Covia Holdings Corp - FORM 10-Q - EX-95.1 - August 14, 2018

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10-Q - 10-Q - Covia Holdings Corpcvia-10q_20180630.htm

 

Exhibit 95.1

MINE SAFETY DISCLOSURES

 

The following disclosures are provided pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) and Item 104 of Regulation S-K, which requires certain disclosures by companies required to file periodic reports under the Securities Exchange Act of 1934, as amended, that operate mines regulated under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”).

Mine Safety Information.  Whenever the Federal Mine Safety and Health Administration (“MSHA”) believes a violation of the Mine Act, any health or safety standard or any regulation has occurred, it may issue a citation which describes the alleged violation and fixes a time within which the U.S. mining operator must abate the alleged violation.  In some situations, such as when MSHA believes that conditions pose a hazard to miners, MSHA may issue an order removing miners from the area of the mine affected by the condition until the alleged hazards are corrected.  When MSHA issues a citation or order, it generally proposes a civil penalty, or fine, as a result of the alleged violation, that the operator is ordered to pay.  Citations and orders can be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed.  The number of citations, orders and proposed assessments vary depending on the size and type (underground or surface) of the mine as well as by the MSHA inspector(s) assigned.

The below table reflects citations and orders issued to Covia Holdings Corporation by MSHA during the second quarter of the fiscal year from April 1, 2018 to June 30, 2018.  The proposed assessments were obtained from the MSHA data retrieval system.  The tables below do not include any orders or citations issued to independent contractors at our mines.

 

Mine(1)

 

Mine ID Number

 

Section 104 S&S Citations(2)

 

 

Section 104(b) Orders(3)

 

 

Section 104(d) Citations & Orders(4)

 

 

Section 110(b)(2) Violations(5)

 

 

Section 107(a) Orders(6)

 

 

Proposed Assessments(7) (Amounts in Dollars)

 

Southern Lime

 

01-03227

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

295

 

Guion Plant

 

03-00313

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

472

 

Junction City Plant

 

09-00726

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

163

 

Oregon Plant

 

11-01579

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

429

 

Utica Plant

 

11-01015

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,546

 

Troy Grove Plant

 

11-01580

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

236

 

Elco Plant

 

11-01981

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

118

 

Huntingburg Mill

 

12-01932

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

191

 

Ottawa Plant

 

21-00790

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

236

 

Kasota Plant

 

21-02836

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

236

 

Pevely Plant

 

23-00706

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

236

 

Marston Plant

 

31-01518

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,300

 

Diving Creek Plant

 

28-00605

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,255

 

Roff Plant

 

34-00304

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

361

 

Voca Plant

 

41-03929

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

399

 

Best Southern

 

33-03877

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

236

 

Brewer Sand

 

23-02364

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,275

 

Kermit

 

41-05310

 

 

3

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

545

 

Maiden Rock

 

47-03110

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,225

 

Menomonie

 

47-03512

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

118

 

Shakopee

 

21-03769

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

118

 

Voca Sand

 

41-04746

 

 

7

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12,508

 

Wedron Silica

 

11-01578

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,248

 

TOTALS

 

 

 

 

17

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

29,746

 

 

(1)

The definition of a mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, tools, and minerals preparation facilities.  Unless otherwise indicated, any of these other items associated with a single mine have been aggregated in the totals for that mine.  MSHA assigns an identification number to each mine and may or may not assign separate identification numbers to related facilities such as preparation facilities.  We are providing the information in the table by mine rather than MSHA identification number because that is how we manage and operate our mining business and we believe this presentation will be more useful to investors than providing information based on MSHA identification numbers.

(2)

Mine Act section 104 S&S citations shown above are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a 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 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)

Represents the total dollar value of the proposed assessment from MSHA under the Mine Act including those citations and orders that are not required to be included within the above chart. Specific orders and/or citations for a Mine may not have had assessments posted to the MSHA data retrieval system or made available to the Company by MSHA.

Pending Legal Actions.  The number of legal actions pending before the Federal Mine Safety and Health Review Commission as of June 30, 2018 that fall into each of the following categories is as follows:

 

Mine

 

Mine ID Number

 

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

 

Junction City Plant

 

09-00726

 

 

-

 

 

 

-

 

 

 

1

 

 

 

1

 

 

 

-

 

Oregon Plant

 

11-01579

 

 

-

 

 

 

-

 

 

 

1

 

 

 

1

 

 

 

-

 

Voca Plant

 

41-03929

 

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

-

 

TOTALS

 

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

2

 

 

 

-

 

 

(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 mine safety or health hazard.

 

Mine

 

Mine ID Number

 

Contests of Citations & Orders

 

 

Contests of Proposed Penalties

 

 

Complaints for Compensation

 

 

Complaints of Discharge/ Discrimination/ Interference

 

 

Applications for Temporary Relief

 

 

Appeals of Judges Rulings

 

Kermit

 

41-05310

 

 

-

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

TOTALS

 

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Covia Holdings Corp Reports