EXHIBIT 99.1
Federal Mine Safety and Health Act Information
The recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) requires issuers to include in periodic reports filed with the SEC certain information relating to citations or orders for violations of standards under the Mine Act. The following disclosures respond to that legislation. While we believe the following disclosures meet the requirements of the Dodd-Frank Act, it is possible that any rule making by the SEC will require disclosures to be presented in a form that differs from the following.
Whenever MSHA believes that a violation of the Mine Act, any health or safety standard, or any regulation has occurred, it may issue a citation which describes the violation and fixes a time within which the operator must abate the violation. In these situations, MSHA typically proposes a civil penalty, or fine, as a result of the violation, that the operator is ordered to pay. In evaluating the below information regarding mine safety and health, investors should take into account factors such as: (a) the number of citations and orders will vary depending on the size of a coal mine, (b) the number of citations issued will vary from inspector to inspector and mine to mine, and (c) citations and orders can be contested and appealed, and during that process are often reduced in severity and amount, and are sometimes dismissed.
Responding to the Dodd-Frank Act legislation, we report that, for the year ended December 31, 2010, none of our operating subsidiaries received written notice from MSHA of (a) a violation under section 110(b)(2) of the Mine Act for failure to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially proximately caused, or reasonably could have been expected to cause, death or serious bodily injury, (b) except as set forth below, a pattern of violations of mandatory health or safety standards under section 104(e) of the Mine Act, or (c) except as set forth below, the potential to have such a pattern. We have 53 legal proceedings before the Federal Mine Safety and Health Review Commission (the “Commission”) that were pending during the three months ended December 31, 2010 and we have 285 total legal proceedings that were pending before the Commission during the year ended December 31, 2010 which includes the legal proceedings before the Commission as well as all contests of citations and penalty assessments which are not before an administrative law judge. All of these legal proceedings constitute challenges by us of citations issued by MSHA. There were no mining-related fatalities during the year ended December 31, 2010.
On November 19, 2010, Rhino Eastern received an MSHA notification of a potential pattern of violations under Section 104(e) of the Mine Act for Rhino Eastern’s Eagle #1 Mine located in Bolt, West Virginia, based on MSHA’s initial screening of compliance records for the twelve months ended August 31, 2010 and of accident and employment records for the twelve months ended June 30, 2010. Rhino Eastern carefully reviewed all of the historical safety data that resulted in the potential pattern of violations finding. On December 7, 2010, Rhino Eastern submitted a Corrective Action Plan to MSHA and this plan became effective on December 31, 2010.
The following tables set out additional information required by the Dodd-Frank Act for the three months ended December 31, 2010 and for the year ended December 31, 2010. The mine data retrieval system maintained by MSHA may show information that is different than what is provided herein. Any such difference may be attributed to the need to update that information on MSHA’s system and/or other factors.
For the quarter ended December 31, 2010
Operator | | Mine(1) | | MSHA ID | | 104(a) (2) S&S | | 104(b) (3) | | 104(d) (4) | | 107(a) (5) | | 110(b)(2) (6) | | Proposed Assessments(7) | | Legal Proceedings (8) | |
Hopedale Mining LLC | | Hopedale Mine | | 33-00968 | | 10 | | 0 | | 0 | | 0 | | 0 | | $ | 9,417 | | 1 | |
| | Nelms Plant | | 33-04187 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Sands Hill Mining LLC | | Big Valley Mine | | 33-01358 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 100 | | 0 | |
| | Kanauga Dock | | 33-02044 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Clinton Stone LLC | | Clinton Stone | | 33-04041 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 500 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
CAM Mining LLC | | Mine #23 | | 15-18368 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | Mine #28 | | 15-18911 | | 25 | | 0 | | 0 | | 0 | | 0 | | $ | 55,680 | | 8 | |
| | Mine #30 | | 15-18964 | | 8 | | 0 | | 0 | | 0 | | 0 | | $ | 5,356 | | 0 | |
| | Bevins Branch | | 15-18570 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | Marion Branch | | 15-18100 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 100 | | 0 | |
| | Three Mile Mine #1 | | 15-17659 | | 1 | | 0 | | 0 | | 0 | | 0 | | $ | 460 | | 0 | |
| | Grapevine South | | 46-08930 | | 11 | | 0 | | 0 | | 0 | | 0 | | $ | 22,736 | | 1 | |
| | Remining No. 1 | | 46-08860 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | Rob Fork Processing | | 15-14468 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 343 | | 0 | |
| | Jamboree Loadout | | 15-12896 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 108 | | 0 | |
| | Point Rock Plant | | 15-07010 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | Cam Mining | | T075 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Deane Mining LLC | | Love Branch | | 15-19191 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 354 | | 0 | |
| | Deane #1 | | 15-18569 | | 3 | | 0 | | 0 | | 0 | | 0 | | $ | 7,695 | | 0 | |
| | Mill Creek Prep Plant | | 15-16577 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 1,100 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Rhino Trucking LLC | | Rhino Trucking | | Q569 | | 1 | | 0 | | 0 | | 0 | | 0 | | $ | 508 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Rhino Services LLC | | Rhino Reclamation Services | | R134 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | Rhino Services | | S359 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | Rhino Oilfields | | X663 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Rhino Eastern LLC(9) | | Eagle #1 | | 46-08758 | | 15 | | 0 | | 1 | | 0 | | 0 | | $ | 17,128 | | 4 | |
| | Eagle #2 | | 46-09201 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | — | | 0 | |
| | | | | | | | | | | | | | | | | | | |
McClane Canyon Mining LLC | | McClane Canyon Mine | | 05-03013 | | 10 | | 0 | | 0 | | 0 | | 0 | | $ | 17,839 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Total | | | | | | 84 | | 0 | | 1 | | 0 | | 0 | | $ | 139,424 | | 14 | |
(1) The foregoing table does not include the following: (i) facilities which have been idle or closed unless they received a citation or order issued by MSHA; and (ii) permitted mining sites where we have not begun operations and therefore have not received any citations.
(2) Mine Act section 104 citations shown above are for alleged violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.
(3) Mine Act section 104(b) orders are for alleged failures to totally abate a citation within the period of time 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 a mining safety standard or regulation.
(5) 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.
(6) The total number of flagrant violations issued under section 110(b)(2) of the Mine Act.
(7) Amounts shown include MSHA assessments proposed as of December 31, 2010, on the citations and orders reflected in this table. Citations and orders which have not yet been assessed are not included.
(8) By way of summary, the Commission has jurisdiction to hear not only challenges to citations, orders, and penalties but also certain complaints by miners. Each legal action is assigned a docket number by the Commission and may have as its subject matter one or more citations, orders, penalties, or complaints.
(9) Rhino Eastern LLC is owned 51% by a subsidiary of Rhino Energy LLC and 49% by a subsidiary of Patriot Coal Corporation.
For the year ended December 31, 2010
Operator | | Mine(1) | | MSHA ID | | 104(a) (2) S&S | | 104(b) (3) | | 104(d) (4) | | 107(a) (5) | | 110(b)(2) (6) | | Proposed Assessments(7) | | Legal Proceedings (8) | |
Hopedale Mining LLC | | Hopedale Mine | | 33-00968 | | 67 | | 0 | | 2 | | 1 | | 0 | | $ | 129,416 | | 36 | |
| | Nelms Plant | | 33-04187 | | 6 | | 0 | | 0 | | 0 | | 0 | | $ | 2,223 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Sands Hill Mining LLC | | Big Valley Mine | | 33-01358 | | 1 | | 0 | | 0 | | 0 | | 0 | | $ | 925 | | 0 | |
| | Kanauga Dock | | 33-02044 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 100 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Clinton Stone LLC | | Clinton Stone | | 33-04041 | | 7 | | 0 | | 0 | | 0 | | 0 | | $ | 1,562 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
CAM Mining LLC | | Mine#23 | | 15-18368 | | 5 | | 0 | | 0 | | 0 | | 0 | | $ | 2,954 | | 0 | |
| | Mine #28 | | 15-18911 | | 124 | | 1 | | 11 | | 0 | | 0 | | $ | 358,015 | | 136 | |
| | Mine #30 | | 15-18964 | | 14 | | 0 | | 0 | | 0 | | 0 | | $ | 12,168 | | 1 | |
| | Bevins Branch | | 15-18570 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 300 | | 0 | |
| | Marion Branch | | 15-18100 | | 6 | | 0 | | 0 | | 0 | | 0 | | $ | 6,038 | | 1 | |
| | Three Mile Mine #1 | | 15-17659 | | 5 | | 0 | | 0 | | 0 | | 0 | | $ | 6,753 | | 0 | |
| | Grapevine South | | 46-08930 | | 24 | | 0 | | 0 | | 0 | | 0 | | $ | 66,157 | | 13 | |
| | Remining No. 1 | | 46-08860 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 100 | | 0 | |
| | Rob Fork Processing | | 15-14468 | | 10 | | 0 | | 1 | | 1 | | 0 | | $ | 16,871 | | 7 | |
| | Jamboree Loadout | | 15-12896 | | 1 | | 0 | | 0 | | 0 | | 0 | | $ | 370 | | 0 | |
| | Point Rock Plant | | 15-07010 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 100 | | 0 | |
| | Cam Mining | | T075 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 162 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Deane Mining LLC | | Love Branch | | 15-19191 | | 19 | | 0 | | 0 | | 0 | | 0 | | $ | 27,249 | | 5 | |
| | Deane #1 | | 15-18569 | | 20 | | 0 | | 0 | | 0 | | 0 | | $ | 37,081 | | 4 | |
| | Mill Creek Prep Plant | | 15-16577 | | 2 | | 0 | | 0 | | 0 | | 0 | | $ | 2,951 | | 1 | |
| | | | | | | | | | | | | | | | | | | |
Rhino Trucking LLC | | Rhino Trucking | | Q569 | | 5 | | 0 | | 0 | | 0 | | 0 | | $ | 10,733 | | 4 | |
| | | | | | | | | | | | | | | | | | | |
Rhino Services LLC | | Rhino Reclamation Services | | R134 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 200 | | 0 | |
| | Rhino Services | | S359 | | 2 | | 0 | | 0 | | 0 | | 0 | | $ | 530 | | 0 | |
| | Rhino Oilfields | | X663 | | 2 | | 0 | | 0 | | 0 | | 0 | | $ | 352 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Rhino Eastern LLC(9) | | Eagle #1 | | 46-08758 | | 72 | | 1 | | 7 | | 0 | | 0 | | $ | 404,643 | | 24 | |
| | Eagle #2 | | 46-09201 | | 0 | | 0 | | 0 | | 0 | | 0 | | $ | 343 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
McClane Canyon Mining LLC | | McClane Canyon Mine | | 05-03013 | | 33 | | 0 | | 0 | | 0 | | 0 | | $ | 94,701 | | 0 | |
| | | | | | | | | | | | | | | | | | | |
Total | | | | | | 425 | | 2 | | 21 | | 2 | | 0 | | $ | 1,182,997 | | 232 | |
(1) The foregoing table does not include the following: (i) facilities which have been idle or closed unless they received a citation or order issued by MSHA; and (ii) permitted mining sites where we have not begun operations and therefore have not received any citations.
(2) Mine Act section 104 citations shown above are for alleged violations of health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.
(3) Mine Act section 104(b) orders are for alleged failures to totally abate a citation within the period of time 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 a mining safety standard or regulation.
(5) 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.
(6) The total number of flagrant violations issued under section 110(b)(2) of the Mine Act.
(7) Amounts shown include MSHA assessments proposed as of December 31, 2010, on the citations and orders reflected in this table. Citations and orders which have not yet been assessed are not included.
(8) By way of summary, the Commission has jurisdiction to hear not only challenges to citations, orders, and penalties but also certain complaints by miners. Each legal action is assigned a docket number by the Commission and may have as its subject matter one or more citations, orders, penalties, or complaints.
(9) Rhino Eastern LLC is owned 51% by a subsidiary of Rhino Energy LLC and 49% by a subsidiary of Patriot Coal Corporation.