ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, December 8, 1994                   TAG: 9412080041
SECTION: VIRGINIA                    PAGE: C-1   EDITION: METRO 
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: ABINGDON                                 LENGTH: Medium


PARENT COMPANY, OFFICER INDICTED IN MINE BLAST

A federal grand jury indicted Southmountain Coal Co.'s parent company and one of its officers on charges of violating mining regulations Wednesday - exactly two years after a Southmountain mine in Norton exploded and killed eight men.

Southmountain Coal and four of its managers already have pleaded guilty to charges stemming from the fatal blast. But U.S. Attorney Robert Crouch and federal mine investigators said the latest indictment sends a stronger message to coal mine operators nationwide.

"Those who are in a position of responsibility will be held accountable for their actions," Crouch said. "They cannot hide behind corporate shells, and they cannot hide behind phony titles."

The 13-count indictment charges that William Ridley Elkins, a manager for Apple Coal Co. in Coeburn, ran Southmountain's mining operations despite being prohibited from doing so because of a history of violations.

The indictment also charges that Elkins lied to federal and state mining investigators to hide his control and supervision of the mine. Southmountain nearly lost its surface mining permits in 1991 because of Elkins' ties to companies with a history of uncorrected environmental violations. The company was able to keep the permits when it successfully argued that Elkins was not in charge at the mine, but only a consultant to W. Jack Davis, the company's president.

Davis owns Davis Mining and Manufacturing. That company operates Apple Coal, which owns Southmountain.

Federal investigators now say they can prove that Elkins was Southmountain's general manager, responsible for making daily decisions at the Norton mine.

Southmountain faces a $3.6 million fine for mining violations that led to a buildup of methane gas in the mine. Investigators say the gas was ignited by a lighter carried into the mine by one of the blast's victims.

Wednesday's indictment charges that Elkins knew of and authorized violations of the ventilation and roof control plans at the mine.

Apple Coal is charged because Elkins was acting as an agent of the company, said assistant U.S. Attorney Thomas Bondurant.

If convicted, Apple Coal faces a $5 million fine. Elkins faces 38 years in prison and a $2.5 million fine.

Edward C. Hugler, deputy assistant secretary in the U.S. Department of Labor, said this case is important because it is the first time a coal corporation has been indicted for violations occurring at a subsidiary.

Bondurant said Elkins, 51, still works for Apple and may be involved in running some of the company's mines in Kentucky. Southmountain no longer has any active mining operations.

In addition to pleading guilty to the ventilation violations, Southmountain admitted in August that it didn't conduct searches for smoking material.



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