Bell County Coal Corporation: Mines, Railroads, and the Rise and Fall of a Middlesboro Coal Company

Appalachian History Series – Bell County Coal Corporation: Mines, Railroads, and the Rise and Fall of a Middlesboro Coal Company

By the time Bell County Coal Corporation emerged as a major operator around Middlesboro, coal mining was already woven deeply into the history of southeastern Kentucky. Commercial production in Bell County stretched back to the nineteenth century, and by the twentieth century mines, tipples, preparation plants, railroad branches, and company operations reached into hollows throughout the Cumberland Mountains. Kentucky energy records show that Bell County’s coal production eventually peaked in the 1980s, when millions of tons were leaving the county each year.

Bell County Coal Corporation belonged to the later corporate era of that history. Rather than one isolated mine, it developed into a network of underground workings, leased reserves, contractors, preparation facilities, and rail connections centered around Middlesboro. Over the following decades, its name would appear in state mine reports, federal mine safety investigations, railroad proceedings, lawsuits, corporate filings, workers’ compensation cases, and eventually bankruptcy court.

The surviving records make it possible to follow much of that history from the late 1970s through the sale of the Bell mining complex in 2014.

Bell County Coal Appears in the 1970s

One of the earliest firm references to the modern Bell County Coal operation dates to 1977. That November, the Floyd County Times reported that Bell County Coal Co. had been assessed a $3,000 penalty for constructing and operating a coal preparation plant in Bell County without the required construction or operational permits from the Kentucky Division of Water Quality. According to the report, the company subsequently made the proper application and agreed to complete the plant according to plans approved by the state.

The incident is important because it places Bell County Coal not simply on paper, but in possession of a physical coal processing operation by the late 1970s. Department of Labor records involving former employees provide additional evidence of miners working for Bell County Coal around 1978 to 1980. By 1983, a Federal Register notice listed Bell County Coal Corporation at P.O. Box 758 in Middlesboro and identified the company with the Hignite No. 8 Mine, MSHA No. 15-11039.

Care is necessary when tracing the company farther backward. Kentucky mining records contain an earlier company called Bell County Coal Co. operating decades before the 1970s, but the available evidence does not establish that the earlier concern was legally or corporately continuous with the later Bell County Coal Corporation. The safer historical starting point for the modern company is therefore the evidence from the 1970s.

From General Energy to James River Coal

The most important turning point came in 1988.

James River Coal Company later told investors that Bell County Coal Corporation and McCoy Elkhorn Coal Corporation were the two original operating companies that made up James River when it was formed in 1988 through the purchase of General Energy Corporation. That statement, repeated in several SEC filings, places Bell County Coal at the foundation of the company that would eventually control mining properties across eastern Kentucky and beyond.

James River expanded considerably afterward. It acquired Johns Creek operations in 1992, Transco Coal Company operations including Leeco and Bledsoe in 1995, Blue Diamond in 1998, and Shamrock Coal Company in 1999. Bell County Coal, however, was not a later addition. It was part of James River from the beginning.

The precise ownership trail before 1988 is more complicated. Records connect Bell County operations with General Energy, and other evidence points toward transactions involving Transco Energy during the early 1980s. That period deserves additional corporate and land-record research before a definitive ownership chain is drawn. What the SEC filings establish clearly is that the General Energy transaction of 1988 brought Bell County Coal into the newly organized James River enterprise.

No. 5 Mine and the Hignite Creek Dispute

Few surviving records describe the workings of Bell County Coal as vividly as a lawsuit that began with an underground mining contract signed in 1989.

At that time Bell County Coal held mineral rights to the No. 5 underground mine through a lease from J.M. Huber Corporation. Bell County Coal contracted with Cumberland Valley Contractors, Inc. to mine coal on its leasehold along Hignite Creek. Under the agreement, Bell County Coal retained responsibility for engineering and mine planning, including the preparation of projection maps that directed where the contractor was supposed to mine. Darrell Huff became Bell County Coal’s chief engineer in January 1991.

The relationship eventually ended in litigation after mining crews encountered old workings, core holes, sediment ponds, and other underground features that Cumberland Valley and its successor claimed had been missing or inaccurately located on Bell County Coal’s projection maps. Flooding damaged equipment and, according to the contractors, prevented access to coal they expected to recover.

The dispute became a long-running Kentucky court case. A jury initially awarded hundreds of thousands of dollars for lost equipment and more than $5 million in claimed lost profits. The case ultimately reached the Kentucky Supreme Court, which focused heavily on the contractual allocation of mine-mapping responsibilities and reversed the lower appellate result.

Beyond its legal significance, the case offers a rare view into Bell County Coal’s operations. The company did not merely buy coal from independent mines. It controlled leaseholds, coordinated engineering, prepared mine projections, supervised adjoining mining areas, and contracted portions of production to outside operators.

Mines Across the Middlesboro Area

During the 1990s and 2000s, Bell County Coal’s name became associated with a long list of mines around Middlesboro and the southern Bell County coalfield. Records connect the company at different times with Stone Mine No. 2, Bell County No. 1, Bell County No. 2, Hignite-area operations, Coal Creek, Garmeada, Moseley Spur, and Jellico No. 1, among others.

The mines changed as reserves were exhausted, new leases were developed, and market conditions shifted. Some were company-operated while others involved contractors. State annual reports provide snapshots rather than one permanent roster.

By 2007, for example, Kentucky’s Office of Mine Safety and Licensing listed Bell County Coal’s Coal Creek and Moseley Spur operations. Moseley Spur produced 293,875 tons that year and employed 36 people while mining the Poplar Lick seam. Coal Creek was still listed under the company even though no production was recorded for it in that particular report.

The changing mine names make the preparation plant and railroad system particularly important. Individual underground workings could open and close, but the Middlesboro processing and transportation network tied the operation together.

Coal Creek and Underground Mining

Coal Creek became one of Bell County Coal’s best documented mines because of the federal records created after a fatal roof fall in 2004.

MSHA reported that the mine, located near Middlesboro, had been producing since October 19, 1998. Five drift openings entered the approximately 60-inch Buckeye Springs seam. Remote-controlled continuous miners cut the coal using the room-and-pillar method, shuttle cars carried it to belt feeders, and conveyor systems moved the coal toward the surface. The mine was producing approximately 4,000 tons of raw coal per day.

At the time, Coal Creek employed 42 underground workers and two surface employees, along with additional contract workers. The operation used what MSHA described as a super-section made up of adjoining mining units. Coal was developed on advance and later recovered by retreat mining as crews extracted pillars and allowed worked-out portions of the mine to cave behind them.

These details make Coal Creek especially valuable for understanding what Bell County Coal looked like underground. The company was operating a mechanized mine built around continuous miners, shuttle cars, conveyor belts, ventilation systems, roof-control plans, and a mixture of direct and contract labor.

Railroads and the Middlesboro Coal Network

Coal mining around Middlesboro had always depended heavily on transportation, and Bell County Coal’s later operations remained closely tied to the railroads.

A 1996 Surface Transportation Board notice described railroad arrangements involving CSX and Norfolk Southern around the Middlesboro Yard, Bennett’s Fork, and Stony Fork. Among those lines was approximately one mile of track leased directly to Bell County Coal Corporation.

That small stretch of track was part of a much larger transportation system. Later James River filings described the Bell County complex as having an integrated unit-train loadout served by both CSX and Norfolk Southern. The ability to reach two major rail systems gave the Middlesboro operation an unusual logistical advantage in moving coal toward customers outside southeastern Kentucky.

The preparation plant stood at the center of this system. Coal from the company’s own mines could be combined with production from contractor-operated mines and other sources, processed into marketable products, and shipped away by truck or rail.

Inside the Bell County Preparation Plant

A 2005 MSHA investigation provides one of the clearest surviving descriptions of the preparation complex.

At that time, the Bell County Coal plant received bituminous coal from two company-owned underground mines, two independently operated underground mines, and additional outside sources when market conditions or customer demand required them. Approximately 5,000 tons of raw coal were processed during a normal operating day. Finished coal was sold as steam or industrial stoker coal and shipped by truck and rail.

The plant therefore served a larger purpose than cleaning production from one mine. It functioned as the processing center of a network, bringing together coal from multiple underground sources before preparing it for market.

That integrated structure helps explain why the Bell County complex remained important to James River even when individual mine production fluctuated. Underground reserves, outside contractors, preparation capacity, and rail access all worked together as parts of the same industrial system.

The 2004 Coal Creek Roof Fall

The surviving records also document the human cost of that production.

On June 16, 2004, 25-year-old contract worker Edwin R. Pennington was killed during retreat mining at Coal Creek. Pennington worked for Carol Dale Contracting Company but was under the direct supervision of Bell County Coal Mine management while working at the mine.

According to MSHA, the roof began working behind the active pillar line while miners were watching timbers take weight. The fall propagated outward along the No. 5 entry for roughly 210 feet, trapping Pennington beneath fallen material. Federal investigators later concluded that hazardous roof conditions had not been adequately corrected and identified large vertical joints, commonly described as hillseams, as central to the failure.

The accident generated extensive litigation before the Federal Mine Safety and Health Review Commission. The resulting 2007 decision examined Bell County Coal’s roof-control practices, mine supervision, inspections, engineering conditions, and the responsibilities of individual supervisors. Several alleged violations were dismissed, while others were upheld and penalties imposed.

For historians, those proceedings preserve an extraordinary amount of detail about the daily operation of Coal Creek. For the miners and their families, however, that detail exists because a normal shift ended in death.

Two Deaths at the Preparation Plant

Another tragedy followed the next year.

On August 19, 2005, two contract truck drivers were killed at Bell County Coal’s preparation plant when an unattended haul truck rolled from its parked position and crashed into a concrete block pump house where several drivers were eating lunch. MSHA concluded that the truck had not been properly secured against movement and that no established procedure ensured parked trucks were safely immobilized.

The investigation is significant beyond the accident itself because it documents how busy the surface complex had become. Coal arrived from company mines, contractor mines, and outside sources. Refuse trucks moved waste material away from the plant for hours each day, while processed coal entered truck and railroad distribution channels.

The incident later appeared in Kentucky appellate litigation involving insurance coverage for one of the men killed, further preserving the circumstances of the accident in the public record.

An Attempted Sale in 2006

By the middle of the decade, James River considered selling the Bell County operation.

In November 2006, James River announced an agreement to sell the assets of Bell County Coal Corporation to Weston Holdings Inc., an entity affiliated with Saber Mining Company, for $24.4 million. At the time, James River described Bell County Coal as two underground mines, a preparation plant, and an integrated four-hour unit-train loadout served by CSX and Norfolk Southern. The complex had shipped approximately 537,000 tons during 2005 and was credited with about 11.9 million tons of reserves.

The closing was delayed into 2007. Whatever happened during the negotiations, James River’s year-end filings show that Bell County remained part of its operating system.

In fact, the company’s 2007 annual report showed a considerably stronger year. Bell County Coal shipped approximately 945,000 tons, and James River reported 125 mining and support employees at the complex. Two underground mines were operating in the Buckeye Springs and Garmedia seams, with the company’s preparation plant and dual railroad access still central to the operation.

The difference between the proposed 2006 sale and the company’s continued presence in James River’s 2007 filings illustrates how quickly the business side of Appalachian coal could change even while miners continued reporting to the same workings.

Garmeada, Jellico, and the Last James River Years

Bell County Coal remained active into the 2010s, although the configuration of its mines changed.

Kentucky mine reports from 2014 listed Garmeada No. 2 at Sowder Creek under Bell County Coal Corporation. Timothy F. Frasure was identified as operator, and the mine produced 259,356 tons while employing 64 people. The same report listed Jellico No. 1 at Bennett’s Fork with three employees, although no coal production was recorded there for the year.

The records also reveal one of the complications of reconstructing coal-company history. Corporate filings occasionally spelled the seam or mine name as “Garmedia,” while Kentucky mining records generally used “Garmeada.” Both references point to the same portion of the Bell County operating story, but the variation demonstrates why mine names, MSHA numbers, and locations must be compared rather than relying on spelling alone.

By then, however, the American coal market had changed dramatically. James River Coal was under growing financial pressure, and its network of Central Appalachian mining companies was approaching a crisis.

Bankruptcy

On April 7, 2014, Bell County Coal Corporation filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Eastern District of Virginia as part of the larger James River Coal bankruptcy proceedings.

Bell County Coal received its own bankruptcy case number, 14-31851. Court records listed its Middlesboro address and treated the corporation as a separate debtor within the jointly administered James River cases.

The bankruptcy involved far more than closing mines. James River’s corporate structure included numerous operating subsidiaries, leases, employee obligations, environmental responsibilities, equipment interests, workers’ compensation liabilities, and coal properties. Bell County Coal was one piece of that much larger reorganization.

During the months that followed, James River began selling mining complexes and other assets.

Revelation Energy Takes the Bell Complex

The decisive transfer came at the end of 2014.

James River’s bankruptcy records state that on December 31, 2014, the debtors completed the sale of the Bell and Bledsoe mining complexes, along with certain Laurel Mountain assets, to Revelation Energy. The combined transaction involved $2 million in cash, the assumption of certain liabilities, and additional arrangements involving equipment and collateral.

A monthly operating report made the transition explicit, recording that Bell, Bledsoe, and certain Laurel Mountain assets had been transferred to Revelation Energy.

That transaction effectively ended Bell County Coal’s era as a James River mining complex, but it did not immediately erase the corporate name from Kentucky records. State permitting documents continued to contain Bell County Coal Corporation references after the asset sale as permits, reclamation responsibilities, and other legal obligations worked their way through the transfer process.

Corporate history rarely ends as cleanly as a mine gate closing. Equipment can be sold in one transaction, permits transferred later, court cases remain open, and old corporate entities survive on paper long after another operator takes control of the ground.

Bell County Coal’s Place in the Cumberland Coalfield

Bell County Coal Corporation never became as famous nationally as some of the giant coal companies whose names dominated Appalachian mining for generations. Yet its records preserve an unusually complete example of how a late twentieth-century eastern Kentucky coal company actually functioned.

Its history involved leased mineral rights rather than simple ownership of the land. Contractors worked beside company employees. Engineers planned underground entries while miners followed projection maps through old workings. Preparation plants gathered coal from multiple mines. Trucks carried refuse while railroads carried finished coal to distant markets. CSX and Norfolk Southern connections placed the Middlesboro complex inside a transportation network much larger than Bell County itself.

The company’s history also contains the harder realities of mining. Court cases grew from flooded workings and inaccurate maps. Federal investigations followed fatal accidents underground and at the preparation plant. Mine-safety disputes documented the constant danger of unstable roof, machinery, haulage, and retreat mining.

By 2014 the economic environment that had sustained the James River system was collapsing. Bankruptcy shifted the Bell complex to Revelation Energy, closing one corporate chapter even as mining continued under different names.

Today, the Bell County Coal story survives in scattered pieces: an old newspaper notice about a preparation plant, mine maps, annual production tables, railroad proceedings, SEC filings, court opinions, accident investigations, black-lung cases, bankruptcy dockets, and state permit records. When brought together, those records tell the story of more than one corporation. They reveal how coal moved from a mountain seam beneath Bell County to a preparation plant near Middlesboro, onto railroad cars, and outward into the national economy.

They also preserve the names and experiences of the people who worked inside that system, which may be the most important record Bell County Coal left behind.

Sources & Further Reading

James River Coal Company. Prospectus. U.S. Securities and Exchange Commission, 2004. https://www.sec.gov/Archives/edgar/data/1297720/000116796604001120/a1407_424b.htm

James River Coal Company. Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2004. U.S. Securities and Exchange Commission, 2005. https://www.sec.gov/Archives/edgar/data/1297720/000114544305000754/d16724.htm

James River Coal Company. Amendment No. 3 to Form S-1 Registration Statement. May 23, 2005. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1297720/000114544305001220/d17147.htm

James River Coal Company. Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2005. U.S. Securities and Exchange Commission, 2006. https://www.sec.gov/Archives/edgar/data/1297720/000118811206000708/t9298_10k.htm

James River Coal Company. “Subsidiaries of James River Coal Company as of March 13, 2006.” Exhibit 21, 2006. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1297720/000118811206000708/ex21.htm

James River Coal Company. Quarterly Report on Form 10-Q. 2006. U.S. Securities and Exchange Commission. Includes the proposed $24.4 million sale of Bell County Coal Corporation to Weston Holdings Inc. https://www.sec.gov/Archives/edgar/data/1297720/000118811206003349/t12020_10q.htm

James River Coal Company. Annual Report on Form 10-K. 2007. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1297720/000118811207000713/t13309_10k.htm

James River Coal Company. Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2007. U.S. Securities and Exchange Commission, 2008. https://www.sec.gov/Archives/edgar/data/1297720/000101968708000964/jrcc_10k-123107.htm

James River Coal Company. “Underwriting Agreement and Schedule of Company Subsidiaries.” March 24, 2011. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1297720/000101968711001010/jrcc_8k-ex0103.htm

James River Coal Company. “Bell County Coal Corporation Imminent Danger Order.” Form 8-K, December 13, 2011. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1297720/000101968711003841/jrcc_8k-120911.htm

James River Coal Company. “Subsidiaries of James River Coal Company.” Exhibit 21, 2013. U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/704870/000101968713002375/jrcc_s4-ex21.htm

James River Coal Company. Monthly Operating Report, September 2014. U.S. Bankruptcy Court proceedings, filed with the U.S. Securities and Exchange Commission. https://www.sec.gov/Archives/edgar/data/1297720/000101968714004066/jrcc_8k-ex9901.htm

James River Coal Company. Monthly Operating Report for the Month Ended December 31, 2014. U.S. Securities and Exchange Commission, 2015. https://www.sec.gov/Archives/edgar/data/1297720/000101968715000437/jrcc_8k-ex9901.htm

James River Coal Company. Monthly Operating Report. 2015. Documents the December 31, 2014 sale of the Bell and Bledsoe complexes and certain Laurel Mountain assets to Revelation Energy. https://www.sec.gov/Archives/edgar/data/1297720/000101968715000801/jrcc_8k-ex9901.htm

Kentucky Court of Appeals. Bell County Coal Corporation and Darrell Huff v. Cumberland Valley Contractors, Inc. and Del Rio, Inc. Nos. 1998-CA-001564-MR and 1998-CA-001601-MR. July 6, 2000, modified September 22, 2000. https://law.justia.com/cases/kentucky/court-of-appeals/2000/1998-ca-001564.html

Kentucky Supreme Court. Cumberland Valley Contractors, Inc., and Del Rio, Inc. v. Bell County Coal Corporation and Darrell Huff. 238 S.W.3d 644. January 25, 2007. https://law.justia.com/cases/kentucky/supreme-court/2007/2000-sc-000951-dg.html

U.S. Department of Labor, Mine Safety and Health Administration. Report of Investigation: Fatal Fall of Roof Accident, Coal Creek Mine, Bell County Coal Corporation, June 16, 2004. 2004. https://arlweb.msha.gov/FATALS/2004/ftl04c13.pdf

U.S. Department of Labor, Mine Safety and Health Administration. Report of Investigation: Surface Coal Preparation Facility Fatal Powered Haulage Accident, Bell County Coal Corporation Preparation Plant, August 19, 2005. 2005. https://arlweb.msha.gov/fatals/2005/ftl05c1415.asp

Federal Mine Safety and Health Review Commission. Bell County Coal Corporation v. Secretary of Labor. 29 FMSHRC 506. June 18, 2007. https://www.fmshrc.gov/sites/default/files/decisions/alj/kt2004-317.pdf

U.S. Department of the Interior. “Bell County Coal Corporation, Hignite No. 8 Mine.” Federal Register 48, March 4, 1983. https://www.govinfo.gov/content/pkg/FR-1983-03-04/pdf/FR-1983-03-04.pdf

Federal Mine Safety and Health Review Commission. Secretary of Labor, Mine Safety and Health Administration v. Bell County Coal Corporation, concerning Stone Mine No. 2. 1993. https://www.fmshrc.gov/sites/default/files/decisions/alj/93091869.pdf

Surface Transportation Board. “CSX Transportation, Inc. and Norfolk Southern Railway Company, Middlesboro, Kentucky Area Trackage Arrangements.” Federal Register, September 17, 1996. https://www.govinfo.gov/content/pkg/FR-1996-09-17/pdf/FR-1996-09-17.pdf

Kentucky Department of Mines and Minerals. Annual Report, 2000. Frankfort: Commonwealth of Kentucky, 2000. https://eec.ky.gov/Natural-Resources/Mining/Mine-Safety/safety-inspections-and-licensing/Annual%20Reports/2000%20Annual%20Report.pdf

Kentucky Office of Mine Safety and Licensing. Annual Report, 2007. Frankfort: Commonwealth of Kentucky, 2007. https://eec.ky.gov/Natural-Resources/Mining/Mine-Safety/safety-inspections-and-licensing/Annual%20Reports/2007%20Annual%20Report.pdf

Kentucky Division of Mine Safety. Annual Report, 2014. Frankfort: Commonwealth of Kentucky, 2014. https://eec.ky.gov/Natural-Resources/Mining/Mine-Safety/safety-inspections-and-licensing/Archived_Annual_Reports/2014%20Annual%20Report.pdf

Kentucky Energy and Environment Cabinet. Kentucky Coal Facts. 15th ed. Frankfort: Kentucky Energy and Environment Cabinet, 2015. https://eec.ky.gov/Energy/Coal%20Facts%20%20Annual%20Editions/Kentucky%20Coal%20Facts%20-%2015th%20Edition%20%282015%29.pdf

U.S. Department of Labor, Benefits Review Board. James Sturgill v. Bell County Coal Corporation. BRB No. 05-0343 BLA. May 30, 2006. https://www.dol.gov/sites/dolgov/files/brb/decisions/blklung/published/05-0343.pdf

U.S. Department of Labor, Benefits Review Board. Benny Brodis Garrison v. Bell County Coal Corporation and Old Republic Insurance Company. BRB No. 15-0435 BLA. June 30, 2016. https://www.dol.gov/sites/dolgov/files/brb/decisions/blklung/unpublished/Jun16/15-0435.pdf

U.S. Department of Labor, Benefits Review Board. Benny Brodis Garrison v. Bell County Coal Corporation and Old Republic Insurance Company. BRB No. 17-0155 BLA. January 23, 2018. https://www.dol.gov/sites/dolgov/files/brb/decisions/blklung/unpublished/Jan18/17-0155.pdf

Kentucky Energy and Environment Cabinet. “Monthly Permitting Actions, June 2013.” Division of Mine Permits, 2013. https://eec.ky.gov/Natural-Resources/Mining/Mine-Permits/Monthly%20Permitting%20Actions/Permitting%20Actions%20June%202013.pdf

Kentucky Energy and Environment Cabinet. “Monthly Permitting Actions, June 2015.” Division of Mine Permits, 2015. https://eec.ky.gov/Natural-Resources/Mining/Mine-Permits/Monthly%20Permitting%20Actions/Permitting%20Actions%20June%202015.pdf

Kentucky Energy and Environment Cabinet. “Monthly Permitting Actions, March 2016.” Division of Mine Permits, 2016. https://eec.ky.gov/Natural-Resources/Mining/Mine-Permits/Monthly%20Permitting%20Actions/Permitting%20Actions%20March%202016.pdf

The Floyd County Times. “Environmental Protection Actions Include Bell County Coal Co.” November 9, 1977. https://fclib.org/Floyd%20County%20Times/The_Floyd_County_Times_1977/11-09-1977.pdf

Author Note: This article was written to preserve the history of Bell County Coal Corporation and its role in the mining industry around Middlesboro, Kentucky. Primary sources, including government mine records, court cases, SEC filings, and contemporary reports, were used whenever possible to document the company’s operations, workers, and changing ownership.

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