Massey Energy

Massey Energy Company
Company type	Public
Industry	Coal mining
Founded	1920 in Richmond, Virginia, United States
Founder	A.T. Massey
Defunct	2011
Fate	Acquired by Alpha Natural Resources
Headquarters	Richmond, United States
Area served	United States (West Virginia, Kentucky, Virginia, Tennessee)
Key people	Baxter F. Phillips Jr. (President and CEO), Christopher Adkins (Senior VP and COO), John Poma (VP and Chief Accounting Officer), Shane Harvey (VP and General Counsel)
Products	Coal (low-sulfur bituminous coal)
Number of employees	5,850
Parent	Fluor Corporation (until 2000 spin-off), then independent until acquisition by Alpha Natural Resources in 2011

Massey Energy Company stood as a leading coal producer in the United States, operating extensively in West Virginia, Kentucky, and Virginia. It held the position of the fourth largest coal producer by revenue nationwide and was the top producer in Central Appalachia, with an annual output near 40 million tons. The company possessed approximately 2.3 billion tons of proven and probable coal reserves distributed across Southern West Virginia, Eastern Kentucky, Southwest Virginia, and Tennessee—representing roughly one-third of the total reserves in Central Appalachia. Massey employed close to 5,850 workers and managed 35 underground mines along with 12 surface mining operations.

The Upper Big Branch Mine, owned by Massey, was the site of a tragic explosion in 2010 that resulted in the deaths of 29 miners. The Mine Safety and Health Administration (MSHA) investigations concluded that a corporate culture emphasizing production over safety contributed to numerous violations leading to the disaster. In December 2011, MSHA issued a historic fine of $10.8 million against Massey based on 369 citations. Following Massey’s acquisition by Alpha Natural Resources, additional criminal penalties amounting to $209 million were resolved.

In January 2011, competitor Alpha Natural Resources completed a $7.1 billion acquisition of Massey Energy. The transaction received approval from more than 99% of Massey’s shareholders and 98% of Alpha’s shareholders, with validation from courts in Delaware and West Virginia. This merger significantly increased Alpha’s market presence and strengthened its foothold within the coal sector.

Key leadership figures at Massey included Baxter Phillips as President and CEO, Christopher Adkins serving as Senior Vice President and COO, John Poma as Vice President and Chief Accounting Officer, and Shane Harvey as Vice President and General Counsel. The company’s main office was based in Richmond, Virginia. In 2009, Massey posted revenues of $2.69 billion alongside a net income of $104.4 million, underscoring its strong financial standing in the coal industry.

History

The A.T. Massey Coal Company was established in 1920 in Richmond, Virginia by A.T. Massey, who served as its inaugural president, initially focusing on coal brokerage services. The firm expanded into mining and processing activities following its acquisition of a mining operation in 1945. Leadership remained within the Massey family for five successive generations, including figures such as Evan Massey (1945), William E. Massey (1962), and E. Morgan Massey (1972).

In 1974, control of A.T. Massey shifted when St. Joe Minerals acquired a majority stake. Six years afterward, St. Joe sold half of its interest to Royal Dutch Shell, creating the Massey Coal Partnership to oversee operations jointly. After Fluor Corporation took over St. Joe Minerals in 1981, Fluor and Shell dissolved their partnership in 1987, dividing ownership equally between them. Fluor then reverted its business name to A.T. Massey Coal Company and pursued aggressive growth through acquisitions.

Don Blankenship assumed the roles of President, Chairman, and CEO in 1992, guiding the company for nearly two decades while driving further acquisitions and expanding subsidiaries. In 2000, A.T. Massey executed a reverse spin-off from Fluor Corporation and rebranded itself as Massey Energy Company.

By 2010, Massey Energy’s operations centered on producing, processing, and marketing primarily low-sulfur bituminous coal via 22 processing and shipping facilities called "resource groups," sourcing coal from various mines.

On December 31, 2010, Don Blankenship stepped down after a long tenure as CEO; Baxter F. Phillips Jr., then President, succeeded him during a period marked by ongoing industry pressures.

Acquisition of Massey by Alpha

On June 1, 2011, shareholders of Alpha Natural Resources gave the green light to a $7.1 billion purchase of Massey Energy, resulting in the formation of the largest metallurgical coal enterprise in the United States. Certain shareholder factions opposed this transaction, accusing Massey's leadership of arranging the sale to evade liabilities and secure executive roles within Alpha.

Board of directors

Baxter F. Phillips Jr., Massey Energy's president and CEO
James B. Crawford, former chairman and CEO of James River Coal Company
General Robert H. Foglesong, retired four-star general of the U.S. Air Force
Richard M. Gabrys, ex-vice chairman at Deloitte & Touche LLP
Robert B. Holland, former director at Financial Guaranty Insurance Corporation
Admiral Bobby Inman, past director of the National Security Agency
Dan R. Moore, chairman of Moore Group, Inc.
Stanley C. Suboleski, previously commissioner at the Federal Mine Safety and Health Review Commission
Linda J. Welty, former president and COO of H. B. Fuller and Flint Ink

Due to environmental issues, Ohio State University President E. Gordon Gee stepped down from Massey's board in May 2009, expressing his view that he could effect greater environmental change outside the corporation.

Headquarters and operations

Massey Energy managed 23 coal mining operations: sixteen located in West Virginia, five in Kentucky, and one in Virginia. The company’s main office was situated in Richmond, Virginia.

Safety and environmental performance

In January 2008, Massey reached a $20 million agreement with the U.S. Environmental Protection Agency addressing thousands of violations under the Clean Water Act concerning coal slurry and wastewater discharges in Kentucky and West Virginia. Despite this settlement, total estimated penalties amounted to roughly $2.4 billion.

Martin County coal slurry disaster

In October 2000, a coal slurry pond owned by Martin County Coal Company—a subsidiary of Massey Energy—in Kentucky ruptured into a disused mine shaft, releasing over 200 million gallons of coal slurry into Coldwater and Wolf Creeks. The EPA described this as the most severe environmental catastrophe in the southeastern United States. The spill destroyed aquatic ecosystems and polluted local drinking water supplies. Cleanup expenses were estimated at around $50 million.

Aracoma Alma Mine tragedy

On January 19, 2006, a fire along a conveyor belt at Massey’s Aracoma Alma Number 1 Mine in West Virginia resulted in the deaths of two miners, Don I. Bragg and Ellery Elvis Hatfield. Efforts to extinguish the fire were hampered by insufficient firefighting equipment and water shortages. In December 2008, Massey agreed to pay $4.2 million in combined civil and criminal penalties—the largest settlement ever recorded within the coal sector. The victims’ widows openly criticized the plea agreement, accusing Massey of placing production ahead of worker safety and raising serious questions about the company’s operational priorities and risk controls.

Safety violations at mines

On February 1, 2006, Paul K. Moss, a 58-year-old bulldozer operator, died after his vehicle ruptured a 16-inch natural gas pipeline at Elk Run Coal Co.'s Black Castle surface mine. The bulldozer caught fire; Moss exited but was later found behind the machine's blade. Massey Energy admitted guilt on ten criminal counts related to this incident and was fined $2.5 million. Additionally, Aracoma paid $1.7 million for civil infractions identified by the Mine Safety and Health Administration (MSHA).

On October 8, 2008, Steven Cain, age 32, lost his life at Massey's Independence Coal Justice No. 1 Mine after being crushed by a railcar. An MSHA investigation found Cain had been assigned a dangerous task despite having limited experience and training.

In 2009, MSHA issued citations for 495 violations at Massey's Upper Big Branch mine and proposed fines totaling $911,802.

Upper Big Branch mine catastrophe

On April 5, 2010, an explosion occurred at the Upper Big Branch mine, owned by Massey’s Performance Coal Co., located in Montcoal, West Virginia, resulting in the deaths of 29 miners. This event marked the most fatal mining accident in the United States in forty years. The final investigation report released by MSHA in December 2011 identified blatant safety breaches as the cause of a coal dust explosion, leading to 369 citations and fines totaling $10.8 million.

In the three years before the disaster, the mine accumulated over 1,100 violations, including critical problems such as insufficient ventilation and inadequate emergency escape routes. Federal authorities mandated partial shutdowns on 60 occasions during the year preceding the blast. Afterward, the FBI launched an inquiry into potential bribery involving federal inspectors responsible for overseeing Massey’s mining operations.

Protests

In June 2009, a judge in Raleigh County issued a preliminary injunction that prohibited anti-mountaintop removal activists from demonstrating at certain Massey Energy locations.

Court rulings

In 1998, Hugh Caperton filed a lawsuit against A.T. Massey Coal Company, accusing them of fraudulently terminating a coal supply agreement that led to the closure of Harman Mining. The West Virginia Supreme Court overturned a $50 million jury verdict against Massey in 2007 despite demands for Justice Benjamin’s disqualification. The U.S. Supreme Court agreed to review the appeal in 2008 amid pressure from major corporations advocating for reversal due to alleged judicial partiality. In 2009, by a narrow 5–4 decision, the Supreme Court ordered Justice Benjamin’s recusal and sent the case back for reconsideration.

In 2003, Massey was mandated to compensate residents of Sylvester, West Virginia, $473,000 for health complications and property damage caused by coal dust emissions from its Elk Run Processing Plant; this ruling also required building a dust containment dome.

A civil jury awarded $1.54 million in 2004 to 245 residents of Mingo County after Massey’s mining operations depleted their water wells, citing reckless disregard for their rights.

In 2005, Wheeling-Pittsburgh Steel initiated legal action against Massey for failing to supply 104,000 tons of coal monthly. A Brooke County court upheld a $267 million jury award in 2007; Massey’s appeal was declined by the U.S. Supreme Court in 2008.

Local residents near Massey’s Goals Coal Company in Raleigh County voiced health concerns in 2005 about a coal silo adjacent to Marsh Fork Elementary School. Although the West Virginia Division of Environmental Protection revoked the silo permit, economic support from local workers fueled opposition to protests. High-profile individuals including actress Daryl Hannah and NASA climatologist James E. Hansen were arrested during demonstrations. The West Virginia Supreme Court authorized construction of a second silo in 2009.

In December 2008, residents of Prenter filed a lawsuit regarding contamination from underground slurry injection affecting water supplies; this case was resolved through a confidential settlement by June 2012.

On October 30, 2009, Fayette County Judge Paul Blake ruled that more than 200 miners who were not rehired following Massey’s acquisition of a bankrupt mine deserved an $8.75 million settlement for age discrimination. The agreement required Massey to reinstate these miners and provide individual payments ranging between $19,000 and $38,000.

Community involvement

Massey Energy supported its local communities through various programs, including an annual Christmas Extravaganza aimed at children in the area, funding for educational institutions, and the provision of $1 million in scholarships for college and postgraduate studies. The company was a co-sponsor of the Appalachian Leadership and Education Foundation (ALEF) and, in 1997, collaborated with Marshall University to establish Doctors for our Communities, a program offering medical student loans that are forgiven if recipients commit to practicing medicine for a minimum of seven years within Massey’s operational territory. The William E. Massey Cancer Center at Virginia Commonwealth University bears his name in honor of his philanthropic contributions.

In 2005, Massey introduced the Family Wellness Center, delivering healthcare services to employees’ families located in McDowell and Logan counties, West Virginia—regions identified by a Harvard study as having some of the shortest life expectancies nationwide. This project aimed to improve essential medical care access for both the company's workforce and nearby residents.

External links

Massey Energy Google Finance
Massey 2009 Corporate Social Responsibility Report
Massey Annual Report FY 2007
Massey Energy Blasts West Virginia’s Coal River - video report by Democracy Now!
Impact on Marsh Fork Elementary School by critics