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November 1, 2007                                                    Vol. 3, No. 21

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Court upholds MSHA’s enforcement actions under MINER Act

The Federal Mine Safety and Health Review Commission (FMSHRC) has ruled in favor of the Mine Safety and Health Administration (MSHA) in its case against Twentymile Coal Co. for the Foidel Creek Mine in Routt County, Colo. The case involved a dispute about the mine operator’s proposed Emergency Response Plan (ERP), which was not fully approved by the agency.

“The vast majority of Twentymile Coal’s Emergency Response Plan was right on target; however, we took issue with the breathable air provision in the plan,” said Richard E. Stickler, assistant secretary of labor for mine safety and health, in a press release from MSHA. “Consequently, the case went before an administrative law judge of the Federal Mine Safety and Health Review Commission, who ruled in favor of MSHA.”

The FMSHRC held a hearing to resolve the ERP dispute on Oct. 2 in Denver. On Oct. 16, Administrative Law Judge Richard Manning issued a decision that affirmed the MSHA citation and ordered Twentymile to provide a facility capable of supplying breathable air to miners who may be trapped in the main entries at the Foidel Creek Mine. 

The Mine Improvement and New Emergency Response (MINER) Act of 2006 requires mine operators to promptly provide miners with the necessary tools to enable them to escape from mines in an emergency and to survive underground for a sustained period of time if they are unable to escape. A chief mechanism for providing such protection is the development and adoption of ERPs, which underground coal mine operators were required to submit to MSHA district managers for review.

In the case of Twentymile Coal Co.’s proposed ERP, MSHA determined that there was a reasonable possibility miners could be trapped in the main entries of the mine following an accident. In such a situation, miners likely would need an established facility to isolate them from hazardous mine environments and to provide breathable air so that they could survive until they could be rescued. MSHA refused to fully approve the Foidel Creek ERP without a provision for providing breathable air for miners who may be trapped in the main entries.

(Source: Mine Safety and Health Administration)

On Oct. 18, the 35th anniversary of the Clean Water Act (CWA), the House Transportation and Infrastructure (T&I) committee held a hearing to examine the successes and future challenges of the act.

Representatives of the U.S. Army Corps of Engineers and U. S. Environmental Protection Agency (EPA) commented that it is taking the agencies longer to process new CWA Section 404 permits because of additional paperwork requirements. Ben Grumbles, EPA assistant administrator for the Office of Water, noted that despite additional work, there has been significant decreases in the backlog of Section 404 permit requests.

As for the new guidance on the granting of Section 404 permits, both the EPA and Corps will continue to accept public comments until December, then the two agencies will have to decide whether to refine or tweak the guidance, or revoke it altogether. According to previous comments, the target date for that decision is March 5.

The EPA also asked T&I Chairman Jim Oberstar (D-Minn.) for help in removing the caps on municipal private activity bonds (PABs) to fund new water and wastewater projects. Oberstar noted that this is a complete reversal for the EPA, to which Grumbles replied that additional information and experience has led the agency to determine that the benefits of increasing PABs outweigh the costs.

According to Grumbles, the proposal would cost about $200 million overall, but result in a saving of $2 billion annually in the first two years and $5 billion annually in later years.

NSSGA is supportive of PABs as an innovative method to increase the overall amount of funds available for infrastructure projects

(Source: National Stone, Sand & Gravel Association Washington Watch & eDigest e-newsletter)

Cemex To Construct $400 Million Cement Manufacturing Facility In Arizona

Monterrey, Mexico-based Cemex plans to begin the permitting process for the construction of a 1.9 million short ton cement manufacturing facility near Seligman, Ariz. The official public announcement came on Sept. 19.

Cemex says it will invest approximately $400 million throughout five years in the Seligman Crossing Plant, which is expected to begin operations by 2012. The state-of-the-art facility will manufacture cement to serve the growing needs of Arizona, including the Phoenix metropolitan area.

“By utilizing efficient energy sources, limited amounts of water, and world-class manufacturing and environmental technologies, the Seligman Crossing project will provide much needed building materials to the state of Arizona efficiently and cost-effectively, while also creating jobs and infusing payroll and tax dollars into the region,” said Gilberto Perez, president of Cemex USA, in a written statement from the company.

The historical shortage of building materials in Arizona and the southwestern United States, coupled with demographic trends that project continued, robust population growth throughout the region, reinforces the need for the construction of the Cemex Seligman Crossing Plant.

The plant will generate significant employment opportunities for northern Arizona, both during the construction and operational phases of the project and will also provide a considerable tax base for the support of local schools, services, and public infrastructure.

(Source: Cemex)

House Reauthorizes Federal Rail Safety Program Funding

The U.S. House of Representatives has approved legislation to reauthorize the Federal Railroad Administration and fund federal rail safety programs for the next four years.

The Federal Railroad Safety Improvement Act of 2007 (H.R. 2095) renames the agency the “Federal Railroad Safety Administration” and seeks to address a number of issues pertaining to employee fatigue, grade crossing safety, employee training, and positive train control.

The bill passed the House by a vote of 377 to 38.

“I am concerned that this rail safety bill concentrates too much on accommodating a big labor wish list rather than on the most effective means to improve rail safety,” said U.S. Rep. John L. Mica (R-FL), Transportation and Infrastructure Committee Republican Leader in a written statement. “Ninety-seven percent of rail fatalities involve grade crossing accidents and trespassers, but unfortunately this bill focuses primarily on the other 3 percent of fatalities that occur.

“The bill contains a mandate that will cost the private sector billions of dollars to implement in order to prevent less than ten fatalities per year,” Mica continued. “Perhaps some of these billions would save more lives if they were invested in making grade crossings safer and preventing trespasser deaths…although this is not a perfect bill, this is an important step towards improving the safety and operations of the nation’s railroads. This legislation contains provisions to address worker fatigue and hours of service reforms and authorizes funding to make critical safety improvements at rail grade crossings. 

U.S. Rep. Bill Shuster (R-PA), Ranking Member on the Subcommittee on Railroads, Pipelines and Hazardous Materials, says that year was the safest ever for our nation’s railroads. “Over the past thirty years, we have made tremendous progress in rail safety.  But I believe that we can and must do more,” Shuster says in a press release. “This landmark legislation goes far to promote a safer rail system in our country. However, we must do more to deal with rising incidents of rail accidents from trespassing and rail crossing collisions. While this bill does include language to deal with these issues, it is my hope that the committee will look closely at these issues in the future.”

The bill increases the number of FRA safety inspectors from 421 to 800, an increase with an uncertain potential for improved safety. Advanced technologies are capable of detecting track defects that are invisible to the human eye, and the bill authorizes the acquisition of several more cost-effective advanced track inspection vehicles.

The bill also mandates the installation of positive train control (PTC) systems by the end of 2014; these systems are intended to help eliminate train collisions caused by human error.

The FRA reports that less than 2 percent of accidents per year involve incidents preventable by PTC. For instance, in 2006 three PTC-preventable train accidents resulted in six deaths, compared to the 369 people killed at grade crossings and 517 trespassers killed in the same year.

The mandated installation of PTC will cost billions — costs that are likely to be passed on to shippers through rate increases.

The bill includes some grade crossing safety improvements. A provision requested by U.S. Rep. Sam Graves (R-MO) authorizes up to $250,000 in emergency funding for any crossing, which experiences a collision with a school bus or an accident with three or more injuries or fatalities.  Additionally, U.S. Rep. Henry Brown (R-S.C.) contributed to the development of a provision fostering the use of advanced warning devices at rail crossings.

The bill contains a phase-down of “limbo time,” the time train crews must wait to be picked up after a run. In some instances these workers, who are considered to be neither on-duty nor off-duty, can wait several hours for transportation. The bill gradually limits limbo time to ten hours per month, making exceptions for accidents, track obstructions, acts of God, weather delays, and other circumstances.

The bill increases fines for safety violations by $30 million for the years 2008 to 2012, and $60 million in the years 2008 to 2017.

The bill also places the National Transportation Safety Board in charge of assisting families of rail accident passengers, as is the case with aviation accidents.

MSHA Requesting Public on Rock Burst Control Plan

The Mine Safety and Health Administration (MSHA) is seeking comments concerning the proposed extension of the information collection requirement related to the Rock Burst Control Plans.

When rock bursts occur in an underground mine, they pose a serious threat to the safety of miners in the area affected by the burst. These bursts may reasonably be expected to result in the entrapment, serious physical harm, or death, of miners, according to MSHA.

Recently developed mining technology now permits mine operators to monitor rock stresses, which helps predict an impending burst. These predictions can be used by a mine operator to move miners to safer locations and to establish areas that need relief drilling. Title 30, Section 57.3461 requires operators of underground metal and nonmetal mines to develop a rock burst control plan within 90 days after a rock burst has occurred.

MSHA is soliciting comments concerning the proposed extension of the information collection requirement related to the Rock Burst Control Plans, and is particularly interested in comments that do the following:

  • Evaluate whether the proposed collection of information is necessary for the proper performance of MSHA’s functions, including whether the information has practical utility;

  • Evaluate the accuracy of MSHA’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;

  • Suggest methods to enhance the quality, utility, and clarity of the information to be collected; and

  • Address the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, (e.g., permitting electronic submissions of responses) to minimize the burden of the collection of information on those who are to respond. A copy of the proposed information collection request can be obtained by contacting Debbie Ferraro at the following address: Management Services Division, 1100 Wilson Boulevard, Room 2171, Arlington, VA 22209-3939. Commenters are encouraged to send their comments on computer disk, or via e-mail to Ferraro.Debbie@dol.gov. Ferraro also may be reached at 202-693-9821 or via fax at 202-693-9801.

The official MSHA noticed may be accessed at www.msha.gov by clicking “Rules and Regs” and then selecting “Fed Reg Docs.”

Comments must be submitted or before Dec 14, 2007.

Great Lakes Stone Trade Down 10 Percent

Shipments of limestone on the Great Lakes slipped to 3.9 million tons in September (the latest shipment statistics available at Aggregates Manager press time), a decrease of 10 percent compared to both a year ago and the month’s five-year average, according to the Lake Carriers’ Association (LCA).

The largest limestone cargo loaded in September totaled 49,307 tons. However, had the vessel in question been able to carry a full load, the cargo would have approached 54,000 tons, LCA reports. Another vessel that was able to deliver 19,000 tons per trip to lakefront docks in Ohio and Indiana had to trim its load by 5,000 tons when serving a customer along the Saginaw River in Michigan, according to LCA.

Through September, limestone shipments stand at 24.6 million tons, a decrease of 10.3 percent compared to a year ago, and 8.5 percent behind the five-year average for the first three quarters. The comparison to a year ago does in part reflect low inventories at several quarries when shipping resumed in late March, LCA says.

For a PDF of this report, which includes tables of Great Lakes Limestone Trade: September 2002-2007 and Five-Year Average (Net Tons) and Limestone Trade: Year-To-Date 2002-2007 and Five-Year Average (net tons), please click here. -- Tina Grady Barbaccia, Senior Editor

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EPA: Stormwater From Aggregate, Ready Mix Concrete A National Enforcement Priority

The U.S. Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance (OECA) has issued its national enforcement priorities for 2008-10.  It has identified storm water problems from aggregates operations and ready-mixed concrete plants as one of OECA’s three main focuses for storm water enforcement. The others include homebuilding construction and big-box store construction. 

EPA states, “The size and diversity of these industrial sectors, and the levels of observed noncompliance, reveal the problem to be national in scope.” 

According to EPA, many construction and aggregate companies operate nationwide in multiple states, and EPA has the ability to take enforcement actions that address these companies on a national basis. EPA also states it has the ability to provide consistent and widespread compliance assistance to these sectors.

(Source: National Stone, Sand & Gravel Association Washington Watch & eDigest e-newsletter)

Granite Construction Company Awarded $44 Million California Highway Rehabilitation Project

Watsonville, Calif.-based Granite Construction Co. has been awarded a $44 million highway rehabilitation project by the California Department of Transportation near Essex, Calif. Work on the project will be completed by Granite’s Southern California and Santa Barbara Branches.

Scope of the work includes the rehabilitation and asphalt overlay of 30 miles of Interstate 40, from post marker 89 to post marker 119. The project will utilize more than 395,000 tons of conventional asphalt concrete.

Work on the project will begin in Spring 2008 and is estimated to be completed by December 2008.

(Source: Granite Construction Inc.)

NSSGA Approves New Litigation Guidelines

The National Stone, Sand & Gravel Association’s (NSSGA) Executive Committee at its Oct. 10 meeting approved new litigation guidelines that dictate the associaton’s participation in litigation requested by its members.  

The Council of Counsel developed these guidelines that set forth certain requirements that must be met in order for NSSGA to enter into legal proceedings as either a party, an amicus, or a financial legal partner of other affected trade associations or NSSGA members. 

Specifically, the guidelines require the legal matter brought before NSSGA to do the following:

·        To have nationwide or regional significance specific to the interests of the aggregates industry;

·        The potential outcome of the case must have precedential effect;

·        NSSGA must bring to the case a unique perspective not already developed by the other parties;

·        Costs to the association must be commensurate with benefits derived; and

·        The request to NSSGA for legal help must be timely.

These guidelines go into immediate effect. For a downloadable PDF of the litigation policy, click here.

Construction Equipment Manufacturers Forecast Modest Growth in 2008, Led by Global Sales

The construction equipment manufacturing industry expects overall U.S. and Canadian business to remain flat through the end of 2007 but rebound in 2008, while sales to worldwide markets should continue strong through 2007 and into the next year, according to the annual forecast of the Association of Equipment Manufacturers (AEM).

In the latest AEM outlook survey, overall construction equipment demands by year-end 2007 is predicted to decline 1.9 percent in the United States and remain flat in Canada at minus 0.1 percent, while worldwide business is anticipated to increase 9.9 percent.

In 2008, growth is expected in the United States, Canada and worldwide, with the biggest gains in global markets — an increase of 2.8 percent for the United States and 2.9 percent for Canada, and growth in worldwide markets of 8.0 percent.

AEM is the North American based international trade group representing the off-road equipment manufacturing industry. Each year it surveys its construction equipment manufacturer members about expected sales of the machines that build, repair and maintain America’s and the world’s roads, bridges, dams, houses, offices, schools, and other public and private infrastructure.

For the full outlook report, including financial tables, click here for a downloadable PDF

Holcim Awards: North American Sustainable Projects Compete for Millions

Construction projects from all across North America are now eligible to compete in the Holcim Awards for Sustainable Construction. The Holcim Awards will recognize projects that meet current needs for housing and infrastructure without compromising the ability of future generations to meet their own needs.

The Holcim Awards, an international competition, is an initiative of the Swiss-based Holcim Foundation for Sustainable Construction to celebrate innovative, future-oriented, and tangible sustainable construction projects from around the globe.

The Holcim Ltd. Group companies Holcim (US) Inc., St. Lawrence Cement, and Aggregate Industries support the Holcim Awards in the North America region. The North American region includes the United States, Canada, Bermuda, and the Bahamas.

“Holcim is committed to supporting and promoting advances in sustainable construction,” says Patrick Dolberg, Holcim (US), CEO says in a written statement.“We hope everyone working to develop sustainable solutions will participate to earn national and global recognition for their innovation.”

The Holcim Awards competition is open to anyone involved in planning, design, or development of a sustainable construction project, including architects, planners, engineers, or project owners. All building projects are eligible for the competition if the project has not commenced execution prior to June 1, 2007. There are no construction materials requirements or restrictions on the types of projects, as long as they embody the environmental, economic and social values of sustainable construction.

Prize money will total $2 million for the 2008-2009 competition. Regional prizes range from $10,000 to $100,000, with the Global Holcim Awards ranging from $50,000 to $300,000. Nominations and entries in the competition will be accepted until Feb. 29, 2008 at www.holcimawards.org.

A special category of the awards competition is open for project visions at a conceptual level, during an early stage of design, or with a low probability of execution. In addition, the “Next Generation” category is open for professionals younger than 35 years of age. Juries will award three Next Generation prizes at the regional level.

Winners of the Holcim Awards North American regional competition (except Next Generation), selected in 2008, will advance to the global competition to be held in 2009.

Independent juries in five regions of the world, including North America, evaluate award applicants using a five-point definition of sustainable construction. These “target issues” serve as a benchmark to measure the degree to which a building contributes to sustainable development. They include the following:

  • Quantum change and transferability

  • Ethical standards and social equity

  • Ecological quality and energy conservation

  • Economic performance and compatibility

  • Contextual and aesthetic impact

Detailed descriptions of each target issue and a full list of the members of each jury are available on www.holcimawards.org. Comprehensive information on the competition is also available. All entries must be submitted online in English only.

California residents protests Teichert Aggregates plans to triple production

MARYSVILLE, Calif.—Dozens of Yuba County residents packed the Planning Commission meeting on Oct. 17 to voice concerns about Teichert Aggregates’ plan to triple production to 3 million tons a year.

The commission, however, continued its consideration of the project’s environmental impact report to Dec. 19 after the company asked that the period for written comments be extended to Oct. 31.

“We want to make sure there is a complete and accurate document before the commission,” said Teichert attorney John Taylor. “After 90 days, we can’t imagine it wouldn’t be an adequate time period for comment.”

The EIR analyzes Teichert’s proposal to increase its volume from 1 million tons each year to 3 million tons.

“This EIR is inadequate and doesn’t address safety concerns,” said Amanda Noakes, 32, of Hammonton-Smartville Road.

Noakes said she was traveling on Hammonton-Smartville Road in January when a rock was thrown in to the air and went through her windshield, striking her 2-year-old son after it hit the empty passenger seat.

Although the impact was largely absorbed by the passenger seat, Isaiah, was unconscious and flow to U.C. Davis Medical Center in Sacramento for treatment. He was released three days later without serious injury.

“It is hard to prove where these rocks come from,” Noakes said. “For you not to address concerns because they are not significant is a major concern.”

Kathy Barnholdt, 43, also of Hammonton-Smartville Road, has been following the project for the past two years. Wednesday [Oct. 17] night she was very pleased to see Teichert’s willingness to continue the comment period.

“I’m very happy,” she said. “It’s important everyone gets to comment and now everyone this will impact has a chance to talk.”

Residents acknowledged Teichert is not the only aggregate company in the area affecting the concerns the residents have.

“We’ve got to start someplace,” said Russ Rohleder, 68, of Hammonton-Smartville Road. “It used to be a nice country atmosphere, now it’s dangerous.”

(Source: Appeal-Democrat, Oct. 18, 2007. Article by Andrea Koskey.)

ARTBA Foundation Announces Winners of 2007 Roadway Work Zone Safety Awareness Awards

Public and private transportation groups from across the country were recognized for their commitment to safety at the American Road & Transportation Builders Association Transportation Development Foundation (ARTBA-TDF) seventh annual “Roadway Work Zone Safety Awareness Awards” competition. The awards were presented October 10 during the ARTBA National Convention, held in Fort Lauderdale, Fla.

The program recognizes outstanding efforts to help reduce roadway work zone construction accidents, injuries and fatalities. The awards are divided into four categories: private outreach campaigns, government outreach programs, safety training and innovations in technology. An independent panel of judges reviewed the entries and selected the winners.

The winners are as follows:

Private Outreach–State/Provincial/Regional

This category recognizes the efforts of national, state and local private sector organizations, such as construction companies, utility companies or trade associations that promote roadway work zone safety through implementation of employee and/or public education campaigns and training programs.

First Place: Tennessee Transportation Development Foundation “Ollie Otter’s Work Zone and Seatbelt/Booster Seat Awareness Campaign”

To promote safety on Tennessee roads, the Tennessee Road Builders Association partnered with Tennessee Tech University, state and local officials, schools and stakeholders to promote roadway work zone safety and seatbelt/booster seat safety in all Tennessee elementary schools. The program used interactive teaching materials, an Ollie Otter mascot and in-depth classroom instruction to reach students.

Second Place: Louisiana TIMED Managers “TIMED 2 Drive Safe” Campaign

To help teenagers learn better driving habits in work zones, Louisiana’s TIMED Program launched “TIMED to Drive Safe” targeting 45 public high schools along key highway routes.  The program compiled and distributed teen driving statistics, created an educational brochure designed exclusively for teens, launched the www.timedla.com/drivesafe web site, and branded the campaign with a recognizable logo and color scheme appealing to students.

Government Outreach–State/Provincial/Regional

This category recognizes the specific public outreach campaigns or safety programs by federal, state or local government agencies aimed at improving roadway work zone safety.

First Place: Missouri Department of Transportation “2007 Work Zone Awareness Campaign”

The Missouri Department of Transportation utilized a multi-tiered approach to attract public attention to work zone safety issues. One approach was to “bathe” prominent public landmarks in orange lighting to generate public and media attention. The second approach was to create a hard-hitting public awareness campaign, including advertising and a public service announcement, utilizing a powerful media interview conducted by a state road crew member, who was subsequently killed in the line of duty shortly after the interview was recorded.

Second Place: (Tie) South Carolina Department of Transportation “Work Zone Safety High Visibility Enforcement Campaign”

State officials noted an increase in construction related work zone crashes and implemented the “Let’em Work, Let’em Live” campaign — an extensive safety program including statewide public information/education campaigns, conferences, worker training, school and business presentations, and an aggressive High Visibility Enforcement Program that helped lead to a seven percent reduction in work zone crashes and fatalities. 

Second Place: (Tie) Tennessee Department of Transportation“Get in the Zone” Campaign

Noting 118 work zone accident fatalities in the four-year period before the campaign, the Tennessee Department of Transportation began the statewide “Get in the Zone” campaign to target high school students who were preparing to get their driver’s license. The program included high-tech, interactive presentations provided in schools throughout the state at no cost and geared to reduce a student’s chance of being involved in work zone accidents.  The program was conducted in assemblies and individual classes, and included a role-playing/remote control work zone driving course as well as videos and discussion guides.

Training – Local/Municipal

This category recognizes national, state and local training programs that promote worker safety on the jobsite.

First Place: Callanan Industries, Inc. “Safety Alert Program”

Callanan Industries employs more than 100 workers throughout New York. Each week in their paychecks, employees receive a “Safety Alert” containing key messages to help promote safe behavior in work zones through the use of photos showing actual Callanan work sites and crews. To date, the alerts have been credited as an important factor in helping the company decrease incidents by 30 percent, and a lost-time accident has not been record for nearly 500,000 hours.

Second Place: Anne Arundel County Department of Public Works – Bureau of Highways “Work Zone Safety Awareness Week 2007”

Since 2006, the Anne Arundel County, Md., Department of Public Works – Bureau of Highways has held a “Safety Week” event each spring and fall. During this event, each workday begins with a focused safety discussion prior to worker departure from their home base. In addition, the bureau also led the county by participating in National Work Zone Awareness Week and conducted a series of educational, technical, enforcement, and outreach activities to raise attention and awareness of work zone safety. 

Training – State/Provincial/Regional

First Place:     New Jersey Work Zone Safety Partnership and New Jersey LTAP

“New Jersey Traffic Control Coordinator Program”

In the 1990’s, 12 workers were killed in New Jersey work zone accidents. To provide a preventive tool, the New Jersey Work Zone Safety Partnership was organized to implement a statewide safety program to provide workers with information and resources to use on job sites and in work zones. Today, more than 300 participants attend each year, receive educational materials and participate in a full curriculum of safety, best practices, operations and operational training. 

Innovations in Technology

This category recognizes manufacturers of all types of equipment and products that develop, integrate and market innovative technologies, and organizations that demonstrate the innovative application of existing technologies.

Methodology

First Place: Cianbro/Reed & Reed, JV “Penobscot Narrows Bridge & Observatory”

The Cianbro/Reed & Reed joint venture team partnered with FIGG and the Maine Department of Transportation to develop a unique project delivery method called “owner-facilitated design-build in which the contractors and designers were contracted directly to the facility owner. Under a short timeframe, the team of 100 craftsmen developed a program that helped result in nearly 500,000 hours worked without a lost time injury — safely delivering Maine’s newest bridge landmark, including the world’s tallest public bridge observatory. The Penobscot Narrows Bridge & Observatory also uses a new cable stay cradle system in which the strands are continuous from bridge deck through cradles in the pylons and back to the bridge deck, eliminating anchorages in the pylon. This system challenged the team to develop new work processes and safety procedures.

Product

First Place: SignCAD Systems, Inc. “Cone Zone”

Minnetonka, Minn.-based SignCAD Systems, Inc., developed a fully integrated software solution for designing and managing work zones from start to finish. The program helps agencies implement and enforce approved layout standards, enables personnel to manage their immediate work zone safety environment, allows for rapid response to safety problems, and establishes a computerized process to monitor and manage all safety systems and processes.  It also creates a history of activities for each work zone to ensure compliance and best practices tracking as well as providing a system for benchmarking against future projects.

The Roadway Work Zone Safety Awareness Awards program is an ARTBA-TDF project that complements the association’s “PRIDE in Transportation Construction” campaign to focus public attention on the many positive contributions the transportation construction industry has made to the U.S. economy and quality of life.

Granite Construction Reports Third Quarter 2007 Results

Granite Construction Inc. reports a net income of $53.3 million, or $1.28 per diluted share, for the third-quarter ending Sept. 30, 2007.

This compares with net income of $45.7 million, or $1.10 per diluted share for the same period last year.

Operating Results — Quarter and Year-To-Date

For the third quarter of 2007, total revenue decreased 10 percent to $846.3 million compared with $941.7 million a year ago. Total gross profit as a percent of revenue increased to 16.1 percent compared with 11.2 percent for the same period last year. Operating income increased to $76.0 million compared with $48.6 million for the third quarter of 2006.

For the nine-month period ended Sept. 30, 2007, revenue totaled $2.1 billion compared with $2.2 billion for the same period last year. Total gross profit as a percent of revenue increased to 14.8 percent compared with 10.6 percent last year. Operating income increased to $137.2 million compared with $93.0 million for the same period in 2006.

Total company backlog at Sept. 30, 2007 was $2.3 billion compared with $2.1 billion a year ago. New awards for the third quarter 2007 included a $59.6 million portion of a $138.0 million highway reconstruction project in California and $43.9 million highway project also in California. General and Administrative expenses for the quarter totaled $63.7 million or 7.5 percent of revenue compared with $58.6 million or 6.2 percent of revenue in 2006. The $5.1 million increase is due primarily to the recent acquisition in the Pacific Northwest.

Results by Segment

Granite East revenue for the quarter decreased 30 percent to $182.6 million compared with $259.6 million for the same period last year. Granite East backlog increased 40 percent to $1.4 billion compared with $1.0 billion last year. Gross margin as a percent of revenue was 1.1 percent compared with a negative 10.4 percent in the prior period. The operating loss for Granite East in the quarter was $3.2 million compared with an operating loss of $35.2 million for the same period in 2006, reflecting improved performance from its current backlog of work compared with a year ago.

For the nine-month period ended Sept. 30, 2007, Granite East revenue totaled $585.3 million compared with $788.5 million for the same period last year. Gross margin as a percent of revenue for the nine months ended Sept. 30, 2007 was 1.4 percent compared with a negative 5.2 percent last year. Operating loss for Granite East totaled $13.4 million for the nine-month period compared with an operating loss of $66.2 million for the same period in 2006.

Granite West revenue for the quarter totaled $642.4 million compared with $681.2 million for the same period in 2007. Backlog for Granite West decreased 15.2 percent to $950.8 million compared with $1.1 billion a year ago, reflecting the current competitive marketplace in the West. Gross profit as a percent of revenue was flat for the quarter at 19.4 percent. Granite West operating income decreased $15.0 million for the quarter to $89.8 million compared with $104.8 million for the third quarter last year.

For the nine-month period ended Sept. 30, 2007 Granite West revenue totaled $1.5 billion compared with $1.4 billion for the same period last year. Gross profit as a percent of revenue for the nine months ended Sept. 30, 2007 increased to 19.3 percent compared with 18.4 percent last year. Operating income for Granite West slightly increased to $186.5 million for the same period compared with $185.2 million in 2006.

Granite Land Co. revenue for the quarter increased $20.3 million to $21.2 million compared with $0.9 million for the same period last year. Operating income for Granite Land Company increased to $8.2 million (including our minority partner’s share of approximately $4.5 million) compared with an operating loss of $0.3 million in the third quarter of 2006 reflecting the sale of three development projects in the quarter.

Outlook

“Our outlook for the remainder of the year is positive. Granite West is on track to have another great year and Granite East will show significant improvement over 2006. For the total company, we are currently expecting 2007 earnings per share in the range of $2.55 to $2.75. As always, our ability to achieve these forecasted results is contingent on a number of factors, including the amount of work we are able to complete in the fourth quarter, which can vary significantly due to the onset of winter weather conditions.”

“Our longer term outlook is also positive, driven by both a record level of public transportation funding in California, the company’s largest revenue-producing state, as well as improving results from our large projects business. Demand for our construction materials is also expected to remain healthy over the long term. We foresee bidding opportunities for large projects to continue to be robust, which will help support our strategy in Granite East of bidding new work selectively with considerably higher levels of profitability,” Dorey said.

Share Repurchase Program

Granite has announced that its board of directors has authorized the repurchase of up to $200.0 million of common stock in addition to a 30 percent increase in the quarterly dividend.

MDU Resources Announces Third-Quarter Results

MDU Resources Group, Inc. announced third quarter financial results, with consolidated earnings of $201.1 million, or $1.10 per common share, diluted, compared to $108.3 million, or 60 cents per common share for the comparable 2006 quarter.

Total 2007 quarterly earnings were affected by several significant items as more fully described in the Quarterly Performance Summary and Future Outlook section of the quarterly report. These items include the gain on the sale of domestic independent power production assets; an increase in income tax expense related to the international power production operations; and a higher seasonal loss at the natural gas utility associated with the acquisition of Cascade Natural Gas Corp. in July.

Highlights for Third Quarter 2007

  • Consolidated earnings of $201.1 million, or $1.10 per common share

  • Gain of $91.5 million from the sale of domestic independent power production assets

  • Earnings guidance for 2007 of $2.20 to $2.35 per common share

  • Consolidated earnings for the nine months ended Sept. 30 were $336.9 million, or $1.84 per common share, diluted. This compares with nine months earnings for the comparable 2006 period of $232.7 million, or $1.29 per common share.

This group’s performance was driven by higher construction margins and equipment sales and rentals. During the quarter, the group acquired Lone Mountain Excavation and Utilities, a Las Vegas-based specialty excavation and utilities contractor, which complements services provided by our existing operations in this market.

TXI Reports First-Quarter Results

Texas Industries, Inc. reported that its net income for the quarter ended Aug. 31, 2007 was $17.9 million ($.64 per share).

For the same period ending Aug. 31, 2006, net income equaled $29.4 million ($1.12 per share). The impact of record rainfall on construction activity in Texas and scheduled downtime at the company’s cement plants were the primary causes of the decline in earnings.

Net sales for the quarter declined 3 percent compared to a year ago. Realized prices for cement increased 1 percent while shipments declined 7 percent. Stone, sand, and gravel prices increased 8 percent and shipments declined 14 percent. In ready-mix concrete, prices improved 8 percent and shipments increased 2 percent.

Scheduled maintenance at the company’s North Texas cement plant negatively impacted pretax earnings by approximately $12 million compared to last year’s first quarter when no major maintenance was incurred at the plant (scheduled maintenance for the North Texas plant occurred in the second quarter ended Nov. 30, 2006).

In addition, maintenance originally scheduled for the Central Texas plant in Sept. 2007 occurred in August. The Central Texas plant maintenance reduced pretax earnings by $3 to 4 million, which approximately equaled the earnings impact from maintenance at the plant in last year’s August quarter. Finally, at the California cement plant, both production quantities and operational efficiencies associated with old equipment that will soon be replaced declined compared to last year’s first quarter. As a result, pretax earnings at the California plant declined by approximately $5 million.

Selling, general and administrative expenses increased $1.1 million compared to a year ago. Lower stock-based compensation expense was more than offset primarily by higher wage, benefit and incentive compensation. Interest expense declined from $5.5 million in last year’s quarter to zero as all interest expense was capitalized in conjunction with the California cement plant modernization and expansion. Other income declined $1.3 million, primarily due to reduced interest income.

(Source: TXI)

Carmeuse to Acquire Oglebay Norton

Carmeuse North America, a wholly owned subsidiary of Carmeuse Group, and Oglebay Norton Co. announced on Oct. 12 that the two companies have entered into a definitive agreement under which Carmeuse will acquire all of the outstanding shares of Oglebay Norton for $36 per share in cash.

The transaction, which is expected to close by the end of the year, is subject to, among other things, the expiration or termination of the Hart-Scott-Rodino Act waiting period and approval by Oglebay Norton shareholders.

The Special Committee of Oglebay Norton’s board of directors has approved the merger agreement and unanimously recommends that all Oglebay Norton shareholders vote in favor of the transaction. The merger agreement contains a customary provision allowing the Oglebay Norton board of directors or the special committee to terminate the merger agreement in the event it receives another offer to purchase Oglebay Norton on terms more favorable to its shareholders than those contained in the merger agreement.

JPMorgan is serving as lead financial advisor and provided a fairness opinion to Oglebay Norton and Imperial Capital, LLC is serving as co-financial advisor. Jones Day is serving as legal counsel to Oglebay Norton and Porter Wright Morris & Arthur is serving as legal counsel to the Special Committee. KeyBanc Capital Markets is serving as financial advisor to Carmeuse, and Reed Smith LLP is serving as legal counsel.

Carmeuse was 22nd in the U.S. Geological Survey 2006 crushed stone rankings and Oglebay Norton was 14th.

Sneak Preview

Sneak Preview from the upcoming Production special report in the December 2007 issue of Aggregates Manager. For the full report, including more tips and photos, see next month’s issue.

Production

America’s Top Producer

Vulcan tops the U.S. Geological Survey list of 2006 U.S. top crushed stone producers.

by Tina Grady Barbaccia, Senior Editor

The U.S. Geological Survey in mid-October released its annual list of crushed stone producers in the United States for 2006, with Birmingham-Ala.-based Vulcan Materials Co. once again ranking highest on the list with 183 active quarries and 87 sale yards.

According to the USGS, the other producers making the top 10 list are Martin Marietta Aggregates (174 active quarries, 72 sale yards); Oldcastle Inc./Materials Group (151 active quarries, 6 sale yards); Hanson Building Materials America Inc. (115 active quarries, 2 sale yards); Lafarge North America, Inc. (52 active quarries, 1 sale yard); Rinker Materials Corp., which is now part of Cemex (33 active quarries, 2 sale yards); Rogers Group, Inc. (48 active quarries, 0 sale yards); Cemex, Inc. (33 active quarries, 0 sale yards); Florida Rock Industries, Inc., currently under acquisition by Vulcan (22 active quarries, 0 sale yards); and Trap Rock Industries, Inc. (4 active quarries, 0 sale yards).

These 10 companies combined have a total of 815 active quarries, which account for about one-half of the 1.72 billion metric tons total output of crushed stone in the United States. The total output is valued at $13.8 billion and was produced by 1,367 companies with 3,212 operations and 3,358 active quarries, according to USGS.

The majority of crushed stone produced in 2006 came from operations with output larger than 300,000 metric tons per year — 1,626 operations, representing 51 percent of the total number of active operations produced 92 percent of the total tonnage.

For a state-by-state breakdown by company, number of active quarries, sale yards, and underground operations, type of stone, and the counties in which the operations are located, go to http://minerals.usgs.gov/minerals/pubs/commodity/stone_crushed/csdir06.pdf .

Look for a Special Report on the Top 10 U.S. aggregates producers from Jason Christopher Willett, USGS crushed stone commodity specialist, in an upcoming issue of Aggregates Manager.

Top 10 Aggregates Operations by Total Output of Crushed Stone*

  1. Vecellio & Grogan, Inc., White Rock, Dade County, Fla.;

  2. Trap Rock Industries, Inc., Kingston Quarry, Somerset, N.J.;

  3. Rinker Materials Corp., F.E.C. Quarry, Dade County, Fla.;

  4. Texas Crushed Stone Co., Inc., Georgetown, Williamson County, Texas;

  5. Cemex, Inc., Balcones Plant, Comal, Texas;

  6. Trap Rock Industries, Inc., Moore’s Station Quarry, Mercer, N.J.;

  7. Titan Atlantic LLC, Pennsuco Quarry, Dade County, Fla.;

  8. Rinker Materials Corp., Alico Quarry, Lee County, Fla.;

  9. Vulcan Materials Co., McCook 378, Cook County, Ill.; and

  10. Hanson Building Materials America, Inc., Thornton Quarry, Cook County, Ill.

* These operations are in descending order of total output of crushed stone. They accounted for about 6 percent of the total output of crushed stone in the United States.

Source: Jason Christopher Willett, USGS crushed stone commodity specialist, and Susan M. Weaver, USGS crushed stone data analyst.

Top 10 leading producing states of crushed stone*

  1. Texas

  2. Florida

  3. Pennsylvania

  4. Georgia

  5. Missouri

  6. North Carolina

  7. Illinois

  8. Virginia

  9. Ohio

  10. Tennessee

* In descending order of tonnage

Note: These top 10 states account for 53 percent of total output of crushed stone.

Source: Jason Christopher Willett, USGS crushed stone commodity specialist, and Susan M. Weaver, USGS crushed stone data analyst.

e-Products

Rinsing unit runs wet or dry

Kemper Equipment has extended its line of quarry products with the introduction of the RC Rinsing Unit, which is designed to remove excess -200 mesh-coated aggregate and wash it away. The unit installs like a chute and can be run wet or dry. It is said to fit into most applications and does not require course screw washers, motors, reducers or seals, according to Kemper. It has a 100-ton-per-hour capacity and will fit under 24-, 30- or 36-inch conveyors.

Improved mid-size excavator

Kobelco says its new SK260LC Acera Mark 8 excavator boasts a higher-horsepower, Tier 3 engine, improved hydraulic flow, and a better combination of bucket force, swing torque, and drawbar pull forces than its predecessor. The 181-horsepower machine has an operating weight of 57,300 pounds and a new control system that is said to recognize the operator’s moves and provide “incredibly smooth” hydraulic response. Its auto-acceleration system increases engine rpms and hydraulic flow in proportion to the operator’s movement of control levers, and an auto-deceleration system saves fuel and engine life by reducing engine rpms after 4 seconds of operator inactivity.

New 3-yard loader

Case Construction Equipment has extended its line of wheel loaders with the introduction of the 168-horsepower, 3-cubic-yard 621E. The new model features a Tier 3 engine, the new E-series cab that offers more comfort and visibility than previous models, and maintenance and serviceability features. Like other E-series loaders, the 621E has three power curves to match the demands of different applications, and ground-level maintenance access for fluid sight gauges, grease fittings, and daily service checks.

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

Manufacturer e-News

Case Construction Equipment on Oct. 16 announced that Oldcastle Materials, Inc. has selected Case as one of only three preferred suppliers of construction equipment to its $6 billion operation.

Oldcastle Materials is a federation of companies with more than 1,200 locations in 41 states. According to James Hasler, vice president, Case Construction Equipment-North America, Case will support Oldcastle’s equipment needs through its network of 240 dealer locations across the United States.

FMI Corp., management consultants and investment bankers to the construction industry, will present “Improving Construction Productivity” in November. FMI consultants Scott Kimpland and Michael McLin will present the program November 8 and 9, 2007, at the Hyatt Regency O’Hare in Rosemont, Ill., which is located near Chicago.

According to FMI’s 2007 Contractor Productivity Survey Results, less than 30 percent of contractors have a formal plan or strategy to improve productivity. In 2006, the companies surveyed made an average investment of only $54,270 in various initiatives to improve productivity compared to their average investment of $70,035 for safety improvement. While contractors continue to accept significant labor overruns on their projects, they do not appear to making the necessary investments in people and processes to improve productivity.

“Improving Construction Productivity,” a two-day program targeted to the operations team, such as president, vice president of operations, project managers and estimators, offers the tools to improve productivity and increase company profits.

The program will cover topics such as the following:

  • The impact of industry changes on productivity.
  • How a 5 to 10 percent savings in annual field labor costs can improve your bottom line.
  • Top management and project management are critical to productivity improvement.
  • Know what to measure and how to use it.
  • The long-term commitment required to change your organization.
  • Centralizing key project information for easy access.
  • Implications of poor cost projections by your project managers, and more.

e-Quick Takes

The latest people news on who’s who and who has moved where within the industry.

The American Road and Transportation Builders Association (ARTBA) has elected the following people to serve as 2007-2008 officers and directors. 

The following individuals were elected at the association’s national convention, held Oct 9-12 in Fort Lauderdale, Fla., as ARTBA officers:

Chairman

Leo Vecellio, Jr., chairman, president and CEO, The Vecellio Group, West Palm Beach, Fla.

Senior Vice Chairman

Charles Potts, CEO, Heritage Construction & Materials, Indianapolis, Ind.

First Vice Chairman

Larry Tate, product manager, Caterpillar Inc., Decatur, Ill.

Northeastern Region Vice Chairman

Bill Cox, president, Corman Construction, Annapolis Junction, Md.

Southern Region Vice Chairman

Steve Wright, vice president, Wright Brothers Construction Co., Charleston, Tenn.

Central Region Vice Chairman

Ken Aldridge, chief executive officer, Aldridge Electric, Libertyville, Ill.

Western Region Vice Chairman

Jack Belvedere, vice president and director of highways and bridges, CH2M HILL, Oakland, Calif. 

Vice Chairman At-Large

Ron DeFeo, chairman and chief executive officer, Terex Corporation, Westport, Conn.

Vice Chairman At-Large

Robert Heitmann, vice president, Zachry American Infrastructure, San Antonio, Texas

Vice Chairman At-Large

Larry Lair, vice president of Traffic Safety Systems Division, 3M, St. Paul, Minn.

Vice Chairman At-Large

Paul Yarossi, president of HNTB Holdings, Ltd., New York, N.Y.

Vice Chairman At-Large

Jim Connell, group president, Energy Absorption Systems, Inc., Chicago, Ill.

Vice Chairman At-Large

Nick Ivanoff, president and CEO, Ammann and Whitney, New York, N.Y.

Treasurer

Tom Hill, chief executive, Oldcastle, Inc., Washington, D.C.

The following individuals were elected for a three-year term as ARTBA directors:

  • Michael Agee, government affairs and market development vice president, Rogers Group Inc., Nashville, Tenn.
  • Jim Ahern, president, Ahern & Associates, South Charleston, W.Va.
  • Foster Beach, III, executive vice president and director of marketing, Hatch Mott MacDonald, Inc., Rockville, Md.
  • David C. Bramble, president, David A. Bramble, Inc., Chestertown, Md.
  • Jack D. Bryant, president, Bryant Associates, Inc., Boston, Mass.
  • James D. Crowley, vice president, Quixote Transportation Safety, Chicago, Ill.
  • Thomas S. Elmore, president, Eutaw Construction Co., Inc., Aberdeen, Miss.
  • Gregory G. Henk, strategic programs manager, Carter & Burgess, Inc., Santa Ana, Calif.
  • Kathleen Holst, president, NES Traffic Safety, Romeoville, Ill.
  • Clarence LaBar, president, Empco-Lite, Elgin, Ill.
  • Robert C. Lanham, vice president, Williams Brothers Construction Co., Inc., Houston, Texas
  • Robert H. Luffy, vice president, American Bridge Co., Coraopolis, Pa.
  • Robert L. Mabardy, executive vice president, The Middlesex Corp., Littleton, Mass.
  • Kent Marshall, vice president, Granite Construction Co., Watsonville, Calif.
  • Richard Markwith, vice president, DMJM Harris, Atlanta, Ga.
  • Jan L. Menuez, president, V.O. Menuez & Sons, Inc., Millersburg, Ohio
  • Charles R. Norton, vice president of marketing, Trinity Industries, Inc., Centerville, Utah
  • Phil Oglesby, III, president, Sandusky Bay Construction Company, Inc., Norwalk, Ohio
  • James R. Peterson, chairman, James Peterson & Sons, Inc., Medford, Wis.
  • Scott W. Peterson, president, Edward Kraemer & Sons, Inc., Plain, Wis.
  • Phillip E. Russell, Texas Turnpike division director, Texas Department of Transportation, Austin, Texas
  • Matthew Shorb, vice president, Elderlee, Inc., and L.S. Lee., York, Pa.
  • Dennis J. Slater, president, Association of Equipment Manufacturers, Milwaukee, Wis.
  • W. Mark Sterling, president, The Beaver Excavating Co., Canton, Ohio
  • Robert D. Stevens, Ph.D., executive vice president, ARCADIS, Highlands Ranch, Colo.
  • R.T. Summers, president, Summers-Taylor, Inc., Elizabethton, Tenn.
  • Terrell W. Temple, president, Engineering Plus, Inc., Meridian, Miss.
  • Melissa Tooley, director, Texas Transportation Institute-University Transportation Center for Mobility, College Station, Texas.

Continental Conveyor & Equipment Co. has employed Rolf Schimmer and acquired the technology and designs of JLV Engineering, LLC. Schimmer has joined the Continental team as a product engineer and will be responsible for further development of the new Continental pulley line.

This new arrangement will further extend the already existing Continental pulley line into premium standard-duty, mine-duty and engineered-class pulleys. These pulleys will be manufactured in Continental’s Winfield, Ala., factory.

SAF Holland announces that Frank Puciul will be assuming the role of OEM Account Manager, - Powered Vehicle Systems.

In his new position, Puciul will be responsible for the PACCAR group including Kenworth Truck Company and Peterbilt Motors. Puciul joined SAF Holland in 1990 as a Sales Representative. In 1997 he was promoted to Regional Sales & Marketing Manager for the New Jersey Division, and has served as a national accounts manager since 2000.

Puciul holds a bachelor's degree from St. Bonaventure University, St. Bonaventure, N.Y., and an MBA from Rider University, Lawrenceville, N.J..

The American Road and Transportation Builders Association (ARTBA) on Oct. 10 recognized several transportation design and construction industry leaders during the association’s national convention, held in Fort Lauderdale, Fla.

ARTBA announced the following awards:

The Nello L. Teer, Jr. Award: David C. Bramble, president, David A. Bramble, Inc., in Chestertown, Md. Created in 1988 as a tribute to contractor and Past ARTBA Chairman (1959-61) Nello L. Teer, Jr., this award annually honors a contractor member who has made outstanding contributions to the association’s Contractors Division and the transportation construction industry as a whole.

Guy Kelcey Award: Gene McCormick, senior vice president, Parsons Brinckerhoff, in Naples, Fla. This award, which honors Guy Kelcey, one of the Planning & Design (P&D) Division’s organizers, is given each year to an ARTBA member who has exhibited a high degree of service to the association’s P&D Division.

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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