Massey's environmental stewardship questioned

Washington (Platts)--17May2006

After facing some tough questioning from shareholders concerned about
environmental issues during Massey Energy's annual meeting Tuesday, officers
assured stockholders the company is caring for the environment.

But results of a contested directors' election that drew the interest of Wall
Street won't be known for a while. The results will be made public through a
press release after the proxy votes have been counted and certified, said
Chairman, President and CEO Don Blankenship. He did not give a date for the
release.

The two sides have been seeking proxies for their positions for a couple of
months, and support from investment services is divided. Third Point, a hedge
fund that owns about 5.8% of Massey shares, nominated two men for the three
open seats on the board, saying they would increase shareholder value. Third
Point opposes Blankenship's compensation package.

Massey asked shareholders to support the three board members up for
re-election. The current board is seasoned and respected, while the company's
balance sheet is stronger with a low level of long-term liabilities,
Blankenship wrote to shareholders.

The effect of surface mining on Appalachia and its residents brought three
members of the Interfaith Center for Corporate Responsibility to the meeting,
where they questioned the company's environmental performance. Specifically,
they asked about the damage caused by surface mining, the safety of slurry
impoundments and the safety of drinking water supplies downstream from
impoundments.

One said surface mining is harmful to the health of communities, while another
said an impoundment 400 yards upstream from the Marsh Fork Elementary School
in West Virginia is a danger to the pupils. A third urged the company to pay
more attention to protecting families.

The company takes its environmental responsibilities very seriously, said
director Gordon Gee. A board committee oversees environmental issues, and "you
can be very certain the company will act in the most responsible way." Gee is
chairman of the committee.

The environmental regulations in West Virginia are "extremely strict,"
Blankenship said. The company moves about 300 million cubic yards of rock/year
and "we do it correctly.... Coal is mined and cleaned to the best of our
ability."

Massey's engineers say that impoundments act as dams and allow the soil to be
more absorptive, and they are built to withstand heavy rains, Blankenship
said. After Massey bought a competitor that owned an old impoundment above the
Marsh Fork school, the company filled in and reclaimed it because engineers
said it was unsafe.

The company is committed to working on the issues and to mine as safely and as
protective of the environment as possible, Blankenship said.

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