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ENERGY BLOG -- SCOTT SUTTELL
$500,000 fine isn't fine with relatives of Utah mine disaster victims

Blog entry: March 13, 2012, 8:36 am     |     Author: SCOTT SUTTELL

A subsidiary of Murray Energy Corp., which is based in Pepper Pike, has agreed to plead guilty to two misdemeanors for violating safety laws in a 2007 Utah mine disaster and to pay the maximum fine of $500,000, but family members of the deceased are not happy.

The Salt Lake Tribune reports that relatives of Crandall Canyon mine disaster victims “reacted with indignation and frustration” as a four-year criminal probe into the catastrophic collapse “ended with only minor charges.”

"There's really not much justice, even though they have to pay whatever amount of money they have to pay," said Frank Allred, whose brother, Kerry, was one of nine men who died in a pair of implosions at the coal mine in August 2007.

Murray Energy subsidiary Genwal Resources Inc. agreed to pay $250,000 for willfully violating a mandatory health and safety standard “by failing to report a March 10, 2007, implosion within 15 minutes of the accident,” the newspaper said.

It also violated its Mine Safety and Health Administration-approved roof control plan by cutting coal Aug. 3, 2007, in a “barrier pillar of coal” purposely left behind to shore up the mine's roof, according to the newspaper. That violation also carries a $250,000 fine,

Neither violation contributed directly to the initial collapse of the mine's walls on Aug. 6, 2007, burying a six-member crew that included Kerry Allred, the newspaper reports. (Three rescuers died and six more were injured in a second implosion 10 days later.)

A U.S. District Court judge is scheduled to review the company's guilty plea and enact sentencing tomorrow, March 14.

The newspaper reports that the U.S. attorney in the case said there was "insufficient evidence" that could meet the burden of proof for criminal charges against individuals or corporate entities beyond Genwal Resources. That would include Robert Murray, owner of Murray Energy.

In a statement, Genwal said the agreement “reflects the lack of evidence that any conduct by the company caused the accidents of Aug. 6 or 16, 2007. Genwal has always maintained that its plan for mining the Crandall Canyon Mine was safe — a belief that was shared by MSHA (which approved the plan) and the mine engineering firm on which Genwal relied."

For the fund of it

The Cleveland Carbon Fund this week is wrapping up the application process in its search for projects that reduce carbon emissions in the Cleveland area.

Grants for up to $10,000 are available for the projects, which will be selected based on the amount of greenhouse gases reduced and community benefits. (Past projects have included home weatherization and energy-efficiency projects in Cleveland neighborhoods.)

Applications are due Friday, March 16, at 5 p.m. and can be found here.

The Cleveland Carbon Fund, founded in 2009, bills itself as the first community-based carbon reduction fund in the United States. It invests in local projects that reduce greenhouse gas emissions and spark economic development in Cleveland.

The fund's founding partners include the city of Cleveland, Cleveland Clinic, Cleveland Foundation, George Gund Foundation, and the Green City Blue Lake Institute at Cleveland's Museum of Natural History.

Extra energy

Ulmer & Berne LLP said it has expanded its energy-related work by adding Brett C. Altier to the firm's real estate practice as an associate in the Cleveland office.

Mr. Altier will serve the firm's energy industry clients, which include oil and gas, electric, chilled water, solar power, wind power and steam generation companies.

Previously, Mr. Altier was a “petroleum landman” for Turner Oil and Gas Properties Inc., where his work involved examining courthouse records including titles and oil and gas leases, Ulmer & Berne said. His experience also includes preparing mineral ownership and due diligence reports, as well as abstracts for energy companies, and leasing mineral rights on behalf of energy companies.

Mr. Altier earned his law degree from Cleveland-Marshall College of Law, where he was managing editor of the Cleveland State Law Review.




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