8-KOther Events

BERKSHIRE HATHAWAY INC 8-K Report, Mine Safety Disclosure (Feb 7, 2014)

Filed February 7, 2014For Securities:BRK-BBRK-A

Summary

This Berkshire Hathaway Inc. 8-K filing from February 2014 addresses a specific operational event at Bridger Coal Company, a subsidiary indirectly owned by PacifiCorp. On February 4, 2014, Bridger Coal Company received an "imminent danger order" at its underground mine in Wyoming, as mandated by the Federal Mine Safety and Health Act of 1977. This type of order signifies a potentially hazardous situation requiring immediate attention to ensure worker safety. Importantly, the situation was swiftly resolved. Bridger Coal Company took prompt action to address the safety concerns identified, and by February 5, 2014, the Federal Mine Safety and Health Administration (MSHA) terminated the order. This indicates that the potential hazard was successfully abated, and the mine resumed normal operations without significant disruption. For investors, this event highlights the operational risks inherent in the coal mining industry, but also demonstrates the company's and its subsidiary's ability to respond effectively to regulatory requirements and safety issues.

Key Highlights

  • 1Bridger Coal Company, a two-thirds owned subsidiary of PacifiCorp (an 89.8% indirectly-owned Berkshire Hathaway subsidiary), received an "imminent danger order" at its Wyoming underground mine.
  • 2The order was issued on February 4, 2014, under section 107(a) of the Federal Mine Safety and Health Act of 1977.
  • 3The "imminent danger order" indicates a serious safety concern that required immediate attention.
  • 4Bridger Coal Company took swift action to rectify the safety issues identified by the order.
  • 5The Federal Mine Safety and Health Administration (MSHA) terminated the order on February 5, 2014, after the concerns were abated.
  • 6This event, while specific to a mining subsidiary, underscores the importance of operational safety and regulatory compliance within Berkshire Hathaway's diverse holdings.

Frequently Asked Questions

The primary reason for this 8-K filing was to report an "imminent danger order" issued by the Federal Mine Safety and Health Administration (MSHA) to Bridger Coal Company, a subsidiary of PacifiCorp (which is indirectly owned by Berkshire Hathaway). This order was related to safety concerns at their underground mine in Wyoming.

An "imminent danger order" is a serious regulatory action that requires immediate cessation of operations in the affected area until the hazard is abated. While concerning, the swift resolution within two days suggests the issue was contained and manageable.

The direct financial impact on Berkshire Hathaway itself is likely minimal, given that Bridger Coal Company is a subsidiary of a subsidiary and the issue was resolved quickly. However, it serves as an example of the operational risks associated with subsidiaries in industries like coal mining and the company's ability to manage such situations through its operating companies.

No, the mine was not shut down permanently. The "imminent danger order" was terminated by the MSHA on February 5, 2014, after Bridger Coal Company successfully abated the safety concerns that led to the order. This indicates the mine resumed operations after addressing the issue.