Acme Energy Services v. Occupational Safety & Health Review Commission

542 F. App'x 356
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 18, 2013
Docket12-60810
StatusUnpublished
Cited by1 cases

This text of 542 F. App'x 356 (Acme Energy Services v. Occupational Safety & Health Review Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acme Energy Services v. Occupational Safety & Health Review Commission, 542 F. App'x 356 (5th Cir. 2013).

Opinion

PER CURIAM: *

The Secretary of Labor issued Petitioner Big Dog Drilling (Big Dog) a citation and corresponding $7,000 penalty for violating the general duty clause of the Occupational Safety and Health Act (the Act). 1 The citation alleged Big Dog committed a serious violation of the Act by exposing its workers to a recognized “struek-by” hazard during a “scope-up” process, which resulted in the death of Gabriel Chavarria, a Big Dog employee. The Administrative Law Judge (ALJ) vacated the citation, concluding that the Secretary failed to establish that (1) either Big Dog or its industry recognized the hazard, and (2) the proposed means of abatement could feasibly eliminate or materially reduce the hazard. The Occupational Safety and Health Review Commission then reversed the ALJ decision and affirmed the citation and penalty, holding that the Secretary had established both industry recognition and a feasible means of abatement. Big Dog now appeals the Commission’s decision.

I

Big Dog operates numerous oil drilling rigs. In July 2007, Big Dog was setting up Rig 3, a telescoping rig, at a worksite in Stanton, Texas. Telescoping rigs consist of two masts, one inside of the other, which are transported to the drilling site in a horizontal position on a truck or “carrier.” At the drilling site, the rig is then raised in two stages. First, a hydraulic mechanism on the carrier is used to raise the lower mast — which still contains the upper mast — to a vertical position, and to secure the mast on an elevated platform called the rig floor. Second, the upper mast is raised or “scoped” from within the lower mast by another hydraulic mechanism, a ram located in the mast itself, and a system of cables, pulleys, and counterweights, to a height of 104 feet.

On the day of the accident, the Big Dog crew was scoping the upper mast on Rig 3. A 10,500-pound pulley block, counterweights, and other equipment were suspended by heavy cables from the top of the upper mast. As scope-up began, the Big Dog crew consisted of seven employees: two operators, Bobby Ruth and Mark Steele (the “tool pushers”); the deceased employee Chavarria working as the driller; *359 two rig hands who stood on the ground toward the back of the drilling rig; and two welders who were in an enclosure next to the rig floor called the “dog house.” The tool pushers stood at the controls located on the sides of the rig by the mast base: Ruth was positioned behind the mast, operating the scoping controls, and Steele was positioned to the left side of the mast, operating the brakes for the pulley block. Chavarria was eight to ten feet away from Steele, and was on the racking board, which is a portion of the rig floor. Chavarria’s job was to observe the various cables to make sure they did not tangle, to ensure a platform called the belly board folded out correctly, and to communicate any problems he observed to Steele and Ruth.

As the upper mast was being scoped up, it slid down inside the lower mast after the hydraulic ram gave way and fell onto the rig floor. The pulley block, other equipment suspended from the mast, and all of the drilling lines also fell. Chavarria was struck and killed. He was found lying on the rig floor with the ram on his left side and the pulley block on his right side.

After an investigation of the accident, the Secretary issued Big Dog a citation for violating the Act’s general duty clause and assessed a $7,000 penalty. 2 The citation charged Big Dog with exposing its employees to the hazard of being struck by equipment during scope-up operations on telescoping drilling rigs. This original citation said that, to abate the hazard, only personnel required to carry out the operation should be allowed “in or under the mast unless it is in the fully raised or lowered position.” 3 The Secretary later amended the citation to add that “[n]o one other than the operator should be allowed on the carrier platform in the derrick or under the mast until well servicing units are fully scoped, raised, or lowered.”

Big Dog contested the citation and received a hearing before an ALJ. Several Big Dog employees testified at the hearing, including Ruth. An expert witness, Ronald Britton, testified for the Secretary, and he relied on various industry safety manuals in forming his opinion. After the hearing, the ALJ determined that the Secretary proved the first and third elements of a general duty clause violation: Big Dog employees were subject to a hazard of being struck by equipment on the rig floor during scope-up, and the hazard caused death or serious physical harm. The proof on the second and fourth elements, however, was insufficient according to the ALJ. Specifically, the Secretary failed to prove that Big Dog or the oil industry recognized the activity was hazardous, and that the hazard was preventable through the proposed abatement method.

The Commission granted review of the ALJ decision, and on review, it reinstated the citation and assessed the Secretary’s proposed $7,000 penalty. The Commission held that the Secretary had established all requisite elements of a general duty clause violation, including demonstrating that the industry recognized the hazard created by the scope-up procedure and that there was *360 a feasible means of abatement. Big Dog now appeals the Commission’s decision.

II

We review the Commission’s factual findings for “substantial evidence on the record considered as a whole.” 4 Substantial evidence requires “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” 5 Under this standard, the court must uphold the Commission’s factual findings if properly supported “even if this court could justifiably reach a different result de novo.” 6 Furthermore, under the Act, “the Commission is the fact-finder, and the [ALJ] is an arm of the Commission for that purpose.” 7 When an ALJ and the Commission come to contrary conclusions, the Fifth Circuit considers the ALJ’s findings, but only to the extent they “weaken the contrary conclusion of the Commission” and suggest a lack of substantial evidence. 8 We thus review only the Commission’s final order for substantial evidence. 9 Finally, the Commission’s legal conclusions must not be “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 10

Ill

Big Dog first argues that the Commission erred by not applying an abuse of discretion standard to the ALJ’s conclusions regarding the testimony of Britton, the Secretary’s expert witness. Big Dog contends that the ALJ’s treatment of Brit-ton’s opinion amounted, in effect, to a decision not to admit it under Federal Rule of Evidence

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Bluebook (online)
542 F. App'x 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acme-energy-services-v-occupational-safety-health-review-commission-ca5-2013.