Massey wins Goals silo decision, but W.Va. DEP may appeal ruling

Washington (Platts)--15Mar2007

Massey Energy is claiming that the West Virginia Surface Mine Board's decision
to allow it to build a second coal-storage silo near an elementary school is a
good one for the environment.

The state Department of Environmental Protection is not happy with the board's
decision and may appeal the matter to Raleigh County Circuit Court, DEP
spokeswoman Jessica Greathouse told Platts on Wednesday.

The coal silo controversy has seesawed for and against Massey for about two
years. Long opposed by local residents near Marsh Fork Elementary School and
the Coal River Mountain Watch, the silo was at first granted a permit by DEP
in 2005, which then quickly rescinded it after concluding the silo was not
within the permit boundary. State law requires at least 300 feet between a
coal silo and an elementary school (PCT 7/26/06).

Massey appealed that rescission to the SMB, which upheld the rescission but
said that Massey could re-apply for the silo permit with "accurate maps that
show accurate permit boundaries," Greathouse said.

Massey re-applied about a year ago, and DEP turned down that application.
Massey then appealed again to the SMB in August 2006, and the board upheld the
permit in a March 13 decision.

In its decision, the SMB said that the majority of the board voted to reverse
DEP's denial of the permit. The board found "that the construction of the
second silo is part of an 'existing operation' and should have been permitted
by DEP." The board also voted unanimously that Massey's revised maps submitted
to the DEP accurately depicted permit boundaries.

"We are pleased with the ruling and view the proposed silo as another step in
our efforts to improve environmental performance at the site," said Massey
Energy CEO Don Blankenship in a March 13 statement. "It is very unfortunate
that the project was unnecessarily delayed."

In the company statement, Massey contended, "The silo should serve as the
latest environmental improvement at the Goals facility. ... The silo will
allow Goals to encapsulate coal that is currently stored on the ground in
open-air stockpiles."

Massey added, "This silo is one of many environmental improvements since [the
company acquired] the 1970s-era facility in 1994."

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