Summit Materials, LLC - FORM 10-K - EX-95.1 - February 23, 2015

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10-K - FORM 10-K - Summit Materials, LLCd840621d10k.htm

Exhibit 95.1

Mine Safety Disclosures

The operation of the Company’s aggregates quarries and mines are 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 (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 (“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 year ended December 27, 2014, 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 Continental Cement 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 Mines Act. There were no legal actions pending before the Commission for any of the Company’s quarries or the underground mine, as of or during the year ended December 27, 2014.

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 Purposed
MSHA
Assessments		   Total
Number
of
Mining
Related
Fatalities		   Received
Written
Notice
under
Section
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
Discrimination		  

Alleyton Resources

Monahan

   4104552    TX   2      —        —        —        —        —      $ 100      —      No   —        —      $ —        —     

Alleyton Resources

4L Ranch

   4104416    TX   2      —        —        —        —        —        317      —      No   —        —        —        —     

Alleyton Resources

Potter Plant

   4104987    TX   3      1      —        —        —        —        317      —      No   —        —        —        —     

Austin Materials

Hays Quarry

   4104514    TX   1      —        —        —        —        —        100      —      No   —        —        —        —     

Austin Materials

Ramming Pit

   4104807    TX   8      7      —        2      —        —        8,389      —      No   1      1      634      —     

Colorado Companies

Washplant 2

   0504746    CO   —        —        —        —        —        —        —        —      No   —        —        —        —     

Colorado Companies

Washplant 3

   0504565    CO   —        —        —        —        —        —        —        —      No   —        —        —        —     

Colorado Companies

Crusher1

   0504296    CO   1      —        —        —        —        —        300      —      No   —        —        —        —     

Colorado Companies

Washplant 1

   0504873    CO   1      1      —        —        —        —        217      —      No   —        —        —        —     

Colorado Companies

Washplant 4

   0503809    CO   2      —        —        —        —        —        600      —      No   —        —        —        —     

Colorado Companies

Crusher 2

   0504645    CO   2      7      —        1      —        —        4,087      —      No   —        —        —        —     

Colorado Companies

Elam Construction Inc

   0504593    CO   —        —        —        —        —        —        —        —      No   —        —        —        —     

Colorado Companies

Crusher 3

   0504593    CO   —        —        —        —        —        —        —        —      No   —        —        —        —     

Con-Agg of MO

Boon Quarries West

   2300022    MO   1      —        —        —        —        —        —        —      No   —        —        —        —     

Con-Agg of MO

plant # 80

   2302071    MO   2      5      —        —        —        —        1,346      —      No   3      3      672      —     

Con-Agg of MO

Plant # 81

   2302296    MO   2      1      —        —        —        —        324      —      No   —        —        —        —     

Con-Agg of MO

Boon Quarries East

   2300078    MO   2      —        —        —        —        —        100      —      No   —        —        —        —     

Con-Agg of MO

Huntsville Quarry

   2302004    MO   1      —        —        —        —        —        100      —      No   3      3      5,832      —     

Con-Agg of MO

Con-Agg LLC dba Boone Quarries

   2302153    MO   2      —        —        —        —        —        100      —      No   —        —        —        —     

Con-Agg of MO

Plant # 65

   2301922    MO   5      —        —        —        —        —        716      —      No   —        —        —        —     

Con-Agg of MO

Boone Quarries-North Telsmith Plant

   2301894    MO   —        —        —        —        —        —        —        —      No   —        —        —        —     

Con-Agg of MO

Plant #83

   2302338    MO   3      4      —        —        —        —        1,651      —      No   2      2      667      —     

Continental Cement Company

Hannibal Plant

   2300217    MO   —        —        —        —        —        —        —        —      No   7      7      36,986      —     

Continental Cement Company

Owensville Plant

   2301038    MO   4      1      —        —        —        —        427      —      No   —        —        —        —     

Continental Cement Company

Hannibal Underground

   2302434    MO   6      18      —        —        —        1      9,740      —      No   —        —        —        —     

Cornejo & Sons

Oxford Sand and Gravel

   1400522    KS   2      —        —        —        —        —        —        —      No   —        —        —        —     

Cornejo & Sons

Wichita Sand and Gravel

   1400543    KS   4      2      —        —        —        —        1,498      —      No   —        —        —        —     

Cornejo & Sons

Kingsbury

   1400624    KS   2      —        —        —        —        —        100      —      No   —        —        —        —     

Cornejo & Sons

Grove

   1401539    KS   —        —        —        —        —        —        —        —      No   —        —        —        —     

Cornejo & Sons

Durbin Quarry

   1401719    KS   3      1      —        —        —        —        200      —      No   —        —        —        —     

Hamm, Inc

Plant #80006

   1401471    KS   —        —        —        —        —        —        —        —      No   —        —        —        —     

Hamm, Inc

Plant #80012

   1401472    KS   3      1      —        —        —        —        899      —      No   —        —        —        —     

Hamm, Inc

Plant # 80002

   1401583    KS   2      4      —        —        —        1      1,284      —      No   1      1      460      —     

Hamm, Inc

Plant # 80013

   1401609    KS   2      —        —        —        —        —        100      —      No   —        —        —        —     

Hamm, Inc

Plant # 80010

   1401687    KS   1      —        —        —        —        —        —        —      No   —        —        —        —     

Hamm, Inc

Plant # 80011

   1401470    KS   3      —        —        —        —        —        400      —      No   —        —        —        —     

Hamm, Inc

Plant # 80003

   1401474    KS   4      —        —        —        —        —        100      —      No   —        —        —        —     

Hamm, Inc

85.9

   1401759    KS   —        —        —        —        —        —        —        —      No   —        —        —        —     

Hamm, Inc

Plant #81038

   1401709    KS   —        —        —        —        —        —        —        —      No   —        —        —        —     

Hinkle Contracting Company

Hart County Stone Company

   1500035    KY   1      1      —        —        —        —        376      —      No   —        —        —        —     

Hinkle Contracting Company

Monroe Co. Stone

   1500101    KY   2      1      —        —        —        —        438      —      No   —        —        —        —     

Hinkle Contracting Company

Allen Co. Stone

   1500063    KY   1      1      —        —        —        —        390      —      No   —        —        —        —     

Hinkle Contracting Company

Glass Sand and Gravel

   1504261    KY   2      —        —        —        —        —        300      —      No   —        —        —        —     

Hinkle Contracting Company

Bassett Stone Company

   1500004    KY   1      1      —        —        —        —        238      —      No   —        —        —        —     

Hinkle Contracting Company

Tipton Ridge Quarry

   1500019    KY   4      1      —        —        —        —        725      —      No   —        —        —        —     

Hinkle Contracting Company

Barren Co Stone

   1506863    KY   3      —        —        —        —        —        300      —      No   —        —        —        —     

Hinkle Contracting Company

Casey Stone Company

   1500012    KY   3      —        —        —        —        —        600      —      No   —        —        —        —     

Hinkle Contracting Company

Natural Bridge Stone

   1500075    KY   3      —        —        —        —        —        100      —      No   —        —        —        —     

Hinkle Contracting Company

Somerset Stone Company

   1500094    KY   2      —        —        —        —        —        300      —      No   —        —        —        —     

Hinkle Contracting Company

Lake Cumberland Stone

   1500099    KY   3      3      —        —        —        —        1,527      —      No   —        —        —        —     

Hinkle Contracting Company

Cave Run Stone

   1507194    KY   2      —        —        —        —        —        200      —      No   —        —        —        —     

Hinkle Contracting Company

Bourbon Limestone Company

   1518415    KY   4      —        —        —        —        —        467      —      No   —        —        —        —     

Hinkle Contracting Company

Pulaski Stone Company

   1519092    KY   2      —        —        —        —        —        100      —      No   —        —        —        —     

Hinkle Contracting Company

Jellico Stone Company

   4000057    TN   2      —        —        —        —        —        100      —      No   —        —        —        —     

Hinkle Contracting Company

Ewing Stone

   4400234    VA   2      1      —        —        —        —        460      —      No   1      1      460      —     

Kilgore Companies

Portable 1

   4202528    UT   —        —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

West Valley

   4201980    UT   2      —        —        —        —        —        100      —      No   —        —        —        —     

Kilgore Companies

Parleys Stone

   4202102    UT   1      —        —        —        —        —        100      —      No   —        —        —        —     

Kilgore Companies

Black Canyon 2100

   1002146    ID   2      —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

Powerscreen 2100-2

   1002147    ID   2      —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

Roadrunner Screen

   1001916    ID   —        —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

Mona Pit

   4202212    UT   1      —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

KC-Portable 2 (WY)

   4801625    WY   —        —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

KC-Portable 3 (WY)

   4801626    WY   —        —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

Stockton Pit

   4202480    UT   —        —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

Valley Pit

   4200400    UT   1      —        —        —        —        —        —        —      No   —        —        —        —     

Kilgore Companies

Highland Pit

   4200941    UT   2      —        —        —        —        —        100      —      No   —        —        —        —     

RK Hall Construction

Sawyer Plant

   3401950    OK   1      —        —        —        —        —        400      —      No   —        —        —        —     

RK Hall Construction

Kirby Crusher #15

   0301958    AR   1      —        —        —        —        —        100      —      No   —        —        —        —     

Troy Vines

Vines Sand and Gravel

   4103348    TX   5      1      —        —        —        —        438      —      No   —        —        —        —     

Troy Vines

Vines Portable Plant

   4103607    TX   5      1      —        —        —        —        992      —      No   —        —        —        —     

Colorado Companies

Rental Plant 1

   0504616    CO   2      2      —        —        —        —        968      —      No   —        —        —        —