Washington (Platts)--15May2007

Stillhouse Mining in Harlan County, Kentucky, has been fined $761,000 by the
Mine Safety and Health Administration for alleged safety violations the agency
found during an inspection late last year.

Four citations were deemed "flagrant violations" under the Mine Improvement
and New Emergency Response Act, said MSHA spokesman Dirk Fillpot on Monday.

The four alleged violations and their penalties were: Failure to comply with
main mine fan stoppage requirements, $212,700; failure to comply with
requirements for intentional changes in the ventilation program, $212,700;
failure to comply with the approved roof control plan, $177,600; and failure
to perform a pre-shift examination of the workplace prior to the start of
work, $158,000.

MSHA defines a flagrant violation as a "reckless or repeated failure to make
reasonable efforts to eliminate a known violation of a mandatory safety and
health standard" that may cause death or serious injury. Under the Miner Act,
a civil penalty of up to $220,000 may be assessed for each flagrant violation.

The alleged violations came from an inspection that started December 3, 2006.
The delay in issuing the fines was because the Miner Act was new and the
penalties were for flagrant violations, Fillpot said. 

The most recent inspection listed on the MSHA web site started in early April
and is ongoing. 

The Stillhouse No. 1 mine remains in operation, "as far as I know," said Chuck
Wolfe, spokesman for the Kentucky Office of Mine Safety and Licensing. 

Company officials could not be reached for comment.

At Stillhouse No. 1, two miners were killed in a 2005 roof fall while retreat
mining. The fatal mishap led to a state investigation into retreat mining and
changes in the practice.

Stillhouse No. 1 produced 113,805 short tons of coal in the first quarter this
year and 519,781 st in 2006. 

The company also owns Stillhouse No. 2 in Harlan County, which extracted
126,952 st in Q1 2007 and 494,414 st in 2006. That mine was not involved in
the issued violations or penalties. 

-- Bob Matyi, bobmaty@adelphia.net