CNN reports that in 2009, the Mine Safety and Health Administration (MSHA) proposed nearly $1 million in fines for more than 450 safety violations at the nonunion Upper Big Branch Mine, including penalties for
more than 50 “unwarrantable failure” violations, which are among the most serious findings an inspector can issue. Among those were citations for escape routes for miners and air quality ventilation.
According to ABC News, Massey was fighting the MSHA fines, including those for
57 infractions just last month for violations that included repeatedly failing to develop and follow the ventilation plan. The federal records catalog the problems at the Upper Big Branch Mine….They show the company was fighting many of the steepest fines, or simply refusing to pay them.In 2006, a fire at Massey’s Aracoma Alma No. 1 Mine, also in West Virginia, killed two miners. Ultimately, Massey’s Aracoma Coal Co. subsidiary pleaded guilty to 10 criminal mine safety violations and paid $2.5 million in fines related to that fatal fire. According to ABC, the two miners “suffocated as they looked for a way to escape.”
Aracoma later admitted in a plea agreement that two permanent ventilation controls had been removed in 2005 and not replaced, according to published reports. The two widows of the miners killed in Aracoma were unsatisfied by the plea agreement, telling the judge they believed the company cared more about profits then safety.Mine safety is a good example of an "externality" in economics.Meanwhile, the Charleston Gazette reports safety officials are looking at methane that built up inside a sealed-off area or leaked through the seals as the cause of the blast. In 2006, methane from sealed-off areas caused the explosions at a Sago, W.Va., mine that killed 12 miners and also at the Darby Mine in Kentucky where two coal miners were killed.
The new mine safety rules passed after the Sago and Darby disasters called for increased monitoring of air quality in active and sealed sections of the mines to avoid methane build up. The new regulations also required mine operators to install stronger barriers between active and nonactive sections of mines.
http://en.wikipedia.org/wiki/Externality
The mining company gets to earn a certain amount of extra profit from the avoided internal "costs" of safety, but then, when such a disaster happens, the families of the dead/injured are forced to bear losses in the form of all of the income that provider would have earned over his lifetime.
Insurance payouts on such workers rarely approach the value lost.


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