Massey Energy - The Case for Campaign Finance Reform

Massey Energy, the 4^th largest coal company in the United States has a long history of safety and environmental violations. The only thing more shocking than Massey's safety and environmental record, is their uncanny ability to skirt and appeal EPA and MSHA fines and win court battles. You see, Massey Energy doesn't believe they have to play by the rules. Their unwillingness to play by the rules, and the West Virginia Supreme Courts unwillingness to hold them accountable has alloted Massey huge profits - all at the expense, burden and lives of American citizens.

Massey has been involved in a number of legal and environmental disputes including mountaintop removal mining. In January 2008, Massey Energy agreed to pay $20 million to the EPA, the largest civil penalty ever for water permit violations. Massey also lost a contract dispute by jury award to a rival competitor, Harman Coal. The contract dispute stemmed from Massey purchasing United Coal, then discontinuing a long term supply contract of its subsidiaries, Wellmore Coal, to Harman. In addition, Massey is appealing a $1.5 million dollar fine instituted by the MSHA (Miners Safety and Health Administration) as the result of a mine fire that killed two miners in early 2006.

Because the government does not have the resources to regulate compliance in all instances, federal judges are given the power to impose fines on an organization based on the seriousness of the offense and the culpability of the organization. Obviously, this punitive system largely depends on the assumption that the federal judges are purely objective and will make appropriate decisions that serve the best interest of the public.

However; recently, members of the West Virginia Supreme Court have been under pressure to remove themselves from hearing a case involving Massey Energy due to blatant conflicts of interest.

Last November, the West Virginia Supreme Court overturned the lower courts contract dispute jury verdict referenced above in a 3-2 decision, ultimately relieving Massey Energy of a $76.3 million liability. The plaintiff, now-defunct Harmon Mining, requested the court reconsider hearing the case after presenting photographs of Chief Justice Elliot Maynard and Massey CEO Don Blankenship together on vacation in the French Riviera during the time the case was being heard.

As a result, Chief Justice Maynard was asked recuse himself from this case. Both Maynard and Blakenship reiterated that they have not hidden their friendship and have been friends for over 30 years. Ironically, Massey Energy has been vocal in seeking to get Justice Larry Starcher to recuse himself from the proceedings for some time, because he loudly criticized Massey (he called Blankenship a ‘Clown’) for allegedly ‘buying’ a seat on the State of West Virginia Supreme Court expending $3.5 million in 2004 to elect Supreme Court Justice Brent Benjamin.

Chief Justice Maynard finally removed himself last month after the photos surfaced. In following, Justice Starcher voluntarily removed himself due to his public criticism of Massey, stating that they have not been a good corporate citizen. In removing himself from this case, Starcher also recommended that Justice Benjamin also recuse himself, given that Massey helped him get elected in 2004. Justice Benjamin has twice refused to remove himself from this case.

As stated so eloquently in an online discussion about the matter, one reader states, “Seriously, what’s the point of buying a judge if he up and recuses himself when you need him…”.

Alone, in their attempts to remove Justice Starcher, Massey clearly demonstrated their comprehension of the concept “conflict of interest” yet, doesn’t seem to realize how their relationships with Justice Benjamin or Chief Justice Maynard presents a problem.

Given Massey’s history of violations and disregard for environmental protections, a reasonable, objective court would find them significantly culpable. But because Massey ‘has’ the West Virginia Supreme Court, they have no incentive to self-monitor or engage in an Ethical Compliance Program.

Now, here we are a couple of years later, and Massey Energy is responsible for the deaths of seven miners in a mine blast that occurred on April 5, 2010. Mine Safety and Health News, claimed that the Massey Mine has had a number of violations related to its ventilation plan over the past years.

This company has no incentive to conform to any safety standards, laws or social contracts because they're not held accountable. The people of West Virginia have been burdened with the residue, costs - and now lives - of Massey's disregard for the rules.

This is an excellent example of why we desperately need Campaign Finance reform. When corporations influence elections, people lose. And die.