Aggregates Manager September 2018

Page 1

Cyber security PG3

| MSHA’s settlement saga PG27

Your guide to profitable production

|

Rock surfing PG32

September 2018 | www.AggMan.com

equipment 17 Improve inspections crystalline silica 22 Reduce exposure



Terex Washing Systems debuted its AggWash modular plant at Hillhead.

PAGE 6

On Our Cover: Kyle Pattison is owner of Pattison Sand, which is rapidly expanding in Iowa. Cover photo by Kerry Clines

Strategically placed dust collection systems may lower worker exposure to crystalline silica.

PAGE 22

TABLE OF CONTENTS SEPTEMBER 2018 |

VOLUME 23, NUMBER 9

COLUMNS & DEPARTMENTS FEATURE ARTICLES

8

Growing in the Heartland Since 2015, Pattison Sand has increased the number of its products and tripled its workforce.

22 Reducing Silica Exposure

As MSHA looks at its own rulemaking, understand how dust control can reduce exposure.

Web Exclusive Optimize Your Transfer Points From proper belt support to effective skirting, a focus on transfer points improves productivity.

OPERATIONS ILLUSTRATED

17

Make equipment inspections count

Whether daily, monthly, or annually, operators are trying to make equipment inspections more impactful than ever before.

3 Editorial How up to date is your cyber security? 4 Data Mining The latest financial analysis of issues impacting in the industry and Aggregates Manager’s exclusive aggregates industry outlook. 6 RollOuts Sandvik’s QH332 DDHS plant, and other new equipment for the aggregates market. 27 Rock Law MSHA and the Federal Mine Safety and Health Review Commission continue to clash on settlement authority. 30 Advertiser Index See who’s who and where to find their products. 31 Classified Ads Aggregates industry classifieds. 32 Carved in Stone Killer curls aren’t just created by water. Catch the newest wave — rock surfing.


The Heart that never stops

Volvo Penta Tier 4 Final engines boost productivity for your business. By keeping it simple, without DOC or DPF, you won’t lose valuable working time due to regeneration. Plus you can rely on our worldwide support network, backed by quick access to off-the-shelf parts. Learn more at www.volvopenta.us/offroad

141–690 HP


September 2018

EDITORIAL

Vol. 23, No. 9

by Therese Dunphy, Editor-in-Chief, tdunphy@randallreilly.com

aggman.com /AggregatesManager /AggManEditor

Editorial Editor-in-Chief: Therese Dunphy Editorial Director: Marcia Gruver Doyle Senior Editor: Kerry Clines Online Editor: Wayne Grayson editorial@aggman.com

How up to date is your cyber security?

Design & Production Art Director: Sandy Turner, Jr. Production Designer: Timothy Smith Advertising Production Manager: Leah Boyd production@aggman.com

Construction Media Vice President, Construction Media: Joe Donald sales@randallreillyconstruction.com

3200 Rice Mine Rd NE Tuscaloosa, AL 35406 800-633-5953 randallreilly.com

Corporate Chairman Emeritus: Mike Reilly President and CEO: Brent Reilly Chief Operations Officer: Shane Elmore Chief Financial Officer: Kim Fieldbinder Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Senior Vice President, Acquisitions & Business Development: Robert Lake Vice President of Events: Stacy McCants Vice President, Audience Development: Prescott Shibles Vice President, Digital Services: Nick Reid Vice President, Marketing: Julie Arsenault

For change of address and other subscription inquiries, please contact: aggregatesmanager@halldata.com.

Aggregates Manager TM magazine (ISSN 1552-3071) is published monthly by Randall-Reilly, LLC copyright 2018. Executive and Administrative offices, 3200 Rice Mine Rd. N.E., Tuscaloosa, AL 35406. Subscription rates: $24 annually, Non-domestic $125 annually. Single copies: $7. We assume no responsibility for the validity of claims of manufacturers in any advertisement or editorial product information or literature offered by them. Publisher reserves the right to refuse non-qualified subscriptions. Periodical circulation postage paid at Tuscaloosa, Alabama and additional entries. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by an information storage retrieval system, without written permission of the copyright owner. POSTMASTER: Send all UAA to CFS. (See DMM 507.1.5.2); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Aggregates Manager, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406.

C

yber security is a hot topic these days and for good reason. I first heard about it during a discussion of passwords at my son’s college orientation. A security session showed a picture of a young girl in cap and gown near her car. Within five minutes, the university staff member found her name, high school, and other personal information that was readily available on social media. The point was that the answers to many security questions (mother’s maiden name, pet’s name, high school mascot, etc.) are easily found and make for poor responses to security questions for password recovery. This, like many phishing schemes, opens the door for cyber criminals. It came up again as the village council on which I serve reviewed its annual insurance policy. For the first time, our options included a cyber liability policy. In background materials, the insurance company noted that it believes IT/Cyber issues to be “the risk management challenge of the future.” We invited our agent to a meeting to discuss the new policy and were told about the increase in ransomware attacks on local government agencies. In Atlanta, such an attack led to a five-day shutdown of city computers. In Cockrell Hill, Texas, the town refused to pay a ransom demand and lost nearly a decade’s worth of police department records. In fact, a study of local government CIOs shows that nearly 40 percent reported an increase in attacks over the last year. An Ernst & Young report, Top 10 business risks facing mining and metals 2017-2018, notes that cyber issues jumped six places on the current report to the third highest risk “as a result of increased digital transformation and the convergence of information technology (IT) and operational technology (OT), which makes companies more vulnerable to rogue activity in this sector.” The report goes on to note that “the world is experiencing an unprecedented number of cyber attacks every year, and the sector has not been immune to data breaches and lost revenue as a result.” Earlier this year, Theresa Payton, former White House CIO and host of the television show, Hunted, shared some cyber safety strategies with attendees to the National Stone, Sand & Gravel Association’s annual meeting. She recommends a multi-pronged strategy, including identifying key assets to protect, isolating key assets in different locations than other assets, and practicing how to respond to a digital disaster. Automation, process controls, and technology have streamlined operations throughout the industry, but they also open the door to new threats. Make sure you are protecting your business from this potential source of unplanned downtime.

AGGREGATES MANAGER / September 2018

3


mining

Company Cemex, S.A.B. de C.V.

Diesel Fuel

Prices 8/6/18

United States $3.223 One Week -0.003  One Year +0.642 

New England $3.271 One Week -0.003  One Year +0.653 

Central Atlantic $3.393 One Week +0.003  One Year +0.642 

Lower Atlantic $3.093 One Week -0.003  One Year +0.579 

Midwest $3.151 One Week -0.005  One Year +0.608 

Gulf Coast $2.995 One Week -0.002  One Year +0.585 

Rocky Mountain $3.361 One Week 0.000  One Year +0.688 

West Coast $3.717 One Week -0.003  One Year +0.869 

West Coast less California $3.432 One Week -0.005  One Year +0.685 

California $3.943 One Week -0.002  One Year +1.013  Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes).

$7.51 

$5.72

52-Week High $9.62

CRG

$32.57 

$30.46

$38.14

EXP

$99.98 

$86.51

$122.49

Granite Construction Inc.

GVA

$53.22 

$48.11

$68.58

HEI

$82.33 

$79.98

$111.50

$9.48 

$9.43

$12.59

HCMLY

Martin Marietta Materials, Inc.

MLM

$207.30 

$189.27

$241.33

MDU Resources Group, Inc.

MDU

$28.43 

$24.29

$29.62

Summit Materials

SUM

$20.55 

$20.48

$34.06

United States Lime & Minerals, Inc.

USLM

$78.20 

$70.56

$101.40

U.S. Concrete

USCR

$45.10 

$44.00

$86.35

Vulcan Materials Co.

VMC

$114.79 

$108.17

$141.20

Source: Wall Street Journal Market Watch. Currency conversion calculated on date of close 08/06/18.

COMPANY SPOTLIGHT

East Coast $3.222 One Week -0.001  One Year +0.609 

52-Week Low

Eagle Materials Inc. HeidelbergCement AG

On-Highway

CX

Current Value

CRH plc

LafargeHolcim Ltd. ADR

U.S.

Ticker

E

agle Materials Inc. (EXP) reports revenue of $393.8 for first quarter 2019, which ended June 30. “We are pleased to report another quarter of record revenue and net earnings,” says Dave Powers, president and CEO. “We saw strong margin improvement in our Light Materials sector and pricing improved in nearly all businesses during the quarter. We were also pleased to announce the start-up of our new frac sand drying plant in Illinois, and we began loading railcars in late June. Tight freight markets continued to limit our ability to move product and led to higher freight costs, which Eagle Materials Inc. (EXP) impacted net prices in both cement and wallboard this month.” The company’s Heavy Materials sector includes cement, concrete, and aggregates. Its revenue was $227.3 million, a slight improvement from the same quarter in the prior year. Earnings in the segment decreased 13 percent to $42.8 million due to increased maintenance costs resulting from the timing of the new annual maintenance outage at its Fairborn cement plant. Operating earnings for cement were $37.3 million, 14 percent below the same period a year earlier. Concrete and Aggregates revenue was $40.5 million, a 7-percent decrease compared to the same period in the prior year. The operating earnings of $5.5 million are 9 percent below the first quarter of 2018 and reflect lower sales volume, partially offset by improved pricing. “Our three major business lines often show somewhat different cadence in earnings growth, and this quarter is no exception…our Concrete and Aggregates volumes, although a relatively smaller part of our business, were lower during the quarter, reflecting the timing of the commencement of bid work in those markets and our posture to push price during the past quarter,” Powers says. “Backlog from our customers are encouraging. “All in all, we had a very good quarter,” he adds. “Our business results overall are consistent with our base-case thesis that this construction cycle will be a relatively flatter and longer one than seen in prior decades, and one that will be supportive to increase profitability for well-positioned players like Eagle.” Source: Market Watch

Data

STOCK REPORT


AGGREGATES INDUSTRY OUTLOOK The August Aggregates Industry Index rose 1.67 percent from July to 134.94, marking a second consecutive month of growth. Responses to questions regarding the respondent’s own company outlook showed a 7.4-percent increase over the prior month, while the outlook for the industry as a whole was essentially flat (+0.24 percent). Monthly sales reports showed the greatest increase, +7.9 percent, while expectations for the quarter (-6.3 percent) and half (-2.8 percent) both experienced decreases. The annual sales outlook remains positive (+4.7 percent).

Aggregates Industry Outlook 150 135.14

145 140

134.60

134.94

129.35

132.22

128.38

135

138.44

130

133.44

125

134.72 132.16

129.36

138.89

121.69

120 115 110 105 100 Aug. 2017

Sept. 2017

Oct. 2017

Nov. 2017

Dec. 2017

Jan. 2018

Feb. 2018

March 2018

April 2018

May 2018

June 2018

July 2018

Aug. 2018

Oil prices, infrastructure projects, and weather have all been supporting an increase in construction materials demand in July and are predicted to remain high/stable through September. Tariff impacts are starting to enter customer conversations and concerns for longer term stability.

The demand has been strong for ALL of the construction-related products that we manufacture. The outlook is very positive for all the industries that we market our products in. — Van Stockstill, President, Consolidated Aggregates

— Jason Hurdis, Senior Market Professional, Caterpillar

Despite bad construction weather, our business is exploding! I am concerned about the liquid asphalt prices elevating and what that may do toward the last quarter. — Dave Shobe, Regional Sales Manager, Miller Wire Works, Inc.

Editor’s note: To join our panel, email Editor-in-Chief Therese Dunphy at tdunphy@randallreilly.com.

MOBILE EQUIPMENT FINANCED Type of Equipment

TOP STATES

04/01/20186/30/2018

Wheel loader (250-1,000 horsepower)

124

Excavator (160-520 horsepower)

76

Wheel Loader 6

Wheel loaders Cat 980M

Top Deere 844K units Komatsu WA500-8 financed

Number financed

California

29

9

Wisconsin Missouri

16 15

Cat 982M

11

Cat 980K

6

Michigan

9

6 Ohio

6

Texas

18

Excavators Excavators

Number financed

Cat 336FL

11

Top Deere 350G LC units Cat 330FL financed

11

New York

5

Illinois 5

5

7

Komatsu PC360LC-11

7

Komatsu PC490LC-11

6

6 Ohio

Texas

9

North Carolina Louisiana

6


ROLLOUTS

Your complete guide to new and updated equipment and supplies in the aggregates industry.

by Therese Dunphy | Editor-in-Chief | tdunphy@randallreilly.com

Mobile cone crusher debuts At Hillhead, Sandvik unveiled the QH332 Double Deck Hanging Screen (DDHS), a tracked, self-contained cone crusher with an onboard diesel engine. Based on the QH331, the new plant offers the functionality of a double- or single-deck hanging screen in a fully detachable and standalone form. This allows the plant to function as a one-, two-, or three-way split screener as well as a crusher. The plant is built around the Sandvik CH430 cone and is equipped with a hydroset system which provides CSS adjustment at the touch of a button. The automatic setting regulation system is said to optimize production and track liner wear. The chassis is constructed of heavy-duty I beam construction and features a hydraulically positioned feed conveyor with optional wear resistant liners and hydraulic folding hopper extensions. An ‘up and over’ metal detector provides protection from tramp material, while a remote camera has been installed for viewing the crushing chamber. Sandvik | www.construction.sandvik.com

Wash recycling plant on a single chassis Terex Washing Systems debuted its AggWash 300 plant at Hillhead. The plant offers screening, scrubbing, sizing, and sand recovery on one modular chassis. Designed to address higher production requirements for recycling and aggregate applications, the plant is readily portable. It incorporates two 16- by 5-foot triple-deck Terex Cedarapids LJ-TS Series horizontal screens with a triple-shaft vibrator mechanism that provides high G force along with an efficient oval motion. A high capacity logwasher has twin-shaft angle adjustment to scrub gravel fraction and float out contaminants. A 6- by 4-foot trash screen is designed for dewatering of lightweight contaminants from the logwasher, and the plant has an integrated sand plant incorporating rubber lined pumps and hydrocyclones. The plant is also said to offer class-leading walkaround access for ease of maintenance. Terex Washing Systems | www.terex.com

Automated ventilation for underground operations Epiroc upgraded its Serpent ventilation system by adding automation. The smart Serpent Automatic module minimizes energy consumption while ensuring compliance with environmental requirements and regulations. Sensors regularly measure carbon monoxide and nitrogen dioxide levels to determine air quality, then automatically adjust fan speed to continuously ensure adequate air flow and a regulated underground work environment. Existing Serpent fan stations or other ventilation systems equipped with VFD can be ugraded to include the new automatic functions.

Epiroc | www.epiroc.com

6

AGGREGATES MANAGER / September 2018


Compact impactor plant EvoQuip launched the Cobra 290R at Hillhead. The compact impact crusher is designed for virgin aggregate and recycling applications and is easily transportable with ground level set up and a two-button start-up sequence. It can process up to 320 tons per hour, depending on feed material and apron setting. The plant is based around the Terex R055 Impact Crusher with a 40- by 41.5-inch rotor. A hinged inlet lid, which is standard, reduces the risk of material bridging at the feed-in point. It has two independent hydraulic controlled aprons, which allow the operator to optimize material throughput and reduction. The patented hydraulic overload protection system protects the crusher and reduces the amount of oversize material passing. Operators can choose between a full-length conveyor and a vibrating underpan feeder. The plant also has an option for a 9- by 5-foot single-deck afterscreen system.

EvoQuip | www.terex.com

App-based access to equipment guides ALLU, Inc. launched a new ALLU Mobile Application. The app is fully integrated with the manufacturer’s online portal, offering a way for operators to quickly obtain accurate information about their equipment. Information in the app includes links to local dealers and social media; connection of the unit’s serial number to specific, relevant data; pictures and video; and operational, installation, troubleshooting, and safety guides. The app is currently available for use with equipment manufactured in 2017 or later. Older equipment will be added in future updates.

ALLU, Inc. | www.allu.net

Scheduling module debuts B2W Software rolled out B2W Schedule which centralizes the resource planning, scheduling, and dispatching planning processes. It allows users to collaborate online in real time to assign and view crews, labor, equipment, and material resources on desktop or mobile devices. Views can be customized to one day, multi day, or multi-week. The tool works with the company’s ONE Platform, which includes elements for estimating, field tracking, equipment maintenance, and data capture and analysis.

B2W Software | www.b2wsoftware.com

Crusher automation and telematics Sandvik launched a new automation and control telematics system, My Fleet, at Hillhead. Developed initially for its Q range of premium crushers, the digital solution adds a monitoring, control, and data tool that provides hard data, thereby eliminating guesswork. The cloud-based system is available in two packages with tiered capabilities. The ‘Freemium’ package offers machine location and utilization data, while the ‘Premium’ package includes an array of parameters for more in-depth analysis and monitoring of the equipment. Both tiers are accessible online, 24/7, 365 days a year via a customizable user interface within the Sandvik portal. The system debuts in the Q range crushers and will then be made available to mobile screens and scalpers as well as Sandvik’s Heavy Duty range.

Sandvik | www.construction.sandvik.com

AGGREGATES MANAGER / September 2018

7


PLANT PROFILE by Kerry Clines | Senior Editor

Growing in the Heartland

Since 2015, Pattison Sand has increased the number of products it produces and tripled its workforce.

P

attison Sand began operation in January 2008, but the Pattison family had already been operating a business in the area since the 1950s. They built a river terminal on the banks of the Mississippi River in Clayton, Iowa, in 1969 and added a terminal, concrete silos, and an unloading system, as well as a 50-car rail siding, in 1993. The family sold the business to CGB in 2007. It didn’t take long, however, for Kyle Pattison to get back

8

AGGREGATES MANAGER / September 2018

into business after that. By January 2008, he had opened Pattison Sand and was mining and processing industrial sand at the Clayton location. Since that time, it has grown and expanded to include the production of limestone aggregates and rip rap, and employee numbers have tripled to more than 350. “We’ve got the Wille Mine, we’ve got a mine operating behind the hillside that’s pretty well mined out, and we’ve got


Ten years ago, Pattison Sand started producing frac sand for oil and gas companies. Since then, it has begun producing limestone aggregate and rip rap and has tripled its workforce.

the limestone quarry,� Pattison says. The operation runs 24 hours a day, seven days a week, 365 days a year. Last year, he notes the company sold 2.3 million tons of sand, and this year, it could produce as much as 3.4 million tons...if it can get rail transportation to match up with the production rate.

Mining the sand Probably 90 percent of the sand mined at Pattison Sand comes from the Wille Mine, an underground mine. The other 10 percent is mined on the surface, where it is simply scooped up by an excavator and loaded into a haul truck. The underground mine uses the

room and pillar mining method to ensure the safety of employees working in the mine, as well as the integrity and stability of the surface areas above the mine. Mining underground allows operations to continue through the winter without having to deal with snow and ice, and the year round crushing and processing AGGREGATES MANAGER / September 2018

9


PLANT PROFILE Pattison Sand’s underground sand mine, the Wille Mine, supplies 90 percent of the sand processed at the operation. The other 10 percent is scooped off the surface by an excavator.

100-mesh sand is processed and loaded into bottom hopper semis for transport to the company’s transload in Prairie du Chein, Wis., 20 miles away on the other side of the Mississippi River.

offers a big advantage over competitors in the area that close in the winter. When the Wille Mine is in full production, crews typically shoot six to eight times per day. For each shot, approximately 45 holes are drilled into the face, each ranging between 14 and 21 feet in depth. After the holes are drilled, they are loaded with explosive materials and wired together in series with a shot cord before being detonated. Each area being mined is 35 feet high and 35 feet wide. Holes are drilled into the roof so that 14-foot-long roof bolts and wire mesh can be applied to make

10

AGGREGATES MANAGER / September 2018

sure the roof is secure. The roadways in the mine are labeled with letters and numbers. The letters indicate roadways going North/South, and the numbers indicate roadways going East/West. Loaders muck out the blast area, loading haul trucks with the material for transport to the sand processing plant. The sand from the walls of the mine is hard when it comes out of the underground, so it has to be crushed down to about 1/4-inch minus. “Larger material is stockpiled for use around the mine site in dam construction or filter media,” says Chance Harvey,

director of engineering at Pattison Sand. “The finer material is then washed into a 50-percent solids slurry and is sent to the processing plant where we float out the organic material, like clays, and put those into a holding pond. The rest of the material is kept in the washing process and sent through dryers.” The sand is hydraulically sized, so coarse sand stays down in the coarse plant by the river, and the finer sand goes up the hill to a different processing plant. They both go through dryers, and are screened to be made ready for customers. “We make four different grades of sand — 20/40, 30/50, 40/70, and 100 mesh,” says Billy Hoefer, project engineer at Pattison Sand. “The silica sand is used for fracking. It’s the northern white sand, the same that is found in Wisconsin.” “Approximately 5 percent of what we produce is real fine sand and clay,” Pattison notes. “We pump it into a separate area and are working on recycling it. We’ve made a lightweight aggregate out of it, which was an excellent quality, but the economics didn’t work. We’ve also taken the fine clay and sand and added it to sand and gravel to create a hard surface road in western Iowa.”

The limestone quarry The limestone quarry at Pattison Sand is a surface operation. Pattison says he knew there was a quality limestone deposit on the site when he started mining sand, but he didn’t begin mining and processing that limestone until 2017. “We mine from seven to eight different ledges of limestone, which is fairly unique for the area and pretty complicated from a mining standpoint,” Harvey explains. “We drill it, blast it, muck it


Specialized Steel Solutions for the Aggregates Industry

Finding employees The workforce at Pattison Sand has tripled since the end of 2015. This wasn’t an easy task, considering the fact that the operation is located in and near small towns. “We did a few different things to find our employees,” says Courtney Severson, director of human resources at Pattison Sand. “We always had a bonus in place, but it was only $100 a year. We upped that to the first year that a referred person has worked here, the person who referred them will get $1,000. That was one small thing we did.” The company also increased its social media presence over the last two years in terms of recruiting. Plus, it began to promote its current employees on social media through a Pattison Sand page where successes were talked about and employees were highlighted. This showed the surrounding communities that the company appreciates its employees. “We also reach out and do a lot of tours with the local high schools,” Severson adds. “We’re right on the border of Iowa and Wisconsin, so we offer tours to high schools within an hour radius in both states. We’ll do presentations at the schools and talk to them about the benefits of our company and our promotions from within. We’re really trying to catch those kids that maybe don’t know what they want to do yet.” The company also ran newspaper and radio ads looking for employees. They discovered that running radio ads during the day for night shift workers just didn’t do the trick. So, they started running the radio ads at night, and it helped pull people in. “There’s a tight labor market, we do see some turnover,” Severson notes. “Sometimes employees leave and do something else for a couple years, and then they come back. We’re open to that, because we realize sometimes it takes people a while to figure out where they want to be. We’ve had a really busy couple of years, but it has been exciting.”

For more than 50 years, Astralloy Steel Products has been providing innovative and cost effective wear, impact and abrasion resistant steel solutions. We offer superior customer service with readily available inventory of proprietary and quenched and tempered steel grades. ASTRALLOY PRODUCT LINE Specialized Plate Astralloy-V® Astralloy 8000® Astralloy 4800® EB-450® Trip-L-Tuff® Rol-Man®

Alloy Plate AstraWear 550 AstraWear 500F AstraWear 450F AstraWear 400F A-514

Round Alloy Bar Astralloy-V® Round Bar 4330 V-Mod Round Bar 4145 H-Mod Round Bar

Our clients also benefit from our unparalleled experience with thousands of applications across various markets and industries.

out, put in on haul trucks, and haul it over to our crushers in the processing plant.” The processing plant consists of a jaw crusher, two cone crushers, a washing system, and a Wizard stacker. Approximately 9,000 tons of stone are piled over a conveying system that runs through a tunnel that was just recently built to feed the company’s new railcar loadout system. “I was the project engineer for the aggregate plant and loadout project,” Hoefer says. “I designed and built the plant. There’s approximately 300 feet of tunnel, including the escapeway. The conveyor is also 300 feet.” Overall, the plant processes approximately 500 tons per

www.astralloy.com

Toll-free: 1.866.587.6970 Sales: 724.230.5100 sales@astralloy.com Astralloy Steel Products is a wholly-owned subsidiary of Nucor Corporation, the largest producer of steel in the United States.

Aggregates_Mgr_1/2v_Ad_0518.indd 1 Untitled-9 1

AGGREGATES MANAGER / September 2018

11

5/3/18 9:05 4:39 AM PM 5/4/18


PLANT PROFILE Lower Cost Per Ton with MRO Programs One of the most common concerns in the aggregate industry is the escalating cost of keeping plants running while maintaining operating margins. The expected growth throughout the construction materials’ market in both the nonresidential and residential sectors continues to rise. With continued rise in demand for construction materials, likewise we see a continued rise in costs for equipment, labor, materials, energy, and especially, maintenance costs. There are numerous ways to combat rising costs through surveys, inspections and programs such as the following: Equipment Surveys • Part list by Conveyors • Conveyor Belting • Parts Consolidation / Standardization • Electronic & Web Based survey catalogs Reliability Services • Condition & Vibration Monitoring • Visual Inspections • Motor Current • Automated Lubrication systems Product/Industry Technical Expertise • Engineering & design • Contract manufacturing • Product support/troubleshooting • Industry & application specialists Asset Repair & Warranty Management (ART) • Asset repair • Warranty tracking • Repair frequency/trend reporting Energy Audits • Compressed air • Lighting • Electric motors • Water systems

Pattison Sand designed and built a tunnel with a conveyor that carries aggregate to the new rail loadout system, which can load a railcar at approximately 1,800 tons per hour. Railcars can be loaded non-stop for an entire shift, day or night, or load periodically throughout the week.

hour, and the rail loadout system can load a railcar at approximately 1,800 tons per hour. Depending on sales, railcars can be loaded non-stop for an entire shift or load periodically throughout the week. In addition to producing crushed aggregate ranging in size from 3/8inch to ballast stone, the quarry also produces and sells rip rap. The rip rap plant recently received a major upgrade. “We just installed a drum trommel last month in our rip rap plant,” Hoefer

12

AGGREGATES MANAGER / September 2018

Mi Vending Solutions • Vending • Vendor managed inventory • RFID stores & tracking • Customized solutions

explains. “That’s how we’re currently producing all of our rip rap. Long term, we’ll be able to have a haul truck come right up to the plant, dump into the hopper, and let the trommel do its thing.”

Offsetting the rising cost of maintenance can be a daunting task, and engaging the expertise of a third party is recommended to determine the best solutions for your worksite. Motion Industries offers the solutions above, including a variety of “Lower Cost per Ton” MRO programs designed specifically for the aggregate industry. A University of Tennessee graduate, Chad Schwender is Corporate Accounts Industry Segment Manager, Cement & Aggregate for Motion Industries. He has worked in the industry for 26 years, including 16 at Motion.

Shipping the products Almost all the aggregate and sand produced at the operation is shipped out by rail. The sand is hauled by hopper bottom semis to the company’s transload in Prairie du Chien, Wis., which is just 20 miles away on

For more information, visit MotionIndustries.com and Mi On-site Solutions.

MiOnsiteSolutions.com Motion_AM0918_PG.indd 1

8/16/18 2:15 PM


More Choices • Representing North America’s leading industrial brands • Access to over 7.1 million SKUs • Convenient and simple ways to order via mobile, desktop, toll-free calling, or one of our locations

More Expertise • More than 1,700 experienced account representatives • Over 200 field product specialists available to solve your toughest challenges

• Unmatched technical and application support More Solutions • Local parts and supplies inventory for fast turnaround • Repair and fabrication technicians • Account representatives and hundreds of branches located throughout North America for your convenience Scan to watch

Expect More With Motion. http://esp.to/wiz0Y2

©2018 Motion Industries, Inc.


PLANT PROFILE the other side of the river. This gives the company access to the Burlington Northern Mainline Railroad that serves areas to the north, such as Wisconsin and Minnesota. However, the company is in the process of building a new state-ofthe-art rail facility on site to tie into the Canadian Pacific Mainline Railroad that serves areas to the south and west. “We’re looking to set up another 15,000 to 20,000 feet of track space to be able to ship unit trains out of this area, where we can actually ship two unit trains back to back to support what we’re producing,” Pattison explains. “The track will continue up the valley and be excavated out 80 to 85 feet deep all the way to the cliff and then go underground to the other side.” Before the rail line can become a reality, however, the company has to first remove millions of tons of dolomite limestone, which is one of the reasons the company built the new limestone processing plant and rail loadout. When the rail expansion is complete, the new facility will be able to accommodate up to 500 railcars for loading and transporting sand and limestone to customers throughout the United States. “Our game plan is to produce rock and lower our costs to create this facility and develop an aggregate business,” Pattison notes, adding that they are about halfway into the three-years he expects it to take. “There are not many

Modern Solutions and Products with Old Fashioned Service and Integrity ty y Hydrocyclones Hyd droccyclon nes FFine in ne M Material ateriaal W Washers aashers Risingg Cu Current urren nt Se Separators eparato Dewatering Cyclo Cyclones FFines ines R Recovery ecovery Attrition n Scrubber ers

Are you sending potential profit to your ponds? Contact Met Pro to design and fabricate a custom fines recovery system to decrease your material loss and increase your revenue.

“Recovery… at its finest”

Manufactured in the U.S.A. For Over 50 Years

www.metprosupply.com www.metprosupply. com Toll free (888) 616616-8226

14

Untitled-3 1

AGGREGATES MANAGER / September 2018

companies that would undertake an expansion project of this magnitude, and all of us at Pattison Sand are excited to be a part of it. Simply stated, this project is a perfect example of the ‘Can-Do’ attitude that is at the heart of all we do.”

Safety “We have a new safety director who just started with us, so we’re rolling out a bunch of new programs,” Harvey says. “It’s exciting in that we’re a culture that not only is aggressively pursuing new markets and new production and different ways of how to do business in the sand and aggregate industry, but we’re also pushing that with our safety department. We’re always looking for new cutting edge ways to improve safety and employee engagement, and different programs on what’s trending in the industry.” The company has grown so fast over the last couple of years that it has a lot of young, new miners who aren’t necessarily experienced in the general mining industry. This means that the company has to make sure that everyone is trained and instructed on safety, as well as the job. All miners go through the MSHA 40-hour training before they start work. Plus, the miners do a Job Safety Analysis before starting any job. They sit down and walk through the job. They go over how it’s going to go in their heads, think about things that could go wrong, and determine how to mitigate them or do them safer. “We have what we call an observation program daily and weekly where all employees are empowered to go around and talk to their fellow employees who aren’t necessarily in their department,” Harvey explains. “They observe them with their daily tasks and write down suggestions on ways to maybe improve it and thank them for things they are doing safely. We stress to all our employees that the most important thing is that they go home the way they came.” There are also frequent visits from Mine Safety and Health Administration (MSHA) inspectors. Because there is an underground mine, Pattison Sand is regulated by MSHA Part 48, rather than Part 46. This means that the operation gets a visit every quarter. “We’re such a large mine that inspections can take anywhere from four to eight weeks,” Harvey notes. “At minimum, they’re here four months a year, and it’s probably more like six to eight months. They’re mining with us, honestly. We have a lot of interaction with them and have grown and improved our relationship with them.” All of the production and sales bonuses for employees are contingent on safety. It must be paying off, because MSHA recognized Pattison Sand with the Large Metal/NonMetal Mill Group certificate of achievement for 136,749 hours worked without a lost time injury in 2017, and the operation is currently in the process of qualifying for the same award in 2018. AM

3/1/18 1:23 PM


— Dodge® bearings and power transmission Local manufacturing Global support

For 140 years, we’ve focused on providing industry-leading products that reduce your total cost of ownership. Every day we produce the mounted bearings, enclosed gearing and PT components you trust and prefer from Tennessee, North Carolina, and South Carolina. We are proud to continue to offer the same products and service you prefer with the global ABB technologies and innovation you deserve.

479-646-4711 Baldor.com


Hydraulic Torque Wrench

Brands YOU Count On, People You TRUST. The NEW TWHC series hydraulic torque wrench from SPXFLOW® offers a powerful tool capable of providing controlled and accurate torque values when tightening. Conversely, the TWHC wrench has the strength and performance to repeatedly break-out the toughest and most difficult fastener applications. Designed for durability and long life, it offers excellent value and two to three times improved cyclic life over competitor units. And, you can find SPXFLOW TWHC series hydraulic torque wrenches at your local Motion Industries location. Our local sales and service specialists are experts in providing application and technical solutions, with the choices and expertise you need to stay up and running.

Learn More http://esp.to/wsgR65

Brands you count on, people you trust…that’s SPXFLOW and Motion Industries.

©2018 Motion Industries, Inc.


OPERATIONS ILLUSTRATED By Nathan Medcalf, Contributing Editor

Improve Your Equipment Inspections

Equipment inspection apps offer new options.

The trend toward third-party equipment inspections is growing.

OUR EXPERTS

Inspect your equipment before and after you operate.

Josh Hayden is the operations manager aggregates for Lattimore Materials Corp. and has worked for the company for more than 10 years (five years in the Colorado region and six years in the Texas region). He received a post certificate in mining engineering from the University of Leicester in the United Kingdom.

Equipment inspection is essential for a good preventive maintenance program.

Eric Yeomans is a product manager for Volvo Construction Equipment. Yeomans has spent more than 40 years with Volvo, and has worked in a variety of roles within Volvo, and with Volvo dealers — including customer support management, telematics management, and product management positions. As product manager for wheel loaders in North America, he works to refine the regional product requirements by providing product training, support, and design input.

Jeff Payne is an implementation manager for Caterpillar and has worked for the company in various capacities for 24 years. In his current role, he travels to customer sites and conducts training for Product Link and VisionLink, as well as perform equipment inspections. He has 30 years experience working with equipment, including nine years teaching dealers and customers about heavy equipment maintenance and condition monitoring.

AGGREGATES MANAGER / September 2018

17


Is Your Equipment up to the Job?

E

quipment makes money when it’s working, so keeping equipment in good working condition at all times is vital. Preventive maintenance (PM) is key to ensuring equipment breakdowns don’t slow down or stop operations. Equipment inspections are essential to having the right information needed to implement a good PM program. “The amount of inspections and repairs depend on the equipment and how it’s used. For example, a machine operating at the face will most likely require more maintenance and more thorough checks than a machine in a re-handling application,” says Eric Yeomans, product manager, Volvo Construction Equipment. There is a lot to inspect on equipment. Daily inspections cover more of a machine, but some areas of inspection require trained personnel and specialty tools. For this reason, Lattimore Materials contracts out annual equipment inspections to its local Caterpillar dealer. The dealer performs annual Technical Analysis (TA) level 2 inspections of the equipment at its sites. “Having dealers perform inspections is a trend we’ve seen in the last decade or so; more of our dealers are being asked to care for a customer’s equipment,” Yeomans says. “That’s largely due to the increased complexity in today’s construction equipment, including more electronics in the machines. This work is best done by highly trained technicians.” Volvo offers several options to help quarries with equipment inspections, but two popular solutions are

1

the company’s telematics solution ActiveCare Direct and the company’s app Volvo Site Simulation. “They are each a unique tool that gives customers and dealers more insight into their operations, potentially helping them increase their efficiency, productivity, and profitability,” Yeomans says. Volvo Site Simulation uses technology such as 3D animation, GPS tracking, and real-time data to evaluate worksites and calculate the optimum flow of production. Using Site Simulation, operators and dealers can create a plan before starting a project, or refine an existing operation. The results are compiled into an easy-to-read report that lets operators see detailed projections of owning and operating costs — giving them the ability to develop improved forecasts, budgets, and bids. ActiveCare Direct offers a solution to operators who want the benefits of telematics without the time commitment required by many systems. Using CareTrack, Volvo’s telematics system, thousands of data points are collected on an operator’s fleet. Instead of having an producer or dealer read through all the information, ActiveCare Direct sends data to Volvo’s Uptime Center. Once there, a group of analysts sifts through the information and only alerts the operator and dealer if issues demand immediate attention. Operators also receive detailed monthly reports on how their fleets are being used, helping them optimize their fleet utilization, identify areas in which operator training would be beneficial, and improve uptime.

Leverage technology

Equipment makes money when it’s working, so keeping equipment in good working condition at all times is vital. Increasingly, manufacturers offer technologybased assistance and insights to improve inspections. From telematics to mobile apps, operators can leverage data to drive performance.

18

AGGREGATES MANAGER / September 2018


2

Match maintenance to application

Not all types of equipment need the same amount of attention. The depth of inspection and repair necessary often depend on the equipment type and how it’s used. For example, a machine operating at the face will probably require more maintenance and more thorough checks than a machine in a rehandling application.

3

Go deep for annual inspections

Various time intervals may drive different levels of inspections. Daily walkarounds may take only a few minutes while a monthly or quarterly inspection might take 30 to 60 minutes and include all parts of the structure as well as implements and attachments. An annual inspection might require a skilled operator to check cycle times, systems pressures, engine power, and more.

4

Use experts as needed

Over the last decade or so, there has been a trend toward outsourcing equipment inspections, largely due to the increased complexity in modern equipment, including more electronics. This work is best done by highly trained technicians.

AGGREGATES MANAGER / September 2018

19


Voices of Experience Josh Hayden

Eric Yeomans

A

V

t Lattimore Materials, equipment inspections are completed daily at the beginning and end of each shift. Operators check fluid levels, tire pressure, and more. When there are two shifts in a day, or operators change machines throughout the day, the machines get inspected each time an operator gets on for the first time, which means multiple inspections in a day. During the winter months, the company performs an annual inspection of all its equipment. The company hires local Caterpillar dealers (Holt Cat and Warren Cat) to perform TA2 inspections, which are more in-depth. “They look over the whole machine and look at lines, check pressure, wear on the bearings and the pins,” says Josh Hayden, operations manager, aggregates. The company prefers to have a Caterpillar dealer come out to perform the annual inspection instead of doing it internally. “We don’t have the correct tools or the trained personnel to do it. The Caterpillar dealers do this kind of work all the time, but we only need the service once a year,” Hayden says. “These reports help our team budget for repairs of the machines for the following year.” The company uses telematics as part of its remote inspection and equipment monitoring. Its equipment is monitored by Caterpillar via Product Link — Caterpillar’s telematics solution. “The dealers monitor the hours and fuel use on the machines and decide when to do preventive maintenance based on the data provided by Product Link,” Hayden says. The company owns, rents, and leases equipment, but notes that inspection and maintenance is not one of its drivers for renting equipment. “It just depends on the site and the market and what the situation is,” Hayden says. “If a job pops up that means we will be selling more tonnage at the gate, it might mean renting an extra loader or two.”

20

AGGREGATES MANAGER / September 2018

olvo Construction Equipment offers a number of tips on equipment inspections, but Eric Yeomans, product manager, notes that the most important tip is for an operator to talk to its dealer and OEM to create a customized inspection and maintenance program that is specific to its application. “Besides that, Volvo has pre-start checks for our equipment, and following those before operation is a best practice,” Yeoman says. “For haulers, the pre-start checks begin with doing a walkaround of the machine. Look for anything abnormal like loose parts or damage — especially on the tires, suspension, and hydraulic lines. The operator will also want to do checks inside the cab. Make sure all the control lights turn on, the gauges indicate accurate readings, and that all warning lights are off,” he says. “Once you’ve finished those tests, move on to the brake system. Let the engine idle until pressure builds up. Both circuits should accumulate a normal amount of brake pressure. The brakes should be applied smoothly and not generate any noise. It is good practice to perform a brake system test via the internal HUD as per site requirements.” The pre-start checks for a wheel loader include several of the same steps. “Walkaround the entire machine looking for defective parts and visible leaks. Remove debris from under the lift cylinders/boom and make sure the wheels are not blocked. You will also want to check for warning lights, test the brakes, and make sure the engine hood, underbody skid plates, and protective plates are closed,” Yeoman says. “A simple test of the steering system is another good check to include before heading to the jobsite. Turn the steering lock both to the right and left, and check that the steering is free from clearance and noise. Contact a qualified workshop if anything does not seem to operate correctly.”

Jeff Payne

C

aterpillar offers two levels of machine inspection or Technical Analysis (TA). A TA1 provides a more in-depth visual inspection. It takes 30 to 60 minutes and includes lower, mid, and upper parts of the structure, as well as implements and attachments. A TA2 includes all that plus more; it requires specialized tools and a skilled inspection person to check cycle times, system pressures, and engine power. It is designed to get a machine adjusted back to peak operating condition. “The biggest thing for me is to uncover small issues before they become large, expensive problems that waste a great deal of time and money. No one wants unproductive machines on site that are in the repair shop,” says Jeff Payne, implementation manager. “For example, if a cylinder is leaking oil, not only is it bad for the environment, but as you cycle that cylinder, dirt and dust are pulled back through. Soon, that will contaminate your whole hydraulic system. Now, instead of a simple repair, it becomes a complete hydraulic system flush, and there is potential damage to multiple system components.” Caterpillar recently introduced a new app for machine inspections called Cat Inspect. It allows operators to use mobile devices such as tablets and smart phones to take pictures and add text during inspections. “This app is great. Operators can have the appropriate check list right in front of them, so they can mark things off or call attention to certain areas as they go through inspections,” Payne says. “We use a stoplight way of looking at things. That simply means a green response if it’s okay to move on. Yellow means the operator has identified a problem, but that it’s something that can be scheduled for the next maintenance interval. A red mark means a particular area needs immediate attention, something that would damage the machine if operation were to continue.”


AGGREGATE SYSTEMS

I love changing screens! (said nobody, ever)

Get rid of the worst job! • • • • •

Change 3 decks in 1/3 the time Screens last longer so fewer changes per year No confined spaces Less chance of someone getting hurt Lower your cost per ton

Find out more about the MS612 Screen Plant www.elrus.com/ms612


SPECIAL REPORT

Reducing

Silica Exposure As MSHA looks at its own rulemaking, understand how dust control can reduce exposure.

A

s part of their safety and compliance efforts, many aggregate processors are working to reduce employee exposure to hazardous crystalline silica dust. As part of a larger silica exposure mitigation strategy, one control measure available is local exhaust ventilation, or dust collection. In this Q&A, Chrissy Klocker, applications engineering manager with Donaldson Co., Inc., outlines how a dust collection system should be optimized for this application. Q: What are common measures for controlling silica dust? A: OSHA lists a number of strategies, and MSHA is working on its own silica regulations. Common measures in the OSHA standards include: • Work practice and procedural changes — Modifying processes to reduce dust volumes and/or limiting access to high-exposure areas; • Engineered controls — Containing the dust with barriers, enclosures, or wetting, and/or capturing it with local exhaust ventilation; and • Personal protective equipment (PPE) — Providing a full-face respirator approved by the National Institute for Occupational Safety and Health (NIOSH), if other controls are inadequate or not yet installed. OSHA Compliance Guides have complete details on available exposure control measures. Q: Is a dust collection system effective in silica exposure control? A: OSHA lists local exhaust ventilation systems (dust col-

22

AGGREGATES MANAGER / September 2018

lection) as one type of engineered control. Designed and maintained properly, a dust collection system can help reduce the amount of airborne dust. But it must include a) well-designed hoods and ducts that maintain recommended capture and conveying velocities; b) efficient dust collection technology; c) fans sized appropriately for the system airflow and pressure design requirements; and d) appropriate work practices to manage the dust and maintain the system. Q: What does a dust collection system do? A: Effective dust control goes beyond merely having a dust collector. It involves managing three distinct “Es” at different points in the facility (Figure 1): • Exposure — Reduce dust concentrations within the ambient air around employees; • Efficiency — Filter the captured dust with dust collector technology tailored to the application; and • Emissions — Minimize the amount of dust exhausted into the atmosphere. Q: What part of a dust collection system is most important in reducing exposure? A: Placement and design of hoods at all points of dust generation is the most critical step. The performance of the hood in controlling nuisance dust emissions defines the maximum achievable performance of the dust control system. If the hood captures only 20 percent of the dust, the local exhaust ventilation system will only be 20-percent effective. Q: What general principles should drive duct and air volume design?


A: Recommended capture and conveying velocities for various dust are paramount in the design of a dust collection system. Heavy or toxic dusts require higher capture velocities to draw particulate into a hood, as well as higher conveying velocities to pull dust through the duct to the dust collector. Because adding a hood or duct can throw off the delicate balance of air flow within the system, a qualified industrial ventilation designer should advise on the initial lay-out and on any remodeling of ventilation systems. Q: What part do the dust collector and filter play in the system — and how can an operator tell if they’re functioning well? A: A collector should effectively remove dust from the air volume it processes — and do so in a steady-state condition. With continuous cleaning collectors, a dust cake will accumulate on the filters. When this cake is dislodged during a cleaning cycle, the dust concentration around the filter will be much greater than new dust coming in. Because it’s difficult to validate this accumulated dust load, it’s better to monitor employee exposure and outlet emissions levels than to rely on the rating of a new filter. If your system struggles to maintain design flow or cleans excessively, you may want to look at new technology, because you don’t have the basic flow capacity or the efficiencies to deliver the performance you need. Q: Are there considerations for where a dust collector should be located? A: Depending on your processes and dust, options are a single centralized dust collection system with ducts to each hood; or multiple point-of-use collectors. Factors such as operating time, type of contaminant, and codes such as those from the National Fire Protection Association (NFPA) may dictate the type of system you install. A good design takes all those factors into account.

Designed and maintained properly, a dust collection system can help reduce the amount of airborne dust as part of a larger mitigation strategy.

Q: What costs come into play when designing or remodeling a dust collection system? A: Capital costs may be one significant factor, but don’t overlook operational up-time, energy, and maintenance costs. Energy consumption, maintenance, and filter life usually involve trade-offs. One set of equipment may deliver a reasonable filter life, but designing a larger collector into the system may lower the average operating pressure drop, which will reduce energy costs and compressed air consumption due to less-frequent filter cleaning. A larger collector may also extend filter life, which saves down-time and maintenance. Q: What expertise should an operator seek out in planning a dust collection system? A: Best practices are contained in the Industrial Ventilation Design Manual published by the American Conference of Governmental Industrial Hygienists. A qualified industrial ventilation designer can develop a dust collection system according to these practices. Once installed, a trained industrial hygienist

Figure 1. Controlling dust goes beyond having a dust collector. It requires managing the three “Es” in your facility — exposure, efficiency, and emissions. If the hood captures only 20 percent of the dust, the system will only be 20 percent effective.

AGGREGATES MANAGER / September 2018

23


DIGITAL TRUCK SCALES OFFERING UNMATCHED PERFORMANCE BUILT TO LAST A LIFETIME ■

Cardinal Scale

u

135-ton capacity and 50-ton CLC standard Heavier weight: more structural steel than the competition No moving parts below the scale deck, including load cells

SmartCell® stainless steel, waterproof digital load cells iOT-enabled scale with iSite remote monitoring software

203 East Daugherty St. u Webb City, MO 64870 u (800) 441-4237 u cardinal@cardet.com

u

www.CardinalScale.com


SPECIAL REPORT can help test and monitor exposure levels to verify the ventilation system is operating within the design parameters. The industrial hygienist can also advise on additional actions or work practices that may need to be taken in a given facility or with a given process. AM

WANT TO KNOW MORE?

This dust collection system has small “point of use” dust collectors placed at conveyor transfer points, which tend to produce fugitive dust. On the rock crusher (background), there is an additional dust collector.

Chrissy Klocker is applications engineering manager with the Industrial Air Filtration of Donaldson Co., Inc. For the past six years, she has instructed at the Industrial Ventilation Conference in Lansing, Mich., where she also serves on the conference planning committee. Klocker holds a bachelor’s degree in civil engineering from North Dakota State University and a master of business communication from the University of St. Thomas in St. Paul, Minn.

For more information on silica exposure control, visit:

30 CFR SS56-58; MSHA FAQ on Silica Exposure for Underground Miners https://arlweb.msha.gov/illness_prevention/healthtopics/hhicc02.htm

OSHA Publications on Crystalline Silica

https://www.osha.gov/pls/publications/publication.athruz?pType=Industry&pID=192

LET'S BUILD

YOUR IDEAL

STRUCTURE

for nearly 40 years clearspan

has been helping companies maximize profits with superior building solutions

To find out how we can help with your structure needs visit or call www.clearspan.com 1.866.643.1010

Energy Efficient

Superior Warranties

Expert Project Managers

No Money Down Financing, Terms Up To 7 Yrs and As Low As 5.99% on buildings

AGGREGATES MANAGER / September 2018

25


TOGETHER WE CAN ROCK D.C.! ADVOCATE, EDUCATE & NETWORK Save the date for NSSGA’s 2018 Legislative & Policy Forum. When the aggregates industry comes together to make our voices heard on Capitol Hill, our message on transportation and infrastructure can’t be ignored. Join us in Washington, D.C. this September to participate in activities that focus on creating the right policy environment for our industry to succeed. Don’t miss this unique opportunity to get face-to-face with members of Congress. NSSGA will handle the details—we will make your appointments with your representatives, and breakout sessions will prepare you with the latest updates on the industry’s important issues and coach you on how best to educate your lawmakers on why aggregates matter to America’s success.

We can’t do it alone—we need YOU to Rock D.C.! HYATT REGENCY CAPITOL HILL, WASHINGTON, D.C.

SEPTEMBER 25 – 27, 2018

Early Bird registration ends July 4!

Visit www.nssga.org for more information.


by Patrick W. Dennison

ROCKLAW Agencies Clash on Settlements The Secretary’s settlement saga continues to challenge the Commission’s authority to approve settlements under the Mine Act.

T

Patrick W. Dennison is a member in Jackson Kelly PLLC’s Pittsburgh office where he practices in the Construction and Energy industry groups, focusing primarily on litigation, workplace health and safety, and labor and management. He can be reached at 412434-8815 or pwdennison@ jacksonkelly.com.

he Federal Mine Safety and Health Review Commission (Commission) and its Administrative Law Judges (ALJs), continue to clash with the Secretary of Labor (Secretary) over the approval of settlements under the Mine Act, and, if history repeats, this issue may not disappear anytime soon. Earlier this year, the Commission held oral argument in a case where the Secretary argued for the nearly unreviewable discretion to settle enforcement actions, despite an earlier Commission decision in the same case where the Commission unanimously rejected that position. The Commission’s first decision, The American Coal Co., 38 FMSHRC 1972 (Review Commission, August 2016), unanimously upheld “in all respects” an ALJ’s decision to reject the proposed settlement of 32 citations issued to the operator of the New Era Mine. In so doing, the Commission affirmed the ALJ’s rejection of two settlement motions submitted one year apart, which proposed a 30-percent across-the-board reduction in penalties after the Secretary refused to provide factual explanations to support the reductions. The American Coal Co., 35 FMSHRC 515 (ALJ Moran February 2013) and The American Coal Co., 36 FMSHRC 1349 (ALJ Moran May 2014) (Denying Secretary’s motion for reconsideration). However, the agencies’ clash over the approval of proffered settlements is nothing

new and dates back decades. In Pomerleau Bros. Inc., Docket No. WILK 79-4-PM (ALJ Kennedy Feb. 13, 1979), an ALJ rejected a joint settlement where the Secretary sought approval to withdraw a case after the operator agreed to accept the citations. The ALJ insisted that § 110(k) of the Mine Act, which provides that “No proposed penalty which has been contested before the Commission…shall be compromised, mitigated, or settled except with the approval of the Commission” and that “[n]o penalty assessment which has become a final order of the Commission shall be compromised, mitigated, or settled except with the approval of the court,” convincingly established that ALJs are charged with making independent evaluations and de novo review of settlements. In Arch Mineral Corp., 1 FMSHRC 380 (ALJ Cook May 11, 1979), an ALJ denied a joint motion to withdraw the petition for assessment of civil penalty with leave to file a motion for approval of settlement. In so doing, the ALJ wrote that specific information must be provided to approve settlement, including: 1) a statement as to the reason(s) why the parties believe that the settlement would effectuate the purposes of the Act and should be approved; 2) a copy of all correspondence between the Assessment Office and the respondent as to the violations involved; 3) the amount of the proposed settlement; 4) a statement as to the AGGREGATES MANAGER / September 2018

27


ROCKLAW operator’s history of previous violations over the previous 24 months; 5) a statement as to the size of the operator’s business; 6) information concerning negligence, gravity, and the demonstrated good faith compliance after notification of a violation; and 7) whether the proposed assessment of penalties will have an effect on the operator’s ability to continue in business. Over the next 37 years, the Secretary continued to challenge various aspects of Commission ALJs’ approval of settlement. Nonetheless, following the Commission’s 2016 decision in The American Coal Co., which remanded the case to the ALJ for further proceedings, the Secretary appealed the Commission’s decision to the United States Court of Appeals for the D.C. Circuit. The Secretary subsequently withdrew its appeal. Then in 2017, with the case again pending before the ALJ, the parties resubmitted a motion to approve settlement that the ALJ rejected again. In the ALJ’s order denying the Secretary’s motion for interlocutory review of his second settlement denial, the ALJ questioned whether the Secretary was motivated “through deafness or defiance” given the Secretary’s failure to comply with the Court’s earlier decision and the Commission’s affirmance of that decision. 39 FMSHRC 1187. The ALJ also indicated that

American Coal’s counsel offered to provide facts to support the motion, but the Secretary remained silent. The Secretary again appealed the ALJ’s rejection of settlement to the Commission, which resulted in the above-mentioned oral argument earlier this year. But the American Coal Co. settlement saga is not the only challenge to Commission ALJs’ authority to reject or approve settlements. Indeed, at least two other cases pending before the Commission involve the issue of whether the ALJ abused his discretion in denying motions to approve settlements. See Rockwell Mining, LLC, Docket No. WEVA 2017-0220, review granted on June 25, 2018, and Solar Sources, Inc., Docket No. LAKE 2017-52, review granted on May 16, 2018. Mine operators must understand that MSHA and the Commission share the enforcement of the Mine Act, with the Commission having the exclusive responsibility for approving all proposed settlements of contested penalties. Those engaged in settling cases under the jurisdiction of the Mine Act should diligently follow the ongoing settlement challenges before the Commission while keeping in mind that, at present, reaching an amicable settlement with MSHA still requires, as it has for nearly 40 years, the approval of the Commission before the agreement becomes final. AM

Protecting the rig that runs your business! Hit the : road with

Flexible payment plans Downtime reimbursement Online certificates

col lect ! th e m a l l

1-800-PROGRESSIVE PROGRESSIVE.com Progressive Casualty Ins. Co. & affiliates. All coverage subject to policy terms.

28

AGGREGATES MANAGER / September 2018


Get the the most current information with the 2018 Aggregates Industry Atlas and the Atlas Download. While the printed version of the Aggregates Manager 2018 Aggregates Industry Atlas will become an integral part of doing your job, don’t forget to order your copy of the Atlas Download to see additional information about companies’ mine locations, types of rock mined, GPS coordinates, pertinent facts about companies listed in the atlas, and more.

Y o u r

g u i d e

t o

p r o f i t a b l e

p r o d u c t i o n

June 2018 | www.AggMan.com

The Atlas Download contains compete information on nearly 11,000 operations in the United States in a data file as well as the entire 2018 Aggregates Industry Atlas in pdf format. Order additional copies of the Aggregates Manager 2018 Aggregates Industry Atlas Download or the printed version of the Atlas today!

3 9 19

Purchase in Print

Download Online

$50/copy

$200 (online download only)

Plus $4.50/Atlas shipping and $8 handling fee

To order, visit https://store.randallreilly.com

Quarries and property values Equipment investment continues to climb The final Workplace Exam Rule


ADINDEX September 2018 Advertiser

Page

ABB Motors & Mechanical

baldor.com

15

Astralloy

astralloy.com

11

Atlas

store.randallreilly.com

29

Cardinal Scale

cardinalscale.com

24

ClearSpan Fabric Structures

clearspan.com

25

Elrus Aggregate Systems

elrus.com/ms612

21

Hammond Air Conditioning

hammondac.com

31

John Deere

johndeere.com/loaders

BC

Kruse Integration

kruseintegration.com

31

MetPro

metprosupply.com

31

Motion

motionindustries.com

NSSGA

nssga.org

26

Progressive Commercial

progressive.com

28

SANDVIK

rocktechnology.sandvik/plantsolutions

IFC

Sweet Manufacturing

sweetmfg.com

31

Trimble

trimbledimensions.com

Volvo Penta

volvopenta.us/offroad

. The publisher does not assume any liability for errors or omissions.

30

Web

AGGREGATES MANAGER / September 2018

12, 13, 16

IBC 2


MARKETPLACE Bulk Material Handling & Conveying Equip. www.sweetmfg.com

Be a cool operator

Conveyors & Support Systems Bucket Elevators Bin Gates • Grating

When you work hard in small spaces, you need AC big time!

937-325-1511 • FAX 937-322-1963 MANUFACTURING CO.

With over 1,200 different kits engineered and developed and over 7,000 line items in stock, count on Arctic Wolf TM for integrated air conditioning systems. If your equipment has an engine and a cab on it, we can put cool air into it. Contact us at 1-800-2 MR COOL or online at www.hammondac.com. Order your systems and parts today.

Sweet_AGRM0910.indd 1

sales@sweetmfg.com SPRINGFIELD, OHIO

8/19/10 2:24 PM

To advertise here call

Pete Austin 1-800-267-2665 • sales@hammondac.com • www.hammondac.com

081-186B Agg Manager 4.5x4.5.indd 1 Untitled-27 1

(205)248-1258

2018-07-09 4:27 PM 7/10/18 9:22 AM

Experience: Retired November 2011 following 41 years with the U.S. Geological Survey • USGS Aggregate Resource Geologist 1977-2011 • Past Chair and Distinguished Service Award recipient, Society for Mining, Metallurgy, and Exploration, Industrial Minerals and Aggregates Division • Author of ASBPE award-winning columns - Carved In Stone, Aggregates Manager, 1998-Present

Services Offered: Applied geology and geological research for construction rocks and minerals, with an emphasis on aggregates. • Resource evaluation • Expert testimony

• Technical writing and review • Lecturer

Contact me at:

Bill-Langer@researchgeologist.com www.researchgeologist.com

BillLanger_AGRM0115.indd 1

AGGREGATES MANAGER / September 2018 12/14/16 8:54 AM Untitled-17 1

12/13/17 8:35 AM

31


CARVED IN STONE

Bill Langer is a consulting research geologist who spent 41 years with the U.S. Geological Survey before starting his own business. He can be reached at Bill_Langer@hotmail.com

Surf’s Up! Killer curls aren’t just created by water. Rock surfing is the newest wave.

F

ourteen years ago, I wrote a series of articles about famous rocks. This article is about another famous rock recently brought to mind by a daring surfing event. On Nov. 8, 2017, the surf was up — way up — when Rodrigo Koxa caught an 80-foot wave off the coast of Nazare, Portugal. Several months later, the World Surf League determined that to be the largest wave ever surfed. If you are reluctant to careen down a gnarly, kick-ass, 80-foot killer wave, there is an alternative for you located near the small town of Hyden, Western Australia, about 220 miles southeast of Perth. Wave Rock, as it is called, is a granite cliff standing 45 feet high and 360 feet long. Wave Rock was formed by a multistage process of landform development. The first stage began about 2.63 billion years ago when a domed mass of magma was intruded into the earth’s mantle near Hyden. The magma cooled to form a medium-to-coarse-grained granite plug containing embedded feldspar and other crystals. The next stage began about 130 million years ago when groundwater flowing through fractures and joints in the granite bedrock chemically altered the hard feldspar crystals into soft kaolin clay. This process formed strongly weathered, loose, and disaggregated granite deep underground, located right next to solid granite. About 55 million years ago, plate tectonics caused Australia and Antarctica to separate from one another resulting in the tilting of what became southwestern Australia. Over the intervening years, slow but persistent erosion finally exposed the strongly weathered granite bedrock. The more resistant bedrock remained, while the disaggregated rock and kaolin clay were washed away. This created the concave face of Wave Rock. The final part of the process began during the last few million years. Rainwater dissolved chemicals from the overlying soil and deposited them as deep grey, red, ochre, and sandy brown vertical stripes down the face of the rock. These colored ribs finish the wave-like appearance of Wave Rock. If you don’t want to travel to Australia to rock-surf, you might be able to visit another wave located in the Vermilion Cliffs National Monument in northern Arizona near its border with Utah. (The rock formation is so fragile that there is a lottery to select those allowed to visit it.) Unlike its 2.63-billion-year-old Australian counterpart, The Wave got its start a mere 200 million years ago during Jurassic time, the age of dinosaurs. All of what is now the Colorado Plateau Province, including northern Arizona, was a featureless desert of blowing sand, much like the Sahara Desert of today. Periodic changes in the prevailing winds during the Jurassic created rhythmic rippled layers of sand as huge dunes migrated across the desert. Over time, these sand dunes were transformed into rocks, one of which is called the Navajo Sandstone. As time went on, erosion slowly nibbled away at the edges of the Colorado Plateau creating the Vermillion Cliffs. The Wave began to take on its unique shape about 2 million years ago when wetter climates brought upon by the ice ages greatly increased erosion in the area. Initially, runoff eroded troughs cut into joints within the Navajo Sandstone. Eventually, the runoff shrank to the point that it became insufficient to continue cutting the troughs. Wind scour took over, carving the smooth bowl of The Wave. The color banding and thin ridges seen within The Wave are the result of the different types of cement used to glue the sand grains together. So, what are you waiting for? Surf’s up! AM

32

AGGREGATES MANAGER / September 2018



JohnDeere.com/Loaders

IN YOUR WORLD,

ONE LESS PASS EQUALS TONS MORE PRODUCTIVITY. Aggregate guys like you made it clear: John Deere needed a loader in the “two-pass class.” Heard and addressed. The Aggregate Handler configuration of our updated 844K-III can load out up to 26 short tons of non-heaping, lower-density processed aggregate in just two passes. An Enhanced Production Bucket means easier filling, less spillage, and improved operator visibility. And with beefier articulation joints and linkage pins, plus improved routing for hoses and electrical harnesses, even uptime is improved. We’re always up to help you Run Your World.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.