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Blankenship Promises 'Aggressive' Court Battle
Posted Thursday, July 28, 2005 ; 05:00 AM | View Comments | Post Comment
Updated Thursday, July 28, 2005; 05:54 AM

Massey's CEO and Gov. Joe Manchin face off on legal and regulatory differences. Includes copy of lawsuit

Story by Juliet A. Terry


The same day Massey Energy CEO Don Blankenship sued Gov. Joe Manchin for violating his freedom of speech, government regulators told Massey it must tear down a coal silo under construction in southern West Virginia because of suspected of permit irregularities.

Tuesday's events are no simple coincidence, Blankenship said.

"Yesterday would raise an issue as to whether he (Manchin) is taking action as a result of my involvement in politics," Blankenship said Wednesday.

His lawyers filed a complaint in federal court for damages, declaratory and injunctive relief just before the close of business Tuesday. In the complaint, Blankenship accuses Manchin of threatening to retaliate against Blankenship and Massey for his opposition to last month's pension bond amendment.

The two faced off earlier this summer on the issue of whether West Virginia should refinance up to $5.5 billion of its public pension obligations by selling bonds. Blankenship spent more than $500,000 opposing the governor's pension bond amendment, and voters ultimately rejected the plan during a special election June 25.

Retaliation Alleged

In the days leading up to the vote, the campaign rhetoric and advertisements ratcheted up considerably, rivaling any regular election.

During a speech June 17 at American Electric Power's John Amos plant in Putnam County, news accounts said Manchin was answering questions about the pension bond campaign and told reporters that Blankenship should expect more scrutiny of his business affairs now that the coal operator had involved himself publicly in the debate. Manchin said more public scrutiny of Blankenship's business affairs was justified. He also made reference to problems Massey Energy has had with the state Department of Environmental Protection.

Those comments, Blankenship said in the lawsuit, constitute a violation of his first amendment rights, "an unconstitutional retaliation" against him because he exercised his rights to oppose the pension bond plan.

"The governor's actions were clearly unconstitutional, in my opinion," Blankenship said. "He clearly was trying to threaten that he will take action."

The lawsuit asks the court to prevent Manchin from threatening selective governmental or regulatory action against Blankenship or Massey. It also asks that Manchin admit he violated Blankenship's freedom of speech, in addition to providing unspecified damages, court costs and attorneys fees.

According to Manchin's general counsel, Carte Goodwin, "The governor was saddened to learn of the filing of this frivolous lawsuit."

"Gov. Manchin is committed to fulfilling his oath to the people of West Virginia to faithfully discharge the duties of his office and intends to vigorously defend this lawsuit," Goodwin said. "He will be responding to the allegations raised in the complaint at the appropriate time."

Just a Coincidence?

Within just a few hours of the lawsuit filing, Blankenship got word that the DEP was ordering Massey to tear down the foundation of a new coal silo and reclaim the land it sits on, which is near Marsh Fork Elementary School in Sundial, Raleigh County. Another silo at the site already is completed and is not part of the debate.

The coal silo construction has been the subject of heated public debate, and nearby residents protested the work, complaining of dust and other problems because the work was so near the school. State law says the silo cannot be within 300 feet of a school, and the DEP has said Massey's permit maps were inaccurate, which led to inappropriate permit approval.

But the actual Massey property boundaries are within the permit's scope, and the company will challenge the DEP order, Blankenship said.

"In this particular issue, it's very obvious the silos are on the permits," he said, explaining that Massey has used the latest technology to determine conclusively that the silo locations are proper and within 150 feet of the permit boundary lines.

"There's something behind this other than the law," he added.

The DEP disagrees.

"After reviewing all of the information gathered during its investigation, the agency concluded that the silo was permitted based on inaccurate maps and may be outside the legal permit boundary," the DEP release states.

But the DEP has not made a definitive finding about the silo location, Blankenship pointed out.

"The remedy of revoking a permit for a wrong line on a map is extreme," he said. "... In the end, it (all) will be evidence for the lawsuit."

Proving His Case

Blankenship said he will challenge the DEP order. He also plans to use the DEP proceedings to show that state government has been enforcing the laws and regulations in a different manner against Massey than other companies because of Blankenship's opposition for the pension bond amendment.

People usually want silos, not piles of coal sitting around, he said.

"It's clear the silos are within the confines of the permit, and they've issued a political rather than regulatory decision," Blankenship said. "The governor can count on an aggressive court battle..."

Manchin is not the only person dodging Blankenship's legal arrows.

During the pension bond campaign, Blankenship's lawyers sent a cease and desist letter to the West Virginia Education Association, threatening them with legal action if the group did not pull allegedly libelous radio advertisements. It is not clear whether Blankenship has decided to sue the WVEA. But he already is suing the United Mine Workers of America, West Virginia Consumers for Justice and the leaders of both groups along with The Charleston Gazette for making allegedly defamatory statements about him in 2004. That lawsuit was filed in Virginia state court.

Related Links:
   - Copy of the Lawsuit

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