This news story originally provided by The Daily Mail

July 27, 2005

Coal titan Blankenship sues Manchin

Massey chief says governor is retaliating against him because he fought pension

Brad McElhinny

Daily Mail staff

Wednesday July 27, 2005

Massey Energy chief Don Blankenship says his public battle with Gov. Joe Manchin is like two soldiers shooting each other at close range.

"That's sort of what the governor and I did," Blankenship said. "He shut my silo down, and I shot him with this lawsuit."

Blankenship filed a lawsuit Tuesday claiming the governor illegally retaliated for Blankenship's public opposition to a $5.5 billion pension bond issue.

The same day, the state Division of Environmental Protection revoked a permit for a controversial Massey Energy silo the company was building near Marsh Fork Elementary in Raleigh County.

Manchin's top lawyer, Carte Goodwin, said the governor will respond to the allegations raised in Blankenship's complaint at the appropriate time.

"The governor was saddened to learn of the filing of this frivolous lawsuit," Goodwin said in a statement released by the governor's office.

"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."

Blankenship's lawsuit, filed in U.S. District Court in Charleston, seeks unspecified damages. His local counsel is Dinsmore & Shohl. His other attorney is Robert Luskin with Patton Boggs in Washington, D.C.

Luskin also is Karl Rove's lawyer in the CIA leak case.

Blankenship's lawsuit claims that when the coal executive spent millions of dollars of his own money to fight the pension bond effort, the governor's office went out of its way to attack him personally.

He contends the governor's office portrayed him as a West Virginia outsider who was just interested in raising taxes and who wanted revenge for the recent raise in severance taxes.

"Basically, he is a Kentucky businessman who would rather the state tax every person than touch his personal wealth," Manchin's top spokeswoman, Lara Ramsburg, was quoted as saying in a June 8 article in the Daily Mail.

The lawsuit also claims the Manchin administration hinted at reprisals, including heightened scrutiny of Massey Energy's environmental record.

Specifically, Blankenship's lawsuit cites comments Manchin made in a Saturday Gazette-Mail article. Manchin was asked whether Blankenship's opposition to the pension bond meant he would face tougher scrutiny of his business affairs.

"I think that is justified now, since Don has jumped in there with his personal wealth trying to direct public policy," Manchin was quoted as saying in the June 18 article.

Manchin's comments were made after a public appearance at American Electric Power's John Amos Plant, where he promoted the pension bond proposal.

"If you want to throw yourself into public policy, your record is open," the story quoted Manchin as saying.

Since voters on June 25 rejected the plan 54 percent to 46 percent, the lawsuit claims Manchin has "used state government resources to reinforce his threat."

The lawsuit links the governor's comments to the current controversy over building the silo. Blankenship says the permit already was approved when the governor publicly ordered members of his senior staff to investigate possible safety concerns.

The permit was suspended earlier this month after questions arose about conflicting maps for the facility.

On Tuesday, West Virginia state regulators canceled the permit and ordered the company to demolish work already done on the structure's foundation.

"The maps were inaccurate, the company did not have an appropriate response, so now the permit has been rescinded,'' DEP spokeswoman Jessica Greathouse said Tuesday.

The review of the permit was understandable, Blankenship said, but added, "I think rescinding a permit after an investigation that clearly demonstrated that the silos are on the permit raises a lot of questions."

Blankenship's lawsuit says the governor violated his right to free speech and posed a "difficult dilemma" in which Blankenship is forced to choose between continuing to exercise his 1st Amendment rights and protecting the business affairs of Massey from retaliatory government scrutiny.

"This should remind him that freedom of speech is constitutionally protected," Blankenship said Tuesday night. "At least I hope it helps because the governor might not have considered that what he is doing is unconstitutional."

Blankenship says the clash with the governor undermines Manchin's mantra that West Virginia is open for business.

"I think it demonstrates that if you don't agree with the administration's philosophy, it's not open," he said.

The Associated Press contributed to this story.

Contact writer Brad McElhinny at 348-5129.