Massey Energy — production over safety killed 29 miners, CEO went to prison

Massey Energy was one of the largest coal producers in the United States, operating dozens of mines across West Virginia, Kentucky, and Virginia. Its Upper Big Branch mine in Montcoal, West Virginia was known internally as a dangerous operation. On April 5, 2010, a coal dust explosion ripped through the mine at 3:27 pm, killing 29 of the 31 miners underground. It was the worst US mining disaster in 40 years, since the 1970 Hyden mine explosion that killed 38.

The subsequent investigation revealed staggering recklessness. Massey had amassed over 1,300 safety violations in five years, including 50 in March 2010 alone for improper ventilation. MSHA had ordered portions of Upper Big Branch closed 60 times in the year before the blast. The superintendent admitted to giving advance warning of inspections and keeping two sets of books: one recording hazards for internal tracking, another clean for regulators. An independent report concluded Massey 'operated its mines in a profoundly reckless manner' and 29 miners 'paid with their lives.'

The financial cost was immense. Massey was acquired by Alpha Natural Resources in a $7.1B deal in January 2011. Alpha settled the company's criminal liabilities for $209 million — the largest-ever mining safety settlement — plus $10.8 million in MSHA civil penalties, roughly five times the previous record. The settlement included $46.5 million in restitution, with $1.5 million to each victim's family. CEO Don Blankenship was convicted in 2015 of conspiracy to violate mine safety standards and sentenced to one year in federal prison plus a $250,000 fine.