Kentucky Powder "did not provide consumption rates" and the company did not tell the Army that it would store the product for Explo, Abney said. The Army's contract is not with Kentucky Powder.
R. Edward McGhee is president of Kentucky Powder Company, according to filings with the Kentucky Secretary of State's office. Business filings in Louisiana list him as a director of Explo Systems. The Louisiana documents list David Fincher of Burns, Tenn., as president of Explo Systems and David Alan Smith of Winchester, Ky., as secretary and treasurer.
McGhee said in a telephone interview that Kentucky Powder only buys explosives that it can resell and hasn't bought M6 from Explo in more than a year because demand is down. He said the company doesn't store explosives for other companies.
After being contacted by the AP, McGhee said he spoke to Explo officials who told him the plan mistakenly said the company had 70 million pounds of storage and should have said 7 million. McGhee did not mention being listed as a director of Explo Systems and hasn't responded to subsequent messages.
The plan says 70 million pounds at least three times.
Asked if Explo Systems misled the Army and could face charges, Abney, the Army spokesman, would say only that investigations are ongoing.
But he reiterated the plan was for Explo to sell the material.
"I don't think anybody dreamed of them storing that much," Abney said.
Demand for recycled M6 is down because of declines in coal mining. Factors in the decline include low natural gas prices, a mild winter and difficulty obtaining permits, said Bill Bissett, president of the Kentucky Coal Association.
Bissett said the coal industry really began to feel the effects in the first quarter of 2012. That would have been around when Explo asked the Louisiana Guard to rent more bunkers, but was turned down because of $400,000 in unpaid bills, Guard officials say.
After the discovery of the improperly stored M6, the Guard let Explo Systems use an additional 22 bunkers, up from 78 it already had, but that still wasn't enough to store it, authorities say. Louisiana authorities are still looking for bunkers to store the M6 that is now in buildings on the base.
Explo has been selling some of the material, but not as fast as authorities would like. Any M6 Explo sells is less that authorities have to worry about.
"In my personal opinion, I think they defrauded the military on their ability to store this material in Louisiana," Sheriff Sexton said.
The Army visited the Louisiana facility at least twice in 2010 after the propellant contract was awarded and two more times in 2011, according to Abney. Records showed no serious problems.
But this isn't the first time the company has come under scrutiny.
A series of about 10 explosions at the facility caused an evacuation of Doyline in 2006. And in 2007, The Mine Safety and Health Administration said Explo Systems "displayed a reckless disregard for the health and safety of miners" in West Virginia when a blast injured one worker and exposed others to toxins from an old military explosive called tetryl, according to documents reviewed by the AP.
The material that caused the evacuation was found by an investigator looking into an October explosion involving a different type of explosive.
"Oh God, I thought I was in Afghanistan," said Doyline resident Gaytha Bryant, 56. "There was this explosion, then the shaking, the grandchildren woke up screaming."
Bryant said the blast shifted her mobile home, causing thousands of dollars in damage. She's part of class-action lawsuit against Explo Systems.
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