PEABODY Energy Inc. has been mining coal east of the Mississippi for 120 years, but it didn't enter West Virginia until 1984 when it bought Armco Inc.'s coal properties. Despite its short history in the state, Peabody has built up a surprisingly good reputation. Except for production cuts and layoffs similar to those reported by other coal producers in the last few years, Peabody's West Virginia operations rarely appear in the news except when one of its mines wins another safety or environmental award.

Jiri Nemec, vice president in charge of Peabody's Appalachian operations, said the generally good news about the company is no accident.

"The easiest capital (improvement) to get approved in ...