M S H A

1. M S H A • PART 100 RULING

2. 30 CFR PART 100 ASSESSMENT OF CIVIL PENALTIES; FINAL RULE

3. PROPOSED CIVIL PENALTY • THE APPROPRIATE PENALTY TO THE SIZE OF THE MINE OPERATOR • OPERATOR’S HISTORY OF PREVIOUS VIOLATIONS • OPERATOR’S NEGLIGENCE

4. PROPOSED CIVIL PENALTY CONT. • GRAVITY OF THE VIOLATION • DEMONSTRATED GOOD FAITH OF THE OPERATOR • THE FINANCIAL EFFECT TO CONTINUE BUSINESS

5. APPROPRIATE PENALTY TO THE SIZE OF THE OPERATOR • CALCULATED BY THE SIZE OF THE MINE CITED AND THE SIZE OF THE MINES CONTROLLING ENTITY • SIZE OF METAL/ NONMETAL MINE IS MEASURED BY ANNUAL HOURS WORKED • THE CONTROLLING ENTITY HOURS WORKED

6. OPERATOR’S HISTORY OF PREVIOUS VIOLATIONS • BASED ON THE TOTAL NUMBER OF VIOLATIONS AND THE NUMBER OF REPEAT VIOLATIONS IN THE PRECEDING 15 MONTH PERIOD. • ONLY FINALIZED VIOLATIONS ARE CONSIDERED. • REPEAT ASPECT APPLIES AFTER THE OPERATOR HAS RECEIVED 10 VIOLATIONS AND MORE THAN SIX OF THE SAME CITABLE PROVISION OF THE STANDARD.

7. OPERATOR’S HISTORY OF PREVIOUS VIOLATIONSCONT • HISTORY OF VIOLATIONS ARE BASED ON THE NUMBER OF VIOLATIONS PER INSPECTION DAYS. • REPEAT VIOLATION PER INSPECTION DAY(RPID) ARE BASED ON THE NUMBER OF INSPECTION DAYS DURING WHICH THE REPEAT VIOLATIONS WERE CITED.

8. OPERATOR’S HISTORY OF PREVIOUS VIOLATIONSCONT • VIOLATIONS PER INSPECTION DAY ( VPID ) IS CALCULATED BY TAKING THE TOTAL NUMBER OF VIOLATIONS AT A MINE THAT HAVE EITHER BEEN PAID OR BECOME A FINAL ORDER AND DIVIDING IT BY THE TOTAL NUMBER OF INSPECTION DAYS AT THE MINE DURING THE SAME SPECIFIED PERIOD. • MSHA CURRENTLY CALCULATES INSPECTION DAY BY COUNTING ONE INSPECTION DAY FOR EACH AR THAT SPENDS ANY ONSITE INSPECTION TIME DURING ANY CALENDAR DAY.

9. OPERATOR’S NEGLIGENCE • NEGLIGENCE- CONDUCT EITHER BY COMMISSION OR BY OMISSION WHICH FALLS BELOW A STANDARD OF CARE ESTABLISHED UNDER THE MINE ACT TO PROTECT MINERS AGAINST RISK OF HARM. • OPERATOR REQUIRED TO BE ON THE ALERT FOR CONDITIONS AND PRACTICES AT THE MINE.

10. OPERATOR’S NEGLIGENCE CONT. • THAT HE TAKE THE NECESSARY STEPS TO CORRECT OR PREVENT HAZARDOUS CONDITIONS OR PRACTICES. • THE FAILURE TO EXERCISE A HIGH STANDARD OF CARE CONSTITUTES NEGLIGENCE.

11. OPERATOR’S NEGLIGENCE CONT. Reckless Disregard • Prior knowledge of an unsafe condition • Supervisor tolerance of unsafe acts (shortcuts) • $220,000 ceiling on fines • Criminal charges may be against company representatives

12. GRAVITY OF THE VIOLATION • GRAVITY IS AN EVALUATION OF THE SERIOUSNESS OF THE VIOLATION. • GRAVITY IS DETERMINED BY THE LIKELIHOOD OF THE OCCURRENCE OF THE EVENT AND……. • THE SEVERITY OF THE ILLNESS OR INJURY IF THE EVENT WERE TO OCCUR AND…… • NUMBER OF PERSONS POTENTIALLY AFFECTED.

13. GOOD FAITH OF THE OPERATOR • 10% REDUCTION IN ASSESSMENT WHERE THE OPERATOR ABATES THE VIOLATION WITHIN THE TIME SET BY THE INSPECTOR.

14. FINANCIAL EFFECT TO OPERATOR • MSHA PRESUMES THAT THE OPERATORS ABILITY TO CONTINUE IN BUSINESS WILL NOT BE AFFECTED BY THE PENALTY. • THE OPERATOR MAY SUBMIT INFORMATION TO THE DISTRICT MANAGER CONCERNING FINANCIAL STATUS OF THE BUSINESS. • IF THE INFORMATION PROVIDED INDICATES ADVERSE EFFECT TO THE OPERATORS ABILITY TO CONTINUE IN BUSINESS, THE PENALTY MAY BE REDUCED.

15. NOTIFICATION OF SERIOUS ACCIDENT TIMELY NOTIFICATION = I5 MINUTES • DEATH OF AN INDIVIDUAL AT A MINE • INJURY WHICH HAS A REASONABLE POTENTIAL TO CAUSE DEATH • ENTRAPMENT OF AN INDIVIDUAL AT A MINE WHICH HAS A REASONABLE POTENTIAL TO CAUSE DEATH

16. NOTIFICATION OF SERIOUS ACCIDENT CONT. • Unplanned inundation of a mine by a liquid or gas • Unplanned ignition or explosion of gas dust • Unplanned fire not extinguished within 30 minutes • Unplanned ignition or explosion of a blasting agent

17. NOTIFICATION OF SERIOUS ACCIDENT CONT • Roof fall (UG) • Rock outburst that causes withdrawal of miners or disrupts regular mining activity for more than one hour • Unstable condition at an impoundment which requires emergency action in order to prevent failure or causes individuals to evacuate

18. NOTIFICATION OF SERIOUS ACCIDENT CONT • Damage to hoisting equipment which endangers an individual or interferes with the use of the equipment for more than 30 minutes • Event at the mine which causes death or bodily injury to an individual at a later date $60,000 fine for failure to notify

19. CONFERENCING CITATIONS • ALL PARTIES SHALL BE AFFORDED THE OPPORTUNITY TO REVIEW EACH CITATION IN ORDER ISSUED DURING AN INSPECTION. • AFTER NOTIFICATION OF VIOLATION PARTIES WILL HAVE 10 DAYS IN WHICH TO REQUEST A SAFETY AND HEALTH CONFERENCE. • MUST BE IN WRITING. • MUST INCLUDE A BRIEF STATEMENT WHY EACH CITATION OR ORDER SHOULD BE CONFERENCED.

20. CONTESTING CITATIONS • FILED WITHIN 30 DAYS OF CITATION • MUST BE FILED IN WRITING • MUST INCLUDE A DETAILED STATEMENT WHY EACH CITATION OR ORDER SHOULD BE CONTESTED

21. NOTICE OF PROPOSED PENALTY • 30 DAYS TO EITHER PAY PENALTY OR NOTIFY MSHA OF INTENTION TO CONTEST THE PROPOSED PENALTY. • IF THE PENALTY IS NOT PAID OR CONTESTED WITHIN 30 DAYS OF RECEIPT, IT BECOMES FINAL AND IS NOT SUBJECT TO REVIEW BY ANY COURT OR AGENCY.