Galax, Virginia (Platts)--8Apr2010/648 pm EDT/2248 GMT

Massey Energy's Upper Big Branch mine, where 25 workers died in an underground explosion April 5 and four miners are still missing, is within a few miles -- as the crow flies -- of other company mining projects that have aroused the ire of the community and environmentalists.

Massey has incurred the wrath of these parties in Raleigh County, West Virginia -- which produced 10.9 million short tons in 2008 and was the state's seventh-largest coal-producing county -- over an impoundment project, building a coal silo near an elementary school, and blasting at a surface mine.

In 2009, Massey had seven active underground mines -- including Upper Big Branch -- and the Edwight surface mine in Raleigh County, according to Platts data.

In summer 2009, Massey was allowed to build a second coal-storage silo near Marsh Fork Elementary School after the state's Supreme Court of Appeals upheld a 2007 decision by a lower court.

Massey has played a not-insignificant role in West Virginia politics in recent years, contributing millions of dollars to election campaigns including that of West Virginia Supreme Court of Appeals justices, who are elected by popular ballot. In summer 2009, the US Supreme Court returned to the state a longstanding lawsuit in which the defunct Harman Mining had sued Massey. While the state's high court ultimately decided in favor of Massey, the US high court noted Massey CEO Don Blankenship's contribution of $3 million to the election campaign of former Chief Justice Brent Benjamin.

The US Supreme Court justices' opinions frowned upon the campaign contributions from Blankenship for the election of Benjamin.

The 2009 ruling will allow Massey subsidiary Goals Coal to build the silo at the Goals Preparation Plant in Raleigh County. Opponents say the project will put a portion of the company's operations within 260 feet of the school.

Coincidentally, the school has become the media center for press conferences as the Upper Big Branch situation unfolds.

Massey has not yet begun construction of the second silo, according to Andrew Munn, volunteer coordinator and community organizer of Coal River Mountain Watch, a Whitesville, West Virginia, group that has challenged Massey on the silo, the impoundment and the Edwight blasting.

Upper Big Branch is about midway between Whitesville and the school, Munn said. The mine is four miles from the school and four miles from Whitesville. Munn said he didn't think coal from Upper Big Branch would be stored at the silo, as there is one closer at Montcoal--where the mine is--but coal from Edwight, through a processing plant, is stored in the existing silo.

Blasting also is a sore point with the community, Munn said. "They do blasting every day on the Edwight surface mine and the Twilight surface mine, both of which are directly above Upper Big Branch mine," he said. The West Virginia Department of Environmental Protection is looking into the effects of the blasting on a slurry dam and elsewhere in vicinity.

"We file regular complaints about blasting that we can hear or feel," Munn said. "Right now, the Edwight mine is under show-cause from DEP."

EDWIGHT SURFACE PERMIT AT ISSUE

"Massey has received violations before for blasting" at surface mines near underground operations, Munn said.

Massey officials were not available for comment Thursday, but DEP spokeswoman Kathy Cosco said the agency doubted surface blasting had anything to do with the Upper Big Branch accident, which appears to have been caused by an underground methane explosion.

"It's not plausible that blasting at the surface would travel hundreds of feet below the surface to trigger any explosion," Cosco said. "Typically, the blast follows the path of least resistance and even the surface rock that a blast might be up against only goes five to 10 feet into the solid formation."

On the Edwight show-cause hearing, Cosco said: "We've not concluded an order with the company in light of the circumstances this week...There are some blasting concerns that are in that show-cause order for Edwight...But we determined there wasn't a pattern--as far as the blasting violations." It was more over drainage concerns.

Cosco said in a March 11 e-mail that Edwight is under a show-cause order by the DEP "for a pattern of willful or unwarranted violations related to its failure to maintain its sediment control system and ditches."

In such an order, it is the company's responsibility to show why a permit should not be suspended or revoked by the DEP. If the company and the DEP cannot come to an agreement, then a hearing may take place.

"Because the onus is on the company to show cause as to why the permit should not be revoked, it is the company's responsibility to request a hearing," Cosco said.

"At this point, a hearing has not been scheduled. Should the company and DEP reach a consent agreement, the DEP has advised Coal River Mountain Watch that it would have the opportunity to comment on the proposed consent order. If CRMW objects to a proposed consent order, the DEP will conduct a hearing, taking their objections into account," he added.

In the last five years, DEP has issued 129 show-cause orders and conducted hearings on 15 of those. In that same time period, 83 permits were revoked, Cosco said.

--Steve Hooks, steve_hooks@platts.com