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10-Q - FORM 10-Q - Summit Materials, Inc.d901322d10q.htm

Exhibit 95.1

Mine Safety Disclosures

The operation of Summit Materials, Inc.’s and its subsidiaries’ (collectively, the “Company”) aggregates quarries and mines is subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects the Company’s quarries and mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders may be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), the Company is required to present information regarding certain mining safety and health citations which MSHA has issued with respect to its aggregates mining operations in its periodic reports filed with the Securities and Exchange Commission (the “SEC”). In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the quarry or mine and types of operations (underground or surface); (ii) the number of citations issued will vary from inspector to inspector and location to location; and (iii) citations and orders can be contested and appealed, and in that process, may be reduced in severity and amount, and are sometimes dismissed.

The Company presents the following items regarding certain mining safety and health matters for the three months ended March 28, 2015, as applicable:

 

    Total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under Section 104 of the Mine Act for which the Company has received a citation from MSHA (hereinafter, “Section 104 S&S Citations”). If MSHA determines that a violation of a mandatory health or safety standard is likely to result in a reasonably serious injury or illness under the unique circumstance contributed to by the violation, MSHA will classify the violation as a “significant and substantial” violation (commonly referred to as a “S&S” violation). MSHA inspectors will classify each citation or order written as a “S&S” violation or not.

 

    Total number of orders issued under Section 104(b) of the Mine Act (hereinafter, “Section 104(b) Orders”). These orders are issued for situations in which MSHA determines a previous violation covered by a Section 104(a) citation has not been totally abated within the prescribed time period, so a further order is needed to require the mine operator to immediately withdraw all persons (except authorized persons) from the affected area of a quarry or mine.

 

    Total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under Section 104(d) of the Mine Act (hereinafter, “Section 104(d) Citations and Orders”). These violations are similar to those described above, but the standard is that the violation could significantly and substantially contribute to the cause and effect of a safety or health hazard, but the conditions do not cause imminent danger, and the MSHA inspector finds that the violation is caused by an unwarranted failure of the operator to comply with the health and safety standards.

 

    Total number of flagrant violations under Section 110(b)(2) of the Mine Act (hereinafter, “Section 110(b)(2) Violations”). These violations are penalty violations issued if MSHA determines that violations are “flagrant”, for which civil penalties may be assessed. A “flagrant” violation means a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

 

    Total number of imminent danger orders issued under Section 107(a) of the Mine Act (hereinafter, “Section 107(a) Orders”). These orders are issued for situations in which MSHA determines an imminent danger exists in the quarry or mine and results in orders of immediate withdrawal of all persons (except certain authorized persons) from the area of the quarry or mine affected by its condition until the imminent danger and the underlying conditions causing the imminent danger no longer exist.

 

    Total dollar value of proposed assessments from MSHA under the Mine Act. These are the amounts of proposed assessments issued by MSHA with each citation or order for the time period covered by the reports. Penalties are assessed by MSHA according to a formula that considers a number of factors, including the mine operator’s history, size, negligence, gravity of the violation, good faith in trying to correct the violation promptly, and the effect of the penalty on the operator’s ability to continue in business.

 

    Total number of mining-related fatalities. Mines subject to the Mine Act are required to report all fatalities occurring at their facilities unless the fatality is determined to be “non-chargeable” to the mining industry. The final rules of the SEC require disclosure of mining-related fatalities at mines subject to the Mine Act. Only fatalities determined by MSHA not to be mining-related may be excluded.


    Receipt of written notice from MSHA of a pattern (or a potential to have such a pattern) of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of other mine health or safety hazards under Section 104(e) of the Mine Act. If MSHA determines that a mine has a “pattern” of these types of violations, or the potential to have such a pattern, MSHA is required to notify the mine operator of the existence of such a thing.

 

    Legal actions before the Federal Mine Safety and Health Review Commission (the “Commission”) pending as of the last day of period.

 

    Legal actions before the Commission initiated during period.

 

    Legal actions before the Commission resolved during period.

The Commission is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. The cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act. There were no legal actions pending before the Commission for any of the Company’s quarries and mines, as of or during the quarter ended March 28, 2015.

Appendix 1 follows.


Appendix 1

 

Name of Company

  

Name of Operation

  

MSHA ID
Number

  

State

   Number
of
Inspections
   Total
Number of
Section
104 S&S
Citations
   Section
104(b)
Orders
   Section
104(d)
Citations
and
Orders
   Section
110(b)(2)
Violations
   Section
107(a)
Orders
   Total
Dollar
Value of
Proposed
MSHA
Assessments
     Total
Number
of
Mining
Related
Fatalities
   Received
Written
Notice
Under
Section
104(e)(yes/no)
   Received
Written
Notice of
Potential
Violation
under
104(e)(yes/no)
   Number
of
Contested
Citations
   Number
of
Contested
Penalties
   Total
Dollar
Value of
Penalties
in Contest
     Number of
Complaints

of
Discharge
or Discri-

mination

Alleyton Resources

   Monahan    4104552    TX    1    0    0    0    0    0    $ 100.00       0    No    No    0    0    $ 0.00       0

Alleyton Resources

   4L Ranch    4104416    TX    1    1    0    0    0    0    $ 176.00       0    No    No    0    0    $ 0.00       0

Alleyton Resources

   Potter Plant    4104987    TX    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Alleyton Resources

   Vox Plant    4105081    TX    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Alleyton Resources

   Rental Plant 1    0504616    TX    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Austin Materials

   Hays Quarry    4104514    TX    2    1    0    0    0    0    $ 243.00       0    No    No    0    0    $ 0.00       0

Austin Materials

   Ramming Pit    4104807    TX    0    0    0    0    0    0    $ 0.00       0    No    No    1    1    $ 634.00       0

Con-Agg of MO

   Boon Quarries West    2300022    MO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Con-Agg of MO

   plant # 80    2302071    MO    1    0    0    0    0    0    $ 100.00       0    No    No    3    3    $ 672.00       0

Con-Agg of MO

   Plant # 81    2302296    MO    1    1    0    0    0    0    $ 343.00       0    No    No    0    0    $ 0.00       0

Con-Agg of MO

   Boon Quarries East    2300078    MO    1    0    0    0    0    0    $ 100.00       0    No    No    0    0    $ 0.00       0

Con-Agg of MO

   Huntsville Quarry    2302004    MO    2    0    0    0    0    0    $ 300.00       0    No    No    3    3    $ 5,832.00       0

Con-Agg of MO

   Con-Agg LLC dba Boone Quarries    2302153    MO    1    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Con-Agg of MO

   Plant # 65    2301922    MO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Con-Agg of MO

   Boone Quarries-North Telsmith Plant    2301894    MO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Con-Agg of MO

   Plant #83    2302338    MO    1    0    0    0    0    0    $ 0.00       0    No    No    2    2    $ 667.00       0

Concrete Supply/Builders Choice

   Oakland Sand River Plant    1401742    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Concrete Supply/Builders Choice

   Silver Lake Plant    1401702    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Continental Cement Company

   Hannibal Plant    2300217    MO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Continental Cement Company

   Owensville Plant    2301038    MO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Continental Cement Company

   Hannibal Underground    2302434    MO    4    2    0    0    0    0    $ 4,344.00       0    No    No    0    0    $ 0.00       0

Cornejo & Sons

   Oxford Sand and Gravel    1400522    KS    3    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Cornejo & Sons

   Wichita Sand and Gravel    1400543    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Cornejo & Sons

   Kingsbury    1400624    KS    1    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Cornejo & Sons

   Grove    1401539    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Cornejo & Sons

   Durbin Quarry    1401719    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   Plant #80006    1401471    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   Plant #80012    1401472    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   Plant # 80002    1401583    KS    0    0    0    0    0    0    $ 0.00       0    No    No    1    1    $ 460.00       0

Hamm, Inc

   Plant # 80013    1401609    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   Plant # 80010    1401687    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   Plant # 80011    1401470    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   Plant # 80003    1401474    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   85.9    1401759    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hamm, Inc

   Plant #81038    1401709    KS    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Hart County Stone Company    1500035    KY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Monroe Co. Stone    1500101    KY    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Allen Co. Stone    1500063    KY    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Glass Sand and Gravel    1504261    KY    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Bassett Stone Company    1500004    KY    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Tipton Ridge Quarry    1500019    KY    1    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Barren Co Stone    1506863    KY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Casey Stone Company    1500012    KY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Natural Bridge Stone    1500075    KY    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Somerset Stone Company    1500094    KY    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Lake Cumberland Stone    1500099    KY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Cave Run Stone    1507194    KY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Bourbon Limestone Company    1518415    KY    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Pulaski Stone Company    1519092    KY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Jellico Stone Company    4000057    TN    2    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Hinkle Contracting Company

   Ewing Stone    4400234    VA    2    0    0    0    0    0    $ 0.00       0    No    No    1    1    $ 460.00       0

Kilgore Companies

   Elam Construction Inc    0504593    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Washplant 2`    0504746    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Portable 1    4202528    UT    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Washplant 3    0504565    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Crusher1    0504296    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Washplant 1    0504873    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   West Valley    4201980    UT    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Parleys Stone    4202102    UT    3    1    0    0    0    0    $ 560.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Washplant 4    0503809    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Black Canyon 2100    1002146    ID    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Powerscreen 2100-2    1002147    ID    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Roadrunner Screen    1001916    ID    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Mona Pit    4202212    UT    3    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   KC-Portable 2 (WY)    4801625    WY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   KC-Portable 3 (WY)    4801626    WY    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Crusher 2    0504645    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Stockton Pit    4202480    UT    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Valley Pit    4200400    UT    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Highland Pit    4200941    UT    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Kilgore Companies

   Crusher 3    0504593    CO    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

RK Hall Construction

   Sawyer Plant    3401950    OK    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

RK Hall Construction

   Kirby Crusher #15    0301958    AR    0    0    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Troy Vines

   Vines Sand and Gravel    4103348    TX    1    2    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0

Troy Vines

   Vines Portable Plant    4103607    TX    1    1    0    0    0    0    $ 0.00       0    No    No    0    0    $ 0.00       0