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EXCEL - IDEA: XBRL DOCUMENT - ALLIANCE RESOURCE PARTNERS LPFinancial_Report.xls
EX-31.2 - EX-31.2 - ALLIANCE RESOURCE PARTNERS LPa14-19722_1ex31d2.htm
EX-32.1 - EX-32.1 - ALLIANCE RESOURCE PARTNERS LPa14-19722_1ex32d1.htm
EX-32.2 - EX-32.2 - ALLIANCE RESOURCE PARTNERS LPa14-19722_1ex32d2.htm
10-Q - FORM 10-Q - ALLIANCE RESOURCE PARTNERS LPa14-19722_110q.htm
EX-31.1 - EX-31.1 - ALLIANCE RESOURCE PARTNERS LPa14-19722_1ex31d1.htm

EXHIBIT 95.1

 

Federal Mine Safety and Health Act Information

 

Workplace safety is fundamental to our culture.  Our operating subsidiaries empower their employees to be actively involved in continuous efforts to prevent accidents.  By providing a work environment that rewards safety and encourages employee participation in the safety process, our mining operations strive to be the leaders in safety performance in our industry.

 

We are also a recognized leader in developing and implementing new technologies to improve safety throughout the industry.  Our subsidiary, Matrix Design, is an innovator in the design and development of technologies intended to improve safety in underground mining operations.  In fact, in 2013, Matrix Design was awarded a Mine Safety and Health Technology Innovation Award by the U.S. National Institute for Occupational Safety and Health.  Matrix Design products include portable, wireless communication and electronic tracking systems for providing surface personnel the ability to communicate with and locate underground mining personnel, and proximity detection systems designed to improve the safety of continuous mining machines and other mobile equipment used in underground operations.  Matrix Design has completed installation of its communication and tracking system at our operating subsidiaries and has either installed or received orders to install this vital safety system at over half of the operating underground coal mines in the U.S.  In addition, Matrix Design’s first-generation proximity detection system, M3-1000, has been installed on continuous miners in use at underground coal mines operated by our subsidiaries and others.  The Mine Safety and Health Administration (“MSHA”) also recently approved Matrix Design’s second-generation proximity detection system, IntelliZone, expanding the availability of this safety technology to various forms of mobile equipment used in underground mines to carry coal between continuous miners and conveyor belts.  In addition, in September 2013, Matrix Design received MSHA approval for the use of Matrix Design’s new advanced-technology atmospheric monitoring sensors (“AMS”) for underground mining operations.  The AMS technology, which was developed at the request of Alpha Natural Resources, Inc. (“Alpha”) and is presently being implemented at various Alpha affiliates, is designed to provide services that integrate voice communications, personnel tracking, atmospheric monitoring, and calibration tools for underground mining.  The AMS technology is designed to operate by either wired or wireless connections.

 

Our industry is focused on improving employee safety and its safety performance is continuously monitored, including through the mining industry standard of “non-fatal days lost,” or “NFDL,” which reflects both the frequency and severity of injuries incurred and, we believe, is a better measure of safety performance than compliance statistics.  As indicated in the chart below, these efforts have resulted in significant safety improvements as the industry average NFDL as of the third quarter of 2014, as reported(a) by MSHA, has decreased approximately 56% since 2001.

 



 

 

(a)         Data compiled for all U.S. underground bituminous coal mines and related surface facilities from the MSHA report “Mine Injury and Worktime, Quarterly Closeout Edition.”  Data for 2001 through 2013 reflects the “January – December, Final” report for each year.  Data for 2014 reflects the “January – June, Preliminary” report for the first six months of 2014.

 

During this same time period, the combined NFDL rating of our operating subsidiaries has averaged approximately one-third lower than the industry average.

 

Our mining operations are subject to extensive and stringent compliance standards established pursuant to the Federal Mine Safety and Health Act of 1977, as amended by the Federal Mine Improvement and New Emergency Response Act of 2006 (as amended, the “Mine Act”).  MSHA monitors and rigorously enforces compliance with these standards, and our mining operations are inspected frequently.  Citations and orders are issued by MSHA under Section 104 of the Mine Act for violations of the Mine Act or any mandatory health or safety standard, rule, order or regulation promulgated under the Mine Act.  A Section 104(a) “Significant and Substantial” or “S&S” citation is generally issued in a situation where the conditions created by the violation do not cause imminent danger, but in the opinion of the MSHA inspector could significantly and substantially contribute to the cause and effect of a mine safety or health hazard.  During the three months ended September 30, 2014, our mines were subject to 1,827 MSHA inspection days with an average of only 0.12 S&S citations written per inspection day.

 

We endeavor to comply at all times with all Mine Act regulations.  However, the Mine Act has been construed as authorizing MSHA to issue citations and orders pursuant to the legal doctrine of strict liability, or liability without regard to fault.  If, in the opinion of an MSHA inspector, a condition exists that violates the Mine Act or regulations promulgated thereunder, then a citation or order will be issued regardless of whether we had any knowledge of, or fault in, the existence of that condition.  Many of the Mine Act standards include one or more subjective elements,

 



 

so that issuance of a citation often depends on the opinions or experience of the MSHA inspector involved and the frequency of citations will vary from inspector to inspector.

 

The number of citations issued also is affected by the size of the mine, in that the number of citations issued generally increases with the size of the mine.  Our mines typically are larger in scale than most underground coal mines in the U.S. in terms of area, production and employee hours.

 

We take all allegations of violations of Mine Act standards seriously, and if we disagree with the assertions of an MSHA inspector, we exercise our right to challenge those findings by “contesting” the citation or order pursuant to the procedures established by the Mine Act and its regulations.  During the three months ended September 30, 2014, our operating subsidiaries have contested approximately 26% of all citations and 67% of S&S citations issued by MSHA inspectors.  These contest proceedings frequently result in the dismissal or modification of previously issued citations, substantial reductions in the penalty amounts originally assessed by MSHA, or both.

 

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) requires issuers to include in periodic reports filed with the SEC certain information relating to citations or orders for violations of standards under the Mine Act.  The following tables include information required by the Dodd-Frank Act for the three months ended September 30, 2014.  The mine data retrieval system maintained by MSHA may show information that is different than what is provided herein.  Any such difference may be attributed to the need to update that information on MSHA’s system and/or other factors.

 



 

Subsidiary Name / MSHA
Identification Number 
(1)

 

Section 104(a)
S&S

Citations(2)

 

Section
104(b)

Orders (3)

 

Section 104(d)
Citations and

Orders (4)

 

Section 
110(b)(2)

Violations (5)

 

Section
107(a)

Orders (6)

 

Total Dollar Value of
MSHA Assessments
Proposed

(in thousands) (7)

 

 

 

 

 

 

 

 

 

 

 

 

 

Illinois Basin Operations

 

 

 

 

 

 

 

 

 

 

Webster County Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1502132

 

27

 

-

 

-

 

-

 

-

 

$

54.5

1511935

 

-

 

-

 

-

 

-

 

-

 

$

0.7

Warrior Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1505230

 

-

 

-

 

-

 

-

 

-

 

$

-

1512083

 

-

 

-

 

-

 

-

 

-

 

$

-

1513514

 

-

 

-

 

-

 

-

 

-

 

$

-

1516460

 

-

 

-

 

-

 

-

 

-

 

$

-

1517216

 

33

 

-

 

4

 

-

 

-

 

$

113.1

1517232

 

6

 

-

 

-

 

-

 

-

 

$

26.0

1517678

 

-

 

-

 

-

 

-

 

-

 

$

-

1517740

 

-

 

-

 

-

 

-

 

-

 

$

-

1517758

 

-

 

-

 

-

 

-

 

-

 

$

-

1514335

 

-

 

-

 

-

 

-

 

-

 

$

0.8

Hopkins County Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1502013

 

1

 

-

 

-

 

-

 

-

 

$

-

1517377

 

-

 

-

 

-

 

-

 

-

 

$

-

1517515

 

-

 

-

 

-

 

-

 

-

 

$

-

1518826

 

32

 

1

 

3

 

-

 

-

 

$

149.9

1517378

 

-

 

-

 

-

 

-

 

-

 

$

-

River View Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1503178

 

1

 

-

 

-

 

-

 

-

 

$

0.9

1519374

 

40

 

-

 

-

 

-

 

-

 

$

68.0

White County Coal, LLC (IL)

 

 

 

 

 

 

 

 

 

 

1102662

 

-

 

-

 

-

 

-

 

-

 

$

-

1103058

 

15

 

-

 

-

 

-

 

-

 

$

105.5

Alliance WOR Processing, LLC (IL)

 

 

 

 

 

 

 

 

 

 

1103242

 

1

 

-

 

-

 

-

 

-

 

$

0.3

Gibson County Coal, LLC (IN)

 

 

 

 

 

 

 

 

 

 

1202388

 

-

 

-

 

-

 

-

 

-

 

$

2.0

1202215

 

16

 

-

 

-

 

-

 

-

 

$

40.5

Sebree Mining, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1519264

 

-

 

-

 

-

 

-

 

-

 

$

-

1518547

 

17

 

-

 

-

 

-

 

-

 

$

27.8

1518864

 

-

 

-

 

-

 

-

 

-

 

$

-

1517044

 

-

 

-

 

-

 

-

 

-

 

$

0.2

Appalachia Operations

 

 

 

 

 

 

 

 

 

 

MC Mining, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1508079

 

-

 

-

 

-

 

-

 

-

 

$

-

1517733

 

1

 

-

 

-

 

-

 

-

 

$

2.4

1519515

 

5

 

-

 

-

 

-

 

-

 

$

15.8

Mettiki Coal, LLC (MD)

 

 

 

 

 

 

 

 

 

 

1800621

 

-

 

-

 

-

 

-

 

-

 

$

-

1800671

 

-

 

-

 

-

 

-

 

-

 

$

1.3

Mettiki Coal (WV), LLC

 

 

 

 

 

 

 

 

 

 

4609028

 

5

 

-

 

-

 

-

 

-

 

$

8.1

Tunnel Ridge, LLC (PA/WV)

 

 

 

 

 

 

 

 

 

 

4608864

 

14

 

-

 

-

 

-

 

-

 

$

40.2

Other

 

 

 

 

 

 

 

 

 

 

 

 

4403236

 

-

 

-

 

-

 

-

 

-

 

$

-

4403255

 

-

 

-

 

-

 

-

 

-

 

$

-

4406630

 

-

 

-

 

-

 

-

 

-

 

$

-

4406867

 

-

 

-

 

-

 

-

 

-

 

$

-

Pontiki Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1508413

 

-

 

-

 

-

 

-

 

-

 

$

-

1509571

 

-

 

-

 

-

 

-

 

-

 

$

-

1514324

 

-

 

-

 

-

 

-

 

-

 

$

-

1518839

 

-

 

-

 

-

 

-

 

-

 

$

0.1

1518056

 

-

 

-

 

-

 

-

 

-

 

$

-

 



 

Subsidiary Name / MSHA 
Identification Number 
(1)

 

Total Number of
Mining Related
Fatalities

 

Received Notice
of Pattern of
Violations Under
Section 104(e)
(yes/no) 
(8)

 

Legal Actions
Pending as of
Last Day of
Period

 

Legal Actions
Initiated During
Period

 

Legal Actions Resolved
During Period

 

 

 

 

 

 

 

 

 

 

 

Illinois Basin Operations

 

 

 

 

 

 

 

 

 

 

Webster County Coal, LLC (KY)

 

 

 

 

 

 

 

 

1502132

 

-

 

No

 

19

 

1

 

12

1511935

 

-

 

No

 

-

 

-

 

-

Warrior Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1505230

 

-

 

No

 

-

 

-

 

-

1512083

 

-

 

No

 

-

 

-

 

-

1513514

 

-

 

No

 

-

 

-

 

-

1516460

 

-

 

No

 

-

 

-

 

-

1517216

 

-

 

No

 

28

 

2

 

2

1517232

 

-

 

No

 

4

 

2

 

-

1517678

 

-

 

No

 

-

 

-

 

-

1517740

 

-

 

No

 

-

 

-

 

-

1517758

 

-

 

No

 

-

 

-

 

-

1514335

 

-

 

No

 

1

 

-

 

-

Hopkins County Coal, LLC (KY)

 

 

 

 

 

 

 

 

1502013

 

-

 

No

 

-

 

-

 

-

1517377

 

-

 

No

 

-

 

-

 

-

1517515

 

-

 

No

 

-

 

-

 

-

1518826

 

-

 

No

 

16

 

3

 

6

1517378

 

-

 

No

 

-

 

-

 

-

River View Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1503178

 

-

 

No

 

-

 

-

 

-

1519374

 

-

 

No

 

4

 

-

 

8

White County Coal, LLC (IL)

 

 

 

 

 

 

 

 

 

 

1102662

 

-

 

No

 

-

 

-

 

-

1103058

 

-

 

No

 

12

 

1

 

7

Alliance WOR Processing, LLC (IL)

 

 

 

 

 

 

 

 

1103242

 

-

 

No

 

-

 

-

 

-

Gibson County Coal, LLC (IN)

 

 

 

 

 

 

 

 

1202388

 

-

 

No

 

2

 

1

 

-

1202215

 

-

 

No

 

6

 

1

 

-

Sebree Mining, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1519264

 

-

 

No

 

-

 

-

 

-

1518547

 

-

 

No

 

4

 

1

 

8

1518864

 

-

 

No

 

-

 

-

 

-

1517044

 

-

 

No

 

-

 

-

 

-

Appalachia Operations

 

 

 

 

 

 

 

 

 

 

MC Mining, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1508079

 

-

 

No

 

4

 

-

 

9

1517733

 

-

 

No

 

-

 

-

 

-

1519515

 

-

 

No

 

1

 

1

 

-

Mettiki Coal, LLC (MD)

 

 

 

 

 

 

 

 

 

 

1800621

 

-

 

No

 

-

 

-

 

-

1800671

 

-

 

No

 

-

 

-

 

-

Mettiki Coal (WV), LLC

 

 

 

 

 

 

 

 

 

 

4609028

 

-

 

No

 

10

 

2

 

2

Tunnel Ridge, LLC (PA/WV)

 

 

 

 

 

 

 

 

 

 

4608864

 

-

 

No

 

14

 

4

 

5

Other

 

 

 

 

 

 

 

 

 

 

4403236

 

-

 

No

 

-

 

-

 

-

4403255

 

-

 

No

 

-

 

-

 

-

4406630

 

-

 

No

 

-

 

-

 

-

4406867

 

-

 

No

 

-

 

-

 

-

Pontiki Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

1508413

 

-

 

No

 

-

 

-

 

-

1509571

 

-

 

No

 

-

 

-

 

-

1514324

 

-

 

No

 

-

 

-

 

2

1518839

 

-

 

No

 

4

 

-

 

-

1518056

 

-

 

No

 

-

 

-

 

-

 



 

The number of legal actions pending before the Federal Mine Safety and Health Review Commission as of September 30, 2014 that fall into each of the following categories is as follows:

 

Subsidiary Name / MSHA
Identification Number 
(1)

 

Contests of
Citations
and Orders

 

Contests of
Proposed
Penalties

 

Complaints
for
Compensation

 

Complaints of
Discharge/
Discrimination/
Interference

 

Applications
for
Temporary
Relief

 

Appeals of Judges
Rulings

 

 

 

 

 

 

 

 

 

 

 

 

 

Illinois Basin Operations

 

 

 

 

 

 

 

 

 

 

 

 

Webster County Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

 

 

1502132

 

1

 

18

 

-

 

-

 

-

 

-

1511935

 

-

 

-

 

-

 

-

 

-

 

-

Warrior Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

 

 

1505230

 

-

 

-

 

-

 

-

 

-

 

-

1512083

 

-

 

-

 

-

 

-

 

-

 

-

1513514

 

-

 

-

 

-

 

-

 

-

 

-

1516460

 

-

 

-

 

-

 

-

 

-

 

-

1517216

 

6

 

22

 

-

 

-

 

-

 

-

1517232

 

-

 

4

 

-

 

-

 

-

 

-

1517678

 

-

 

-

 

-

 

-

 

-

 

-

1517740

 

-

 

-

 

-

 

-

 

-

 

-

1517758

 

-

 

-

 

-

 

-

 

-

 

-

1514335

 

-

 

1

 

-

 

-

 

-

 

-

Hopkins County Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

 

 

1502013

 

-

 

-

 

-

 

-

 

-

 

-

1517377

 

-

 

-

 

-

 

-

 

-

 

-

1517515

 

-

 

-

 

-

 

-

 

-

 

-

1518826

 

3

 

13

 

-

 

-

 

-

 

4

1517378

 

-

 

-

 

-

 

-

 

-

 

-

River View Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

 

 

1503178

 

-

 

-

 

-

 

-

 

-

 

-

1519374

 

-

 

4

 

-

 

-

 

-

 

-

White County Coal, LLC (IL)

 

 

 

 

 

 

 

 

 

 

 

 

1102662

 

-

 

-

 

-

 

-

 

-

 

-

1103058

 

-

 

12

 

-

 

-

 

-

 

-

Alliance WOR Processing, LLC (IL)

 

 

 

 

 

 

 

 

 

 

 

 

1103242

 

-

 

-

 

-

 

-

 

-

 

-

Gibson County Coal, LLC (IN)

 

 

 

 

 

 

 

 

 

 

 

 

1202388

 

-

 

2

 

-

 

-

 

-

 

-

1202215

 

-

 

6

 

-

 

-

 

-

 

-

Sebree Mining, LLC (KY)

 

 

 

 

 

 

 

 

 

 

 

 

1519264

 

-

 

-

 

-

 

-

 

-

 

-

1518547

 

-

 

4

 

-

 

-

 

-

 

-

1518864

 

-

 

-

 

-

 

-

 

-

 

-

1517044

 

-

 

-

 

-

 

-

 

-

 

-

Appalachia Operations

 

 

 

 

 

 

 

 

 

 

 

 

MC Mining, LLC (KY)

 

 

 

 

 

 

 

 

 

 

 

 

1508079

 

-

 

4

 

-

 

-

 

-

 

-

1517733

 

-

 

-

 

-

 

-

 

-

 

-

1519515

 

-

 

1

 

-

 

-

 

-

 

-

Mettiki Coal, LLC (MD)

 

 

 

 

 

 

 

 

 

 

 

 

1800621

 

-

 

-

 

-

 

-

 

-

 

-

1800671

 

-

 

-

 

-

 

-

 

-

 

-

Mettiki Coal (WV), LLC

 

 

 

 

 

 

 

 

 

 

 

 

4609028

 

-

 

10

 

-

 

-

 

-

 

-

Tunnel Ridge, LLC (PA/WV)

 

 

 

 

 

 

 

 

 

 

 

 

4608864

 

-

 

14

 

-

 

-

 

-

 

-

Other

 

 

 

 

 

 

 

 

 

 

 

 

4403236

 

-

 

-

 

-

 

-

 

-

 

-

4403255

 

-

 

-

 

-

 

-

 

-

 

-

4406630

 

-

 

-

 

-

 

-

 

-

 

-

4406867

 

-

 

-

 

-

 

-

 

-

 

-

Pontiki Coal, LLC (KY)

 

 

 

 

 

 

 

 

 

 

 

 

1508413

 

-

 

-

 

-

 

-

 

-

 

-

1509571

 

-

 

-

 

-

 

-

 

-

 

-

1514324

 

-

 

-

 

-

 

-

 

-

 

-

1518839

 

-

 

4

 

-

 

-

 

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1

1518056

 

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(1)         The statistics reported for each of our subsidiaries listed above are segregated into specific MSHA identification numbers.

 

(2)         Mine Act section 104(a) S&S citations shown above are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine health and safety hazard.  It should be noted that, for purposes of this table, S&S citations that are included in another column, such as Section 104(d) citations, are not also included as Section 104(a) S&S citations in this column.

 

(3)         Mine Act section 104(b) orders are for alleged failures to totally abate a citation within the time period specified in the citation.

 

(4)         Mine Act section 104(d) citations and orders are for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with mandatory health or safety standards.

 

(5)         Mine Act section 110(b)(2) violations are for an alleged “flagrant” failure (i.e., reckless or repeated) to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

 

(6)         Mine Act section 107(a) orders are for alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition.

 

(7)         Amounts shown include assessments proposed by MSHA during the three months ended September 30, 2014 on all citations and orders, including those citations and orders that are not required to be included within the above chart.

 

(8)         Mine Act section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine safety or health hazard.