Steve Beshear Explains Controversial Firing Of Mines Permits Director Ron Mills.

Governor explains dismissal
By Steve Beshear

When I became governor, one of my goals was to make government work again. From cleaning up the Transportation Cabinet to instituting one of the nation's toughest executive branch ethics policies, I have put state government back to work. And with 1,600 fewer employees than the day I took office, and many being asked to take on additional responsibilities, it is more important than ever that every manager be held accountable for the performance of those he or she manages.

The firing of Ron Mills, Director of the Division of Mine Permits, was about performance, not policy.

State government regulates many areas, from plumbing and construction businesses to utility and insurance businesses. We apply the same philosophy to all those areas — enforce the laws fairly and make decisions in a timely manner.

In the Division of Mine Permits, a severe backlog existed. This backlog led to some permit applicants not receiving an up or down answer for up to five years. How would an applicant for a plumbing permit feel if they had to wait five years for an answer? No one would think that is appropriate, and it is not appropriate in the Division of Mine Permits. As in any business, this inefficiency is simply unacceptable, and my administration took two steps to address it. First, we assessed a fee on applicants that, along with a federal match, is allowing us to hire 19 additional permit reviewers. Second, Energy and Environment Cabinet (EEC) Secretary Dr. Len Peters determined a change in leadership was necessary at the division.

I do not micromanage my cabinet secretaries, and I did not direct Secretary Peters to fire Mr. Mills. However, I have told him that we must improve the permitting process, because there is no excuse for a business to have to wait years to get an answer from the state. Secretary Peters believed that replacing Mr. Mills would improve the process, and I support his decision.

Mr. Mills and some of his supporters argue that he was fired because over a year ago he disagreed with a policy called the two-thirds rule. This is simply not true. This policy, instituted by the previous administration and used in other states, is a fair rule that protects landowners and at the same time allows a 17,000-job industry to conduct its business when legally permissible.

The two-thirds rule does the following: When a mining company seeks a permit to mine coal under a large tract of land, that acreage will likely be owned by several different individuals or groups. In order to mine the coal, the company must have reached agreement with those people for the mining rights under their property. The rule used by EEC allows the coal company to seek a permit if the company has reached agreement with the property owners of at least two-thirds of the tract, and all other aspects of the application are in order. However, the remaining third is considered uncontrolled property/properties, and the permit issued by the Cabinet will not allow those uncontrolled properties to be mined without the required permission and agreement from those landowners.

Almost a year and a half ago, right after Mr. Mills was hired, he questioned the legality of the policy and recommended that the state no longer follow it. Others within the cabinet, including the cabinet's chief lawyer, disagreed and argued that the rule be retained. After hearing from both sides, Secretary Peters decided to accept the recommendation of his chief lawyer and retained the rule.

Mr. Mills' dismissal had nothing to do with this policy disagreement. In fact, Mr. Mills remained in his position for the next year. Once again, Mr. Mills' firing was about performance, not policy.

The fact that members of the coal industry communicate with the cabinet on a regular basis is cited by some as proof that the industry exercises undue influence over the cabinet's decision-making process, and perhaps had something to do with Mr. Mills' dismissal. This is also not true.

Every cabinet and agency of state government is contacted daily by numerous individuals and businesses that have an opinion to express on action they wish state government to take. The EEC talks with both industry and environmental advocates constantly. Indeed, part of government's job is to listen to its constituents, but our decisions are based on what we believe is in the best interest of the people of Kentucky.

Undeniably, the facts show that my administration has vigorously enforced the laws that regulate the mining industry:

Inspections of underground mines are up, from 2,421 in 2007 to 2,915 in 2008;

Inspectors are up, from 56 in 2008 to 85 currently;

Surface mining violations cited are up, from 1,116 in 2007 to nearly 2,300 so far in 2009;

The amount of fines collected from coal industry are up, from just under $900,000 in fiscal year '07 to $1.2 million in FY '08 to $1.37 million in FY '09; and

We applied the most serious penalty ever to a blasting company to control the number of flyrock incidents.

I also place a high priority on the safety of the Kentuckians who work in the mining industry. That's why I recently announced a plan to add 15 inspectors for the state Office of Mine Safety and Licensing. These new workers serve a dual role — most of the time they perform safety inspections designed to protect miners. But under a program that is unique to Kentucky and serves as a national model, they're also highly trained in mine rescue, so that if an emergency develops, they can spring into action.

I believe that being a conscientious steward of the taxpayers' money is one of my greatest responsibilities. I must ensure that every dollar, every penny, is being used to its maximum effect. Just like any business, when a department doesn't work efficiently, changes have to be made. That quite simply is what happened in the Ron Mills matter. No more, and no less.

Steve Beshear is the Governor of Kentucky.