District 7 Operator Informational Meeting

1. District 7Operator Informational Meeting October 12, 2011

2. National Fatality Overview for Coal – 2011

4. 2011 Fatalities / Coal • Fatality #1 - January 27, 2011Powered Haulage - Underground - West Virginia Baylor Mining Inc. - Jims Branch No 3B

5. COAL MINE FATALITY - - On Thursday, January 27, 2011, a 19-year-old underground miner with fifteen weeks of mining experience was killed when he became caught between the "V" shaped coal discharge guides adjacent to the discharge roller of the section conveyor belt. Both belt conveyors were operating at the time of the accident. Photo of Reconstructed Accident Scene - Discharge Roller Guarding Removed for Picture Best Practices • Train all employees thoroughly on the dangers of working or traveling around moving conveyor belts. • Never attempt to cross a moving belt conveyor, except at suitable cross-overs or cross-unders. • Install proper belt cross-overs and/or cross-unders at strategic locations, when height allows. • Be aware of locations where new miners are working or intend to travel. • Provide belt conveyor stop and start controls at areas where miners must access both sides of the conveyor. These areas should be provided with adequate crossing facilities (e.g. cross-overs or cross-unders). • Install adequate guarding at all conveyor belt pinch point locations. This is the first fatality reported during calendar year 2011 in the coal mining industry. As of this date in 2010, there were two fatalities reported in coal mining. This fatality is classified as a Powered Haulage accident. At this time in 2010, there were no fatalities reported in this classification.

6. Fatality #2 - February 03, 2011On March 25, 2011, MSHA Solicitors made a determination that a fatality which occurred on February 03, 2011, (Listed as Coal #2 - Consol Energy Inc. - McElroy Mine - Cameron, WV) is not under MSHA jurisdiction, and therefore, not chargeable to the mining industry.

7. Fatality #3 - February 11, 2011Machinery - Surface – Arizona Peabody Western Coal Company – Kayenta Mine

8. COAL MINE FATALITY - - On Friday, February 11, 2011, a 55 year old miner with 30 years of mining experience was killed when the fuel and grease service truck he was operating collided head-on with a scraper. The two pieces of equipment were traveling in opposite directions. The impact resulted in a fire that engulfed the fuel truck. Best Practices • Inform others when driving a vehicle into a work area. • Optimize traffic rules to maximize safe road travel. • Obey established traffic rules and signage that apply to the area. • Follow established communication procedures. • Ensure signage is in place and easily observed. • Maintain control of equipment at all times. • Ensure all safety systems are maintained, including brakes and steering. This is the third fatality reported during calendar year 2011 in the coal mining industry. This is the second fatality classified as a Machinery accident in 2011. Two coal mine fatalities occurred in 2010 within the same period. No machinery accidents occurred during the same period in 2010.

9. Fatality #4 - March 25, 2011Machinery - Underground - KentuckyMatrix Energy LLC - No. 1

10. COAL MINE FATALITY - - On Friday, March 25, 2011, a 54-year-old continuous mining machine operator with 35 years of experience was killed when he was caught between the coal rib and the conveyor boom of the remote controlled continuous mining machine he was operating. Best Practices • AVOID "RED ZONES"!!! Prior to tramming the continuous mining machine to a new place, ensure the machine operator is positioned outside the turning radius of the machine. http://www.msha.gov/webcasts/coal2004/REDZONE2.pdf • Prior to tramming the continuous mining machine to a new place, ensure the tip of the conveyor boom is positioned on the side of the mining machine opposite to the side where the machine operator is located.Install MSHA approved Proximity Detection Systems on continuous mining machines. http://www.msha.gov/Accident_Prevention/NewTechnologies/ProximityDetection/ProximitydetectionSingleSource.asp • Assign another miner to assist the continuous mining machine operator. Train all persons in the programs, policies, and procedures for operating or working near remote controlled continuous mining machines. Additional information on preventing these types of accidents can be found at: MSHA's Safety Targets Program Hit By Underground Equipment. This is the fourth fatality reported during calendar year 2011 in the coal mining industry. This is the third fatality classified as a Machinery accident in 2011. Two coal mine fatalities occurred in 2010 within the same period. No machinery accidents occurred during the same period in 2010.

11. Fatality #5 - May 14, 2011Machinery - Surface - West VirginiaApogee Coal Company LLC - Guyan

12. COAL MINE FATALITY - - On Saturday, May 14, 2011, a 37-year-old mechanic with 14 years of mining experience and 1½ years of experience as a mechanic, was killed while removing a counter weight fuel tank assembly from a front-end loader. He was positioned beneath the front-end loader when he removed 14 of the 16 mounting bolts that secure the counter weight. When the victim attempted to remove the next to last bolt, the remaining two bolts failed allowing the 11,685 pound counterweight to fall on him. The counter weight had not been blocked to prevent it from falling. Best Practices • Install blocking materials before removing mounting bolts from machinery components which can fall during disassembly. • Follow known safe maintenance procedures. • Follow the equipment manufacturer’s recommended maintenance procedures when performing repairs to machinery. • Train new mechanics in the health and safety aspects and safe work procedures related to their assigned tasks. This is the fifth fatality reported during calendar year 2011 in the coal mining industry. This is the third fatality classified as a Machinery accident in 2011. Thirty-seven coal mine fatalities occurred in 2010 within the same period. Two machinery accidents occurred during the same period in 2010.

14. Fatality #7 - June 9, 2011Slip/Fall of Person - Surface at Underground –Colorado Mountain Coal Company, L.L.C. - West Elk Mine

15. COAL MINE FATALITY - - On Thursday, June 9, 2011, a 53-year-old contract steelworker, with over 16 years of coal mine experience, was killed when he fell approximately 8 feet from a steel beam. He hit a lower cross beam before he landed on a conveyor belt cover located about 32 inches below the cross beam. The victim had been engaged in cutting operations just prior to the fall, and was repositioning when he removed his lanyard tie-off safety device from the location where it was secured. Best Practices • Wear and use fall protection, maintaining 100 percent tie off, when fall hazards exist.See http://www.msha.gov/Accident_Prevention/innovativeproducts/2009/TieOff.asp • Ensure workers are trained and understand the proper use of restraint devices. • Provide self-retracting lanyard mechanisms when possible. • Ensure secure footing in all work areas. • Examine tools and personal protective equipment routinely and replace when defects or wear is evident. • Conduct a risk assessment of the work area prior to beginning any task and identify all possible hazards. Use the SLAM; Stop, Look, Analyze, and Manage approach for workplace safety. This is the sixth fatality reported during calendar year 2011 in the coal mining industry. This is the first fatality classified as a Slip or Fall of Person accident in 2011. Thirty-seven coal mine fatalities occurred in 2010 within the same period. No Slip or Fall of Person fatalities occurred during the same period in 2010.

16. Fatality #8 - June 27, 2011Fall of Face/Rib - Underground - West VirginiaRhino Eastern LLC - Eagle #1

17. COAL MINE FATALITY - - On Monday, June 27, 2011, a 33-year-old miner was killed when a portion of coal and rock fell from the upper portion of a pillar rib. The material that fell was approximately 8 feet long, by 32 inches thick, by 3 feet high. Best Practices • Conduct a thorough visual examination of the roof, face, and ribs immediately before any work or travel is started in an area and thereafter as conditions warrant. • Perform careful examinations of pillar corners, particularly where the angles formed between entries and crosscuts are less than 90 degrees. • Support any loose rib or roof material adequately or scale before beginning work. • Take additional safety precautions when mining heights increase to prevent development of rib hazards. • In areas prone to deterioration, install rib support when the area is mined initially. • Be alert to changing geologic conditions which may affect roof/rib conditions. This is the seventh fatality reported during calendar year 2011 in the coal mining industry. This is the first fatality classified as a Fall of Face / Rib accident in 2011. Thirty-nine coal mine fatalities occurred in 2010 within the same period. Two Fall of Face / Rib fatalities occurred during the same period in 2010.

18. Fatality #9 - June 29, 2011Fall of Face/Rib - Underground - KentuckyManalapan Mining Co., Inc. - P-1

19. COAL MINE FATALITY - On Wednesday, June 29, 2011, at approximately 11:15 a.m., a 49-year-old continuous haulage cable attendant was killed when he was struck by a section of rib. The rock was approximately 82 inches long, 36 inches wide, and 11 inches thick. The mining height at the accident site was just over seven feet, and the depth of cover was 700 feet. Best Practices • Conduct thorough pre-shift and on-shift examinations of the roof, face, and ribs immediately before working or traveling in an area, and thereafter as conditions warrant. • Know and follow the Approved Roof Control Plan. Take additional measures to protect persons when hazards are encountered. • Assure the Approved Roof Control Plan is suitable for prevailing geological conditions. Revise the plan if conditions change and the support system is not adequate to control the roof, face, and ribs. • Rib bolts provide the best protection against rib falls and are most effective when installed on cycle and in a consistent pattern. • Be alert to changing geological conditions which may affect roof, rib, and face conditions. • Support loose ribs or roof adequately or scale down loose material before beginning work. This is the eighth fatality reported during calendar year 2011 in the coal mining industry. This is the second fatality classified as a Fall of Face/Rib/Highwall accident in 2011. Thirty-nine coal mine fatalities occurred in 2010 within the same period. Two Fall of Face/Rib/Highwall fatalities occurred during the same period in 2010.

20. Fatality #10 - July 11, 2011Powered Haulage - Underground - KentuckyMartin County Coal - Voyager #7

21. COAL MINE FATALITY - On Monday, July 11, 2011 a 26-year-old supply motor operator, with 6 years 1 month of mining experience, was killed while transporting materials using a diesel powered 15-ton locomotive. When the locomotive approached a low, steel, over-cast beam, the victim placed his head outside of the operator's compartment and was struck by the steel beam and the locomotive's canopy. Best Practices • Keep all body parts within the operator's compartment while the equipment is in motion. • Ensure that all track mounted equipment has adequate clearance throughout mine. • Always look in the direction of equipment movement and exercise caution in low clearance work areas. • Conduct proper workplace and travelway examinations to identify and mitigate the hazards presented by low clearances. • Install warning signs that tell operators to reduce speed in low clearance areas. This is the tenth fatality reported during calendar year 2011 in the coal mining industry. This is the third fatality classified as a Powered Haulage accident in 2011. Forty-one coal mine fatalities occurred in 2010 within the same period. Three Powered Haulage fatalities occurred during the same period in 2010.

22. Fatality #11 - July 21, 2011Powered Haulage - Surface - New MexicoBHP Navajo Coal Company - Navajo Mine

23. COAL MINE FATALITY - On Thursday, July 21, 2011, at approximately 9:05 p.m., an office worker was killed at a surface coal operation when she was struck by a pickup driven by a vendor. As part of a wellness program instituted at the mine, the victim was walking along a rural road on the permit area for the mine when the pickup struck her from behind. The vendor was accessing the mine for routine maintenance. Best Practices • Maintain complete control over vehicles and equipment while in operation. • Stay alert for unexpected pedestrians when driving in rural areas. • Drive at speeds relative to changing light and conditions. • Walk in designated pedestrian areas or facing traffic. • Wear highly visible reflective clothing when walking on roadways. • Ensure there is no oncoming traffic when crossing roadways. • Post signs and appropriate speed limits in areas where pedestrians may be present. This is the tenth fatality reported during calendar year 2011 in the coal mining industry. This is the fourth fatality classified as a Powered Haulage accident in 2011. Forty-one coal mine fatalities occurred in 2010 within the same period. Three Powered Haulage fatalities occurred during the same period in 2010.

24. Fatality #12 - July 27, 2011Electrical - Facility - West VirginiaSuperior Processing, Inc. - Superior Cleaning Plant

25. COAL MINE FATALITY - On Wednesday, July 27, 2011, a 39-year-old miner with 22 years of mining experience was electrocuted while welding to connect two pipes together. He was working in the ceiling of the filter room of a preparation plant. This area, where the welding was being conducted, was wet and the illumination was limited. The victim contacted an energized welding electrode. Best Practices • Do not touch an energized electrode with bare skin. • Avoid wet working conditions. A person's perspiration can lower the body's resistance to electrical shock. Do not drape electrode wires or leads over your body. • Work in a confined space only if it is well ventilated and illuminated. • Do not use the plant structure as the work (return) conductor. Connect the work cable (return) as close to the welding area as practical to prevent welding current from traveling unknown paths and causing possible shock, spark, and fire hazards. • Insulate yourself from work and ground by using and/or wearing dry insulating mats, covers, clothes, footwear, and gloves. Inspect welding gloves for damage prior to welding and ensure the gloves are dry. • Use only well maintained equipment. Frequently inspect welding wires or leads for damaged or exposed conductors. Replace or repair wires or leads immediately if damaged. • Use voltage reduction safety devices (if available) for arc welders. • For additional information, please see MSHA's Safety Target Packages at http://www.msha.gov/Safety_Targets/MaintenanceMNM/Welding 20safety.pdf This is the eleventh fatality reported during calendar year 2011 in the coal mining industry. This is the first fatality classified as an Electrical accident in 2011. Forty-one coal mine fatalities occurred in 2010 within the same period. No electrical fatalities occurred in 2010.

26. Fatality #13 - August 8, 2011Machinery - Underground - OhioAmerican Energy Corporation - Century Mine

27. COAL MINE FATALITY - On Monday, August 8, 2011, a 41-year-old longwall mechanic with nine years of mining experience was killed when he was struck in the chest by a piece of metal from the top of a base lift jack mounted on a longwall shield. The jack catastrophically failed resulting in the end cap separating from the cylinder and striking the victim. Best Practices • Do not alter hydraulic circuits in a manner that could result in the trapping of pressurized hydraulic fluid. • When isolating hydraulic components for repair, ensure that the hydraulic system has a means to bleed the pressure from the components being repaired. • Evaluate potential energy sources before working in tight spaces. Click on the following link for more information: MSHA - SLAM Risks the Smart Way - Safety and Health Outreach Program Home Page • Ensure re-built components meet original equipment manufacturer (OEM) specifications. • Ensure miners are adequately trained in proper maintenance procedures and plan requirements. • Examine and periodically inspect all hydraulic components for defects. • Ensure the ratings of hydraulic components are compatible with their intended use. This is the twelfth fatality reported during calendar year 2011 in the coal mining industry. This is the fourth fatality classified as a Machinery accident in 2011. Forty-two coal mine fatalities occurred in 2010 within the same period. Three machinery fatalities occurred in 2010 in the same time period.

28. Fatality #14 - August 15, 2011Fall of Roof or Back - Underground - West Virginia Mingo Logan Coal Company Mountaineer II Mine

29. COAL MINE FATALITY - On Monday, August 15, 2011, a 46-year-old miner was killed when he was struck by a portion of the mine roof that fell from an area adjacent to a longwall shield. The accident occurred during a longwall move, while the victim was installing a wooden crib in an area where a longwall face shield had been removed previously. The victim had approximately five years experience with this activity. Best Practices • Assure that roof control plans are suitable to the prevailing geological conditions. If roof geology changes affect roof stability, reevaluate roof support techniques. • Share and discuss roof control plans with the miners on a regular basis. For miner safety, assure that the roof control plan safety precautions are followed. • Provide additional training for specialized work, such as longwall moves, emphasizing best practices for a specific task. • Conduct examinations of roof conditions frequently to prevent exposure to poor roof conditions. Remain vigilant for changing roof conditions. • When hazardous roof conditions are detected, danger off areas until they are made safe. This is the 13th fatality reported during calendar year 2011 in the coal mining industry. This is the first fatality classified as a Fall of Roof or Back accident in 2011. Forty-two coal mine fatalities occurred in 2010 within the same period. Two Fall of Roof or Back fatalities occurred in 2010 in the same period.

30. Fatality #15 - September 1, 2011Machinery - Surface - WyomingPeabody Powder River Mining LLC - North Antelope Rochelle Mine

31. COAL MINE FATALITY - On Thursday September 1, 2011, a 29-year-old contract driller with 1 year, 3 months of experience was killed at a surface coal mine. The victim was attempting to separate a pipe connection when he was struck by a tong wrench. The rig was being used to drill a water well. The crew was working to free the drill stem that was stuck in the drill hole when the accident occurred. Best Practices • Stand a safe distance from areas of potential high energy release. • Know the radius of machinery that pivots. • Establish and follow safe work procedures. • Ensure all components are adequately blocked and secured to prevent unintended motion. • Know the limitations of equipment used for blocking motion and ensure that they are used within their specified limitations. • Ensure all components are in good repair. • Establish and follow communication procedures. This is the 14th fatality reported during calendar year 2011 in the coal mining industry. This is the fifth fatality classified as a Machinery accident in 2011. Forty-three coal mine fatalities occurred in 2010 within the same period. Three Machinery fatalities occurred in 2010 in the same period.

32. 2011 • National Incident Rate = 3.58 .District 7 Incident Rate = 3.35

33. Overview of D7 Enforcement and Elevated Enforcement Actions.

34. 104(d)(1) CitationsDistrict 7 Summary

35. 104(d)(1) OrdersDistrict 7 Summary

36. 104(d)(2) OrdersDistrict 7 Summary

37. 104(b) OrdersDistrict 7 Summary

38. Most frequently cited standards

39. Economic Impact Immediate Notification - establishes a penalty of at least $5,000 and up to $60,000 where an operator fails to notify MSHA within 15 minutes of an accident where a death, or injury or entrapment which has a reasonable potential to cause death, has occurred.

40. Unwarrantable Failure - Sets a minimum penalty of $2,000 for any citation or order issued as an unwarrantable failure under section 104(d)(1) of the Mine Act and a minimum penalty of $4,000 for any order issued under section 104(d)(2).Flagrant Violations - Establishes a maximum civil penalty of $220,000 for "flagrant violations."

41. From January 1, 2011 to September 30, 2011, MSHA District 7 issued approximately 9,300 104(a) citations. • Of the 9,300 violations issued, 5,975 were designated as S&S. • 18 of these violations were issued as Flagrant Violations.

42. Accident / Violation PreventionWhat can you do? • Be Proactive • Safety Inspectors at mine • Training • On the spot training • Required training • Quality Examinations • Engage employees • Adequate Maintenance Programs • Clean up programs, equipment & mine maintenance

43. Questions ?