Economics @ ITT

Mines Avoid Crackdowns by Challenging Safety Citations

Posted in economics, microeconomics, Policy Issues, Regulation by ittecon on April 10, 2010

A surge in the number of challenges to mine safety citations has clogged a federal appeals process, allowing 32 coal mines to avoid tougher enforcement measures last year, government safety officials said Friday.

Five of those mines are owned by Massey Energy, which is contesting more federal safety fines than any other coal mining company in the nation, according to data and federal officials. By contesting the citations, the 32 mines were able to avoid falling into a “potential pattern of violation” category, which would have brought closer scrutiny and moved regulators a step closer to the ability to restrict or shut down operations.

This Washington Post article tells the common story of how companies use cost-benefit analysis and the court systems to limit the effects of regulations.

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