UPDATE: Massey Official Indicted On Obstruction, False Statement Charges
February 28 2011 - 4:13PM
Dow Jones News
Federal officials have arrested the security chief of Massey
Energy Co.'s (MEE) Upper Big Branch mine and charged him with two
felonies as part of their investigation into an explosion that
killed 29 workers at the mine last year.
Federal officials allege that 60-year-old Hughie Elbert Stover
of Clear Fork, W.Va., tried to block their investigation by
directing an individual to dispose of thousands of pages of
security-related documents stored in a building near the mine,
according to the U.S. Justice Department.
Officials also allege Stover instructed security guards at the
Upper Big Branch mine to give workers a heads-up when inspectors
arrived, which is a violation of federal law. Officials say Stover
then denied the practice when asked by federal investigators about
it and said he would have fired any security guard who gave such
advanced warnings.
The indictment against Stover, unsealed Monday after he was
arrested at his home, accuses Stover of making false statements and
obstructing a federal investigation.
The charges represent the first criminal charges filed by U.S.
officials in connection with the Upper Big Branch mine explosion in
West Virginia. The April 5 explosion was the deadliest incident at
a U.S. coal mine in decades.
Massey Energy "takes this matter very seriously and is committed
to cooperating with the U.S. Attorney's office," Massey General
Counsel Shane Harvey said in a statement Monday.
It's unclear whether Stover has an attorney, a spokesman for the
Justice Department said.
The indictment says Stover directed an unnamed individual to
dispose of security-related documents by throwing them in a trash
compactor near the main security gate of the mine. Normally stored
in the garage of a house known as the "Barracks," the documents
contained several years of security operations at the mine and
documented the presence of federal inspectors.
The indictment claims Stover directed the unidentifed person to
preserve a limited number of documents related to property transfer
and equipment removal. The unidentified person threw out the other
documents on Jan. 11, federal officals say.
In a statement, Massey Energy's general counsel says the company
notified the U.S. Attorney's office within hours of learning the
documents had been thrown away and "took immediate steps" to
recover the documents.
U.S. attorneys say the documents were recovered "after the
federal government inquired about their existence in the course of
its investigation," according to the indictment.
The indictment also says Stover trained his security guards to
warn mine workers of federal investigations, using a radio channel
known as the "Montcoal channel" to communicate the presence of
investigators.
When asked about the practice by an FBI special agent and a
special investigator with the U.S. Mine Safety and Health
Administration, Stover said Massey Energy had prohibited the
practice since at least 1999, the indictment alleges.
--By Tennille Tracy, Dow Jones Newswires; 202-862-6619;
tennille.tracy@dowjones.com
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