Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 1 of 66 PageID 803 EXHIBIT A ocument 83-1 Filed 02/06/15 Page 2 of 66 PageID 804 LIMITED OFFICIAL USE The attached information must be protected and not released to unauthorized individuals. Use of this cover sheet is in accordance with the Department of Justice regulation on the control of Limited Official Use information. DLB-GJ-TR-000168 Case 5:14?cr?00244 Document 83-1 Filed 02/06/15 Page 3 of 66 PageID 805 Jeffrey Carter November 13, 2014 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA AT CHARLESTON ?i?r '1 IN GRAND JURY 2014 PROCEEDINGS CRIMINAL MATTER NO. 2014R00295 GRAND JURORS PRESENT - 21 TRANSCRIPT OF PROCEEDINGS had and testimony of JEFFREY CARTER adduced on November 13, 2014, commencing at 9:53 a.m. and concluding at 12:46 in the Grand Jury Room, Federal Building, Charleston, Kanawha County, West Virginia, before Connie D. DeMuth, Certified Court Reporter and Notary Public. APPEARANCES: STEVEN L. RUBY, ESQUIRE GABRIELE WOHL, ESQUIRE Assistant United States Attorneys R. BOOTH GOODWIN, ESQUIRE United States Attorney DeMuth Court Reporting, L.L.C. Connie D. DeMuth, CCR Post Office Box 701 Dunbar, West Virginia 25064 304?766-8708 DeMuth Court Reporting, LLC 304-766-8708 69 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 4 of 66 PageID 806 Jeffrey Carter November 13, 2014 Page 2 Page 4 1 A Correct wims Exmmum b) M. Run, 2 And Title 30 is a part of the federal law that 3 has to do with coal mine safety and health: is that Exhibits Identi?ed 4 right? Exhibit The federal agency that regulates coal mines Exhibit 32 ll 7 and other mines In the United States. that's a part of g; 8 the Department of labor: is that right? Exhibit 35 26 9 A That's correct Exhibit 36 27 Ethibit 37 3 1 0 That agency. itself. is called the Mine Safety 33 3? 1 1 and Health Administration" J9 J7 Exhibit 40 39 12 A Yes Exhibit-ll 46 . .. E?hibu the Department of Labor?s. :2 L4 Inspector General's of?ce; is that right? Exhibit 45 70 5 A lam. 1 6 And so in connection with that. because of Exhibit 48 83 your location in the Department of Labor. you have 88 Exhibit 50 91 i 8 jurisdiction to investigate violations of the mine a; 1 9 safety laws: is that right? notion 5the last several years. Agent Caner. have 5? '7 2 2 you been invoived In an investigation of conduct at Reporter?s Certi?cate Page no 2 3 Massey Energy Company and at Massey's Upper Big Branch 2 4 Mine? 2 5 A I have. Page 3 Pa ge 5 1 November I3. 20? 1 In the course ofthat investigation. have you 2 (Witness snout by Foreperson) 2 Interviewed witnesses who worked at Massey Energy 3 FOREPERSON Please state your name and 3 Company or the Upper Big Bra Mine? 4 occupation. 4 A have. 5 THE JetTrey Caner. i'm a special 5 Are there other federal agencies that have 6 agent tutlt tlte I ntted States Department of Labor. Of?ce 6 also been involved in this investigation? 7 of inspector General 7 A Yes. 8 POREPERSON You can hate a seat Thanks 8 Altogether. how many interviews would you say 9 THERE UPON 9 hate been conducted of witnesses in the course of this 10 JEFFREY CARTER 1 0 investigation? 1 was called as a and. tiller being ?rst duly 1 1 A \tould say probably hundreds of Interviews 12 swam, was csamined and testi?ed as follows 1 2 And in the course of this investigation. have 1 3 EXAMINATION BY MR RUBY 1 3 you also reviewed documents that have been obtained from 1 4 Special Agent Carter. thank you for being here 1 4 Massey Energy Company? 1 5 today. 1 5 A have 1 5 A Sure 1 6 As well as from other sources? 17 How long have you been with the Department Labor?s Of?ce of Inspector General, Agent Carter? 1 8 And is it fair to say. Agent Carter. that in 9 A Approximately l3 years 1 9 the course of the investigation. you've had opportunity 2 0 And what kinds of offenses do ou investigate 2 0 to confer with other federal investigators who've also 2 1 in the course of that ork'.? 2 1 interviewed witnesses and have also res-levied documents 2 2 A 1 Investigate I?itlo 18 as ?all as I 2 2 that had to do with the case? 2 3 investigate Tttle 30 olfettses as well 2 3 A I have. 2 4 Title 30. being ?here must of the federal 2 4 Your testimony today. is it based on both your 2 5 criminal laws are located: is that right? 2 5 personal knowledge and converstions that you've had 2 (Pages 2 to 5) DeMuth Court Reporting, LLC 304?766?8708 1 70 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 5 of 66 PageID 807 Jeffrey Carter November 13, 2014 Page 6 Page 8 1 with other law enforcement officials? 1 And so was the U33 mine and Massey"s other 2 A it is 2 mines and facilities subject to Title 30 of the United 3 Let me start. Agent, by asking you a little 3 States Code, Chapter 22? 4 bit about the background of Massey Energy Company. and 4 A They were. 5 I'm going focus your attention today. on a perid of 5 is that the chapter of the US. Code that has 6 time from. January the lst. 2008. through April the 9th 6 to do with mine safety and health? 7 of 2010. Do you understand that? 7 A That's correct 8 A [do 8 And there are also mics and regulations that 9 if! refer to the time period under 9 have been made by federal of?cials under the Mine 1 0 discussion. or the time period that we?re discussing 10 Safety and Health Statutes; is that right? 1 1 here today. that's the time period that i'm referring 1 1 A Yes. 1 2 to. Do you understand that? 1 2 Those are found, or at least some of those are 3 A I do 1 3 found. in Title 30 of the Code of Federal Regulations, 1 4 During the time period that?s under 1 4 Chapter is that right? 1 5 discussion. did ?many Energy Company own and control 1 5 A That's correct 16 coal mines here in the Southern District of West 1 6 During the time period that's under 1 7 Virginia? 17 discussion. would the U33 mine have been subject to 18 A They 1 8 those regulations? 19 In fact. Massey maintained a regional 1 9 A They would have. 2 0 headquarters here in the Southern District of West 2 0 Those regulations set out. among other things. 2 1 Virginia during the time under discussion: correct? 2 1 mandatory federal mine safety and health standards; is 2 2 A That '5 correct 2 2 that correct? 2 3 ?'here was that? 2 3 A Yes. 24 A in Julian 2 4 So the U38 mine would have been subject, in 2 5 And that's in Boone County; is that right? 2 5 the time period we're discussing. to those standards? Page 7 Page 9 A Yes 1 A Yes. 2 The Upper Big Branch Mine. you've become 2 And so would Massey?s other mines and related 3 familiar with that mine in the course of this 3 facilities; correct? 4 investigation; correct? 4 A Yes. 5 A I have 5 The Mine Safety and Health Administration. 6 And was that a coal mine that was owned and 6 what do people normally call that for short? 7 controlled by Massey? 7 A MSHAthat right? 9 It was owned and controlled through various 9 A Yes 10 Massey subsidiaries; correct? 1 0 You would generally pronounce that 1 1 A That?s correct. 1 1 A Yes. 12 \nd forgive me if this sounds a bit technical, 12 That was. as we?ve already covered. an agency 1 3 but did the Upper Big Branch Mine produce products that 1 3 of the Department of Labor; is that right? 1 4 entered commerce? 1 4 A That's correct 1 5 A They did 1 5 Was it part of the Executive Branch ofthe 1 6 Did Massey's other mines and other related 1 6 United States Government? 1 7 facilities produce products that entered commerceDid MSIIA. during the time period under 19 And generally speaking, that product was coal; 1 9 discussion, conduct regular safety inspections at the 2 0 correct? 2 0 Upper Big Branch Mine? 2 1 A Correct 2 1 A They did. 22 Did \lassey?s coal mines and related facilities 22 And did it impose monetary penalties for 2'3 also have operations and products that affected 2 3 violations of federal safety standards that it found at 2 4 commerce? 2 4 UBB. in those inspections? 2 5 A They 2 5 A They did. 3 (Pages 6 to 9) DeMuth Court Reporting, LLC 304?766?8708 DLB-GJ-TR-000171 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 6 of 66 PageID 808 Jeffrey Carter November 13, 2014 Page 1 0 Page 1 2 In the time period that we're discussing. 1 ultimately responsible for managing Massey?s business? Massey Energy was a publicly traded company: is that 2 A Yes. 2 right? 3 Have you had a chance. in the course of your 4 A That?s correct. 4 investigation. to review the bylaws of Massey Energy 5 That means that it issued stock. shares of 5 Company? 6 stoclt that members of the public could buy and sell; is 6 A I have 7 that correct? 7 And in the time periods that we're discussing. A Yes 8 did those bylaws de?ne what authority was with the E0 9 The primary class of those shares that were 9 within Massey Energy? 1 0 available to the public were known as Massey Class A 1 0 A Yes. ;1 Common Stock; is that right? 1 1 Am I correct that during the period under 2 A That?s right. 12 discussion. Mr. Blankenship, according to those bylaws. . 3 And that ?as registered. Massey Class A Common 1 3 has general supervision. direction. and control of the . 4 Stock. was registered with the US. Securities and 1 4 of?cers. employees. business. and affairs with \fassey? . 5 Exchange Commission: right? 15 A He did. 6 A That?s correct. 1 6 Did that include the U83 mine? The Securities and Exchange Commission is also 17 A Yes. 8 typically referred to by some initials; right? 1 8 I want to talk about safety violations. Have . 9 A Yes. SEC. 1 9 you had an opportunity. in the course of your .. 0 And in addition to being registered with the 2 0 investigation. to review records of safety law - - SEC. was \Iassey's Class A Common Stock traded on the New 2 1 violations at the U33 mine? 3 York Stock Exchange? 2 2 A Yes, I have. -3 A Yes, li\\1? 23 Are those records that you were provided by 2 i Publicly traded companies are regulated under 2 4 the Mine Safety and Health Administration? 2 5 a varieton federal laws: is that right? 2 5 A Yes. Page That's correct 1 Am I correct that during the time period under 2 Does that include the Securities Exchange Act 2 discussion. van was cited somewhere around 835 times for 3 of 3 violations of mandatory federal mine safety and health 4 A Yes 4 standards? 5 Does it also include rules and regulations 5 A Yes. 6 that have been made under the Securities Act. the 6 Am I also correct that that was one or the 7 Securities Exchange Act of [934? 7 highest level oI'safety law violations of any mine 8 A Yes 8 within Massey Energy? 9 And in the time period that's under 9 A That's correct 1 0 discussion. was Massey. as a publicly traded company. 1 0 0 Were somewhere in the neighborhood of 319 of 11 subject to that act and to the regulations that you just 1 1 those violations in a category ofvioiattons called 1 referred to? 1 2 signi?cant and substantial violations? 13 A Yes, they were 1 3 A Yes. 1 4 The SEC. has it also an agency of the 1 4 Have you also had the opportunity to examine 1 5 Executive Branch of the US. Government? 1 5 the number ofsa fety violations that the U33 mine 1 6 A Yes. i committed In particular areas of the safety laws? 17 Are you familiar nith an individual named Don 17 A ?lave 1 8 Blankenship? 1 8 Am i correct that semen here around 283 UBB's safety Ian violations. during the time period 2 0 In the period of time that's under discussion. 2 0 under discussion. were violations of the laws on mine 2 1 what position. or positions. did he hold at \lassey 21 ventilation? 22 Energywas the chtel'executtve officer and 2 3 Let me back up. Are you laminar with a 2 4 chairman of the board 2 4 panlcularly serious category of safety violations that 2 5 In those roles. was he principally and 2 5 results in shutting all or part ofa coal mine until the DeMuth Court Reporting, 4 (Pages 10 to 13) LLC 304-766-8708 1 72 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 7 of 66 PageID 809 Jeffrey Carter November 13, 2014 violation is ?tted? A Yes. it was. A Yes 2. Am lcorrecl that according to the records 5 Is that a violation or a shutdown order that?s 1 you?ve reviewed that the U33 mine routinely violated the it issued under Section timid) of Title 30 of the US. 4 mandatory federal safety and health standards that (ode? a governed mine ventilation? 6 A Yes i A Yes. 7 And that's among the most serious kind of 7 a document referred 8 safety violation that a coal mine can receive; is that 8 to was marked as Grand Jury Eslubit 9 right'ltatt's correct to BY MR RUBY. 1 1 the time period that's under discussion. 1 i I want to review some speci?c documents with 1 2 the mine received approximately 59 ot' the shutdown 12 you. t'tn going to show you. Agent Carter. a document 1 3 orders: is that right? 13 that's been marked Grand Jury Exhibit Number 29. Are 1 4 It 'liicy did It you familiar with this document? 15 And am [correct that in the time period under 1 5 A Yes. I am 1 6 discussion. UBB was among the worst mines in the entire 1 6 0 Can you tell as. just generally. what this is? 17 United States in terms of the number of shutdown orders 17 A It's 0 Citation that was dated June 4th. 2009 1 that it received from serious safety violations? 1 8 When you say a citation. a citation issued whom? 20 Let me. Agent Carter. take a little bit of 2 t) A It was MSIIA. by MhllA 2 1 time and ask you about UBli?s safety violations in 2 1 And issued to what mine? 2 2 particular areas of the safety laws. Are you familiar 2 2 A Upper Big Branch Mine. 2 3 with the safety laws on how coal mines have the top there. it says 2 4 ventilated, in other words. how air?ow has to he 24 under mine name ?Upper Big Branch Mine-South.? Was that 2 5 managed in coal mines? 2 5 another name tint was used for the "till mineThat's correct 2 Is the purpose. or on important purpose. of 2 0 All right. And up at the top there, you?ve 3 the safety laws on mine ventilation to prevent mine 3 got the date the citation was issued. which you?ve 4 explosions? 4 already referred to. and then the has next to that. 5 A It 15 5 indicates the time that the citation was issued; is that 0 During the time period under discussion. was a 6 right? 7 coal mine required to have enough airflow in ltey areas 7 A That's right 8 of the none to dilute and render harmlest and carry an ay 8 The description of the safety violation that?s 9 potentially explosive substances? 9 being cited here. can you read that aloud for us? 1 0 A That's correct 1 0 A "The operator ts failing to comply with page 11 0 Such as coal dust? 1 1 one, item so: ofthc approved ventilation based plan 1 2 A Yes 1 2 The plan requires 9.000 to be maintained where .13 0 0r methane gas; is that right? 13 mechanised mining equipment is being installed or .14 A Yes. 1 4 removed At the longwali setup area, only I47 GM of 15 And in the time period under discussion, was 1 5 air was present at the end ol'the iongwail face 16 the operator of a coal mine required to put in a place a 6 when tested by 17 mine ventilation plan and follow it? 17 So at the area of the mine where this 1 8 A They were. 1 8 violation was discovered, the raine's mandatory 19 the ventilation plan that you just referred 19 ventilation plan required 9.000 cubic feet per minute of 2 0 to. did that actually spell out what quantity of air the 20 air; is that right? 2 .1 mine had to tteep moving through trey areas of the mine to 2 1 A That's right 22 carry away explosive substances? 22 That requirement was established to ensure 23 A it did 2 3 that air?ow was sufficient to carry away and to dilute 24 0 tin mine violated that ventilation pin. was 2 4 explosive substances that might be in the mine 2 5 that a violation of the Federal Mine Safety Law? 2 5 atmosphere: correct? DeMuth Court Reporting, 5 (Pages 14 to 17) LLC 304-766-8708 DLB-GJ-TR-000173 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 8 of 66 PagelD 810 Jeffrey Carter November 13, 2014 Pa go 1 Page 2 0 A Yes 1 ol' mandatory ventilation plan? 2 But when the federal inspector who issued this 2 A Yes, it is 3 citation visited that area. he found that there was only .1 And is this citation also because the mine 4 M7 cubic feet per minute of air moving through the 4 was operating with less than the legal minimum quantity 5 mil": ?5 lh?l ?ght? 5 ol'air required to sweep away explosive substance? 6 A That's right 6 A yes 7 Am I correct that that's somewhere around two percent ol? the amount ol?alr that was actually required a scam.? begins Wm, won, in the 1: '0 I: my?: 'hr?mgh mi? of the min?? 9 description of the violation that occurred? 65' 10 A Yes. 11 MR RUBY I?d me Show wu? Age.? 0mm" a 1 1 Would you read that sentence [or us? I tt)hat?s gotng to be marked, Grand Jury Exhib? 1 2 A ?Dust was around the roof bolt 1 4 (WI IFREUPON. ducmm? MW 1 3 operators and the roof butter from a distance ot'at 1 5 to was marked as Grand Jury Exhibit 1 4 1m? so fed :n?c Opera!? has engaged aggravated 1 6 N0. 1 5 conduct constituting more than negligence BY MR. Rm?: 1. This violation ts an futlure to Follow 0 1.8 (?nn you tell us what this is? 1 7 Wdeth Standard". 1 9 A has is also a citation that was written by 8 Now' a root bun? is a "can" 20 MSHA Upper Big Brunch Minwsouu? 1 9 who installs roof bolts into the roof of the mine to 21 What?s the date 0 this one? 20 mm pmAnd here the citation was written because an 2 2 0 Mid according ?0 ?Winn. "If fwe?tl 2 ?1 area of the mine was operating with I328 cubic feet per 33 in?? ?50mm ?Will 5mm? "Punting With 2 5 minute of air?ow; is that right? 2 4 visible coal dust. cont dust that could be seen around That?s right. 1 the roof boltcr operator. from a distance of 50 feet: is 2 Am i correct that in this area ol'thc mine. at 2 that correct? 3 this time. the minimum legal required air quantin was 3 A That's correct 4 3.000 cubic feet per minute of air? 4 bet me shun you WellYes. that's correct 5 follow-up question to that. Agent Carter. have you 6 And so this citation was written when the 6 learned from your investigation what is dangerous about '1 federal inspector discovered this particular location 7 airborne coal dust in a coal mine? 8 operating with less than half of its required quantity 8 A Yes. 9 of air; is that right? 9 What can result from airborne eonl dust that 1 0 A Yes 1 0 exists in coal mines? 1 1 MR. RUBY: Let me show you a document. Agent 1.1 A It?s explosive 1 2 Carter, that?s going to be marked, Grand Jury Exhibit 1 2 In fact, it's highly explosive: is that 3 3 1 3 correct? 1 4 (WHEREUPON. a referred was marked as Grand Jury Exhibit show you another document that we're going to math, Grand Jury Exhibit 32 BY MR RUBY: 1 7 UPON, a document referred 1 8 Are you familiar with this document? 1 to was marked as Grand Jury Exhibit 19 A ch,ltun. 19 No 32: 20 What Is this? 20 BY MR. RUBY- 2 1 A This is also a citation written by MSHA at the 21 Are you familiar with this? 2 2 Upper Big Branch Mine South. 22 A Yes, i am. 2 3 What's the date on this document? 23 Is this another citation that a federal safety 2 4 A October 24th excuse me. October Zist. 2009. 2 4 inspector issued to the mine? 25 And is this another citation for a violation 25 A Yes. It Is 6 (Pages 18 to 21) DeMuth Court Reporting, LLC 304?766?8708 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 9 of 66 PageID 811 Jeffrey Carter November 13, 2014 Page 22 Page 2 Ii 1 What?s the date on this? 1 to was marked as Grand Jury Exhibit 2 A it Is March 2nd. 20th 2 No. 33.) 3 And is this citation also for violation of the 3 BY MR. RUBY: 4 mine's mandatory ventiiatioo plan? 4 Are you familiar with this? 5 A Yes. it is. 5 A Yes, I am 6 Is this also a citation for not having the 6 What is this document? '3 minimum legal required amount of air in an area of the 7 A This ts also a custom at the Upper mine? 8 Big Brunch Mine by dated July lSth. 2009 9 A That?s correct 9 And this citation has to do with those water 1 0 0 In fact. according to this citation. on this 10 sprays that were required to he installed on pieces of 1 1 date. the U83 Number I Section had less than half at? the i 1 mining equipment; is that right? 1 2 legal minimum quantity of air that It was required to 1 2 A Yes. 13 have; is that right? 1 3 What. speci?cally. was the violation that was 1 it A that's right. 1 4 being cited here? 15 0 Let me ash. Agent Carter. are you 1 5 A That the plan states that there wuil be 33 1 6 with another aspect of the ventilation laws in cool 16 tester sprays working on the Joy mtner. and only 29 1'7 mines. specifically one that requires water sprays to be 1 '1 can be found. 1 8 installed on pieces of mining equipment? 1 8 0 Now. am I correct that "even a relatively 1 9 A Yes. 1 9 small number of water sprays are missing from a piece at 2 0 What?s the purpose or having a water spray 20 mining equipment. that can dramatically reduce the 2 1 an a piece of equipment that cuts coal out ol'a mines? 2 1 amount of pressure on all the sprays on the piece of 2 2 A it helps out down on the dust. 22 equipment? 2 3 So am I correct that pieces of equipment that 23 A ?that is correct 2 4 actually eat coal out of the scam in a coal mine have 2 4 And cause the entire set of sprays not to be 2 5 devices that spray water in the. direction they're 2 5 able to function the way they're supposed to: is that Page 23 Page 2? 1 cutting to sort of tamp down the amount of dust that?s 1 right? 2 generated? 2 A Yes 3 A That's correct 3 RUBY Let Inc show you another document. 4 These water sprays. do they have any other Agent. that Will be marked Grand :uty iixlubtt Number 34 5 purposes or functions? 5 a document referred 6 A They do It could also be bene?cial if there 6 to was marked as Grand Jury Exhibit 7 was any type ol'ignitton that the water would be 7 No. 34 8 bene?cial. BY MR RUBY- 9 lines the water that comes from the sprays help 9 Is this another citation that was issued by 10 to cool down the area where coal is being cut out of the I 0 MSIIA at the UBB urine? 1 1 mine? i A Yes 2 A That's true i2 0 And what?s the date on that? 13 Dues it cut down on the frictional hat that i3 A October 27m. 2009 1 4 results from the actual process of ripping the coal out 1 4 0 is this another citation for not having 1 5 of the ground? 15 correctly operating water sprays on a piece of mining 1 6 A Yes. 1 6 equipment? 1 7 0 If the heat in the immediate area where coal 17 A Yes. It is 18 is being cut becomes too great and there are esplosive 1 8 0 And in particular. this citation was far not 1 9 substances in the air, can that heat ignite an .19 having adequate or the minimum required amount of water 2 0 explosion? 20 pressure on the sprays that were supposed lamp down coal 2 1 A Yes 21 dust and cool the cutting area; is that right? 22 MR RUBY i' gontgto show you, Agent. 22 A Yes 2 3 document that's going to be marked Grand Jury Exhibit 2 3 Mil RUBY I'm gatng to show you another 2 It 33 2 document that ts gomg to be marked Grand Jury Exhibit 2 5 (WI a document referred 25 35 DeMuth Court Reporting, 7 (Pages 22 to 25) LLC 304-766-8708 Jeffrey Carter Case 5:14-cr-OO244 Document 83-1 Filed 02/06/15 Page 10 of 66 PageID 812 November 13, 2014 referred 1 result of its investigation following the explosion at 2 to was marked as Grand Jury Exitith 2 (183? 3 No. 35.) i A Yes. 4 BY MR. RUBY: 4 And does this citation pertain to. litre the 5 0 Is this another citation that was issued at 5 ones that we?ve just looked at. to the use of water 6 the U88 mine by 6 sprays on a piece of mining equipment? 7 A Yes. ?i A Yes. 8 What?s the date on this? 8 0 According to this citation, the mine?s 9 A March 23rd. 20H) 9 mandatory ventilation plan required the iongwall shearer 1 0 And is this also a citation for not correctly 1 to have 109 water sprays altogether; right? 11 maintaining the water sprays that were required to he on 11 A Yes. 12 a piece of mining equipment? 12 l?he longwnil shcrer. am i correct. is the 13 A Yes. 13 piece of equipment that actually eat the coal or mined 14 And specifically. what was the safety 1 It the coal in liBB?s loagwall mining section? '15 violation that led to this citation? 1 5 A That's correct 1 6 A ?the water sprays for the Joy 12-12 continuous .16 0 It's rt large piece of mining equipment; is 1?7 minor. serial JM459lil3. are out being maintained. that right? 18 2! ol?tlte 40 required sprays were inoperablewater ?tting to the spray block located above the 9 And according to this citation. the mine's 20 throat was broken.? 20 mandatory ventilation plan said that piece of equipment 2 1 So to make sure i understand this citation 2 1 had to have 109 sprays: is that right? 22 correctly. the mandatory Ventilation plan at the Upper 22 A Yes. 2 3 Big Brant-h Mine required that this particular piece of 2 3 I'm going to direct you to page two of this 2 4 mining equipment have 40 water sprays on it; is that 2 4 exhibit, Agent. Actually. let me go back. let me have 2 5 right? 2 you start on page one of this exhibit, which is number Page want you to begin reading the last sentence - And the federal inspector who issued this 2 in the violation description on page one. 3 citation discovered that more than half of the required 3 A ?Evidence obtained during the Investigation of 4 number of sprays on this piece of mining equipment, were 4 an explosion accident" - 5 not operating correctly? 5 0 Continue on to page two. 6 A ?lhnt's corrch A "Revealed that the shearer was being operated 7 0 On April the 5th of 20m. Agent Carter. there 7 with missing and clogged water sprays Seven sprays on 8 was art explosion at the U88 mine: is that correct? 8 the tailgate drum wort: missing As a result oflhc 9 A Yes. 9 sprays. tire pressure at the remitting sprays was 10 0 After that explosion. federal officials 10 signi?cantly reduced below the 90 PSI requirement. One 11 conducted art investisnttioa to attempt to determine what 1 1 function oftlre water sprays is to prevent it potential 12 the causes of the explosion were; is that right? 12 ignition source from heat generated by the 13 A Yes. 13 shearer hits striking the rock it in the course of or at the conclusion of that And l?ll stop you right there. This was - 15 investigation. were citations written for safety 1 5 the failure to follow the required ventilation plan. 1 6 violations that were discovered in the course of the 1 6 speci?cally. with respect to the number ofoperating 17 investigation? sprays on the Iongwall shearer was a violation of 1 8 A Yes 18 mandatory federal rtrirte safety standard; is that right? 1 9 MR RUBY I'm going to show you a document 1 9 A That's correct 2 0 that Will be marked Grand Jury Exhibit 36. 20 Now. these citations that we've been looldng 21 (WHEREUPON. a document referred 2 1 at. Agent. these are just examples of the citations that 22 to was marked as Grand Jury Exhibit 22 UBB received for violations of its ventilation plan 23 No 36) 23 during the period under discussion; is that right? 24 BY MR RUBY 24 A That's right 25 Is this a citation that MSIIA issued as a 25 [love you had the opportunity to review records 8 (Pages 26 to 29) DeMuth Court Reporting, LLC 304-766-8708 DLB-GJ-TR-000176 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 11 of 66 PageID 813 Jeffrey Carter November 13, 2014 Page 3 Page 3 2 1 that detail all of the citations that UBB received for 'a A Yes 2 violatingI its ventilation plan in that period? 2 And the purpose ofa slapping is to direct air 3 A have .i to where it needs to go in a coal mine: is that right? 4 Am I correct that during the time period we've 4 A That's cancel 5 been discussing, was cited approximately 6 times 5 As well as potentially to keep contaminated 6 for violating its approved ventilation plan? 6 air out at places in a coal mine where it?s not supposed '7 A Yes 7 to be: correct? 3 Those violations were cited throughout the 8 A Yes 9 indictment period: is that right? 9 The citation that was written here. not I 1 A That?s correct 1 0 correct that It was because one or more Mappings in the 1 0 And they were cited for dates ranged all 11 mine had been damaged by what the citation refers to 12 the way front March through on or around April 12 as ?adverse roof conditions?? 1 3 the 5th of 2019; is that right? 13 A Yes. 1 A Yes 1 4 Have you had the opportunity to interview 1 5 Did the U83 mine also receive frequent - 5 witnesses about what the conditions were Illa: In the 1 6 citations for not hating required ventilation structures 1 6 area of the coal mine where this violation occurred? 1 7 or ventilation controls? 1 7 A have correct that in this area of the coal 3.9 0 how. am I correct that in a coal mine it's 1 9 mlne, according to witnesses that you've spoken with. 2 0 required that the mine construct airtight walls or other 2 0 the roofnnd the walls ofthe coal mine were collapsing? 2 1 devices to direct air to the mine to where it needs And according to witnesses. was that the 2 3 A Yes 2 3 result of poor engineering? 24 0 Air in a coal mine doesn't just automatically 2 4 A Yes 2 5 flow to where it needs to he: right? 2 5 those witnesses Include. for example. an Page 31 Page 33 1 A It does not individual named Andy Coalsnn? 2 The mine has to build lstructures In order to 2 A Yes 3 direct it; correct? 3 is his last name 4 A Yes 4 A That?s cancel 5 Is that a requirement in one more mandatory 5 And he was a supervisor at the mine; is 6 federal mine safety standards? 6 that correct? 7 A YesMR. RUBY. i'm going to show you a document, 8 0 [ins Mr. Coalson related to you that 9 Agent. that we'll mark Grand Jury Exhibit Number 37. 9 engineering mistakes in this area of the mine were 10 a document referred 1 0 causing the roof and the walls of the mine to collapse? 11 to was marked as Grand Jury Exhibit 1 1 A Yes 12 N0. 37.) 1 2 Was that pressure from the roof and the walls 13 BY MR 1 3 in this area of the mine causing these stopping walls to 4 0 Is this a citation that MSHA issued at the 14 be damaged or crushed? 1 5 mineAnd when that happened, it resulted in 1 7 What?s the date of this citation? 17 violations of mandatory federal mine safety standards on 1 A November l9tlt. 2009. 18 ventilation: is that right? 1 9 What is stopping, Agent Carter. what?s that 1 9 A that's correct 2 0 term mean in the contest at" a coal mine? 20 0 According to \tr. Coalson and the other 2 1 A it?s basically a wall that?s construcch lo 2 1 witnesses that you?ve spoitca with. or other 2 2 help with ventilating the mine. it's made out of block. 22 investigators have spoken with, were UBB of?cials 23 Am I correct that a stopping is not only made 2 3 that in this area of the mine these important 2 '1 out of block. but also covered with some sort of 2 4 ventilation structures were being destroyed? 2 5 material to matte it reasonath airtight? 25 A Yes DeMuth Court Reporting, 9 (Pages 30 to 33) LLC 304-766-8708 177 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 12 of 66 PageID 814 Jeffrey Carter November 13, 2014 Page Did that include Mr. Blanchard, who was the 1 collapsing or descending so quickly that one of these 2 president of the group of mines that included 2 bloclt walls could be built one tiny and then blown out 3 A Yes. it did 3 when miners came back to work the next shift? 4 But. again, according to witnesses that you're 4 A Yes. 5 spoken with. did those of?cials. notwithstanding the 5 0 Now. tlte two citations that we?ve just looked 6 fuel that ventilation controls were being destroyed in at. Agent. these are only examples of the citations that this area of the mine. keep using the tunnels or the 7 were issued at for violation ol'inws on ventilation 8 passageways that were affected as part of the mine's 8 control structures: is that right? 9 ventilation system? 9 A Yes. 1 0 A Yes. they did 10 Have you had an opportunity to review the 1 1 MR. RUBY I?m going to show you mother 1 1 records on all of the citations of that nature that were 1 2 document that is on the snare subject It?s going to he 1 2 written at mm in the period under discussion? 1 3 marked Grand Jury Number 38 1 3 A have. 1 4 (Wi a document referred 14 Am I correct that in the period we?re 1 5 to was marked as Grand Jury [Mobil 1 5 discussing. UBB was cited for approximately 59 1 6 No 38.) 1 6 violations of the mine safety laws on ventilation 17 BY MR RUBY: 1 7 control structures and devices? 1 8 Are you familiar with this document? 18 A Yes. 1 9 A Yes. I am 19 Am I also correct that those cited violations 2 And this a citation that was issued by 20 occurred or ranged from January of 2008through March of Mill? 22 A Yes. 2 2 A Yes. 2 3 What's the date on this? 23 Are you familiar. Agent. with the federal mine 24 A December lst, 2000 2 4 safety laws on safety examinations? 2 5 (in ahead and read a description of this for 2 5 A Yes. Page 35 Page 3'7 1 me. tfyon would. 1 0 Am I correct that under those laws. a mine has 2 A ?The permanent In break Number 54. i' to regularly conduct a variety of safety examinations to 3 Number 55. Number 56. Number 57. Number Sll. Number 59. 3 ?nd any hazardous conditions that exist in the mine? 4 Number 60. Number Number 62. 63. Number 64. A That's correct. 5 Number 65. Number 66. Number 67. and Number 68 between 5 MR. RUBY: l?m going to show you a document 6 the number two and number three entry ol'llcadgate I 6 that 's gorng to be marked Grand Jury 39 7 North are not being maintained to the latent winch they 7 a document referred 8 bath to adverse roof conditions pushing the 8 to was marked as Grand Jury Exhibit 9 out The return from? 9 No 39.) 1 0 Let me stop you there. Again. a stopping is 1 0 BY MR. 11 black wall that is used to guide air lit the mine to 1 . Is this another citation that MSI IA issued at 1 2 where it needs to go: correct? 1 2 the UBB mine? 13 A Yes 13 A Yesbreak. is that another word for a tunnel ?l 4 What's the date on this? 1 5 that exists to a mine? 1 5 A March 9th. 2009 1 6 A Yes 16 0 March 9th. of 2009; is that right? 1 7 So according to the description, the federal 1'1 A That's correct. 1 so tety Inspector who wrote this citation round that the 18 Could you read the description for us? 1 9 ventilation walls at this particular time In more than 9 A "The operator is failing to make a weekly 2 0 dozen ot'the tunnels In this area had been pushed out by 20 examination for hazardous conditions to all Intake 2 1 the falling roof; is that right? 21 airways. The ?rst Intake split going to the LBB atoms 2 2 A Yes 22 has not been examined since March 8th, 2008. This is 2 3 According to Mr. (?oatson and other witnesses 23 the last dates, times. and initials that could be found 2 4 that you've spoken with about conditions in this area. 2 it in the airway. The operator could not produce a written 25 am I correct that the roof In this area ofthc mltte was 25 record of an examination of this area DeMuth Court 10 (Pages 34 to 37) LLC 304-766-8708 1 78 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 13 of 66 PagelD 815 Jeffrey Carter November 13, 2014 Pa 9 3 Page a 0 J. Vow. an ?intake airway.? that term?s used in 1 A September 23rd. 2009. 2 the citation. is that an airway that brings clean. fresh 2 Can you read the first sentence of the 1 air into a mine? 3 citation description? 4 A Yes. 4 A ?'lhe operator is failing to adequately protect 5 And according to this citation. one of the 5 miners from falls of the roof and [1b in the area of the 6 iatahe airways. bringing clean. fresh air into Hill]. had 6 Number 3? sea'. 7 not been examined for safety for more than a year; is Now. just as an aside. a seal is a device that 8 that correct? 8 seals off the air in an old pa rt of the mine: is that 9 A That?s concet 9 right? 1 0 0 Now. it was an area that was required by 1 0 A That's correct. 11 federal mine safety laws to he examined for safety at 1 1 The purpose of it. among other things. is to 12 least every week; is that tight? 1 2 seal out methane gas that might come into the active 1 3 A Yes. 1 3 workings of the mine from an older area? i 4 Have you had a chance. Agent. to review all of 14 A Yes 1 5 the records that re?ect citations at [138 for violating 1 5 Continue. 1 6 the laws on safety examinations in the period that's 1 6 It ?The mtne roofhas fallen out from between the 1 7 under discussion? 17 ma jonty ol'thc rool'bolts for a break each mby and 1 8 A Yes, I have. 1 8 outby the seal. The mine roof has also fallen 1 9 0 Am I correct that during that period. UBB was Li 9 completely away irtnn at least eight roofbolls leaving 2 0 cited for approximately 62 violations of the mandatory 20 them hanging two feet from the mute roof 2 1 federal mine safety standards on safety examinations at 2 1 Now. let me stop you there. There's that word 2 2 the mine? 22 break again. A break is. again. that's the name for type of tunnel that exists in a coal mine; is that 2 ?l 0 Did those occur from January of 2608. all the 2 4 right? 2 5 way through April the of 20th? 2 5 A Yes Page 39 Page 41 A That's correcL 1 And according to this citation. the mine roof 2 The federal mine safety laws also say that a 2 had fallen out from most of the roof bolts for a break 3 mine has to properly support its roni'and its walls; is 3 each. inby and outhy this Number 37 seal; is that right? 4 that right? It A Yes 5 A Yes. 5 Now. that would have been. based on the 6 if it doesn't do that. what can happen? 6 distance between breaks or break tunnels at the use 7 A You could have collapses. if it?s not 7 mine. that would have been in distance of at least a 8 supported properly 8 hundred feet: is that right? 9 What happens if a piece of the mine roof 9 A Yes. 10 collapses on a coal miner? 10 And probably more? 1 1 A it can result in Serious injury or death. 1 1 A Correct. 12 0 Am I also comet. Agent. that the mine. 12 Go ahead read the second paragraph for me. 1 3 however. regularly violated federal mine safety laws on 13 A ?This has been reported In the 14 the support of its roof and its walls? 1 4 Weekly exam for hazardous conditions for the weeks August 27th, 2009. September 2nd. 2009. September 12th. 16 MR RUBY. I'm going to show you a document 1 6 2009. and September l9th. 2009. These reports had all 1'1 that will be marked Jury [:xlubtt 40 1 been countersigacd by the mine foreman." 18 (Wi-ililtl?lfl?ON. a document referred 1 Let me stop you there and ask you to explain 19 to was marked as Grand Jury Exhibit 1 9 this to us a little bit more. When It said. ?This 20 No 40) 20 condition has been reported in the weekly exam." what 21 BY MR. 21 does that refer to? 22 Is this another citation that MSHA issued at 2 2 A There: conditions are noted in an exam book 23 the U83 mine? 2 3 when they?re found. 24 A Yes. 24 And that's mandatory under federal law: is 25 What?s the date on this? 2 5 that right? DeMuth Court Reporting, 11 (Pages 38 to 41) LLC 304?766-8708 DLB-GJ-TR-000179 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 14 of 66 PageID 816 Jeffrey Carter November 13, 2014 Page 4 2 Page 4 It 1 A Yes, it is 1 discussing? 2 As an aside. let me ask. am i correct that you 2 A Yes 3 and other agents involied in the case have spoken to 3 Am I correct that. In total. UBB was cited 4 witnesses who say they were -- witnesses at UBB who say 4 around 9 times for violating the federal mine safety 5 they were discouraged from fully reporting safety 5 standards on roof support during the period of time 6 problems that existed at the mines in these weekly 6 we?re talking about? 7 examination recordsDid those range throughout the entire span of 9 0 Vow, this says. and you?ve listed the time 9 time that?s under discussion? 1 0 frame there. during which the falling roof in this area 1 0 A That's correct 1 1 of the mine had been reported. Based on the date of 11 In fact. they range from January of 2008. all 1: this citation. how long had this problem existed? 12 the way through April the 5th of 2010; is that right? 1 3 A For almost a monthwas first recorded in the week of August 1 4 0 Let?s turn to another area of the mine safety 1 5 27th. 2009; correct? 1 5 laws. Agent. re you familiar with safety laws that 1 5 A That's cancel 1 6 concern accumulations of coal dust? 1.7 And it was discovered by the safety inspector '17 A lam 1 8 who wrote this citation on September 25rd of 2009; is 1 8 Again. you addressed this earlier. but why is 1 9 that right? 1 9 coal dust in a mine dangerous? 2 A That's correct. 2 0 A tt's potentially explosive 2 1 How many times had it been repoch in a 2 And there are also federal mine safety 2 2 safety examination record during that span? 2 2 standards that address accumulation: or piles of loose 2 3 A it ?as reported four times. 2 3 coal? 2 4 Did the sentence that you read most recentlysays that these reports had all been by 2 5 Is loose coal flammable? Page 4 3 Page 4 5 1 the mine foreman; what does that mean? 1 A Yes. it is 2 A A?ct they're put in the book. then the man: 2 Are fires a serious danger in an underground 3 foreman reviews it and then signs off on it. 3 coal mine? 4 And is the purpose of that mantel-signature to 4 A Yes. they are 5 that a responsible official at the mine is 5 coal mine. the spaces are 6 aware of whateVer safety barards were discovered in the 6 restricted; is that right? 7 weeldy examAnd the air supply is limited; is that right? 9 llut according to this citation. in spite of 9 A Yes. it Is. 10 that. this hazard with the roof falling out in an area 1 0 And very often. miners in an underground coal 1 of the mine had been allowed to exist for almost a i 1 mine work very for an ny from fresh air on the surface: 12 month; Is that comet? 12 is that right? I 3 A That's correct 13 A Yes 1 4 Go ahead and read the last two sentences of 1 4 That was the case at the mine: is that 1 5 the description. 1 5 correct? 1 6 A ?The operator engaged at an aggravated conduct 1 6 A Yes 17 by knowing about these conditions and failing to take 1 '7 In fact. many of the miners who worked at the 8 action on a known board. This violation is 3 mine regularly worked miles away from fresh surface 1 9 unwanantable failure to comply with a mandatory 1 9 Mr: is that ?it'll? 2 0 standard 2 0 A That as correct 2 1 And this is. again. just one example of many 2 1 Does federal law require coal mines to make 2 2 citations that were issued at UliB for violating federal 22 sure that potentially explosive coal dust is kept 2 3 safety laws on roof control: that right? 23 cleaned up? 2 4 A That?s right. 24 A They do. 2 5 0 During the period of time that we?ve been 25 Does it also require that coal mines make sure 12 (Pages 42 to 45) DeMuth Court Reporting, LLC 304-766-8708 80 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 15 of 66 PageID 817 Jeffrey Carter November 13, 2014 that potentially ?ammable piles ot'loose coal are 1 equipment that was used to extract coal in this section 2 cleaned up? 2 ol' the mine? 3 A Yes. 5 A That?s correct. 4 0 Am i comet. however, that in the time period 9 0 All right. [int the violation is actually 5 We'te been discussing. the tnine regularly violated 5 about the conveyor belt. or one of the com eyor belts 6 those federal laws on the cleanup ol?coal dust attd loose 6 that was in this area of the mine; is that right? coal? 7 A Yes 8 A They did 8 What?s ??oat coal dust"? 9 MR RUBY: I?m going to Show you a 9 A It's Just dust that's generated from the 1 that will be marked Grand Jury Exhibit 4 10 mining process that's kicked up into the air. 1 1 (WI a document referred 11 So the word ?oat there literally means that 12 to was merited as Grand Jury Exhibit 1? it?s cool dust will ?oat correct? 1 '1 BY MR RUBYthis a citation that MSIIA issued at the mm 1 5 0 ?Float coal dust along the entire heltline. 1 6 mine? 1 6 from the Number One belt head to the No other One tail 1 I A Yes. it is. 1 7 piece." so that?s the entire length ol' this particular 1 What?s the date? 1 8 bell in the number one section of the mine: is that 1 9 A January 28th. 1 9 comet? 2 0 Now. it starts out. It says. "The number one 2 0 A Yes. 2 1 heltline.? does that refer to a conveyor belt? 3?1 Float coal dust. after it is Iticltetl up into 22 A Yes. 22 the air by the mining process. it eventually settles out 2 3 A conveyor belt that was used to carry coal 2 3 at the air; is that right? 2 4 out at the mine? 2 a A Yes. 2 5 A hal's correct 2 5 0 Once it's settled out of the air. could ahead and read that first sentence then. if 1 still be dangerous? 2 you would. 9 A Yes 3 A ?The number one hell late for the llcadgatc 3 Why is that? 4 Number 22, Number One Section, MMU 029-0 has ?oat coal 4 A It can he kicked back up into the an. and he 5 dust along the entire hell line treat the number one hell 5 ?oats become suspended again 6 head to the number one l?ll piece 6 And once it becomes suspended. excuse me. then 'i Non . there?s some language in there that it 7 It?s. again. potentially explosive: correct? 8 may be helpful to explain. At the U88 mine. and at many 8 A Yes. 9 other coal mines. there were actually several separate 9 0 What?s an example at something that can iticit 0 mining sections at any given time; right? 10 previously settled coal dust baclt into the mitte air? 1 1 A 'l'hat?s correct. 1 1 A A fall can lock dust back up 12 0 Meaning that in the entire underground area 12 fall.? you mean of a piece of the mine 13 that was known as the UBB mine. were several 1 3 root? 1 4 speci?c locations wltere at any given time where coal 1 4 A Yes. 1 5 was actively being dug out at the ground; is that right? I 5 So if a large piece of the roof ol'a mine 16 A Yes 1 6 falls out, then the push of air that?s generated by that 17 The number one section was one of those areas 1 7 can kick settled coal dust back up into the air? 1 8 of active coal mining? l! A That's correct. 1 9 A That?s correct. 19 What about an explosion or an ignition. can 20 And another name for it was ?lleadgate Number 20 that push previously settled coal dust back up into the 2 1 22"; is that correct? 2 1 airYes. it can 23 0 And last hit ol'sotne ol' the 23 0 And ?that happens, can the heat or the ?ame 2 4 technical aspects of this sentence. MMU029-0. was that 24 from that explosion then cause a further explosion in 2 5 number that was assigned to this speci?c piece at 25 the coal dust that?s just been locked back up into the DeMuth Court Reporting. 13 (Pages 46 to 49) LLC 304-766?8708 81 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 16 of 66 PageID 818 Jeffrey Carter November 13, 2014 Page 5 0 Page 5 2 1 air? 1 requires: right? 2 A Yes. it can. 2 A That's correct. 3 And that way. can an explosion spread 3 That?s what the mine was supposed to do under 4 throughout a coal mine? 4 the law? 5 A Yes. 5 A Yes, it was 6 Go ahead and read the second sentence of this 6 Am I correct. Agent. that these citations. 7 description. lt'you would. 7 like the others we?ve seen. are only examples of the 8 A "Cool dust, including float cool dust 8 citations that 1 BB received for violations of tire low on 9 deposited on rock (turned surfaces. loose coal, and other 9 cleaning up coal dust and loose coal and other 1 0 combustible materials, shall be cleaned up and not be 10 combustible materials? 1 permitted to accumulate in active workings, or on diesel 11 A Yes 1 2 powered and electric equipment therein." 12 Have you had an opportunity to review records 1 3 Is that a statement of the mandatory federal 1 3 of all the citations received for violating those 1 4 safety standard on the cleanup of coal dust and loose I 4 safety laws? 1 5 coal? 1 5 A have 1 6 Yes. 15 And not I correct that in the period that?s 1 i As well as other combustible materials; right? 1 7 under discussion. [183 was cited for approximately til 1 8 A 'l'itut?s correct 1 ll violations ol?thc safety laws on cleaning up those 1 9 is it accurate to say that anything that can 19 potentially explosive or ?ammable substances? 20 be fuel for a ?re in a coal mine is a danger that has 20 A Yes 2] to he managed and controlled? 2 1 0 Did those violations occur oil the way 2 2 A Yes 22 throughut the period of time we've been discussing? 2 3 MR. RUBY: Let me show you another 2 3 A Yes. they did. 2 4 that will be marked Grand Jury Exhibit 42. 2 4 Did they latte place t'rom January of 2M8, all 2 5 a document referred 2 5 the way through April the 5th of Page 5 1 Page 5 3 1 to was marked as Grand Jury Exinhit 1 A That's correct. 2 No. d2.) 2 You mentioned just a minute ago. Agent. and we 3 BY MR RUBY: 3 saw a reference to the safety examination boolts that the 4 Is this another citation that was issued by It mine itself keeps. Those are kept by coal miners who 5 MSIIA at the mine? 5 function as safety examiners in the mine: is that right? 6 A Yes. 6 A That?s correct. 7 What's the date on this? 7 Are those coal miners ol'tcn sometimes referred 8 A It's March 15m, 2010. 8 to as tire basses? 9 Could you read the first sentence of the 9 A Yes. they are. 1 0 description? 10 MR. RUBY l? -n going to show you author 1 A ?The longwail belt had accumulations of ?ne 1 1 document that we?ll and: Grand Juryl'xhihit 43 that is 1 2 coal dust. black in color. overlap of previously rock 12 a two page exhibit 1 dusted areas from the belt tail toilet to the belt 13 (WIIEREUPON, a document referred 1 4 head 1 4 to was marked as Grand Jury is And so according to this citation, there?s 1-5 No.41) 1 6 another conveyor belt. on this date in the coal mine. 1 6 BY MR. RUBY 17 the entire length of which, or nearly the entire length 1 7 Is this a citation that MSIIA issued to the Bit 1 8 of which. was covered in ?ne coal dust; is that 18 mine? 1 9 correct? 1 9 A YesAnd what's the date on this citation? 2 1 Go ahead and read the next sentence. 2 1 A December 61h. 20H 22 A "Cool dust, including ?oat coal dust. 22 Is this a citation that was issued as a result 2 3 deposited on rock dusted surfaces. loose coal, and other 2 3 of the Investigation following the es plosioo that you 2 combustible materials shall be cleaned up 24 mentioned earlier? 2 '1 Again. that?s a statement of what the law 2 5 A That's correct. DeMuth Court Reporting, 14 (Pages 50 to 53) LLC 304-766-8708 82 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 17 of 66 PageID 819 Jeffrey Carter November 13, 2014 Page 5 4 Page 5 6 1 After the explosion. did investigators who 1 indicate that the corrective actions required to address were looking into the espiosion?s cause retiew the '2 the IiSlcd accumulations Were taken." 3 safety examination books that were kept at the mine? 3 0 Let me stop you right there. in these 4 A Yes '1 examination books, or examination records that we've 5 I want you to go ahead and just start reading 5 been talking about. there's also a space where the mine 6 the description there. 6 is supposed to record what was done to correct the 7 A ?The operator failed to immediately correct or 7 hazard that was found; is that right? 8 post with conspicuous "Danger" signs hazardous 0 A That '5 correct 9 conditions observed and rounded dunag the on-Sill? 9 And is that what this sentence is referring 1 0 examinations ol'tltc belt conveyor systems In the north 1 0 to? 1 1 area of the mine, the aiTcetcd area. the area affected. 5 1 A Yes. it is 1 2 by the explosion on April 51h. 20?) From March ist. 12 And actually. this sentence says that the 1 3 2010, through April 5th. 2010. the opemtor's oil-shill 1 3 records don?t indicate that the corrective actions 14 examination records Identi?ed spproxnnatciy 982 14 required to address these hazardous were actually 1 5 hazardous Of these hazardous conditions. i 5 performed; is that right? 1 6 approximately 937 were as accumulations of coal 1 6 A hat's right 1 7 and/or lack ofrock dusting." 1 7 Go ahead. 1 8 0 This citation is referring to what was in the 18 A "Although some corrective actions were listed. 1 9 mine's safety csamination books for a period of just a . 9 most instances where cleaning and dusting was listed as 20 little more than a month; is that right? 20 being needed do not indicate that the required 21 A Yes 2 1 corrective actions were adequately pcrihmicd 22 Beginning on March the Ist. Jill, and 22 I?m going to stop you right there. Similar to 23 continuing through April the 5th of 2010: is that right? 23 the safety examination records that we tallied about 24 A 11tat?s correct 2 4 earlier. with the example of the mine foreman 2 5 And in that period of time. those examination 2 5 conntersigniug records. were the safety records that are Page 55 Page 1 books showed 937. or approximately 93?. hazardous 1 being discussed in this citation also records that would 2 accumulations of coal andlor inch of rock dusting; is 2 have been reviewed by a mine foreman or another mine 3 that right? 3 of?cial at 4 A i'hat's correct. 4 A Yes 5 Now. let me digress for just a minute. What 5 I thlult It?s just about time to take a break. 6 is rock dust? 6 Let are ask you one more question. and we'll get into 7 A It's a material that?s thrown til the none to 7 this in more detail after we come back. Was r. 8 reader dust men. 8 Blankenship, the CEO and the chairman of the company. 9 0 It?s an material: right? 9 aware of the number and the kind ofsafety violations 1 0 A Correct 1 0 that were occurring at the U33 mine? 1 1 0 It's rock. often limestone. that?s been 11 A Yes. he was 12 pulverized down into a powder? 12 MR RUBY All tight We've been at It for 1 3 A That?s correct 13 about an hour-and-a-haii?. so let's take a bathroom break 14 And federal safety laws require it to he 14 and he back hero in live or ten minutes, okay! 1 5 spread in a coal mine to stop explosions from spreading 1 5 (WI was 1 6 occur; is that right? 1 6 taken. ailer which the witness 1 7 A That's correct 1 'i remained under oath.) 1 50 according to this citation. in this span of 18 BY MR RUDY 1 9 a little more than a month. the mine safety examiners. 1 9 Agent Carter. let me start this segment of 2 0 the fire bosses. recorded approximately 937 hazardous 20 your testimony try asking about advanced warning of mine 2 1 accumulations of coal or lack of the rock dust that you 2 1 inspections at U83. 2 2 just explained to as? 22 A Okay 23 A That's correct. 23 0 Is that an area that you have covered In your 24 Can you go ahead and read the next paragraph? 24 investigation? 25 A "The pro-shill and on-sinil records DeMuth Court Reporting, 15 (Pages 54 to 57) LLC 304-766-8708 83 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 18 of 66 PageID 820 Jeffrey Carter November 13, 2014 Page 5 8 Page 60 i "are you had the opptmunity to speak with i sing the mine telephone? 2 witnesses who worked at the mine about that subject? A Using the mine telephone 4 A I have i What would they do it? they couldn't get 4 Let me ask. did these witnesses include miners 4 anybody to pick up the telephone? who worked as security officers at the entrance to the 5 A 111cm Was practice of shutting the bells ott? 6 UBB mine property? 6 If you shut oil' the conveyor belt that's 7 A Yes 7 carrying the coal out of the mine, is that a reliable And did they also include individuals who 8 way to get somehody's attention underground? 9 worked in the mine of?ce that sat outside the minethe witnesses that have spoken to you about 11 And do they also include coal miners who 1 1 this practice. have they told you that that was the 1 2 worked underground at the mine? 12 purpose of shutting down the belts. it they couldn?t get 1 3 A That's cancel. 1 3 anybody to pick up the phone? 1 4 0 According to these witnesses. was there a 1 A Yes 1 5 scheme that existed at to warn underground 1 5 The underground coal miners that you've talked 1 6 operations when federal mine safety inspectors were 1 6 to. have they told you what would happen when they got ?1 7 catalog to inspect? 1 7 this warning that federal inspectors were coming? 1 8 A then: was. 13 A YIS 1 9 There was at the entrance to the mine i 9 0 And when they got these warnings. would their 2 0 property. before you got to the mine entrance itsell?. 2 supervisors typically direct them to start covering up 2 1 there was a guard house; Is that right? 21 violations of mine safety laws? 22 A 'i hat?s correct 2 2 A That?s correct 2 3 Accordin to guards who were worked at the non 3 Would that typically Include things like 2 mine. was it standard practice to radio up to the Utlli 2 4 missing ventilation control devices or control 2 5 minc nil?ice whenever federal mine inspector passed 2 3 structures? Page this guard house? A Yes. 2 A II was 2 Would that typically include accumulations of 3 The mine office. it sat just outside the 3 coal dust or loose coal? 0 entrance to the mine; is that right? 4 A Yes 5 A 'ihat's correct 5 Would that typically include things like 6 And it was actually connected to the 6 missing root support? 7 underground parts of the mine try a telephone; correct? 7 A it would 8 A Yes. 8 What about a lack oi? rock dust in various 9 Now. this is not a telephone that was 9 areas of the mine? 1 0 connected to the regular telephone system; rightCorrect. 1 1 0 According to underground coal miners that 12 It was a closed circuit sort of system that 12 you?re interviewed in the course of the investigation. 1 3 was just used inside the mint.- and at the mine of?ce: is 13 was the purpose of this practice ofadvanccd warnings to 1 4 that right? 1 prevent federal safety inspectors from catching many the violations that UBB routinely committed? 1 5 Using this telephone system. somebody who was the mine office could talk to workers who wore 1 7 And EBB. and you've already said this, I BB was 18 underground in the mine? 1 a big mine: is that right? 1 9 A they couldWhen somebody in the mine o?ice got a radio 20 0 Given the distance from the guard house to the 2 1 message from a security oliicer that a federal 21 mine of?ce and then the size to the mine?s underground 2 2 inspector. or inspectors. were on there way. what did 2 2 workings. was it possible that a section could receive 2 3 that person in the mine attire generally do as part at 2 3 as much as two hours advanced warning before a mine 2 4 this understanding? 2 ?1 inspector got there to do his inspection? 2 5 A They contacted minets underground. 2 5 A it was DeMuth Court Reporting, 16 (Pages 58 to 61) LLC 304-766-8708 84 Case 5:14-cr-OO244 Document 83-1 Filed 02/06/15 Page 19 of 66 PageID 821 Jeffrey Carter November 13, 2014 Page 62 Page 64 1 Let me also ask. Agent. have you spoken with "as Mr. Justice talked to you and to other 2 witnesses who?ve told you about the practice of using 2 investigators about how this practice was carried out at 3 code words to discuss federal mine inspectors on the 3 4 mine propertyAnd according to him. was it a regular 6 0 Was it a common practice at Uli to use code 6 practice to call and warn underground operations any 7 words or phrases to let workers underground ltnow that 7 time a federal inspector was about to go underground at 8 mine inspectors were coming? 8 9 A it wasalso true that of?cials or managers at .10 Have you also spoken with an individual named 11 the mine regularly reminded their employees to give 1 1 Greg Clay concerning this practice? 12 a warning any time mine safety inspectors were on tlteir inspect the mine's underground areas? 13 Was Mr. Clay another employee who worked in 1 4 A That?s correct 14 the mine office at UBB, on the surface? 1 5 Are you familiar with an individual named Jonathan Williams? 1 6 lie was involved in purchasing at the mine; is A Yes 1? that right? 1 Is Mr. Williams one of the security of?cers 1 8 A 'ihat's correct 1 9 who worked at the UBB rninc property during the time 1 9 0 Has he also spoken to you orI sorry has 2 0 period that We?ve been discussing? 20 he also made statements to you that there was a regular 2 A Yes. he was 2 practice of calling underground from the UBB urine of?the witnesses who has given 22 to give a warning any time federal Inspectors were at 2 3 you statements about the practice that you just 2 3 the mine? 2 4 described to out? 2 4 A Yesturn to a subject that we started to Page 63 Page 65 1 Are you familiar with an individual named 1 talk about just before the break. Agent. You've taltu-d 2 Charlie Justice? 7 a bit about Mr. Blankenshipchairman ofMassey Energy In the time period that we are 4 Was he a dispatcher at the mine during the 4 discussing. no you know what it means for a mine to he 5) titne period that we've been discussing? 5 placed on a potential pattern of violations status? 6 A lie was. 6 A Yes 7 And what is a dispatcher esactiy? 7 What does that mean? it A He relays you know, he receives 8 A it means that the an reached it ie?. ci of 9 information when people are on property. directs them 9 receivmg violations that needs to come under greater 10 where to go, and where they need to be to scrutiny by M?iilA 1 1 Is the dispatcher an employee who works on the 11 And is a mine placed on a potential violation 1 2 surface at a coal mine? 12 status or a potential violation list because of the 1 3 A That's correct 1 3 number of serious safety law violations that it has. 1 4 0 lie or she typically works in the mine office: 1 4 among other things? 1 5 is that right? 1 5 A 'lhnt's correct 16 A Yes 16 There's a formula. in fact. that takes into '17 And in essence. among other things. directs 17 account a variety of factors to decide whether a mine 18 the traf?c going in and out of the mine; is that right? 1 8 goes on this potential pattern oi?violatioas list; is 19 A Yes 19 that right? 20 In the practice of advanced warning inspections that existed at UBB, was the dispatcher 2 1 Am I correct that only a handful, in the time 21 frequently one of the employees who actually made the 22 period under discussion. only a handful of mines in the 2 3 call underground to warn people that an Inspector was- 2 3 entire country were on the potential pattern of 2 4 coming? 2 4 violations list at any onetime? 25 A They Were. 2 5 A That's cancel DeMuth Court Reporting, 17 (Pages 62 to 65) LLC 304-766-8708 Case 5:14-cr-OO244 Document 83-1 Filed 02/06/15 Page 20 of 66 PageID 822 Jeffrey Carter November 13, 2014 Page 66 Page 68 1 In or around January of 2008Logic, Justice Number I. l'aylor Fork. thligltt MT R. 2 those mines; is that rightthese were all Massey mines that. at this 4 It had been designated or placed on this list 4 point in time. were on the potential pattern of 5 of the worst coal mines in the country for safety: 5 violations list; is that right? 6 correct? 6 A That '3 correct. 7 A Yes '7 Can you read the ?rst sentence there. for as? Was Mr. Blankenship made nwnn: of that? 8 A "to provide Mr Blankenship ill-d Chris Adkins 9 A Yes. he was. 9 with a weekly summary brie?ng on the cvaluat ion process 1 0 MR 'tiY: I'm going to show you a document .1 0 at each oi?yonr mines, as We move forward. i will 1 that is going to be marked, Jury Exhibit Number 1 1 need tht: following :nt'omtatian scat to me by email or t? 44 12 i'acsuntlc." 1 3 a document referred 3 And it' you go down. there's a list of points 1 4 to was marked as Grand Jury Exhibit 1 4 there. (?nn you go below that. to the last paragraph. 15 No 1 5 anti read that. please? 1 6 BY MR RUBY: 1 6 A "There is no room for a in this 1 7 Do you recognize this document? 1 7 process. given the improvement our mines must 1 8 A Yes. I do. 1 8 achieve in the short evaluation period We all realize 1 9 And Is this a document that has been provided 1 9 the severity of the consequences it?we fail. in terms at? 20 by Massey Energy Company? 20 production as well as public relationsstop you there. lt'a mine that was 22 we dist?! fur last a minute. in the 22 placed in PPOV status. or on the PPOV list. didn?t meet 2 3 course at the investigation. have there been Grand Jury 2 3 certain standards for safety improvement then it was 24 subpoenas Issued to obtain documents from Massey Energy 2 4 placed on an even more serious status called pattern of 2 5 (?tnpaay'l 25 violations; is that right? Page Page 6 9 1 A Yes. 1 A that's cancel. 2 As well as. from Alpha Natural Resources. 2 And on a pattern ot?viointions status. a mine 3 which took over Massey's operations around 20l is that 3 would be under conditions that would have signi?cantly 4 right? 4 diminished its coal production; is that right? 5 A Yes. 5 A Yes. 6 And quite a few documents have been produced 6 is that what this sentence. to the reference 7 by Massey. and. subsequently by Alpha. in response to 7 to production. rel'crs to? 3 those subpoenas; is that rightYes. 9 Can you go to the very bottom? There?s two 1 0 is this one of those documents? 1 0 lines at the bottom that begin with read that. 1 1 A Yes, it is 1 A ?Cc Don Blankenship. Chris Adkins 1 2 What is this document? 1 2 Does that mean that a copy otthis memo was 1 3 A It's a memo to Charlie Hearse. Chris 1 3 sent to those two people? 1 4 Blanchard. Billy McCoy. and Philip Marsh. 1 4 A It does 1 5 And not I correct that Chris Blanchard was the 15 0 Don Blankenship. we?ve already discussed. Who 1 6 Massey group president who was over the [188 mine? 1 6 was Chris Adidas? 7 A That's cortect 1 7 A Chris Adkins was In a posrtton right under Mr. 18 Who?s the memo from? 1 8 Blankenship for Massey 1 9 A it's from Elizabeth Chatnberlin J. 9 0 Was he the company's chief operating oillcer?.? 20 And who is sheShe was the head of safety for Massey. 21 So In the company?s mine operations. at least. 22 What?s the date on the memo? 22 be was another two behind Mr. Blankenship: is that right? 2 3 A January 2nd. 2008And what?s the subject? 2 ll 0 This Indie-alts that a copy at this memo was 2 5 A "Potential Pattern of Violation rattles. Brushy 25 sent to both of them: is that right? DeMuth Court Reporting, 18 (Pages 66 to 69) LLC 304-766-8708 86 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 21 of 66 PageID 823 Jeffrey Carter November 13, 2014 That?s cancel 1 The numbers of violations that each of them r? In January of Zillill? 2 had in 2008; is that right? i A Yes 3 A 'l?hat?s correct. 4 Discussing the loci that the mine was one 4 We'll. if we can. zoom in here on the bottom 5 ol'the mines that had been placed on this potential ?3 litre of this report. And it's got a gray background. so 6 pattern of violations list? a it's a little bit dif?cult to read?l?hat?s correct. 7 there the total. according to this report. the total Let me move forward just a little bit. Agent. 8 number of violations that all of Masscy?s mines together 9 Around early 2tlti9. did Mr. Blankenship begin to ask for 9 were cited. for safety violations that they were cited - 0 Information about the cost of the lines that Massey was 0 for in the year 2008? 1 1 being assessed for federal safety violations? 1 1 A Yes. 12 A Yes. he did 12 Where do you see that? I?m sorry. what is 1 3 MR. RUBY: Let me show you a document that's 1 3 that? 1 ti going to be marked Grand Jury Exhibit 45 A it's I0.i88. 1 5 (WIIEREUPON. a document referred 1 5 0 Let me show you another doeu meat. Agent. that 1 6 to was marked as (trend Jury Exhibit 1 6 we?ll mark. Grand Jury actually, before I get to 't No. 45) that. let me ask. in April ol?2lili9. Agent. did Mr. 18 BY MR RUBY. 1 Blankenship begin to receive a report every working day 1 9 This is a mold-page exhibit. and It may make 1 9 that gave informatin about Massey?s violations of 20 it a little more readable iI?Wr pull the pages behind 20 federal mine safety laws? 2 1 out so that you 'rc not seeing the noise from those on 21 A Yes. he did 2 2 the screen. This document is a printout of an email 2 2 MR. Let me show you, actually. a 2 3 message: is that right? 2 3 document just prior to that that will be marked as 4a. 2 4 A 'ihut?s correct 2 4 Grand Jury Exhibit 46 2 5 Who is it from? 2 5 (WHI-ZREUPON. a document referred It's from Elizabeth Chatuhcrhu. 1 in was marked it? Grand Jilly ElihuIt's to Don Blankenship and Sandra Davis. 3 BY MR RUBY 4 handra Davis was Mr. lilankenship?s executive 4 This is another printout of an email; is that 5 assistant; is that right? 5 right? 6 A Yes. 6 A Thurs correct '1 What is the subject of the email message? 7 Who's this from? A ?Year-cad 2008 summary 8 A Sabrina Doha 9 Could you go ahead and read the email? 9 0 Was Sabrina Doha a Massey accounting official? 0 A ?Sir. here is the latest draft of our year-end 1 0 A Yes. she ww 1 2008 MSHA violation summary 1 ant gorng to have the 11 Who's It to? I new It'll'iS reporting veri?ed and will add an estimated 12 A it's to Don Blankenship 1 3 penalty column per your request 1 3 And what's the date on this? 1 4 0 According to this printout. there was an 14 A April Ist. 2009 1 5 to this email; is that right. Agent? 15 And what is the subject? 1 6 A Comet. 1 6 A "Year-tn-date. March Violation Data 17 What was the attachment called? 17 What does the message say? 1 8 A Violation pdl?? 1 A ?Sir. attached I5 a few summaries of the 1 9 0 That attachment is included as part of this 19 violation date yeuMo-datc March Chris seat a 20 exhibit. and I?m going to ask you to take a look at page 20 note earlier tins evening Please let me know 21 three of the exhibit. which is the second page of the 2 1 the other types ?kc 10 See for 2 2 attachment. This rs a list obviously. ("on you tell us 22 'iucsday?s melting? hscuso me. "i?hursday?s meeting 23 what it?s a list oi? 23 Am I correct. Agent. that a few days after 2 A It's a list ofthe various mines and the 2 4 this email was sent. around April the 3rd to the 4th. 2 5 25 Mr. Blankenship. that was when he first began to receive DeMuth Court Reporting, 19 (Pages 70 to 73) LLC 304?766-8708 87 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 22 of 66 PageID 824 Jeffrey Carter November 13, 2014 Pa go 7 4 Page 7 6 1 the daily report that detailed safety law violations at A Yes 1 all ot?Masscy?s mines; is that right? 2 There are three columns to the right ofthat. '3 A Yes 3 The ?rst column to the of that shows the number 4 MR I'm going to show you a document 4 sum. Was that the number of sater law violations 5 that's going to be marked Grand Jury l'xhihit 47. 5 that. according to Massey's reporting system. had been 6 (WHFREUPON. a document referred 6 cited at Massey mines on June 30th. 2009? 7 to was marked as Grand Jury Exhibit 7 A 'lhut's correct 8 No, 4'1) 8 11m nut column has the number 82]. and that 9 BY MR RUBY 9 says, at the top of it. What does stand for 10 What?s this docunret? 10 there? 1 1 A This is also on canal. I 1 A Moath-to-date 12 Who?s it from? 1 2 So does that mean that 82 was the number of 1 3 A it's from John Patrick 1 3 safety violations that had been cited at Massey mines in Was John Patricka person who worked in 14 the month oUImc 2009? 1 5 Massey's Safety Department? is A Yes 16 A Yes. 16 And then what is the column all the to the 17 What's the date on this? 11 right? 1 8 A July Isl. 2009 18 A it's year-to-dotc 9 And there are a number of people on the to 19 0 According to that column. how many times had 20 line of this email. Is Don Blankenship one of those? 20 Massey mines been cited for violating federal mine 21 A Yes, he is. 21 safety laws in the ?rst half. or the ?rst six months. 2 2 This document. what?s the subject of the 22 01'2009? 23 email? 23 A It's 4,77] tunes 2 4 A "Dmly Violation Report." 2 a Now. uncle rneath that line we?ve been loolring 2 5 Is this an example. Agent. of one of the daily 25 at, there's a list. What's that list? Page Page reports that Mr. Blahenship received every weekday 1 A it?s a list ofthc mates 2 giving information about Massey's safety violations? 2 Is this a list of the mining groups that i A Yes, it IS 3 Massey was broken up into? 4 I'm going to direct you to page two of this 4 A It is a list of the groups. 5 exhibit. Agent. Is this the ?rst page ofthe report 5 What's the top group in the list? 6 that was attached at the email that we looked at on page 6 A It's Mnrfork, UBB '1 one? 7 So that refers to the group of mines that the 8 A Yes. 8 l'pper Big Branch Mine was apart of! 9 What does it say at the top there? 9 A That's correct. 10 A ?Body Violation Report." 10 According to this document. Agent. how many 1' 0 There?s a date. can you read ittimes had the U88 group of mines been cited for 12 small? 12 violating federal mine safety laws ill the ?rst six 1 3 A It looks like it says. "June 30th. 2008." 1. 3 months of 2009? It's a little blurry. we might blow it 1 4 That's correct. 1 4 up just a hit for you. 1 5 A Sorry. 1 5 A Five hundred and ninety-sot times 1 6 Sorry. the year?s wrong. 1 6 And. approaimately. what was the total 1 7 A ?June 30th. 2009.? 1 7 estimate of the amount of ?nes that were owed as a 18 So am I correct then that this was a report 1 8 result of those. or would he owed. as a result of those 1 9 that showed information about safety violations at 1 9 safety violations? 20 Massey through about the halfway point of the year in 20 A 9 8,40 . 2 1 2909'! 2 1 Dollars? 2 2 A Yes. 2 2 A Dollars. 2 3 Let?s start at the top here and work our way 2 3 The UBB group of mines Is on the top line in 2 4 down. Do you see the bold print line that says. ?Massey 2 4 this list: is that right? 25 Energy total?? 2 5 A That?s correct. DeMuth Court Reporting, 20 (Pages 74 to 77) LLC 304-766-8708 88 Case Document 83-1 Filed 02/06/15 Page 23 of 66 PageID 825 Jeffrey Carter November 13, 2014 Page 7 8 Page 8 0 1 0 Do you see two lines below it. there is And what percentage of the safety violations 2 another group of mines. what?s that group called? 3 at the U88 group. up through this point In 2009. had '5 A Sidney. 3 been in that serious category. according to this report? 4 And how many times. how many violations 4 A It's 40.8 percent '1 altogether. according to this report. had been cited at 5 In the last column it says. Largest 6 the Sidney group at? mines in the first six months of 6 Violation Area." What does that mean? 7 2009? 7 A It 's the area that UBB. or the mines. received 8 A Note hundred and twenty-?ve the most citations written under it 9 And What was the approximate estimated amount 9 So this was the speci?c area of the mine 10 of penalties associated with those citations? 1 0 safety laws that Ulili group had violated the most up to ii ft $690,248 1 1 that in the year: is that right? 12 So the Sidney group of mines had been cited 12 A Yes 1 3 for more violations than the Unit mines? 1 3 0 For the [138 group ol? mines. what was that 1 4 A Yes. 1 4 area. according to this report? 1 5 But the estimated ?nes for the Sidney 1 5 A Combustible materials and rock dusting 1 6 violations were less than the estimated fines for the 1 6 And what?s the number that?s listed after 17 UBB group violations; is that right? 1 '1 that? 1 ii A 'I'bat?s correctthat why the U88 group shows up at the top 19 0 75.400. is that actually a reference to 20 of this list? 2 0 speci?c section of the Mine Safety Regulations? 3] A Yes. it at 2 1 A Yes, it Is. 22 Sojust to sum up. as you look down this right 22 Is that the section that says. in paraphrase. 2 3 hand column numbers. this report indicates that the 2 3 coal dust. loose coal. and other combustible materials 2 4 Hill group of mines had been cited second most. in terms 2 4 have to be cleaned up and not permitted to accumulate in 2 5 of number of citations. of any of Massey's mining groups 2 5 the mlne's workings? Page 7 9 Page 8 - to that point in 2009; is that right? 1 A Yes 2 A That?s correct 2 And so according to this report. that section 3 Let me direct you. Agent. to the next page of 3 that required the cleanup of coal dust and combustible 4 this exhibit. Grand Jury Exhibit 47. It's another list. 4 materials was the section that the ['33 group of mines 5 Is this list also broken down into Musscy's Resource 5 had violated most often in the that six months of 2009; 6 Groups or mining groups? 6 is that right? 7 A Yes. II is 1 A That is right. 8 1 his list has four columns. The ?rst column 0 Now. that section exists to prevent 9 lists out the names of their mining groups: is that 9 potentially explosive and flammable materials from 1 0 right? 1 0 building up in the mine: is that right? 1 i A Yes. 1 1 A Yes. 12 And the second column shows information that 12 And this report would have Informed Mr. 1 3 we looked at on the previous page. which is the number 3 Blankenship, who received it. that that was the speci?c 1 4 of violations that that group had committed in the yer- 4 federal mine safety standard that the BB group of mines 1 5 toodnte: is that right? 15 was violating most often at this point? 1 6 A That?s correct 1 6 A Yes, it would 17 The nest column. do you see the one that says. .- 7 Let me direct you. Agent. to the next page of 1 Ft ramming: 1 8 this exhibit. Grand Jury Exhibit 47. Is this also a 1 9 A Yes. 1 9 part of the daily violation report that Mr. Blankenspr 2 0 5&8 stood for signi?cant and substantial; 2 0 received? 2 1 right? 2 1 It Yes. 2 2 A Yes, it did 22 What does this report show? 2 3 0 Was that a category ol? particularly serious 2 3 A II also shows the areas in which the cautions 2 4 safety violations? 2 '1 are being when and the amountsthe previous report showed us the area DeMuth Court Reporting, 21 (Pages 78 to 81) LLC 304-766-8708 DLB-GJ-TR-000189 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 24 of 66 PageID 826 Jeffrey Carter November 13, 2014 Page 8 2 Pa ge 8 in which the group nfminus were committing the most 0 And what?s tile subject? 2 violations. Does this report show the areas in which 2 A "Duly Violation Repotl 3 the company as a whole is committing the most safety 3 0 Let?s go to page two of this exhibit. Was 4 violations? 4 this a page from the daily violation report that was 5 A Yes 5 attached to the email We just looked at on page one? 6 ,0 According to this page at the report. what 6 A Yes 7 area nt?the safety laws. in the first six months of 7 is this similar to the page we looked at 8 2009. had Massey mines. overall. violated most 8 previously that shows which speci?c federal mine safety 9 frequently? 9 standard each mining group was violating most often? 1 0 A Ventilation 1 0 A Yes. 1 1 And can you tell from this report how many 1 1 0 So to this point in the year 2009 through. 12 times Massoy's mines had been chat for violating the .12 approximately. August 5th. 2009. according to this page .1 3 safety laws on ventilation? 1 3 of the report. what was the speci?c mine safely 1 4 A One I tousand two 1 4 standard that the group of mines was violating most ?1 5 As you tutil'lcd. among the purposes ol'the 1 5 often? 1 6 Inns on mine ventilation. is. again. to prevent 1 6 A "Combustible materials and rock dusting. explosive substances from building up in the mine air: 1 7 75.400 1 8 is that right? 1 Same standard that that group of mines 19 A Yes. 1 9 violating most often or had violated most often in the 39 So this I'l?tiorl- lhi! page nl'lhc "port. Would 2 0 report from midway through the year; is that right? 21 have shown Mr. Blankenship that that was the area mine safety laws that Massey's mine: were violating most 2 2 0 Let's go to the next page of the exhibit. 2 3 often? 2 3 According to this page ol'the report. and let the ash. is 2 4 A Yes. 2 4 this another page from the some report that we were just 2 5 As of the date of this report in 2009; is that 2 5 iooiting at? Page 8 3 Page 8 5 7 right? A Yes. 2 A Yes. 2 0 A report of violations through August the 5th 3 Did there route a time. Agent. when a page was 3 of 2009? 4 added to this daily report to show information about 4 A Yes. 5 specific mines as opposed to mining groups? 5 0 According to this report. what was the area of 6 A Yes 6 the mine safety laws that Massey mines. as a whole. had MR. RUBY: i?m going to show you a document 7 violated most frequently through this point in 2009? 8 that we?ll mark Grand Jury [Exhibit 48 8 A It was ventilation 9 (WHEREUPON. a document referred 9 And. again. that?s the same was marked as Grand Jury Exhibit 10 report for midway through the year: is that right? 1 i No 48.) 11 A That?s corrch the next page of the exhibit. 1 3 0 This is another printout of an entail: right. 13 Now. this is a page that appeared for the ?rst time in 14 Agent? 1 4 the daily violation report around this date; is that 1 5 A Yes i. 5 correct? 1 6 Who is this from? 1 6 A That?s correct 1 '7 A John Patrick. 17 And. again. what?s the date on this particular 1 8 And. again. John Patrick was an assistant in 1 9 report? 19 the Safety Department at Massey: is that right? 1 9 A August 51h. 2009 20 A Yes. 2 0 Does this page of the report show safety law 2 In Mr. Blankenship on the "to" line of this 2 1 violations for specific Massey mines? 2 2 email as well? 2 2 A Yes. 2 3 A Yes. he is. 23 As opposed to the other page that we looltcd at 2 4 What?s the date? 2 4 which showed violations for groups of mines; is that 2 5 A August 6th. 2009. 25 right? DeMuth Court Reporting, 22 (Pages 82 to 85) LLC 304-766-8708 I 90 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 25 of 66 PageID 827 Jeffrey Carter November 13, 2014 Page 8 6 Page 8 El 1 A That ?3 correct . Individual ntioes; is that right? 2 0 According to this page of the report for 2 A That's right. 3 August 5th of 2009. how many safety violations had the 0 From that point through April the 5th. 20th, 4 BB mine committed through this point in 2009? 4 is It true that Mr. Blankenship got about t63 daily 5 A It?s 292. 5 reports that showed that mine by mine breakdown with the 6 Where did it rank. in terms of number of 6 company?s worst mines? 'l violations. among all of Mossey?s minesranked number four 8 is it also true that nearly everyone of those 9 Did Mr. lilanltenship continue to receive one of 9 reports showed Mr. Blakemthip that the mine. 1 0 these reports eVery weekday throughout the time period 1 speci?cally. was committing safely violations at a rate 1 1 that we?re discussing here? i olhundreds ot?tlmes a year? 12 A Yes 1? A Yes. 1 3 In total. he received approximately. from 1 3 Anti is It true that nearly every one olthose 1 4 around April 3rd ot'2009. through April 5th. of 20m. he - 4 reports that showed a breakdown for individual mines and 5 received approximately 249 of these daily safety 15 ranked them. showed Mr. Blankenship that the BB mine I 6 violation reports: is that right? . 6 was among Massey?s worst mines forsatety law 1 '7 A That's manual 1 '7 violations? 18 0 Did substantially or pro riy every one at those 1 8 A Yes 1 9 249 reports show him that the 1 BB mining group was 19 MR I'm going to show you a document, 2 0 committing hundreds of so let) law violations every year? 20 Agent. that We?ll mark. Grand Jury Exhibit 49. 2 1 A Yes. It did 2 1 a document referred 2 2 The pages that we've looked at that showed the 2 2 to was marked as Grand Jury lzshihit 2 3 worst area of violations for each group and for the 23 N0 49 2 4 company as a whole. those began to be included in the 24 BY MR RUBY 2 5 report around June 2nd of 2009; is that right? 25 This is another printout at an email; is that 'l?hot's correct 1 right? 2 And from that point. through April 5th of 2 A Yes. 3 mm. Mr. Blankenship. he got around 210 daily reports 3 What?s the date on this? 4 with that int'orntation in it: is right? 4 A April Isl. 2010from? 6 is it true that nearly every one of those 6 A it's from John Patrick. ?1 reports stunned Mr. Blankenship that liliti mining group was '7 Is Mr. Blankenship one of the recipients of 8 among Massey's worst mining groups for safety law 8 this entail? 9 violations? 9 A YesWhat's the subject of this? 1 1 And is it true that nearly every one or those 1 1 A The subject ts. "Daily Violation Report 12 210 or so reports showed Mr. Blankenship that the 12 I?m going to direct your attention to the 3 company's worst. Massey's worst. area for safety law 1 3 second page of this document. Agent. According to this i violations as a whole was mine ventilation? 14 document. as of March the SN. 20I0. which of Massey?s it: A Yes 1 5 mining groups had the highest level of estimated lines 16 0 Is it true that around I93 olthose 2w 1 6 for safety violations to that point in 1010? 1 7 reports showed Mr. Blankenship that the safety standard 17 A It was ['88 1.8 violated nuns! alien at the group of mines was the 1 8 The BB mining group; is that right? 1 9 standard that required explosive coat dust and 1 9 A ?I?hat?s conch 20 combustihle materials to he cleaned up and not nllowcd 20 And how many. approximately. violations. 2] to 2 1 according to this report. have the 1180 group committed 22 A Yes 22 or been cited for through that point in 2010? 2 3 0 You testi?ed a moment ago that It was around 2 A Three hundred twenty-eight. 2 August the 6th oi2009. when the daily violation reports 2 it Let me take this opportunity. Agent. to ash 25 started to include a breakdown ot?violntions by 2 5 you. you testi?ed earlier that you?ve spoken with 23 (Pages 86 to 89) DeMuth Court Reporting, LLC 304-766-8708 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 26 of 66 PageID 828 Jeffrey Carter November 13, 2014 Page 90 Page 9? 1 witnesses about the practice of regular warnings of 1 0 llaster Phillips was the president of Massey 2 underground safety inspections at UBB by federal 2 Energy at that time: is that right? 3 inspectors; is that right? i A Yes 4 A Yes. 4 And at this point. Gary Frantpton was in a 5 Have the nilnesses that you?ve spoken with. 5 position at Massey called compliance of?cer; is that 6 and other investigators have spoken with. told you 6 correct? 7 whether level of citations would have been 7 A That?s correct 8 signi?cantly higher had it not been for the warning 8 What's the subject of this email? 9 that tltey got wlten ispectors were coming? 9 A ?chn? Cord J. A Yes '10 Have you had the opportunity to Interview Mr. a 1 And have they told you. in fact. that BB 1 1 Frampton. the person who sent this entail? 12 would have received many more citations for safety law 1? A Yes. 1 violations had it not been for those warnings? 1 3 And not I correct that Mr. Frantpton told you he 1 4 A That?s correct 1 4 was assigned to prepare, internally. not from MSIIA. but 1 5 And so according to these witnesses. the 1 5 internally prepare report cards for how the company?s 1 6 numbers of citations that we have seen on the documents 1 6 various mining operations were performing. in terms of 1 7 we've just been looking at, that was just the another of '1 7 following the safety laws? 1 8 times that the mine and the ?Bit group of mines got 1 A Yes 19 caught violating the safety standards: is that right? 1 9 Can you read the message. please? 2 0 A That's correct 2 0 A ?Sheet one shows the ?nal Issued numbers 2 1 Let tne show you. this is actually page three 2 for operations through September 30th. 2009 Sheet 2 2 of the some exhibit. Is this another page front the 2 2 two ts a copy ofeaclt report card that will he forwarded 2 3 daily violation report that Mr. Blankenship on the 3 to the group presidents today The teport card also 2 4 of April of 20th? 2 4 provrdes the target number of Vtolations for the fourth 2 It Yes. 2 5 quarter." Page 91 Page 93 1 Does this report show how ntony violations tlte 1 0 Let ate direct you to the second page of Grand 2 Hill tnine had committed of the federal safety laws to 2 Jury Exhibit 50. Agent. Do you recognize this document? 3 that point in the yearthis something that was attached to the 5 (J How many was that? 5 email you just saw was sent to Mr. Blankenship? 6 A it looks like l20. 6 A Yes 7 And where did that rank the [Hill mine among all 7 And is this actually a report card that was of Massey?s mines. in terms of safety violations to that 8 prepared internally reporting on how each of the 9 point la 9 company's mines was doing. in terms of safety law 1 A They ranked number two to violations? 1 1 MR. RUBY. Let me show you another exhibit 1 1 A Yes. 1 2 that will be marked Grand Jury Exhibit 50 :2 0 Let me direct you. Agent, to the line near the 1 3 (WHEREUPON. a document referred 1 3 bottom of this page that begins. ?1 'pper Big Branch" Do 1 4 to was merited as Grand Jury 4 you see thatMR. RUBY 1 6 The first column in that pper Big Branch 1'7 0 Again, this is a printout ol?nn email; is that 17 line. what does that represent? 1 8 right? 1 it A The total for the year 2003 1 9 A That's correct. 19 For the Ulill mine? 2 0 Who is the email from, according to this 2 0 A Yes 2 1 document? 2 1 The total number of safety violations? 2 2 A it?s from Gary meplon 2 2 A That's correct 23 0 To whom? 2 3 How many was that? 2 4 A To Don Blankenship. Sandro Davis. and Baxter 2 4 A One hundred ninety-eight 2 5 Phillips. 2 5 Now. the second column is labeled. ?6-30-2009. DeMuth Court Reporting, 24 (Pages 90 to 93) LLC 304-766?8708 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 27 of 66 PageID 829 Jeffrey Carter November 13, 2014 Pa 99 9 4 Page 9 6 1 YTD 2069." what does that represent? 1 serious ?ooding? 2 A Yenr-lo-date. June 30m 200?) A Yes 3 So is that the number at safety violations 3 "are you had an opportunity to speak with 4 that the 1 BB mine had been cited for to the midway point witnesses who worked at the mine bout till 5 in 2009? 5 incident? 6 A Yes 6 A Yes. 7 How many was that? According to those witnesses. was it A Two hundred thirty-live times 8 anticipated when l'BB's Inngwall section was being 9 The third column says. ?Third quarter target." 9 planned that water was going to ?ow into that area of 1 0 Do you see that? 1 the mineYes. 12 What's the number in the column for the "Bit 12 And according to those witnesses. was there a 1 3 mine? 13 plan in place to remove or to drain the water that was 1 4 A Filly-nine 1 4 expected to come into that area of the mine? 1 5 0 So this is actually a target that Massey set 15 A Yes. 1 6 tor how often the Uiill mine would violate the mine satety 1 6 Was that plan completed? 1 laws in the third quarter 0! ZilltlYes. 1 8 Why not? 1 9 Fifty-nine times? 1 9 A The was made to stop the project 2 0 A Yes. 2 0 because it was taking too long. 2 1 0 That was the target. according to this report 21 And was the reason that it was taking too long 2 2 card? 2 2 hecausc of pressure to get the Iongwull section at the 2 3 A Yes. 2 3 mine slatted sooner? 2 4 0 The next column. it says. "Third quarter 24 A That's correct. 2 5 actual." Do you see that? 2 0 This is according to witnesses, including Andy Page 95 Page 1 A i do. I Coatson. who was working on or supervising the drainage 2 What does that say? 2 project itself; is that right? 3 A It says, ?168 failed 3 A Yes. 4 And the I68. what is that? 4 Alter the draining project was abandoned, did 5 A That's the di??crencc between what they 5 the area at the mine. where it was supposed to have been 6 received and what was targeted. 6 carried out, I'Iood? 7 Is loll the actual number nl?tintes that the 7 A Yes 8 mine was cited for safety violations in the third 3 in fact, ol' the tunnels in that area 9 quarter of 2009? 9 ol? the mine ?ooded from floor to ceiling: is that 0 A Yes. 1 0 right? 11 And then the column alter that is headed. 11 A ?nmt?s correct 12 ?Grade, i?aslenll.? Do you see that? 12 And even alter that. according to witnesses who worked in that area. did the mine have dif?culty 1 4 What?s the grade that's listed on this report 1 4 getting that volume of water pumped out and under 1 5 card for the ["33 mine? 1 5 control? 1 6 A "Failed." 16 A Yes 17 0 Failed, and what color is it in? 17 MR RUBY I'm goingto show you a document 1 8 A It?s in red. 1 8 that Will be labeled Grand Jury exhibit 5 1 9 And this is an attachment to the ctnaii that we 19 [WlithUl?ON, a document referred 20 just luultcd at that was sent to Mr. Blankenship on the 20 to nus marked as Grand Jury 2 1 7th of October 2009; is that rightYes. 22 BY MR RUBY 2 3 0 Let me ask. Agent. about a specific incident 2 3 What's this? 24 that toot: place at the mine. Are you familiar with 24 A This IS a citation Mitten at the L?ppcr Big 2 5 an occasion when part of the mine experienced 2 5 Branch Mine. by 1A DeMuth Court Reporting, 25 (Pages 94 to 97) LLC 304?766-8708 DLB-GJ-TR-000193 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 28 of 66 PageID 830 Jeffrey Carter November 13, 2014 Page 98 Page 100 1 What's the date? 1 In the course of your investigation. Agent 2 A December Hill, 2009. 2 Carter. have you had the opportunity to review filings 3 The ?ooding that witnesses have given you 3 that Massey Energy Company matte with the Securities 4 statements about at the mine, did that occur or at least 4 and Exchange Comtninion? begin in late November of 2009? 5 A ihnve. 6 A Yes 6 Did those ?lings Include filings that said 7 And as you said. lids citation dates from mid 7 how much cash. unused cash and cash equivalent-c that 8 December of 2009; is that right? 8 Massey had on hand? 9 A That?s correct 9 A Yes. it did 1 0 Could you read the description of this 10 And that is, ct?feclively,eath that the 1 1 citation for us, please? 1 1 company has at it's disposal to do with. what it secs 1 2 A "The number one section rctum cannot be 12 correct? 13 safely traveled in its entirety due to the dark, murky 3 A That's comet. 1 a water measuring il?om i2 inches and up to 48 inches in 14 0 Am I correct that at the end otthc first I 5 depth. from Break 73 to Break B4 The mittc ?oor Ill 1 5 quarter of the year 2008. early In the period that we?ve 1 6 this area contains slipping and tripping due to 16 been discussig. Massey had unused cash or cash 1 'l the bailout due to heaving of the antic floor. 17 equivalence on hand in the amount otapprorhnately HI 1 extraneous materials. and slope locks. This mildilitlil 18 million dollars? 1 9 poses hazards related to tripping and falling hazards in 9 A Yes. 2 0 water tti depths up to 48 inches that could result in 2 0 And am I correct that at the conclusion otthc 2 1 drowning This citation is being issued in conjunction 2 I first quarter ot20lti. that is around March the or 22 with a Itl'lta), order citation number 8085239." 22 20:0. Massey had unused cash and cash equivalence on 2 3 So according to this citation. workers 2 3 hand in the amount of approximately I.l billion dollars? 24 there was up to at this point. in mid December 2009. 2 4 A 'l?hnt's correct 25 there was up to four feet water in these tunnels? 2 5 roll're testified. 0 April the 5th. 20?. Page 99 Page 101 1 A Yes. 1 there was an explosion at is that right? 2 And according to witnesses that you've spoken 2 A Iliat?s correct 3 with. were coal miners required to work In water that 3 0 Am I correct this explosion malted In a 4 deep in this area of the mine? 4 substantial number of fatalities? 5 A Yes. 5 A Yes, it did 6 And you're spoken with witnesses who have told 6 Am I correct that the explosion attracted a 7 you that they were required to work in water up to their 7 great deal of national and international media 8 necks In this area of the mine? 8 attention? 9 A Yes 9 A Yes. it did. i According to this citation. nntl. in 1 Were there reports in the days following the particular. the reference to Brcait 73 to Brcait lid. ami 1 1 explosion from media outlets that Massey had engaged in 1 2 ?sweet. based on your investigation. that the distance 1 2 a practice of routinely violating mandatory mine safety 1 3 of the Upper lily; Branch Mine from want brcalt to another. 1 3 standards? 1 was generally between 80 and tilt} feetThat a correct 15 In the days alter the explosion. did Masscy?s 6 And so it?thls water existed. according this 16 share price fall? 1 7 citation. from Break 73 to that meant that 1 ?l A Yes. it did 1 8 thousand: of feet of the launch in this area of the 18 In fact. by April the 7th. 20w. two days 1 9 ndne were ?ooded; is that correct? 19 after the explosion. Money's share price closed down 2 A Yes 2 0 npproximtciy S9.l5 share from its close on the day of 2 1 And according to witnesses that you're spoken 2 1 the explosion; is that right? 2 2 with about these events at the mine. was that ?ooding 2 2 A That?s correct. 2 3 the result of the decision to abandon the planned 23 0 That was a drop of about l6.li percent: 2 4 drainage project? 2 4 correct? 25 A Yes. 2 5 A Yes. DeMuth Court Reporting, 26 (Pages 98 to 101) LLC 304-766-8708 194 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 29 of 66 PageID 831 Jeffrey Carter November 13, 2014 951918 102 Page 104 i And did that decrease att'eet Mr. itianltenship?s 1 to this entail: is that correct? 2 personal net worth? 2 A That's cancel. 3 A Yes. 3 What does the email say? i Mr. Blankenship owned many shares of Massey 4 A "Please See attached 5 stoelt: is that right? 5 Let me direct you then. to page two of the 6 A that's correct 6 exhibit. Is this one of the attachments to the email 7 Was the drop in the value of Mr. Blankenship?s 7 that we just looked at? 8 stochhotdings in that two day period somewhere in the 8 A That's correct 9 ueigh borlIoott of three million dollars? 9 What it?s an intercompany memo to Don Blankenship 1 1 (to April the 7th. 20th, two days alter the 1 1 and Easter Phillips. from John Puma 12 explosion. did Mr. Blankenship tell certain Massey 1 2 What's the subject? 1 3 ott?leints who worked {or him to draft a statemet to 3 A "Investor Statement 1 4 issue to Massey shareholders? 1 4 Could you read the ?rst line? 1 5 A Yes. he did. 15 A ?As you requested, attached is 1 6 MR RUBY: lot going to show you a document 1 5 statement to send to shareholders." 1 7 that we'll mark Grand Jury Exhibit 52 1 7 Go ahead to the next line. 1 8 a document referred 1 8 A "'lhe attached has been drafted and rewewed by 1 9 to was marked as Grand Jury 1 9 Roger thhard Shane Harvey, Jcil? 20 No 52.) 2 0 Erie Tulbcn and me 2 1 BY MR. RUBY 2 1 And those people were all various of?cials 2 2 Are you familiar with that document? who worked for Massey; is that right? 2 A Yes. I am. 2 3 A Yes. 2 4 0 This is a printout of an entail; is that 2 4 Go on to the next paragraph. 2 5 correct? 2 5 A "We recommend that we post the attached on the Page 103 Page 105 1 A That's corrch i Massey website and file an 8-K that refers the public to 2 And this email. and I haven't nsttetl you this 2 our websuc 3 question with every emit that we've looked atstop you there. ti-K, what's a ll-K? 4 correct that all of the email messages that we've loolted 4 A 'lhot?s a tiltng tltut?s requtted by the SEC to 5 at are documents that have been turned over by Massey or 5 report atgnti'tcant 6 Alpha Natural Resources in response to Grand Jury 6 'l'hat?s a ?ling that is required by the '7 subpoenas? 7 federal government to matte sure that the public is kept it A Yes 8 apprised of signi?cant developments involving a 9 Who is this email from? 9 publicly traded company; is that right? 1 0 A John Porno 1 A That's cancel 1 1 And was Mr. Fame. at the time of this email. 1 1 0 Go ahead and read the next line. 1 2 Masscy's chief administrative officer? 1 2 A ?We recommend this approach smee the Investor 1 3 A Yes. he was. 13 share base is generally the populutton that reviews the 1 a What?s the date on this entail? 14 8-K ?lings.? 1 5 A Aprtl 7th. 20I 0 15 So is the signi?cance of this. or the meaning 1 6 0 Who's It to? 1 6 at this. that tiling this statement to send to 1 7 A it's to Don Blankenship and Baxter Phillips. 1 '1 shareholders or investor statement In an B-K would matte 1 And again. Vlr. Phillips was the president of 18 sure that it was received by the investor share base. a! 19 Massey Energy; is that right? 1 9 the sentence says? 2 0 A Yes. 20 A Yes. 2 1 lle ranked below the CEO. Mr. Blankenship? 1 0 Go ahead and read the paragraph. 2 2 A That's correct 22 A ?Please give tut your comments and let us know 2 3 What's the subject of the email? 2 3 If you approve ol'sending the attached statement to 2 4 A "Shareholder Statement 2 4 investors.? ..: And there are a can ple of documents attached 2 5 Okay. Let me direct you to the next page at? DeMuth Court Reporting, 27 (Pages 102 to 105) LLC 304-766-8708 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 30 of 66 PageID 832 Jeffrey Carter November 13, 2014 Page 106 Page 108 1 the exhibit. page three. What is this? Let me back up. (WHEREUPON, a document referred 2' First or all. was this the second attachment to the 2 to was marked as Grand Jury Exhibit i email message that we saw in page one oi the exhibitAnd what's the ?rst litre of this document ?i What?s this? 6 say? i A it's an entail from John Porno 7 A ?Mnssey?s Statement to Shareholders Regarding 7 Who is it to? the Upper Branch Explosion." 8 A To Baxter Phillips 9 So this is a statement to people who own stock And what's the subject? 10 la the company? 1 A "Massey - Statement to Shareholders Regarding 1 1 A Tin-it's correct 1 l'ppcr Big Branch Explosion April 7th. 20i0.? 1 2 And this is being put together two days after 12 And did you already give the date that?s on 13 the explosion in the mine: is tlrat right? 1 3 this message[have not it '5 Aprrl 8th. 20?) .15 There are a number of headings in this 1 5 0 Again. Baxter Phillips was the president of 1 6 document. Do you see the one that says ?Sales 1 6 the company vaulting just below the is that right? 17 Impact?? 1 7 A Correct 18 A Yes. 18 Can you read the body ol'the message? 19 And then what's the one under that? 1 9 A ['lre attached incorporates edits suggested by 2 0 A ?Mitigation 20 Don our meeting this ailemoon Unless Ttoulman Does mitigation refer to the company ls trying 21 has edits. this is the fool version. John." 2 2 to tigu re out how it was going to replace coal that it 22 0 how. have you had. or have agents. 2 3 wouldn't be able to get from 1138 anymore? 23 investigators Involved in this case had the opportunity interview John Porno. the person who sent this email? 25 And then what?s the bending after that? 25 A Yes. Page 107 Page 10?.l 1 A "insurance Coverage." 1 0 And according to Mr. Porno. was he the person So is this a section of the document that was 2 who was given the job oi assembling this statement to 3 intended to tell people who had stock in the company 3 shareholders that Mr. Blankenship wanted put out? 4 whether insurance was going to cover any of the damage this email there's a reference to 6 A Yes 6 "meeting this al'ternoon." llid Mr. l?omn tell agents 7 Let me direct you to the bottonr oi' the 7 investigating this case about that meeting that he had 0 document. be you see the statement there? 8 with Mr. BlankenshipWhat's that say? 1 0 that meeting was actually conducted at 1 1 A ?Sal?er Statement." 1 1 Mussey's regional headquarters at Julian. in Boone 12 [Jet are direct you to page two. i'nr sorry. to 12 County: is that right? 1 3 page two of this attachment. which is page four of the 1 3 A I?hat's correct. 14 exhibit. The second full paragraph on this page begins 14 0 According to Mr. Poma, in that meeting. did 1 5 with the words media coverage. Do you see that? 1 5 Mr. Blankenship give Mr. Porno the edits or the changes 16 A Yes. i 6 that Mr. Blankenship wanted made to the statement to 0 Could you read that sentence? 1" shareholders before it went out? 1 8 A ?Media coverage referred to safety violations issued to by We 1 9 0 And according to Mr. Puma. did Mr. Blankenship 20 do not condone any violation of MSHA regulations. and we 20 give Mr. Fame the understanding that with these edits 2 1 strive to be lit compliance with all regulations at all 2 1 mode. the statement was ?nal and could he tiled and 2 2 times 2 2 released to the public? 2 3 MR. RUBY: Let me stop you there l?m going 2 3 A Yes. 2 to show you another document. Agent, that at going to be 2 4 There?s a reference in here. the second 7. 5 marked Grand Jury [Exhibit 53. 25 science that you read in the body of the email. to DeMuth Court Reporting, 28 (Pages 106 to 109) LLC 304-766-8708 DLB-GJ-TR-000196 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 31 of 66 PageID 833 Jeffrey Carter November 13, 2014 Page 110 Page 112 1 ?Troutman.? 'l?routman is a law ?rm: correct? 1 the 8th. 2010: is that right? 2 A Yes. 2 A That?s correct. 3 It was a law ?rm that worked on statements or 3 This particular s-K report that Massey tiled. 4 other documents that Massey tiled with the is that 4 had a number of attachments; is that right? 5 correct? 5 A Yes 6 A Cancel 6 There were various releases. press releases. 7 0 Let me show you page two of this Grand .lury '1 or public information releases that Massey had made 8 Exhibit 53. Again. what's the heading at the top at? 8 since the U38 explosion: is that right? 9 this document? 9 A Yes. 10 A "Massey Statement to Shareholders Regarding 1 0 Let me direct you. Agent. to page eight of 1 1 Upper ilig Branch Explosion." 1 1 this ?ling that Massey made with the SEC. in this one 1 2 And is this the document that was attached to 12 of the attachments that Massey. or exhibits. pardon. 1 3 the email that we just looked at on page one? .1 3 that Massey included with this s-K reportYes. 1 5 The one that. according to Mr. Patna. 1 5 And do you see the bold heading there? 1 6 incorporated the changes or the edits that Mr. 1 6 A i do Blankenship wanted made to the statement before it was 1 7 What is that? A 8 released: correct? 13 A Statement to Shareholders Regarding 9 A Yes. 1 9 Upper Big Branch Explosion 2 Let me direct you to the following page attire 2 0 0 Let me direct you to the next page of the 2 1 exhibit. Do you see the section that?s headed ?Safety 2 1 exhibit. Do you see there the heading ?Safety 2 2 Statement?? 2 2 Statementyou sce the last paragraph in that section? 2 4 And then under that. in the last paragraph of 25 A Yes 2 5 that section. do you see the sentence that begins with. Page 111 Page 113 1 0 Do you see the sentence in that section that 1 ?We do not random?? 2 begins with. "We do notYes. 3 0 Could you read the ?rst part of that sentence 4 There in that paragraph. the part that begins. 4 for us, please? 5 ?We do not"? 5 A "We do not condone any violation of MSIM 6 A I do 6 regulations 7 Could you read that for us? 7 And go ahead and read the second clause of the 8 A ?We do not condone any violation of IA 8 Sentence. 9 regulations. and we strive to be compliance with all 9 A ?And we strive to be In compliance with n.l 1 0 regulations at all times Most ot?the citations issued to regulations at all times 11 by MSHA to in the lost your were resolved on the 1 This is a statement that was ?led with the 1 2 some day they were issued.? 12 United States Securities and Exchange Commission by 13 MR RUBY: Let me show you. Agent Carter. 13 Massey: is that 1 4 another document that we'll mark, Grand Jury Exhibit 54. 1 a A Yes. 15 (WHEREUPON. a document referred 1 5 And according to Mr. Puma. who was In charge 1 6 to was marked as Grand Jury Exhibit 1 6 of putting the statement together. it was filed after 1 7 No. 54.) being reviewed and approved by Mr. Blankenship; is that 8 BY MR RUBY: 18 right? 19 What is this? 19 A Yes, It was 20 A it's the form B-K ?led with the Securities 20 0 According to Mr. Puma, was it also posted, 2 1 Exchange Commission. 2 1 made available on the company's website? 22 Is this tiled. according to the document here. 22 A It was 23 was this s-K report ?led by Mssey [Energy Company? 23 MR RUBY Let me show you. Agent. another 2 4 A Yes. 2 4 document This is merited 54 Grand Jury [Exhibit 55. 25 And the date the report was ?led was April 25 pardon me 29 (Pages 110 to 113) DeMuth Court Reporting, LLC 304-766-8708 DLB-GJ-TR-000197 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 32 of 66 PageID 834 Jeffrey Carter November 13, 2014 Page 114 Page 116 1 a document! referred 1 stand for New Yorlt Stock Exchange"? 2 to was marked as Grand Jury Exhibit 2 A ll does 3 N0. 55.) 3 And was that the stock symbol that was ti BY MR RUBY: 4 used [or Massey's sloth on the New Yorlt Stoctt Exchange? What is this? 5 A That's correct 6 A 1his ts an entail from Karen licnretty. dated 6 7 April 9th. 20I0, to Don Blankenship '1 A "Today reinforced as total contentment to 0 Karen ilenretly was public relations 3 safety and provided additional context to the safety 9 consultant; is that right? 9 history of its mining ahead. 1 1 Who did work for Massey; correct? 1 1 A I'meray. ClmimBlankenship. offered the followmg comments 1 3 She worked for a company called, Qon'is, it?s '1 3 0 Go ahead. 1 4 spent? 0.0-3.v4.5; ?m I right? 1 4 A "'lhe safety of our members has been and will 2 5 A Yes i 5 continue to be our top priority every day As we have 1 6 And that?s re?ected in the email address that 16 always done In the past. we conduct extensive 1 '7 she?s using here? 17 torrents of the Upper Big [Branch (UBB) accident and work cver way possible to ensure that a smular Incident 1 0 This document is dated, as I think you said. 1 9 doesn't happen llama" 20 April the 9th, is that right? 20 0 Read the next bullet point. 2 1 A That?s cunch 21 A ?We do not condone any violalton of Mine 2 2 Which is the day alter Massey ?led with the 2 2 Safety and Health Administration (MSI lA) regulanoas. and 2 3 SEC the li-K report we just looked at: right? 2 3 we strive to be in compliance with all regulations at 2 4 A That's correct. 2 4 all times," 2 5 The subject of this ctail Is? 2 5 Mlt. RUBY: Let me show you Grand Jury Page 115 Page 117 1 A ?Safety Statement for Review." 1 56. 2 Does the printout here indicate that there was 2 a document referred 3 a document attached to the email? 3 to was marked as Grand Jury Exhibit 4 A it does 4 No. 56.) 5 What does the message say. in the email? 5 BY MR. RUBY: 6 A "Can you review? We'd like to put this out 5 Is this a printout ol'na email? '1 todaydirect you to the second page of the Who is it from? 9 exhibit. Is this a draft press release on the usual 9 A it's from Don Blankenship. 10 form that Marsey used for press releases? .10 To? 1 1 A Yes. it is. 1 A Karen i-tenretly 12 And what?s the headline on this draft press 12 And Karen lleorelty is the public relations 1 3 release? 13 consultant who sent Blankenship the dull press 1 4 A ?Statement from Massey Energy Regardmg Mme l4 release that we just looked at in Exhibit 55; am I 1 5 Safety 1 5 right? 1 6 What?s the location and tlatctine there at the 16 A Yes. 1 7 beginning of the release? 1'1 What?s the date on this email? 1 A "Julimt, West Virginia, April 9th. 2010." 18 A April 91h. 20 :0 1 9 Go ahead. 19 0 That?s the same day that Ms. Ilcnretty, the PR 2 0 A Excuse me 20 consultant. sent the draft release to Mr. Blaahenship; 21 Go ahead. 2 1 is that right? 2 2 A "Massey Energy Company 2 2 A Yes. 2 3 And matinee. 2 3 And is there. according to the printout here. 24 A MEF 24 an attachment to this email from Mr. Blankenship to the 2 5 Let the stop you right there. does that 2 5 PR consultant? 30 (Pages 114 to 117) DeMuth Court Reporting, LLC 304?766-8738 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 33 of 66 PageID 835 Jeffrey Carter November 13, 2014 Page 118 Page 120 i A here is EOI inspection. at least at a large mine like there 0 HI direct you to page two of the exhibit. 3 would typically be many visits to the mine from federal 3 which is Exhibit 56. Is this a copy of the same draft 3 inspectors; is that right? 4 press release that was sent to Mr. Blankenship by Ms. 4 A That's correct. 5 5 They do a piece of the mine at a time; is that 6 A Yes 6 right? 7 0 There?s a handwritten note at the top of this 7 A Yes 8 version. Do you see that? And is it also typical. if federal safety 9 A I do. 9 inspectors are aware of a speci?c area at a mine that 1 0 What does it say? to has a history of safety violations. that they may visit 1 1 A it says. "Karen. okay Don 11 that area multiple times a quarter to monitor safety 1 2 0 After Mr. Blankenship sent this message to Ms. 12 compliance in that area? 1 3 llenretty. did Ms. llutretty?s company issue the press 13 A That?s correct. 1 4 release that Mr. Blankenship had approved on Masscy?s 1 4 0 Based on your investigation and your 1 behalf? 15 interviews with witnesses. your review of documents, are 1 A Yes 16 you aware of occasions when the 088 mine reccit'ed 11 Did it do that through means and . 7 special visits. often from a number of inspectors at a 1 8 instrumentalitlcs of interstate commerce? 1 8 time. in order to focus on a speci?c safety violation 19 A Yes . 9 or problem at that mine? 20 Did that include commercial services that 20 A Yes. 2 distribute press releases to the ?nancial and the 21 UROR: During those visas. if violations are 2 2 investing communities? 22 found. is production stoppedwould depend on the Violation 2 4 0 Let me back up and a question that I meant 2 4 that's found. 2 5 to ask on the earlier statement that was filed with the 2 5 BY MR. RUBY Page 11?! Page 121 1 tit-2C. The SEC requires reports that are tiled with it to 1 You said. Agent. that there were. 2 he tiled electronically; is that right? 3 approximately. during the period we?ve been discussing. 3 A Yes 3 approximately shutdown orders: is that right? ll 0 And so they?re tiled using wire communications 4 A 'Ihat?s correct 5 and the facilities of the internet: is that right? 5 0 So there's certain serious situations where t' A Yes. 6 the federal safety laws allow MSIIA to temporarily shot a 7 MR RUBY Any questions for the Witness from 7 mine down; is that right? 8 the Grand Jury? A That?s correct. 9 there one Agent Carter. how ollen 9 Am I correct that there is. under the federal 10 do Inspectors Inspect mines. and are those to safety laws. a range of types of violations and severity 1 1 Inspections increased to frequency if a mutation is 1 of violations? 1 2 foundHIE WITNESS: They are required to conduct. 1 3 And so there?s certain categories of 1 4 it's called an iiOl inspection, to be conducted of 1 4 particularly se?ous violations for which safety 1 5 the entire mine once a quarter And. yes. the mint: 5 inspectors are allowed to shut down all or part of mine; 1 6 be put on various things where ll requires additional 1 6 is that right? inspections nfit as well 17 A 'lhat?s correct 1 8 BY MR. RUBY 1 But they?re only allowed to shut it down until follow-up on that. Agent. You 19 that violation is corrected: is that right? 20 referred to the inspection. Federal rules require 20 A That's correct 2 1 that a coal mine be inspected in its entirety. every 2 1 And then the law requires them to let the mlne 2 2 area of it has to he visited by an inspector at least 22 resume production in whatever area has been shutdown? 2 3 once every quarter: is that rightThat '5 correct 2 4 MR RUBY Did that help you? 25 But in the course of this overall quarterly 25 JUROR Yes. Thank you DeMuth Court Reporting, 31 (Pages 118 to 121) LLC 304-766-8708 DLB-GJ-TR-000199 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 34 of 66 PageID 836 Jeffrey Carter November 13, 2014 Page 122 Page 124 . JUROR: Now. on Exhibits 4? through 50. 1 operator. Are they talking about the equipment 7? they're talking about the number of violations Have 2 operators or the rnrne operator? you con?rmed that?s an accurate count of mutations on 3 THE NESS The urine operator 4 those reports? 4 JUROR: Mine operator. 5 Till? WITNESS: Yes. 5 BY RUBY: 6 MR RUBY: Let the pull those out and let Agent 6 And. Agent. operator, that's a speci?c term 7 Carter take a look at those. so he knows exactly 7 that has a speci?c meaning under the Mine Act or the 8 Mitt! you?re referring to. sirFederal Mine Safety Statutes; is that right? 9 through 50? 9 A Yes. 10 JUROR: Fifty. Yes. where it's talking about 10 JUROR: In these quarterly Inspection of the 1 1 the number of violations. 1 1 mines. does the headquarters. or like Mr 12 MR RUBY: You're talking about the exhibits 12 of?ce. do they know when those guys are coming? I know 1 3 with the daily violation reports? 1 3 with experience with OSHA. a lot of tzmes. we knew when 1 -t I ROR: Right. yes. Is that an accurate 1 4 they were coming when I used to work at the plant. 1 5 count? 1 5 Everything was just done different Would they know those quarterly and I know that they could show back 17 0 Agent. am I correct that this was a count that 1 7 up when severe violations would necur at any time, but 1 the company kept internally: is that right? 1 8 did they know when they were coming? 1 9 A 'lhat?s correct. 1 9 Ti lli WITNESS: No But each quarter an 2-0 So you?ve con?rmed that thesr numbers were 2 inspection is required So. therefore. it was required 2 accurate Insofar as the company's internal database 2 1 for MSI IA to come on site and conduct II 2 2 went; is that right? 22 they wouldn?t know a speci?c date 2 3 A That's correct 2 3 when they were coming" 2 4 Is it possible this may be good question 2 4 TI IE WITNESS. No. 2 5 that the Grand Juror's getting at is it possible that 2 5 JUROR A couple of questions. You've talked Page 123 Page 125 1 there Were violations or citations that had been Issued several times about the guard or the calling 2 that hadn't been put into the dntabase that these 2 male of the mine to let the people inside the rotor: 3 numbers came from at the time a particular report was 3 know that the inspectors were coming 4 generated? 4 '11 IE WITNESS: Yes. sir 5 A Yes 5 JUROR Not being a coal turner. I don?t know. 6 JUROR ?l hank you 6 is that a violation of law? '1 .IUROR. 0n the violations, when their 7 THE WITNESS: Yes. sir. violations were put up. who was it served to? Does the 8 JUROR. I work at a hospital. and we get lire 9 person that It's served to. are they responsible for 9 marshals, EMS.joitrt commissmn, different people that 1 0 seeing that that violation is taken care of. or do they 1 0 come -- 1 1 have to refer that back to someone else? How does that 1 JUROR OI IFLAC. 1 2 work? 1 2 JUROR You know they'll announce 1 3 THE WITNESS: It's written to the ranking 1 3 overhead. they've got a code for It 'lhcre?s no 1 4 person at the urine. and then. for any action. it would 1 It violation there that I know of. It?s just so the people 1 5 be disseminated therefrom to take care of that 1 5 know that you have people, and you couldn?t go through 1 6 UROR: So the person it was served to is 6 and correct it il'you had a substanttal vtolatton. you 1 7 required to make sure it 's taken care of? 7 couldn't go through and correct it anyway 1 THE WITNESS: Yes. And would follow-up, 1. BY MR 9 to make sure that it was done. to tilt the order to . 9 0 Agent Carter. an: I correct that the Federal 20 continue. 2 0 Mine Safety Act prohibits advanced notice of mine 2 1 MR. RUBY: And. tna'ant. that. itt some aspect. 2 1 inspections at coal mines? 22 touches on a legal question that we'll talk about with 22 A That?s correct. 23 you all after we're finished with the testimony that's 2 3 JUROR Let me ask you this, and tins may be 2 4 a good question. 4 out of line. but would you say that at most mines that 25 JUROR On some of the citations referenced 25 when those guys show up that there 15 some kind of DeMuth Court Reporting, 32 (Pages 122 to 125) LLC 304-766-8708 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 35 of 66 PageID 837 Jeffrey Carter November 13, 2014 Page 126 Page 128 1 1 And what's the number there of the percentage 3 THE I can only speak for the mines 2 of violations at the Mat-fork. UBB group. that were in 3 through investigation 3 that very serious category? 4 Right It A it was 40 8 percent 5 THE WITNISS. And there was ?3 And that would be 40.8 percent of the number 6 BY MR RUBY in the column just to the left of that; is that right? 7 And that's based on witnesses that you've 7 A 'ihal's correct 8 spoken with; right? 8 Which is what? 9 A That?s correct 9 A two hundred and ninety-sot. 1 0 0 And the witnesses that have been interviewed 1 0 So tltat would he a couple of hundred 1 1 in this investigation were individuals who worked at U38 1 1 violations that were in that serious 8&5 category at the 1.2 or at other Massey mines; is that right? 1 2 mm group of mines at this point in time. in 2009; is 13 A That?s correct 13 that right? 1 4 JUROR Another question. on tt couple oftlto 1 A That ts right 15 citations. when we had them up here. we had Number 37. I 15 I think. Agent. didn?t you also testify that 1 6 think. and Number 38 up there We were focusod on the 6 during the period that?s under discussion here. 17 body of the citation ttselt? there it talked 1 7 approximately 3l9. ofthe Bil atine itsell?. approximately 1. it about the grovtty oi it cuntton. and toast of the ones 1 319 of it?s 835 citations were in that signi?cant attd 1 9 that we looked at. like 37 and 38. said that bodily harm 1 suhstautiol category? 2 (l or illness was not likely or unlikely. 'lhcn I noticed 2 0 A i?hat?s correct 2 1 on Number 40. on Exhibit Number 40. ll sand that hodtly 2 1 And just to clarify. Agent. violations 2 2 harm was likely. 22 that aren?t In that significant and substantial category 2 3 UROR: And substantial 23 are still illegal; is that right? 2 4 l?m assuming that some of these 2 4 A That's con'cm 2 5 violations are a natural occurrence ofthe mining 2 0 Any violation of a mandatory mine safety or Page 127 Page ?.29 1 process that Just takes a little to get cleaned 1 health standard is against the law: correct? 3 up. And some of them. like Number 40. where you have 2 A Yes. it is. 3 the roof fall-n3 and the bolts sticking out. iS a more 3 0 The ones that are designated signi?cant and 4 serious oti?ense. because it says that. you know. injury 4 so hstantini are simply the ones that the federal safety 5 ts very likely. it sounds like to me. Do you have like 5 inspector regards as. relatively speaking. more serious; 6 a percentage or breakdown of violations. how many of 6 is that correct? 3 them were like this daily thing that would be taken care 7 A Yes 8 of and how many of them were more serious? 8 JUROR. You said most of the violations 9 THE Right off. i do not. 9 that were issued at the mine were given to the making 10 BY MR. RUBY: 1 0 member that was in charge there at the mine 11 Let me show you. part of the answer to that. 1 1 THE Yes. sir 12 Agent. we will look. I think. in Exhibit 49. No, 47. on 12 JUROR: Okay. Do you know what percentage of 1 3 page three of Exhibit 47. And this. Agent. am I 13 these violations. from the smallest or tile least. to the 4 correct. is an example from June 30th. 2009. of a dily 14 greatest. to be corrected. had to be approved through 1 5 violation report that Mr. rechVed? 15 Mr. Blankenship? 16 A That's correct 1 6 MR. RUBY: Let me ask. so. let me just 17 0 The column that let's see. the third colnm 17 make sure the Agent understands the question. Are you 1 8 front the lett. labeled. percentage. that's a . 8 1 9 percentage of violations that were classi?ed as 1 9 JUROR: Did all of variations. before they 20 signi?cant and substantial; is that right? 0 could be corrected. or before they were corrected. did 2 1 A That '5 correct. 2 1 Mr have to approve that they could go ahead 2 2 And those were violations that were classi?ed 22 and correct these violations? 2 3 by the inspector who issued them as a more serious 2 3 THE WITNESS: l'm not familiar that Mr. 2 4 category of violation: is that right? 2 4 Blankenship had to approve before action was taken on 2 5 A That?s correct. 2 5 every violation that occurred at the operations DeMuth Court Reporting, 33 (Pages 126 to 129) LLC 304-766-8708 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 36 of 66 PageID 838 Jeffrey Carter November 13, 2014 Page 130 Page 132 1 JUROR More or less. It was probably the ntore 1 there?s not air ?owing in. it just blows nty mind. 2 substantial vtotnttomt then that had to be approved 2 JUROR: Was ll shutdown at this time that through tom? 3 we're talking about right now? They?re asking, was the 4 THE WITNESS: I would he rt mine shutdown? 5 MR RUBY: l'lljtun caution not to 5 MR. RUBY: lthink the document that the Grand 6 speculate It? you don't have Information on that Item 6 Juror was referring to. or the citation that the Grand '1 your investigation, then don?t guess. 7 Juror was referring to. is this one that is shown in Yes. I don't know. 8 Grand Jury Exhibit 29; is that cancel? 9 The reason I asked-that is. I think 9 .IUROR: Yes. that's it. 1 0 through other documents that we saw, he got a daily .10 BY MR. RUBY: 1 1 report on these violations. And I wasjusl wondering, I 1 Agent. do you see there In box 12 on the form, 1 2 since he knew about those violations or citations, just 1 2 type or action listed? 1 3 what extent he have in seeing that those were ctnrected 1 4 What?s that say? 1 5 BY MR RUBYask this question. Agent. Have you 1 6 And then In box l3, ?Type of Issuance." do you spoltcn with witnesses who told you that Mr. Blankenship 1 7 see that? 18 was often made aware it a violation resulted in a 1 8 A Yes. "Citation." 9 shutdown order? 1 9 Citation is the box that's checked. and 20 A Yes 20 there?s another box there for a order that's not 21 In other words. it? resulted In an order to 2 1 checked: is that correct? 22 shutdown production in part or all of a mine? 2 2 A That's correct. 23 A Yes. 23 And does that Indicate that. in this instance. 2a Beyond that. In your Investigation. have you 2 4 the inspector did not shutdown the mine as a result of 25 come across any evidence that Mr. Blankenship was 2 5 the violation? Page 131 Page 133 .1 consulted before other violations were corrected that 1 A Yes. 2 didn't fall antler that particularly serious category? 2 0 Am I correct. Agent. is It your understanding 3 A No. 3 that shutdown orders. as the law requires It. are 4 MR RUBY Does that help? 4 generally the result of speci?c patterns of repetition 5 JUROR: Yes 5 of violations a particular part of the mine? 6 JUROR: What about the combustible material 6 A Yes. 7 violation. the ventilation. are all ot?thcse shutdown, 7 MR. RUBY: I '0 tell you all what we could do, 8 or does it have to be. you know, we talked about the 8 you're going to want to go to lunch I'atrly snort, I 9 9000 cubic feet per minute. versus, they were. I think, 9 imagine. After that. if it would be I don?t know to it was I47. I mean. stunt-thing that just blows my mind 1 0 that we have him available right now, I tlunk 1 1 Would that be tl shutdown violation? 1 1 that Agent Carter could speak to some examples of cases 1 2 THE WITNESS: That would shutdown that area, 12 when: there were shutdown orders, 50 Il'you't'o t. 3 yes. 1 3 interested, you could see what those kinds of documents 1 rt .IUROR: Okay. Just that area though? 1 4 look 1 5 '11 IE WITNESS: I think it would depend It 15 .IUROR: 0n 5 I, when you talked about 1 6 could shutdown more. 1 6 the ?ooding and four I'ch of water. what was the 1 7 JUROR: Okay. I '7 ociltng height there? What percent of the area was 1 8 MR. RUBY: That's a good question. 'I?hcre's a 1 8 actually blocked by the water? 1 9 legal aspect to that, as to when the inspector can issue 1 9 MR. RUBY: Sirshutdown order versus when they can?t. It?s not 2 0 JUROR: I think it was 5 2 1 completely within their discretion. So that 's something 2 1 MR. RUBY: Yes 2 2 that we, the lawyers remind me and we'll cover that 22 JUROR: Where you had the water blockage. 2 3 with you all when the witness is done. 23 What percentage ofthe area was actually blocked. and 2 4 JUROR: Because I?m a little bit this 2 4 what impact did that have on the airliner? 25 ventilation, it scented like it would be key, and il? 25 BY MR RUBY. DeMuth Court Reporting, 34 (Pages 130 to 133} LLC 304-766-8708 Jeffrey Carter November 13, 2014 Page 134 Page 136 Was the height in that area, Agent. according I certify that the foregoing is a correct to witnesses that you?ve spoken with, was that about six transcript from the record of proceeding in the above- to seven feet? entitled matter. A Yes. i (P) 7 i Priorto this, bowever,lthinkyou testi?ed (L area-20m me that this well, I think you testi?ed that there were Certi?ed Court Reporter tunnels in this area that were completely blocked from ?oor to ceiling; is that right? A That?s correct. 0 And it? a tunnel that was used as an airway in a mine were blocked ?oor to ceiling, what effect would hen-"Li a; TAHY pUBLlc that have on air?ow through the area? ?fe . I STAT. OF A It wouldn?t allow it to ?ow. r1" COP Bogfxuw' JUROR: Would this have shutdown the mine -5 'fwfwi?le'l Du WV 2% until that was corrected? My Cmm'?f?m Decamb??fw THE Yes. {ma - A =1 v? IUROR: There would be electric in that area, too, wouldn't there? THE WITNESS: Possibly.yes Was this in the return side of the airflow? THE. WITNESS: Say that again, sir. UROR: The retum side of the air?ow, after the air had passed through the face, was that on its way back out of the mine13:. Page 135 BY MR. RUBY: i think that?s In the and you testified to this earlier, Agent what?s the first sentence there say in the description? A ?The number one Section return cannot" - That would indicate that this was the return; is that right? A That?s conect. I don?t believe I asked you this question earlier, but based on your conversations with witnesses. sections of the mine were shutdown for as long as several weeks as a result of this ?ooding; is that right? A Yes. JUROR: The return side in a lot of mines. in my memory. was also used as an escapeway. They were possibly using it as an eecapeway, so that would have prevented any escape if the occurrence had occurred. MR. RUBY: Other questions? (No response.) MR RUBY: May the witness be excused? FOREPERSON: Yes, you may be excused. (Witness excused.) (WHEREUPON, the above matter was concluded at 12:46 Wm-dmulh-UNH li-Jl-?l-?l-?l-?l?IH mmibUMI-?O .l mabWNHOtDm-u 35 (Pages 134 to 136) DeMuth Court Reporting, LLC 304?766?8708 DLB-GJ-TR-000203 688 3# Gla?ed 99 40 18 969d 13-88 1U3wn300 17172001317139 3393 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 38 of 66 PageID #2 840 Jeffrey Carter November 13, 2014 Page 1 A Adkins 68:8 127213 128215 allow 121:6 55:1 am 1:12 69:11,16,17 128:21 129:17 134213 55:20 77:16 abandon 9933 Administration 130:5,16 allowed 432]] 84: 12 abandoned 97:4 4:11 9:5 12:24 132211 133:2 87:20 121:15 89:20 100:17 ablezmzs 116:22 133:11 134:1 121:18 100223 101220 106323 administrative 135:3 aloud 17:9 121:2,3 128217 above.136:2 103:12 agents 42:3 Alpha 67:2,7 128:17 accident 29:4 advanced 57:20 108:22 109:6 103:6 April 6:6 27:7 1 16:17 61:13,23 63220 aggravated altogether 528 30:12 38:25 account 65:17 125220 20:14 43:16 28:10 78:5 44:12 52:25 acmunting 73:9 adverse 32: 12 ago 53:2 87:23 amount 18:8 accumulate 35:8 ahead 34:25 22:7 23:1 72:17 73:14,24 50:11 30:24 affairs 12:14 41:12 43214 24:21 25:19 87:2 37:21 affect 102:1 47:1 50:6 77:17 78:9 88:3 89:4 accumulations afternoon 51:21 54:5 100:17,23 90:24 100225 4416,22 51:11 108:20109:6 55224 56:17 amounts 81 :24 101218102211 54:16 55331 agencies 5:5 71:9 104217 and/or54rl7 103215 108211 55:2 61:2 ageney426,10 105:1 1,21 55:2 108214111225 accurate 50:19 9:12 11:14 113:7115219 Andy 33:1 96:25 114:7,20 1221391431 agent3:6,14,18 115:21 116210 announce 115218117:18 achieve63;13 4:215:18623 116:13 129:21 125:12 area ?$111,537,? 14:20 16:12 air 15:20 17:15 answer 127:11 1823,24 19:2 124:7 125:20 18:11 19:11 17:20 1824,8 anticipated 96:8 22:7 action 43:13 21 :5 22:15 19:3,4,9 20:5 anybody 60:4,13 25:21 32:16,18 12334 12924 23:22 25:4 2227,12 23:19 anymore 106223 3329,13,23 132:12 27:7 28:24 30:2l,24 32:2 anyway 125:17 34:7 35220,24 actions 29:21 31:9,19 32:6 35:11 apart 77:8 35:25 37:25 5613,21 36:6,23 38:14 3823,6 40:8 38:10 40:5,13 activc40;12 39:12 44:15 45:8,11,l9 1:17 42:1043210 47:13 50:1 1 52:6 53:2 appeared 85:13 44:14 47:12 actively 47:15 57:19 62:1 48:25 49:4,10 apprised 105:8 48:6 54:1 1,11 actua 23;14 65:1 70:8 approach 54:11 57:23 94:25 95:7 71 :15 72:15,17 50:1 82:17 [05:12 80:6,7,9,14 add 71:12 73:23 74:25 13221 134224 approve 105:23 81:25 82:7,21 added 33:4 75:5 77:10 airborne2127,9 129221,24 85:5 86:23 addition 10:20 79:3 81:17 air?ow 14:24 approved 17:11 87:13 96:9,14 additional 116:3 8323,14 88:20 15:7 17:23 3026 113217 97:5,8,13 ?9:16 89:13,24 93:2 18225133224 118:14129214 98:16 99:4,8 address 44:22 93:12 95:23 134:12,21,23 130:2 99:18 119:22 5511,14 ?4:16 100:1 107:24 airtight30220 approximate 120:9,11,12 addressed44; g 111:13112210 31:25 78:9 121:22131:12 adduced 1:1] 113:23 11929 airway 37:24 approximately 131214 133:]? adequatc25:]9 119:19121:1 3821,2134210 3:1914zl2 133:23134:1,7 adequately 40:4 122:6,17 124:6 airways 37:21 30:5 36:15 134:12,17 56:21 125:19127212 3826 38:20 52:17 areas 13:16 DeMuth Court Reporting, 304?766-8708 LLC Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 39 of 66 PageID 841 November 13, 2014 Page 2 14:22 15:7,21 42:14 83:25 belt46:21,23 93:5 95:20 BOOTH 1:19 47:17 51 :13 84:12 85:2,19 47:3,5,5 48:5 102:4,12 bosses 53:8 61:9 62:13 86:3 87:24 48:16.18 51:11 103:17,21 55:20 81 :23 82:2 authority 12:8 51:13,13,16 104:10 109:3,8 bottom 69:9,10 aren?t 128222 automatically 54:10 60:6 109:15,16,19 72:4 93:13 aside40:7 42:2 30:24 beltline 46:21 110: 17 113:17 98:17 107:7 asked 103:2 available 10:10 48:15 114:7 116:12 box 1:22 17:4 130:9135:9 113:21 133:10 belts 48:5 60:5 132:11,16,19 asking 6:3 57:20 aware 33:22 60:12 118:4,12,14 132:20 129:18 132:3 43:6 57:9 66:8 bene?cial 23:6,8 127:15 129:15 Branch 4:23 5:3 aspect 22: 16 120:9,16 Beyond 130:24 129:21,24 7:2,13 9:15,20 123:21 131:19 130:18 big4:23 5:3 7:2 130:17,25 11:15 1622,24 aspects 47:24 7:13 9:20 Blankenship?s 18:20 19:22 assembling 162224 18:20 71 :4 102:1,7 24:8 26:23 109:2 back13=23 19:22 24:8 124:11 77:8 93:13,16 assessed 70:1 1 23:24 36:3 26:23 61 :18 block 26:19 97:25 99:13 assigned 47:25 4924,10,! 1,17 77:8 93:13.16 31:22,24 35:11 106:8 108:11 92:14 49:20.25 57:7 97:24 99:13 36:2 110:11 112:19 assistant 1:18 57:14 10631 106:8 108:11 blockage 133:22 116:17 71:5 83:18 11812412311 110:11112:19 blooked133:18 break35:2,l4 associated 78: 10 124:16 13425 11617 133:23 134:7 40:17,22,22 assuming background 6:4 billion 100:23 134:11 41 :2,6 57:5,13 126:24 72:5 Billy 67: 14 blow 77:13 65:1 98:15,15 atmosphere base 105113513 bit 6:4 7:12 blown 36:2 99:11,11,13,17 17:25 based 5:24 14:20 41:19 blows 131 :10 99:17 attached 73:18 17:11 41 =5 47:23 65:2 132:1 breakdown 75:6 84:5 93:4 42:11 99:12 70:8 72:6 blurry 77:13 87:25 88:5,14 103:25 104:4 120:14 126:7 77:14 131:24 board 11:24 127:6 104:15,18,25 135:10 bits 29:13 bodily 126:19,21 breaks41:6 105:23 108:19 basically 31:21 blackSl :12 body 108:18 brief57:15 10:12 1 15:3 bathroom 57313 Blanchard 34:1 109:25 126:17 briefing 68:9 attachment Baxter9l =24 67:14,15 bold 75:24 bringing 38:6 71 :15,17,19,22 92:1 103:17 Blankenship 112:15 brings 38:2 95:19106:2 104:? 108:8 11:1812:12 bolt20:12 broken 26:20 107:13 117:24 ?18:15 57:8 65:2 66:8 bolter 20:13,18 77:3 79:5 attachments Bearsc 67:13 68:8 69:11,15 21 :1 Brushy 67:25 104:6 112:4,12 began 73:25 69:18,22 70:9 bolts 20:19 build 31 :2 attempt27:11 36:24 71 :3 72:18 40:17,19 41 :2 building 1:13 attention 6:5 beginning 54:22 73:12,25 74:20 127:3 81:10 82:17 60:8 89:12 ?5:17 75:181:13,19 book41:22 43:2 bui1t35:8 36:2 101 :8 begins 20:8 82:21 83:21 books 53:3 54:3 bullet 116:20 Attorney 1:19 93:13 107:14 86:9 87:3,7,12 54:19 55:1 business 12:1,14 Attorneys 1:18 ?12,4 1 12:25 87:17 88:4,9 56:4 buy 10:6 attracted 101:6 halal? 13:15 88:15 89:7 Boone 6:25 bylaws 12:4,8 August41:15 believe 135:9 90:23 91 :24 109:11 12:12 DeMuth Court Reporting, 304-766-8708 LLC Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 40 of 66 PageID 842 November 13, 2014 Page 3 33:3 call9:6 63:23 64:6 called 3:114:10 13:11 68:24 71:17 78:2 92:5 114:13 119:14 calling 64:21 125:1 can?t 131:20 card 92:9,22,23 93:7 94:22 95:15 cards 92:15 care 123:]7 127:7 carried 64:2 97:6 carry 15:8,22 17:23 46:23 carrying60:7 Carter1:]1 2:4 3:5,10,14,18 4:21 5:18 14:20 16:12 18:11 19:12 21:5 22:15 27:7 31 :19 57:19 100:2 111:13 119:9 122:7 125:]9 133:1] case 5:22 42:3 45:14 108:23 109:7 cases 133:1] cash 100:7,7,7 100:10,16,16 100:22,22 catching 61 :14 categories 121:13 category 13:] 1 13:24 79:23 80:3 127224 128:3,11,19,22 131:2 caught 90:19 cause 24:24 49:24 54:2 causes 27: 12 causing 33:10 33:13 caution 130:5 cc 69:10,] 1 CCR122 ceiling 97:9 133:17 134:8 134:1] CEO 12:8 57:8 65:2 103221 108:16 116:1] certain 68:23 102:12 121:5 121:13 Certificate 2:2] Certified 1 :15 136:6 certify 136:1 CFM chairman 1 1:24 57:8 65:3 116:1] Chamberlin 67:19 71:] chance 12:3 38:14 changes 109:15 110:16 chapter charge 113:15 129:10 Charleston 1:2 1:14 Charlie 63:2 67:13 checked 132: 1 9 132:21 chief11:23 69:19 103:12 Chris 68:8 69:17 73:19 circuit 59:12 citation 16:17 16:18,1817:3 17:5 18:3,19 18:23 19:6,21 19:25 20:3,22 21:23 22:3,6 22:10 24:7,9 25:9,14,18 26:5,10,15,21 2723,25 28:4,8 28:19 32:9,11 34:20 35:18 37:11 38:2,5 39:22 40:3 41:1 43:9 46:15 51:4,15 53:17,20,22 54:18 55:18 57:1 97:24 98:23 126:17,18 132:6,18,l9 citations 27: 15 29:20,21 30:1 30:16 36:5,6 36:11 38:15 43:22 52:6,8 52:13 78:10,25 80:8 81:23 111:10 123:1 123:25 126:]5 128:18130:12 cited 13:2 17:9 24:14 30:5,8 30:1136:15,19 38:20 44:3 52:17 72:9,9 7616,1320 77:1] 78:5,12 78:24 82:12 89:22 94:4 95:8 clarify 128:2] class 10:9,10,13 10:21 classified 127: 19 127:22 clause 113:7 Clay clean 38:2,6 cleaned 45:23 46:2 50:10 51:24 80:24 87:20 127:] cleaning 52:9,18 56:19 cleanup 46:6 50:14 8] :3 clogged 29:7 close 101:20 closed 59:12 101:19 coal 4:3,6 6:16 7:6,19,22 13:25 14:8,23 14:25 15:7,? 15: 16 20:24,24 21:7,7,9,10 22: 16,21 ,24,24 25:20 30:19,24 31:20 32:3,6,16,18 32:20 39:10 40:23 4423,25 45:3 45:5,10,21,22 45:25 46:1,6,7 46:23 47:4,9 47:14,] 8 48:1 48:8,12,15,21 49: 10,1 7,20,25 50:4,8,8,9,14 50:15,20 51:12 51:16,18,22,22 51:23 52:9,9 53:4,7 54:16 58:1160:7,15 61 :3,3,1 1 63: 12 66:5 69:4 80:23,23 81:3 87:19 99:3 106:22 1 19:21 125:5 125:2] Cealson 33:1,8 33:20 35:23 97:] code 14:5 62:3,6 125:13 collapse 33:10 collapses 39:7 39:10 collapsing 32:20 36:1 color51:12 95:17 column 71:13 76:3,8,16,19 78:23 79:8,12 79:17 80:5 93:16,25 94:9 94: 12,24 95:11 128:6 columns 76:2 79:8 combustible 51:24 52:10 80:15,23 81 :3 84:16 87:20 131:6 come 40:12 57:7 DeMuth Court Reporting, 304-766?8708 LLC DLB-GJ-TR-000206 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 41 of 66 PageID 843 Jeffrey Carter November 13, 2014 Page 4 65:9 83:3 86:24 100:3,1 I conducted 5:9 34:6 58:22 59:5,7 96:14 124:21 105:9 106110 27:11 109:10 conversations 59:11 60:22 125:10130:25 106:21 107:3 119:14 5:25 135:10 62:14 63:13 comes 23:9 108:16 1 1 1:23 confer 5:20 conveyor 46:21 64:18 65:15,21 coming 58:17 114:13 115:22 con?rmed 122:3 46:23 48:5,5 65:25 66:6 60:1762:8 118:13122:18 122:20 51:16 54:10 67:15,l768:6 63:24 90:9 company?s conjunction 60:6 69:1 70:1,7,24 124:12,14,18 69:19,2187:13 98:21 c00123:10 25:21 71:16 72:3 124:23 125:3 88:6 92:15 connected 59:6 copy 69:12,24 73:6,23 75:14 commencing 93:9 113221 59:10 92:22 118:3 75:18 76:7 1:12 122:21 connection 4:16 correct 4: 1,9 77:9,25 78:18 comments completed 96:16 Connie 1:14,22 6:21 ,22 7:4,10 79:2,16 85:11 105:22 116:12 completely consequences 7:11,20,21 8:7 85:15.16 86:] commerce 7:14 40:19131:21 68:19 8:15,22 9:3,14 86:17 87:1 7:17,24 118:18 134:7 conspicuous 10:4,7,16 11:1 89:19 90:14.20 commercial compliance 92:5 54:8 12:11 13:1,6,9 91:19 92:6,7 118:20 107:21 111:9 constituting 13:18 92:13 93:22 commission 113:9 116:23 20:15 15:10 16:2 96:24 97:11 10:15,l7 100:4 120:12 construct 30:20 17:1,25 18:7 98:9 99:12.15 111:21 113:12 comply 17:10 constructed 192,5 212,3 99:19 100:12 125:9 43:19 31:21 21:13 22:9,23 100:13,14,20 commitment concern 44:16 consultant 114:9 23:3 24:18,23 100:24 101:2,3 1 16:7 concerning 1 17:13,20,25 27:6,8 28:12 101:6,22,24 committed 64:11 consulted 131:1 28:15 29219 102:6,25 103:1 13:16 61 :15 concluded contacted 59:25 30:4,10,19 103:4,22 104:1 79:14 86:4 135:25 contains 98:16 31:3,23 3224,? 104:2,8 105:10 89:21 91:2 concluding 1:12 contaminated 33:4 106211 108:17 committing 82:1 conclusion 32:5 33:6,19 35:12 109:13 110:1,5 82:3 86:20 27:14 100:20 context31 :20 35:25 36:14,19 110:6,18 112:2 88:10 condition41:13 116:8 37:1,4,17 38:8 114:11,21,24 common 10:11 41:20 98:18 continue 29:5 38:9,19 39:1 116:5 119224 10:13,21 62:6 conditions 32:12 40:15 86:9 39:12 40:10 120:4,13 121:4 communication 32:15 35:8,24 115223 116:6 41:11 42:2,15 121:8,9,17,20 126:1 37:3,20 41:14 116:15123z20 42:16,20 43:12 122:17,l9,23 41 :22 43:17 continuing 43:13 44:3,10 125:16,l7,19 119:4 54:9,15,15 54:23 4521520 46:4 125:22 126:9 communities 69:3 continuous 46:25 47:1 1,19 126:13 127:14 118222 condone 107:20 26:16 47:21 48:3,13 127:16,21,25 companies 111:8 113:1,5 control 6:15 48:19 49:7,18 128:7,20,24 10:24 116:21 12:13 36:8,17 50:18 51:19 129:1,6,22 company 4:23 conduct4z22 43:23 6024,24 52:2,6,16 53:1 132:8,21,22 5:3,14 6:4,15 9:19 20:15 97:15 53:6,25 54:7 133:2 13429 1022 11:10 37:2 43:16 controlled 7:7,9 54:24 55:4,10 135:8 136:1 12:5 57:8 116:16 119:13 50:21 corrected 6620,25 82:3 124:2] controls 30217 56:6,8 58:13 121 :19 129214 DeMuth Court Reporting, 304-766-8708 LLC DLB-GJ-TR-000207 Case 5:14-cr-OO244 Document 83-1 Filed 02/06/15 Page 42 of 66 PageID 844 Jeffrey Carter November 13, 2014 Page 5 129:20,20 18:24 19:4 dated 16:17 24:8 43:15 50:7 17:18 19:7 130:14131:1 131:9 114:6,19 51:10 54:6 27:3,1642:17 134:15 cut22:22,24 dateline115:16 98:10 135:4 43:6 corrective 56dates 30:1 1 designated 66:4 discretion 28:13 37:23 98:7 129:3 131 :21 correctly 25:15 cuts 22:21 Davis 71 :3,4 destroyed 33 :24 discuss 62:3 26:10,22 27:5 cutting23:l 91:24 34:6 discussed 57:1 cost 70:10 25:21 day 36:2 72:18 detail 30:] 57:7 69:15 couldn?t 60:3,12 101 :20 102:8 detailed 74:1 discussing 6:10 125:15,17 111:12 114:22 determinc27:11 8:25 10:1 12:7 count 122:3,15 1:15.22 2:1 116:15 117:19 developments 30:5 36:15 122:17 daily 74:1,2435 days 73:23 105:8 44:1 46:5 75110 31319 device 40:7 52:22 62:20 43:4 83:4 842214 102:11 106:12 devices 22:25 63:5 65:4 70:4 countersigned 85314 86315 deal 101:7 30:21 36:17 86:11 100:16 41:17 42:25 87:3.24 88:4 death 39:11 60:24 121 :2 countersigning 891? 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dusted 50:9 114:16,25 124:1 36:6 52:7 104:10 108:20 51:13,23 115:3,5 117:6 equivalence 133:1] 114:7 116:1] dusting 54:17 117:17,24 100:7,17,22 Exchange 10:15 117:9 118:1] 55:2 56:19 employee 63:11 Eric104220 10:17,22 11:2 don?t 56: 13 80:15 84:16 64:13 escape 135:18 11:7 100:4 125:5 130:6,7 employees 12:14 escapeway 111:2] 113:12 130:8 133:9 62:1163z22 116:1,4 135:9 E231 EMS 125:9 ESQUIRE 1:17 excuse 19:24 DeMuth Court Reporting, LLC 304-766-8708 Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 44 of 66 PageID 846 November 13, 2014 Page 7 49:6 73:22 115:20 excused 135:21 1352223 executive 9:15 11:15,23 71:4 exhibit 2:6,7,7,8 2:8,9,9,10,10 2:1 1,11,12,12 2:15,15,16,16 2:19,19,20 16:8,1318:12 18:1519:12,15 21:16,18 23:23 24:1 25:4,6,24 26:2 2720,22 2824,25 31:9 31:1134:13,15 37:6,8 39:17 39:19 50:24 51:1 70:14 70:16,19 71:20 71:21 72:24 73:1 74:5,7 75:5 79:4,4 81:18,18 83:8 83:10 84:3,22 85:12 8820,22 90:22 91:1 1,12 91:14 93:2 97:18,20 102:17,19 104:6 106:1,3 107214.25 108:2 110:8,21 111:14,16 1122111324 114:2 115:9 11625 117:3 117:141182,3 126:21 127:12 127:13 132:8 133:15 exhibits 2:5 112:12 122:1 122:12 exist 37:3 43:11 existed 42:6,12 58:15 63:21 99:16 exists 21:10 35:15 40:23 81 :8 expected 96:14 experience 124:13 experienced 95:25 explain 41 :18 47:8 explained 55:22 explanation 47:23 explosion 23:20 27:8,10,12 28:1 29:4 4919,2424 50:3 53:23 54:1,12101:1 101:3,6,11,15 101 :19,21 102:12 106:8 106:13108:11 110:1 1 112:8 112: 19 explosion?s 54:2 explosions 15:4 55:15 explosive 15:9 15:22 17:24 20:5 21:11,12 23:18 44:20 45:22 49:7 52:19 81:9 82:17 87:19 extensive 116:16 extent 130:13 extract 48:1 extraneous 98:18 face 17:15 134:24 facilities 7: 17,22 8:2 9:3 119:5 facsimile 68: 12 fact6zl9 21:12 22:10 34:6 44:11 45:17 65:16 70:4 90:11 97:8 101:18 factors 65:17 fail 68:19 failed 54:7 95:3 failing 17:10 37:19 40:4 43:17 failure 20:16 29:15 43:19 fair 5:18 fairly 133:8 fall 49:1 1,12 101:16 131:2 fallen 41 :2 falling 35 :21 42:10 43:10 98:19 127:3 falls 40:5 49:16 familiar 7:3 11:17 13:23 14:22 16:14 19:18 21:21 22:15 24:4 34:18 36:23 44:15 62:15 63:1 95:24 102222 129:23 far45:11 fatalities 101:4 federal 1:13 3:24 42,6 5:5 5:20 8:9,13,21 9:23 10:25 13:3 15:25 16:4182 19:7 20:22 21:23 27:2,10 29:18 31:6 33:17 35:17 36:23 38:11,21 39:2 39:13 41 :24 43:22 44:42] 45:21 46:6 50:13 55:14 58:16,25 59:21 60:17 61:14 62:3 64:7,22 70:11 72:20 76:20 77:12 81:14 84:8 90:2 91:2 105:7 119:10 119:20 120:2,8 121:6,9 124:8 125:19 129:4 feet171191814 18:24 19:4 20:14 21:1 40:20 41:8 98:25 99:14,18 131:9 133:16 134:3 Fifty 122:10 Fifty-nine 94:14 94:19 figure 10622 ?le 105:1 ?ch 109:21 110:4 111:20 111222325 112:3 113:11 113:1611422 118:25119:1,2 119:4 filing 105:4,6,16 112:11 filings 100:2,6,6 105:14 ?nal 92:20 108:21 10921 ?nancial 1 18:21 ?nd 37:3 ?ne 51:11,18 ?nes 70:10 77:17 78:15.16 89:15 ?nished 123 :23 ?re 50:20 53:8 55:20 125:8 ?res 45:2 ?rm 110:1,3 first3:11 37:21 40:2 42:14 47:1 51:9 68:7 73:25 75:5 76:3,21,21 77:12 78:6 79:8 81 :5 82:7 85:13 93:16 100:1421 104:14 106:2,5 113:3 135:3 fit 100:12 fitting 26:19 five 57:14 77:15 128:9 fixed 14:] flame4923 ?ammable 44:25 46:1 52:19 81:9 ?oat 47:4 48:8 48:11,12,15,21 50:8 51 :22 ?oats 49:5 flood 97:6 flooded 97:9 DeMuth Court Reporting, 304-766-8708 LLC 1 0 Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 45 of 66 PageID 847 November 13, 2014 Page 8 99:19 fourth 92:24 68:17 98:3 105:7 81 :4,14 82:1 ?ooding 96:1 frame 42: 10 109:2 129:9 grade 95: 12,14 84:9,14,18 98:3 99:22 rampton 91 :22 giving 75:2 Grand 125,8,13 86:19,23 87:7 133:16135:12 92:4,11,13 go 28:24 30:22 16:8,1318:12 87:18 89:18,21 floor 97:9 98:15 frequency 32:3 34:25 18:15 90:18 92:23 98:17134:8,11 119:11 35:1241:12 21:16,18 23:23 128:2,12 flow 30:25 96:9 frequent 30: 15 43:14 47:1 24:1 25:4,6,24 groups 77:2,4 134: 13 frequently 63:22 50:6 51:21 26:2 2720,22 78:25 79:6,6,9 ?owing 132:1 82:9 85:7 54:5 55:24 31:9,11 34:13 83:5 85:24 focus 6:5 120:18 fresh 38:2,6 56:17 63:10 34:15 37:6,8 87:8 89:15 focused 126:16 45:1 1,18 64:7 39:17.19 46:10 guard 58:21 follow 15:17 frictional 23:13 69:9 71 :9 84:3 46:12 50:24 59:1 61 :20 20:1629:15 29:12 84:22 85:12 51:153:11,14 125:1 follow-up 21 :5 fuel 50:20 104:17,24 66:11,14,23 guards 58:23 119:19123:18 fu11107:14 70:14.16 72:16 guess130:7 following 28:1 fully42:5 113:7115:19 72:24 73:1 guide 35:11 53:23 68:11 function 24:25 115:21 116:10 74:5.7 79:4 guys 124:12 92:17101:10 29:1153:5 116:13125:15 81:18 83:8,10 125:25 110:20 116:12 functions 23:5 125:17 129:2] 88:20,22 91 :12 follows 3:12 further 49:24 133:8 91:14 93:1 foregoing 136:1 goes 65:18 97: 1 8,20 hadn?t123z2 foreman 41:17 going6:516:12 102:17,19 half1938 221? 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11:10,21 McCoy 67:14 miles 45:18 locations 47: 14 13:3 16:4 12:4,9,14 13:8 mean 31 :20 43:1 million 100:18 long 3:17 42: 12 17:18 20:1,? 65:3 6620,24 49:12 65:7 102:9 9620,21 22:4 26:22 67:7,16,21 69:12 76:12 mind 131 :10 135:11 28920 29:18 68:3 69:18 80:6131:10 132:1 longwall 17:14 31:5 33:17 70:10 73:9 meaning 47:12 mine 4:3,10,18 17:15 28:9,12 38:20 41:24 7520,24 76:6 105:15 124:7 4:24 5:3 7:2,3 28:14 29:17 43:19 50:13 761320 77:3 means 10:5 7:6,13 8:1,6,9 51:1196:8,22 101:12 128:25 82:8 83:19 48:1165:4,8 8:17,21,24 9:5 DeMuth Court Reporting, 304*766-8708 LLC 14 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 49 of 66 PageID 851 Jeffrey Carter November 13, 2014 Page 12 9:20 12:16,2l 58:25,25 59:3 mine?s 17:18 25:15 26:12,24 39:22 46:15 12:24 13:3,7 59:4,7,13,13 22:4 28:8,19 27:4 28:6,14 51:5 53:17 13:15,20,25 34:8 54:19 28:16 47:10,18 65:10 71:11 14:8,12 15:3,3 60:1,2,7,21 61 :21 62:13 48:10.22 77:2 9214,20 97:25 15:7,8,16,17 61:9,18,21,23 80:25 78:25 79:6,9 107:19,20 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99:1] 112:3 123:3 133:5 particularly 13:24 79:23 121:14 131:2 parts 59:7 Pass/Fail 95: 12 passageways 34:8 passed 58:25 13424 Patrick 89:6 pattern 65:5,18 DeMuth Court Reporting, 304-766?8708 LLC 16 Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 51 of 66 PageID 853 November 13, 2014 Page 14 65:23 67:25 68:4,24 69:2 70:6 patterns 133:4 penalties 9:22 78: 10 penalty 71:13 people 9:6 63:9 63:23 69:13 74:19 104:21 106:9 107:3 125:2,9,14,15 percent 18:8 80:4 101 :23 128:4,5 133:17 percentage 79:18 80:1 127:6,18,19 128:1 129:12 133:23 performed 56:15,21 performing 92:16 period 6:5,9,10 6:11,14 8:16 8:25 9:18 10:1 11:9,2012:11 13:1,1914111 14:1515:6,15 29:23 30:2,4,9 38:16 38:19 43:25 44:5 46:4 52:16,22 54:19 54:25 62:20 63:5 65:3,22 68:18 86:10 100:15 102:8 121:2 128:16 periods 12:7 permanent 35:2 permitted 50:1 1 80:24 person 20:18 59:23 74:14 92:11 108:24 109:1 123:9,14 123:16 personal 5:25 102:2 pertain 28:4 Philip 67:14 Phillips 91 :25 92:1 103:17,18 104:1 1 108:8 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127:20,24 128:6,13,14,23 132:3 133:10 134:8135:7,13 ripping 23: 14 rock29zl3 50:9 51:12,23 54:17 55:2,6,11,21 61:8 80:15 84:16 rocks 98:18 Roger 104:19 roles 11:25 roller51:13 roof20:12,13,18 21:1 32:12,20 33:10.12 35:8 35:21,25 39:3 39:9,14 40:5 40:16,17,18,l9 40:20 41:1,2 42:10 43:10,23 44:5 61:6 127:3 room 1:13 68:16 routinely 16:3 61:15 101:12 Ruby 1:17 2:3 3:13 16:10 19:11 19:17 21:15,20 23:22 24:3 25:3,8,23 26:4 73:3 74:4,9 83:7,12 88:19 88:24 97:17,22 102:16,21 107:2310814 111:13,18 113:23 114:4 116:25 117:5 119:7,18 120:25 121:24 122:6,12,16 123:2] 124:5 125:18126:6 127:10129:16 130:5,1513124 131:18132:5 132:10133:7 133:19,21,25 135:1,19,21 rules 8:8 11:5 119:20 8&8 79:18,20 127:18 128:11 Sabrina 73:8,9 safely 98:13 safety 4:3,10,19 8:6,10,21 9:5 9:19,2312:18 12:20,24 13:3 13:7,15,16,19 13:2414:8,18 14:21,22,23 15:3,25 16:4 17:8 20:23 DeMuth Court Reporting, 304?766-8708 LLC 19 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 54 of 66 PagelD 856 Jeffrey Carter November 13, 2014 Page 17 21:23 26:14 91:24 100:3111:20 41:15,15,16 short9:6 68:18 27:15 29:18 sat58:9 59:3 113:12 42:18 92:21 show 16:12 31 :6 33:17 saw 53:3 93:5 security 58:5 seria126:17 18: l] 19:11 35:18 36:16,24 106:3 130:10 59:21 62:18 serious 13:24 23:22 36:24 37:2 says 16:23 42:9 see 16:23 20:7 14:7,18 39:11 25:3,23 27:19 38:7,] 1,16 42:25 46:20 72:6,12 73:21 45:2 65:13 31:8 34:11 38:21,21 39:2 56:12 75:13,24 75:24 78:1 68:24 79:23 37:5 39:16 39:13 42:5,] 7 76:9 79:17 79:17 93: 14 80:3 96:1 46:9 50:23 42:22 43:6,23 80:5,22 94:9 94:10,25 95:12 121 :5,14 127:4 53:10 66:10 44:4,14,15,21 94:24 95:3 104:4 106:16 127:8,23 128:3 70:13 72:15.22 50:14 105219106216 107:8,15 128:1] 129:5 74:4 81:22 53:3,5 54:3,19 118:1] 127:4 131:2 82:2 83:4,7 55: 14,19 56:23 scheme 58:15 111:] 112:15 served 123:8,9 85:20 86:19 56:25 57:9 screen 70:22 112:21,25 123:16 88:19 90:21 58:16 60:21 scrutiny 65:10 118:8127:17 scrvices118:20 91:1,11 97:17 61:14 62:12 sea140:6,7,12,18 set 8:20 24:24 102:16107z24 65:13 66:5 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source 29:12 26: 16,18,24 9:16 14:17 66:24 67:8 78:15 sources5:16 27:4 28:6,10 24:15 113:12 103:7 signi?cance South 19:22 28:21 29:7,7,9 status 65:5,12 subsequently 105:15 Southern 1:1 29:9,11,17 68:22,24 69:2 67:7 signi?cant 6:16,20 spread 50:3 Statutes 8:10 subsidiaries 13:12 79:20 space 56:5 55:15 124:8 7:10 105:5,8 127:20 spaces 45:5 spreading 55:15 STEVEN 1:17 substances 15:9 128: 1 8,22 span 42:22 44:8 stand 76:9 1 16:1 sticking 127:3 15:22 17:24 129:3 55:18 standard 20:17 stock 10:5,6,11 20:5 23:19 signi?cantly speak 58:1 96:3 29:18 43:20 10: 14,21,22 52:19 82:17 29:10 69:3 126:2 133:11 50:14 58:24 102:5 106:9 substantial 90:8 speaking 7:19 81:14 84:9,14 107:3 ?6:13 13:12 79:20 signs43:3 54:8 129:5 84:18 116:4,4 101:4125216 similar 56:22 special 3:5,14 129:1 stockholdings 126123 127:20 84:7 116:18 120:17 standards 8:21 102:8 128:19,22 simply 129:4 specific 16:11 8:25 9:23 13:4 stood 79:20 129:4 130:2 sir 71:10 73: 18 47:14,25 80:9 16:4 31:6 stop 29:14 35:10 substantially 122:8 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108:10 31:2 33:24 60:20 somebody?s 60:10 62:1 109:2,16,21 36:8,17 60:25 supply 45:8 60:8 89:25 110:10,17,22 subject8:2,17 support 39:3,14 soon 133:8 90:5,6 99:2,6 112:18,22 8:24 11:11 44:5 61 :6 sooner 96:23 99:21 126:8 113:11,16 34: 12 58:2 supported 39:8 sorry 64:19 130:17 134:2 115:1,14 64:25 67:24 supposed 24:25 72:12 75: 1 5,16 spray 2220,25 118:25 71 :7 73: 15 25:20 32:6 107:12 26:19 statements 74:22 84:1 52:3 56:6 97:5 sort 23:1 31:24 sprays 22:17 62:23 64:20 89:10,? 92:8 sure3:16 26:21 59:12 23:4,9 24:10 98:4 110:3 103:23 104:12 45:22.25 105:7 10521812117 DeMuth Court Reporting, 304-766-8708 LLC Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 56 of 66 PageID 858 November 13, 2014 Page 19 123119 129:17 surface 45:1 1,18 63:12 64:14 surfaces 50:9 51:23 suspended 49:5 49:6 sweep 20:5 sworn 322,12 symbol 1 16:3 system 34:9 59: 10,12,16 76:5 systems 54:10 tail 17:15 47:6 48:16 51:13 tailgate 29:8 take 14:20 43:17 52:24 57:5,13 71:20 89:24 122:7 123215 taken 56:2 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throat 26:20 thrown 55:7 Thursday?s 73:22 45:5 time 6:6,9,10,1 1 6:14,21 8:16 8:25 9:1810:1 11:9,20 12:7 13:1,19 14:11 l4:15,2l 15:6 15:15 17:5 19:3 30:4 35:19 42:9 43:25 44:5,9 46:4 52:22 54:25 57:5 63:5 64:7,22 65:3,2l,24 68:4 83:3 85:13 86:10 92:2 103:11 120:5,18 123:3 124:17128:12 132:2 times 13:2 30:5 37:23 42:21,23 44:4 76:19,23 77:1 1,15 78:4 82:12 88:11 90:18 94:8.19 95:7 107:22 111:10113:10 116224120211 124213 12521 Title 3:22,23,24 4:2 822,13 14:4 to-date 79:15 today 3:15 5:24 DeMuth Court Reporting, 304-766-8708 LLC DLB-GJ-TR-000222 Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 57 of 66 PagelD 859 November 13, 2014 Page 20 6:5,11 92:23 115:7 116:7 Tolbert 104:20 told 601.] 1,16 62:2 90:6,] 1 92:13 99:6 130:17 top 16:23 17:2 75:9,23 76:9 77:5.23 78:19 110:8 116:15 118:7 tota 44:3 72:7,7 75:25 77:16 86:13 93:18,21 116:7 touches 123:22 traded 1022,21 10224 1 1:10 105:9 traffic 63:18 transcript 1 10 13622 traveled 98:13 tripping 98216 98:19 Troutman 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80:10 81:5 82:8 84:19 85:7 87:18 violating 30:2,6 38:15 43:22 44:4 52:13 76:20 77:12 81:15 82:12,22 84:9,14,19 90:19 101212 violation 14:1,3 14:8 15:25 17:8,18 19:25 20:9,16 2223 24:13 26:15 29:2,17 32:16 36:7 43:18 48:4 65211,12 67:25 71:11,18 73:16,19 74:24 75:10 80:6 81 :19 84:2,4 85:14 86:16 87:24 89:11 90:23 107:20 111:8 113:5 116221119211 120:18,23 121219122213 123210 125:6 125:14,l6 DeMuth Court Reporting, 304-766-8708 LLC DLB-GJ-TR-000223 Jeffrey Carter Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 58 of 66 PageID 860 November 13, 2014 Page 21 [27:15,24 [28:25 [29:25 [30:18 [31:7 [31:11 [32:25 violations 4: 8 9:23 [2:18,21 [3:2414:18,21 27:16 29:22 30:8 33:17 38:20 52:8,18,2[ 57:9 60:21 61:15 65:5,9 68:5,25 69:2 70:6,? 71:25 72:1,8,9,19 74:1 76:4,13 77:19 79:14,24 80:1 82:2,4 85:2,21 85:24 86:3,7 86:20,23 87:9 87:14,25 88:10 88:17 89:16,20 90:13 91:1,8 92:24 93:10,21 94:3 95:8 [07:19 [20:10 120:2[121210 [21:11,14 123:1,7,8 [24:17 [26:25 128:2,1 1,21 129:8,13,19,22 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32:9 36:12 37:24 DeMuth Court Reporting, 304-766?8708 LLC Case 5:14-cr-OO244 Document 83-1 Filed 02/06/15 Page 59 of 66 PageID 861 Jeffrey Carter November 13, 2014 Page 22 80:8 81 :24 181 6:6 34:24 100:21,22,25 31913:10 97:24123:13 ?29-04714 54:12,22 73:14 101:18102:11 128:17,18 wrong75:16 74:18 89:4 103:15108:11 318173zl9 89:14 wrote35:18 1 90:23 108:14 112:1 100:21 42:18 13:14 22:11 114:7,20 322:8 35:668:1 2 115:18117:18 33282324 1,22818:24 2008 6:6 30:12 2011 53:21 67:3 24:2,15 20:1 1.1 10023 36:20 37:22 20141:5,12 3:1 34 2:9,11 25:4,7 10,188 72:14 33:24 44:11 20141200295 1 :5 35 2:9 25:25 100 99:14 52:24 66:1 21 1:8 2:8 26:18 26:3 ?7193 102 2:18 67:23 70:2 21087:3,12,16 36 2:10 2720,23 year38=7 7290 194(3) 13215 71:8.11 72:2 21st 19:24 29:1 75:20 30:? 107(a) 98:22 72:10 75:13 228:3 47:4,21 37 210,11 31:9 84?11920 1082:18 93:18 100:15 23rd 26:9 40:1 31:12 40:6 8620 38?? 10928:10,21 2009 16:17 42:18 41:3126:15,19 9?3 93:13 11?20-2014 1312219124 242:8 382:11 34:13,16 100?? 111?? 136:5 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Use of this cover sheet is in accordance with the Department of Justice regulation on the control of Limited Official Use information. USE DLB-GJ-TR-000296 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 62 of 66 PageID 864 Jeffrey Carter November 13, 2014 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA AT CHARLESTON If?. IN RE: GRAND JURY 2014 PROCEEDINGS CRIMINAL MATTER NO. 2014R00295 GRAND JURORS PRESENT - 21 TRANSCRIPT OF PROCEEDINGS had and testimony of JEFFREY CARTER adduced on November 13, 2014, commencing at 1:48 p.m. and concluding at 1:52 in the Grand Jury Room, Federal Building, Charleston, Kanawha County, West Virginia, before Connie D. DeMuth, Certified Court Reporter and Notary Public. APPEARANCES: STEVEN L. RUBY, ESQUIRE GABRIELE WOHL, ESQUIRE Assistant United States Attorneys R. BOOTH GOODWIN, ESQUIRE United States Attorney DeMuth Court Reporting, L.L.C. Connie D. DeMuth, CCR Post Office Box 701 Dunbar, West Virginia 25064 304-766-8708 DeMuth Court Reporting, LLC 304-766?8708 DLB-GJ-TR-000297 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 63 of 66 PageID 865 Jeffrey Carter November 13, 2014 Page 2 Page 4 I 1 resource group presidents for the year 2009? 2 A I have 3 Amlcon-ectthati?or that Witness Examination by Mr. Ruby 4 Chris Blanchard. who was the prettiest! of the group at 5 ruins that included UBB, received total canqtensatlon of Jamey cane" 3 6 around 5450.000? '1 A That's correct 8 Reporter's Certi?cate Page pruldents? 1 1 A Yes, it did. 12 We earlier Mr. John Panza, who! 1 3 believe you testi?ed was Masscy?s chief administrative 1 4 emcer during the time period under discussion; is that 5 rightHave investigators working on this case had a 1 8 chance to speak with Mr. Pom about how commotion was 1 9 detentde l?or Maseey's Resource Group presidentsMr. form?s statement that Mr. 2 2 Blankenship. himelf, was heavily involved, personally. 2 3 In determining how much each of Massey?s Resource Group 2 4 presidents was paid? 2 5 A That's correct Page 3 Page 5 1 November 13. 2014 1 Agent, according to the last daily violation 2 (Witness sworn by Forepcrson) 2 report that Mr. Blankenship received. am I correct that 3 FOREPERSON. State your name and your 3 Massey's mines. as a whole. were cited for 4 4 approximately, 8,900 violations of mandatory federal 5 THE WITNESS: Je?i'ey Carter, Special Agent 5 mine safety and health standards in 2009? 6 with the Department of Labor, Office of Inspector 6 A That?s correct. 7 General. 7 0 Am I correct, however, that for the year 2009, 8 FOREPERSON You may have a seat. 8 In which those citations were issued. Massey?s Board of 9 THE WITNESS: Thank you. 9 Directors voted to award Mr. Blankenship bonuses and 10 THEREUPON I 1 0 compensation that brought his total compensation for the 11 JEFFREY CARTER I 1 1 year to approximately [7.8 million dollars? 1 2 was called as a witness and, alter being ?rst duly 1 2 A That's correct. 1 3 sworn, was examined and testi?ed as follows: i 13 MR RUBY: Any edicts? So we also have to do 1 4 EXAMINATION BY MR. RUBY 1 4 a ?4 i believe y0u saw this yesterday, it was called a 1 5 Agent Carter, 1 know we excused you, the Grand 1 5 document return. with Agent Carter. Batiste we do that, 1 6 Jury excused you earlier, but we realized at lunch that 1 6 any questions Burn the Grand Jury on the subjects that 1 7 we needed to bring you back in to cover a couple of 1 '1 the agent just testi?ed about? 1 8 additional matters. The ?rst is a couple of questions 1 (No response.) 19 about safety violations and compensation. Am lcorrect. 1 9 MR RUBY: Okay. 2 0 Agent, that in the full year 2009. the mine was 2 0 (Wintch excused.) 2 1 cited for somewhere in the neighborth of 517 2 1 (WHEREUPON, the above matter was 2 2 violations of mandatory federal mine safety standards? 2 2 concluded at 1:59 pm.) 2 3 A Yes. 2 3 2 i Have you had a chance to review records of 2 4 2 5 compensation for the compay?s, for Massey?s, various 25 2 (Pages 2 to 5) DeMuth Court Reporting, LLC 304?766-8708 DLB-GJ-TR-000298 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 64 of 66 PageID 866 November 13, 2014 Jeffrey Carter I certify that the foregoing is a correct moot from the record of proceedings in the above- emi nutter. r) 1 1-20-2014 Certi?ed Conn Reporter Page 6 DeMuth Court Reporting, LLC 304u766-8708 . ?u 3 (Page 6) Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 65 of 66 PageID 867 Jeffrey Carter November 13, 2014 Page 1 1=14 Okay 5:19 above- 6:2 011101443 112:1 Jeffrey 1:11 2:5 additiona13:18 th?4=4 earlier3:16 4:12 3:5,11 adduced 1:11 c1tatlons 5:8 entitled 63 John 4:12 pm 1:12,13 5:22 administrative tited3=21.5=3 Page 2?3 4:13 commencing Jury 1:5,13 3:16 pald 4:24 agent 35,1530 1:12 Examination 5:16 penod 4:14 5115,17 company?s 3:25 2:3 3:14 personally 4:22 compensated examined 3:13 place 4:8 1:17 4:9 excused 3: 15,16 Ka?aWha 1314 Pom? 4:12:18 approximately compensation 5:20 know 3; 15 Poma?s 4:21 3:19,25 4:5,18 . Post 1:22 Assistant 1:18 5:10:10 PRESENT 1:8 Attorney 1:19 concluded 5:22 federal 1:13 1:17 president 4:4 Attorneys 1 :13 concluding 1:12 3:22 5:4 LLC 1 :21 presidents 4:1 award 59 Connie 1114,22 first3212,18 Labor3:6 4:10,l9,24 correct 3:19 4:3 follows 3; 13 lunch 3:16 proceedings 1:5 4:7,25 5:2,6,7 foregoing 6:1 1310 612 back3: 1 7 5:12 6:1 Foreperson 3:2 Public 1315 believe 4:13 County 1:14 3:33 mandatory 3322 5:14 eouple3:17,18 m113:20 5=4 . Blanchard 4:4 Court 1:1,15,21 Massey?s 3:25 qucsnons 3:18 Blankenship 6:6 419,13: 1 9.23 5:16 I 4:22 5:2,9 cover 3:17 GABRIELE 513:3 Board 5:8 CRIMINAL 1:5 1:17 matter 1:5 5:21 bonuses 5:9 General 3 :7 633 1:}9 BOOTH 1:19 GOODWIN matters 3:18 realized-1:16 Box 122 1:15,22 2:1 1:19 mentioned 4:12 received 4:5 52 bring 3:17 daily 511 Grand 1:5,8,13 million 5111 record 6?2 brought 5:10 Date 6:6 3:15 5:16 mine 320,22 5:5 records 3:24 Building 1 :13 DeMuth 1:1 5,21 group 4:1,4,9,19 mines 4:5 5:3 re130rt 512 1 :22 4:23 Reporter 1:15 Department 3:6 626 called 3:12 5:14 determined 4:19 2:1 Reporter's 233 Carter 1 :1 1 2:5 determining health 5:5 "mm 3 33 Reporting 1121 3:5,11,15 5:15 4:23 heavily 4:22 needed 3:17 resource 4: ,9 case 4: 17 Directors 5 :9 highest 4:8 neighborhood 4119,23 CCR 1:22 discussion 4:14 3 321 response 5313 Certificate 2:3 DISTRICT 1:1 I Notary 1:15 return 5:15 Certi?ed 1; 15 1:1 included 4:5 November 1:1 1 review 3:24 6:6 document 5:15 InsPeCt" 316 3 31 right4115 certify 6:1 dollars 5:1 1 investigators Room 1:13 chance 3:24 duly 3:12 4117 Ruby 1:17 2:3 4:18 Dunbar 1:23 involved 4:22 occupatlon 3:4 3; 14 5; 13,19 Charleston 12 issued 5:3 Of?ce 1:22 3:6 of?cer 4:14 DeMuth Court Reporting, LLC 304-766-8708 00 Case 5:14-cr-00244 Document 83-1 Filed 02/06/15 Page 66 of 66 PageID 868 Jeffrey Carter November 13, 2014 Page 2 safety 3:19,22 3:9,12 5:20 701 1:22 5:5 WOHL 1:17 saw 5:14 working 4:17 seat 3:8 8,900 524 SOUTHERN 2:1 speak 4:18 Special 3:5 standards 3:22 year 3 :20 4:1?3 5:5 1 Status yesterday 5:14 statement 4:21 2 States 1:1,18,19 STEVEN 1:17 0 subjects 5:16 sworn 322,13 1 1:48 1:12 1:52 1:12 testi?ed 3:13 1:59 5:22 4:13 5: 17 11-20-2014 6:5 13121131 Thank3=9 17.8 5:11 That?s 4:7,25 5:6,12 2 time 4: 14 2009 3:20 4:1,3 total 4:5 5:10 5:5,7 transcript 1:10 2014 1:5,12 3:1 6:2 2014R00295 1:5 21 1:8 25064 1 :23 US 3:6 UBB 3:20 4:5 United1:1,18,19 32:5 304-766-8708 1:23 various 3:25 violation 5:1 4 violations 3:19 450,000 4:6 3:22 5:4 Virginia 1:1,14 5 1:23 517 3:21 voted 5:9 6 6 2:8 West l:l,14,23 witness 2:3 3:2,5 7 DeMuth Court Reporting, LLC 304?766?8708