(Adds committee chairman comments paragraphs 2-4) By Steve James NEW YORK, March 29 (Reuters) - Massey Energy Co. <MEE.N> was fined $1.5 million, the largest amount ever for mine safety violations, after two miners died last year in a fire at one of its West Virginia coal mines, the U.S. Department of Labor said on Thursday. The announcement by the Mine Safety and Health Administration (MSHA) prompted the chairman of the House Education and Labor Committee, which is holding hearings in Washington to examine mine safety laws, to call for even tougher action. "I am outraged that these mine operators intentionally skirted basic health and safety regulations and that MSHA allowed it," said Rep. George Miller, a Democrat of California. "When mine operators choose to flout basic safety requirements, MSHA has to be there aggressively to prevent such tragedies before they happen," he said. "MSHA should be issuing tougher standards and enforcing them strongly to protect workers from irresponsible mine operators." Last year, 47 coal miners were killed on the job in the United States, including 12 in an explosion at International Coal Group's <ICO.N> Sago mine in West Virginia. ICG idled the mine last week for economic reasons. In a statement, MSHA said its investigation of the Jan. 19, 2006, fire at Massey's Aracoma Alma Mine No. 1 determined that 25 violations of mandatory health and safety laws contributed to the accident. The regulator noted that in March 2006 it referred the case to the U.S. Attorney's Office for possible criminal charges. SEVERITY "The number and severity of safety violations at the mine at the time of the fire demonstrated reckless disregard for safety, warranting the highest fine MSHA has levied for a fatal coal mining accident," said Richard Stickler, assistant secretary of labor for mine safety and health. A spokeswoman for the agency told Reuters that the previous highest fine was $540,000 for an accident that killed two miners in Fire Creek, West Virginia, in 1991. She said Massey was assessed $60,000 for each of the 25 violations at Aracoma. Asked about the Sago blast, also in January 2006, she said that investigation is not complete. Richmond, Virginia-based Massey said it was reviewing the Aracoma report and had no specific comments. It did say, however, that it appeared there were conditions at the time of the fire that did not meet Massey's safety standards. At Wednesday's Congressional hearing, senior Republican committee member Rep. Howard "Buck" McKeon, of California, outlined subcommittee oversight activities following last year's accidents. "It became abundantly clear that we needed better mining communications technology, more modern safety practices inside U.S. mines, and improved enforcement of current mine safety laws," he said. "But I believe ... that our nation's mine workers are better off today than they were a year ago." But Chairman Miller said many of the 47 deaths might have been prevented had the MSHA heeded warning signs. He said a report by the committee's Democratic staff said the Bush administration had stacked the agency with industry insiders and failed to collect fines from mine operators that broke the law. "Mine operators who do not take the safety of their employees seriously should not be allowed to mine coal, period," Miller said. "There are mine operators who would rather pay their fines than change their behavior."
