News
November 14, 2008
Blankenship memos reveal hands-on approach
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LOGAN, W.Va. -- Massey Energy President Don Blankenship received mine-by-mine production reports every two hours and insisted on detailed memos on everything from conveyor belt breakdowns to parts inventories, a Logan County jury heard Friday.

Blankenship also made routine decisions about employee hiring and contractor pay, and bluntly scolded mine managers he felt didn't move coal fast enough, jurors learned as trial continued in the wrongful death case over the January 2006 Aracoma Alma No. 1 Mine fire.

Logan Circuit Court jurors heard from Blankenship via videotaped testimony, as Bruce Stanley, lawyer for the two Aracoma widows, worked to tie Blankenship personally to Massey practices that Stanley alleges put profits ahead of safety.

Families of miners Don Bragg and Ellery Hatfield sued Blankenship, along with mine operator Aracoma Coal Co. and parent firms A.T. Massey Coal Co. and Massey Energy. The widows are seeking monetary damages to compensate them and to punish Blankenship and the companies for the deaths. Massey is also facing $1.5 million in civil fines from federal regulators, and a federal criminal probe of the fire continues.

During opening arguments earlier in the week, Blankenship lawyer Tom Flaherty said his client sets corporate-wide policy, but should not be held responsible for safety problems at Aracoma.

"To say that Don Blankenship personally participated in the tragedy that befell these families is simply unfair," Flaherty said.

In a previously videotaped deposition, Stanley quizzed Blankenship about dozens of internal memos, in an effort to depict a hands-on management style so jurors would conclude the Massey president shares blame for the fatal fire.

In one memo, Blankenship decided whether to waive general Massey policy and hire three workers who didn't have high school diplomas. In another note, he personally approved a small raise in a contract firm's hourly rate of pay.

Blankenship testified that he receives faxed production reports from each Massey mine every two hours. Each day, he monitors separate profit-and-loss statements from every Massey mine, Blankenship said.

In memos shown to jurors, Blankenship demanded frequent updates on growing problems at Aracoma, including delays in moving the mine's advanced longwall machine and problems extending a key coal conveyor belt.

"If we're in a difficult situation, I'll get a little more communications than I will if the mine is running well," Blankenship said.

Blankenship testified he makes an average of $15 million a year, but does not know many details of Massey's corporate governance, such as whether some subsidiary boards have meetings or whether he is listed as an officer of subsidiary A.T. Massey Coal.

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