SAFETY

Safety is a cornerstone corporate value. The health and safety of our employee owners takes precedent above all other activities and we believe that “no work is so important that it can not be done safely”. Management’s philosophy is that by being proactive in safety at every level makes the goal attainable that operations are not only “the safest but the most productive in the nation”.

Vigo Coal fully complies with MSHA regulations and also provides additional training to employees in their first year of employment and experienced miners moving to a new mine. We realize these are the highest risk employees and an awareness program continues through out the year in pre-shift meetings and monthly management production review meetings.

SAFETY HIGHLIGHTS

Cash incentives for No Lost Time Injuries and no equipment damages are paid quarterly by mine location and by shift.

Vigo has had one day as a lost time injury in 2006 and prior to this no lost time injuries since January 16th, 2004 and had worked 590,930 hours without a lost time injury.

At the now mined out Columbia Mine employees of Vigo Coal Company, Inc. worked 1,500,000 hours without a lost time injury spanning a time frame of almost nine years.

Our pre-employment and random drug screen program has been in affect for over 10 years.

Personal Protection Equipment requires metatarsal boots, hard hats, safety glasses and ear protection.

RECOGNITION

Vigo Coal Company receives consistent recognition from the prestigious Sentinels of Safety Awards Committee and was most recently recognized at Cypress Creek Mine by the Holmes Safety Association for completing the fourth quarter of 2005 and first quarter of 2006 without a lost time injury.