarry had not been up to the task of consistently producing stone intended for the quarry’s concrete plant and asphalt batch plants, as well as for customers in southern New Jersey. The quarry’s operators found that too much of the spec product they needed — 3-inch minus to 3/16-inch stone — was being returned to the crushing circuit, which was significantly reducing the efficiency of the plant’s entire operation. Eureka Stone Quarry already had two Sandvik H6800 cone crushers installed at another quarry in nearby Chalfont, Pa., although they are part of a different crushing circuit configuration there. Rauhauser suggested installing one in the circuit at Rush Valley I where the new H6800 replaced another unit as the final crusher in the quarry’s production circuit, which crushed argillite, a dense, hard rock. Although Chalfont, opened in 1954, is Eureka Stone Quarry’s original quarry, Rush Valley I has greater production, ranging between 1.5 million and 2 millions tons per year. “With our previous fourth-stage cone crusher, too much of the rock coming from the VSI had to be returned to the VSI to be re-crushed,” says John Kenyon, plant superintendent at Rush Valley I. With the installation in 2004 of the H6800 at Rush Valley I, the staff found that it worked as promised: it was more efficient, it produced more spec product, and it produced better cubicity than the former cone crusher. The production efficiency of the entire crushing circuit was improved by an estimated 20 percent. “It sure was a pleasure to see more product going by on the conveyor belt,” says Jim Yoder, the quarry foreman. This improvement came at a good time, too. The company added large asphalt batch plant at the quarry in late 2006. The Sandvik H6800 also fed this batch plant. Rauhauser worked with Chris Rettew, Sandvik’s product line manager, on the proper application of the new H6800. Kemper Equipment also continues to work closely with the Eureka Stone Quarry crews on operating and maintaining the crushers. In addition to improving the efficiency of the production circuit, the new cone had other benefits as well. With the VSI carrying less of a re-crushing load, it saw a reduction in the costs of replacing wear parts. And well into its second year of work, the H6800 has had no wear parts changed, including no change of the manganese steel liner in the crushing chamber. Kenyon estimates that “60 percent of its final product is going out of the bottom of the machine onto the conveyor belt.” Jim Morrissey III, vice president of JDM Materials, Inc., a sister company to James D. Morrissey Inc., was equally enthusiastic about the new crusher. “We knew the VSI was not getting mid-range product out of the circuit,” he says.
Automation benefits Another option available on the Sandvik cone crushers — the ASRi (Automatic Setting Regulation System — the “i” stands for intelligence) crusher control system — also proved profitable for Eureka Stone Quarry. With the ASRi, color graphics and a touch-screen interface allow the operator to track performance and maintenance items, such as liner wear throughout time. Setting, pressure, and power are monitored on a continuous, real-time basis. Twenty unique programs can be set to alter crusher settings to suit the demand for changing product mix, or in response to a change in material characteristics. The ASRi automatically adjusts crusher settings to compensate for liner wear, and ensures the crusher is always working at its maximum capacity or reduction. Kenyon says it’s these features that added to its increased efficiency. He adds that the cone crusher’s automation makes it quite versatile, which also helps keep his aggregates operation running smoothly. For Eureka Stone Quarry, that versatility is one factor in the family business’s ability to supply its customers with high-quality products and to remain a leader in the aggregate industry. “With the ASRi, the H6800 pretty much seems to run itself,” Kenyon says. “You keep it in calibration and go through the operator’s checklist, but we’ve found the control system will shut itself down if there’s a problem. The H6800 has been trouble-free for us. And that has been with the (cone) typically running at 1,200 rpm, versus 600 rpm with the previous crusher.”
Business diversity In addition to concrete and bituminous paving, James D. Morrissey, Inc., and its divisions can handle commercial development; environmental work such as excavation of landfill cells to capping projects and creation of wetlands; heavy industrial construction; asphalt recycling; the supply of high-quality ready-mixed concrete; and the mining and dredging of concrete sand. In addition to the Pennsylvania Turnpike and the Blue Route, major highway work includes I-95 south of Woodhaven Road, originally built by the company in the 1960s; Woodhaven Road interchange, reconstructed in 1993; PennDot Park and Ride, built in the mid-1990s; and the resurfacing of I-95 in 2001. For years, municipalities, state highway departments, and private companies have relied on James D. Morrissey, Inc. during emergencies and unexpected circumstances. The company’s large inventory of heavy equipment and trucks has been called upon to do everything from clearing the city of Philadelphia after the blizzard of 2003 to demolishing a railroad bridge destroyed by Hurricane Allison.
The 2020 Wheel Loader
Along with its futuristic look, the concept machine uses an electric hybrid power source, nearly eliminating emissions, and gets its wheel drive from electric motors inside each wheel. By eliminating today’s transmissions, drivelines, and axles, Volvo says the Gryphin has much higher ground clearance and is an extremely quiet machine. The new approach also makes possible the Gryphin’s independent suspension system, which improves comfort, reduces vibrations entering the cab, and allows engineers to give the machine variable ride height. The machine can be lowered for high-speed haul cycles, or raised to increase ground clearance in rough terrain or increase dump heights. Views from the operator station are excellent in every direction thanks to all-around glazing and lattice see-through pillars, says Volvo. The glass in the cab is “intelligent” — it heats up in cold weather to prevent frost or condensation, and it becomes darker in bright sunlight to reduce glare. A solid but lightweight boom improves lifting performance and reduces torsional stresses, and allows a better view of the work area than today’s booms. Secondary cone crusher debuts
It has a 6.5 cubic-yard hopper capacity and a 7.5-inch maximum feed opening. The hydraulic-adjust crusher allows a coarse closed-side setting of 0.5 to 1.5 inches and a medium CSS of 0.33 to 1.0 inch. Crushing chambers are available for extra coarse to extra fine applications.
Dressta North America has introduced the M-series version of its 4-model line of compact dozers, ranging from the 74-horsepower TD-7M to the 101-horsepower TD-10. The machines feature left-hand joystick control, left pedal braking, and right pedal deceleration. They employ a torque converter, mechanical drive power train and fit within the 8 foot, 6 inch width for easy transport with blades attached. More portable and productive
The Telsmith 3258 hydraulic jaw crusher features a 32-inch gape and a 58-inch-wide crushing chamber and is said to out produce other crushers in its class. Telsmith says its fingertip controlled hydraulic adjustment cylinders are unique and help to reduce maintenance requirements and increase uptime. Uptime is also enhanced by the hydraulic overload system, which automatically protects the crusher from tramp metal. The unit’s chassis has a standard tri-axle air-ride suspension and an optional fourth axle can be pneumatically elevated off the ground to reduce wear and tear during tight onsite maneuvering.
Devcon International Corp., a leading regional electronic security services provider, announced today that it has closed on the sale of the majority of the assets of its Construction Division. Donald L. Smith, Jr., Devcon’s former chairman, is a principal of the buyer. The transaction was structured as a purchase of fixed assets, inventory and Customer Lists of the Construction Division for approximately $5.3 million. Devcon is retaining working capital of $6.7 million, including approximately $2.1 million in notes receivable, as of December 31, 2006. As a result of this transaction, Devcon will recognize a Loss from the Sale of Assets in the fourth quarter of 2006 of approximately $3.0 million. Any employee severance and other transaction-related expenses will be recognized in the first quarter of 2007. This transaction does not include the majority of Devcon’s United States real estate leaseholds. Caterpillar donated a CAT Chopper to the Victory Junction Gang Camp for seriously ill children. The charitable organization was founded and is supported by the Petty family of NASCAR racing fame, and the plan is to use the motorcycle to raise funds for the camp. The stated mission of the Victory Junction Gang Camp is to enrich the lives of children with chronic medical conditions or serious illnesses by providing life-changing camping experiences that are exciting, fun, and empowering, in a safe and medically sound environment. Kyle and Pattie Petty founded the camp, located in North Carolina on land donated by Richard and Lynda Petty. The camp operates solely on donations and offers a unique opportunity for children whose medical needs keep them from attending standard camps. The camp features a NASCAR racing theme, and it has been strongly supported by the NASCAR community. Caterpillar is now in its 14th season of NASCAR participation as a sponsor—starting in 1993 as an associate sponsor of Kyle Petty’s No 42 Pontiac in what was then the NASCAR Winston Cup Series. Of course Caterpillar now is the primary sponsor of the No. 22 car driven by Dave Blaney in the Nextel Cup Series. Caterpillar officials donated the CAT Chopper to the camp, represented by Petty family members, in a ceremony at the Caterpillar Building Construction Products Division in Clayton, N.C. “I can’t thank the folks at Caterpillar enough for donating this beautiful custom chopper to the camp,” said Pattie Petty, CEO and co-founder of Victory Junction. “This donation will help raise funds to continue to send children with chronic medical conditions to Victory Junction for a life changing camping experience. The fact that Caterpillar has reached out to create such a great partnership with the camp speaks volumes about their organization.” The donated CAT Chopper being is one of two identical custom motorcycles designed and fabricated for Caterpillar by Orange County Choppers, Inc. (OCC), the focus of the Discovery Channel’s hit American Chopper television series. The CAT Chopper build episodes aired in April 2005, shortly after the bike was shown to the public as part of the Caterpillar exhibit at CONEXPO. Since then, both choppers have been “on tour”—making appearances at Caterpillar and Cat® dealer facilities as well as trade shows throughout North America. “Caterpillar and its dealers have used the CAT Chopper to raise money for a variety of charities nationwide,” said Jay Alexander of the Caterpillar North American Commercial Division. “It is fitting that we help such a worthy program as the Victory Junction Gang Camp.” In addition to the chopper’s near celebrity status, it is unique in its incorporation of Caterpillar equipment design elements. After the build, Paul Teutul Jr., OCC’s chief designer and fabricator, said, “Being around the construction industry before, we know that the Cat brand carries a legacy of quality, strength and toughness … the same things we now strive for at OCC. The CAT Chopper is definitely the biggest, toughest and most rugged bike we’ve ever done.”
Atlas Copco Construction Tools LLC has appointed six people to new positions within its operation. The following people have been named to positions:
Keith Becker has been named as the company’s new national service manager and is responsible for sales at the Texas and Ohio service centers. Becker brings many years of hydraulic systems experience to his position. In 2003, he joined Atlas Copco as the Texas service center manager. Before joining Atlas Copco, he worked as a service and parts manager at Superior Machinery in San Antonio and as a regional service manager at Allied Construction Products in Cleveland. Becker also brings valuable experience to his position from serving nine years as a hydraulic mechanic in the Marines.
Matt Cadnum assumes the role as Atlas Copco’s vice president of sales —aftermarket. His responsibilities include the development of programs, promotions and packages, which will aid in driving the growth of sales in the aftermarket business. Cadnum has 15 years of experience in the construction industry with duties ranging from servicing construction equipment to operating heavy machinery. Cadnum was general service manager with Allied Construction Products before joining Atlas Copco in 2003. For the last three years, Cadnum has served as manager of Atlas Copco’s Ohio service center. Appointed to the position of hydraulic applications manager, Rich Elliott will be responsible for development of key accounts and dealers and training for sales, customer service and dealer personnel. He will serve as a technical liaison and consultant. Elliott joined Atlas Copco in 2003 and served as the eastern region service manager for two years before moving becoming regional sales manager — hydraulic attachments for Ohio, Pennsylvania, Kentucky, and Michigan. Assuming the position of regional sales manager —hydraulic attachments for Texas and Oklahoma, Thomas M. Ling will be based out of the Texas Regional Service Center in Austin, Texas. In this role, Ling will be responsible for sales development as well as identifying and selecting new distributors to increase market presence. Prior to joining Atlas Copco, Ling was owner of Pinnacle, a construction company based in Moody, Texas. Tim Collie joins Atlas Copco as the southeast regional sales manager - hand held products. Before joining the team, Collie worked as a district manager for Stone Construction Equipment. He is based in Charlotte, N.C. Caryl Schivley has been appointed vice president — finance. In her new role, Schivley will be responsible for the financial and administrative aspects of the business with particular focus on asset management and managed growth. She is based in West Springfield, Mass. Sponsored by:
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Volvo
Construction Equipment used BAUMA, the world’s largest
construction show, to exhibit its new Gryphin, an extreme concept
wheel loader incorporating the features of a loader in the year
2020.
Fintec
Crushing and Screening has introduced its 1080 track-mounted
cone crusher to the U.S. aggregates market. The unit combines
Fintec’s expertise in track-mounted chassis design and a Sandvik
H3800 crusher engineered with the
Compact
dozer line debuts
Telsmith
says its new 3258 portable crushing plant to be more portable, more
productive, easier to maintain, and safer. The new plant travels at
13 feet, 6 inches high and 10 feet in width, and its grizzly feeder,
loading hopper, and grizzly bypass chute comprise one modular unit
that can be removed as one piece to simplify travel in
weight-restricted areas.
