BUSINESS

Prosecutors rest case against ex-coal CEO; defense to follow

Staff Writer
Columbus CEO

CHARLESTON, W.Va. (AP) — The prosecution rested Monday in the high-profile trial of ex-Massey Energy CEO Don Blankenship after weeks of testimony asserting that he put dollars ahead of human safety in the years before the worst U.S. coal mine disaster in decades.

Now the trial pivots to the former coal executive's multimillion-dollar defense.

In U.S. District Court in Charleston, 27 witnesses testified for the government against Blankenship. The trial, which began Oct. 1, featured about two dozen days of testimony from Massey management and miners, expert witnesses, federal regulators, and more.

Blankenship could face up to 30 years in prison on charges of conspiring to break mine safety laws at Upper Big Branch Mine and lying to financial regulators and investors about company safety. The southern West Virginia mine exploded in 2010, killing 29 men.

Prosecutors painted Blankenship as a micromanager who received constant reports about what happened at Upper Big Branch, meddled in the smallest decisions at the mine, and cared more about money than safety. His attorneys, meanwhile, have used testimony from multiple prosecution witnesses to support his defense.

Here is a look at some highlights from the prosecution's case.

PHONE RECORDINGS

Prosecutors got their hands on plenty of phone calls that Blankenship secretly recorded in his Massey office, and aimed to let the former coal baron make their case in his own voice.

In two calls, Blankenship said Massey would "blow ourselves up" without federal mine regulators, and that black lung wasn't an issue worth the time regulators put into it.

Blankenship said in other key calls that a scathing internal safety memo should be kept highly confidential, and that it would be a terrible document to show up in legal discovery if there was a mine fatality.

Blankenship also complained when the board wanted to cap his salary at $12 million, calling board members "so unappreciative," and adding that he "can't go to the grocery store and buy groceries with (stock) options."

The recordings emerged in a previous case where Blankenship was successful in getting Alpha Natural Resources, which bought Massey, to cover his criminal case legal fees. Alpha, however, has filed for bankruptcy and is looking to get out of the obligation to Blankenship.

BLANCHARD

Former Massey subsidiary president Christopher Blanchard took the stand under an immunity agreement with the government, but helped the defense during almost five days of cross-examination.

Blanchard, whose company oversaw Upper Big Branch, told prosecutors he believed Blankenship had an understanding that it was less expensive to pay fines than for measures to prevent safety violations. He also said the majority of Upper Big Branch violations could have been prevented by hiring more miners or spending more time on safety tasks.

Afterward, he told Blankenship's attorneys that he himself did not break any laws. He denied multiple times being involved in a conspiracy with Blankenship to violate safety regulations. The defense then showed Blanchard more than 180 documents to get him to agree that Blankenship and Massey pushed for safety.

Prosecutors then reined him in, asking him about conflicting answers he gave to a grand jury in November 2014 to see if he still believed he told the truth. He said he did.

For example, after Blanchard hedged on his trial testimony, prosecutors reminded him he told a grand jury definitively that Blankenship knew of a scheme at Upper Big Branch to warn underground miners when federal inspectors were coming, so the miners could address deficiencies before inspectors arrived.

Blanchard said prosecutors last year threatened to indict him if he didn't cooperate with the investigation. His immunity agreement is voided if he lies.

ROSS

Former Massey safety expert William Ross, who gave the tough review of the company's safety shortcomings, provided one of the trial's rare emotional testimonies.

Ross wept while testifying about how thrilled he was that he thought Massey was going to change. He also became emotional while talking about a 2009 meeting with Blankenship.

In the meeting, Ross said he suggested the company increase the number of workers by one in each of about 50 mine sections. He told Blankenship the company couldn't "afford to have a disaster."