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Consol's Fola restructures, loses 157

CONSOL Energy's troubled Fola operation, in a months-long court battle over environmental permitt...

Donna Schmidt
Consol's Fola restructures, loses 157

The operator said Friday that it had adjusted the Bickmore, West Virginia mine’s production plan from a continuous operation to a traditional five-day work week, saving about two-thirds of its crews.

The plan will take effect February 22 following a temporary weekend idle when officials are scheduled to implement the needed adjustments, including the transport of most of Fola’s mining equipment to the Ike’s Fork portion of the Clay County complex.

The US District Court’s recent ruling has allowed the Fola operation to continue operating in six valley fills within the permit area for Ike's Fork. The producer thanked West Virginia governor Joe Manchin, US senator Jay Rockefeller, and US representatives Nick Rahall and Shelley Moore Capito as well as its staff for the successful outcome to the permitting situation.

"We have a plan and our tonnages have been sold, but in an effort to manage our stockpiles and to balance coal production with expected customer demand and shipping schedules, we are faced with making adjustments which unfortunately will impact a portion of our workforce," executive vice-president Nicholas DeIuliis said.

"If we had not been able to obtain the stay on the Ike's Fork permit, the number of Fola employees impacted by the current restructuring would have been much greater."

The lay-offs of the 157 workers affected are effective immediately.

Consol issued notice in December under the Worker Adjustment and Retraining Notification Act of potential February lay-offs at Fola, citing both the court’s remand of a Clean Water Act Section 404 permit for Ike’s Fork as well as uncertain market conditions for the decision.

“At that time, it was thought the ramifications of both would have the impact of shutting down Fola's surface operations,” the company said.

“However, as a result of the extended stay on the Ike's Fork permit, production in the Ike's Fork area of the Fola operations will be able to be maintained as stockpile levels are controlled. Reclamation activities will continue at Powellton and underground mining at Little Eagle Coal Company will also continue.”

While coal and gas operations in the current downturn are “a major challenge”, DeIuliis noted, the restructuring will allow for greater competitiveness long term as production is now matched with market needs.

Representative Rockefeller released a statement on Friday, saying he was “very troubled” at the news of a partial lay-off.

“While the news of lay-offs is very distressing, I am encouraged by the work that has been done to preserve as many jobs as possible at the Fola mine – and allowed them to stay open. According to Consol, this restructuring could set [the company] up to maintain business throughout this year.”

The two operations within the Fola complex produced almost 2 million tons of coal in 2007. Portfolio-wide, Consol produced 65Mt that same year.

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