Delek Refining, Ltd. v. Occupational Safety & Health Review Commission

845 F.3d 170, 2017 CCH OSHD 33,562, 26 OSHC (BNA) 1207, 2016 U.S. App. LEXIS 23382, 2016 WL 7480236
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 29, 2016
Docket15-60443
StatusPublished
Cited by13 cases

This text of 845 F.3d 170 (Delek Refining, Ltd. 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
Delek Refining, Ltd. v. Occupational Safety & Health Review Commission, 845 F.3d 170, 2017 CCH OSHD 33,562, 26 OSHC (BNA) 1207, 2016 U.S. App. LEXIS 23382, 2016 WL 7480236 (5th Cir. 2016).

Opinion

JENNIFER WALKER ELROD, Circuit Judge:

Delek Refining, Limited purchased an oil refinery in Tyler, Texas from Crown Central. After the transfer in ownership, the Occupational Safety and Health Administration conducted an inspection and issued a citation for violations of its process safety management rules, which govern an employer’s responsibility to inspect, and to develop inspection and recording regimes for, machinery that handles large volumes of hazardous chemicals. Because we conclude that the citations for Items 4 and 12 are barred by the six-month statute of limitations in 29 U.S.C. § 658(c), we VACATE the citations for those items. Because we also conclude that the regulations relevant to the citation for Item 8 are ambiguous and the Secretary’s interpretation is reasonable, we AFFIRM the citation for Item 8.

I.

Delek purchased an oil refinery located in Tyler, Texas from Crown Central and took possession on April 29, 2005. Beginning in February 2008, the Occupational Safety and Health Administration conducted a four-month inspection of the refinery and issued a citation on August 18, 2008, finding violations of 29 C.F.R. § 1910.119 — an OSHA regulation governing “Process Safety Management of Highly Hazardous Chemicals” — and other regulations that are not at issue here. Section 1910.119 imposes a series of requirements on employers which are intended, according to that section’s purpose statement, to “prevent[ ] or minimiz[e] the consequences of catastrophic releases of toxic, reactive, flammable, or explosive chemicals ... [that] may result in toxic, fire or explosion hazards.” Id.

Delek petitions for review of citation Items 4, 8, and 12. Item 4 alleges a failure to resolve open findings and recommendations identified during process hazard analyses that occurred in 1994, 1998, 1999, 2004, and 2005 — prior to Delek purchasing and taking possession of the refinery. 1 Item 8 alleges an inadequate monitoring and inspection regime for certain equipment involved in process safety manage *174 ment. 2 Specifically, the Secretary alleges that Delek failed to inspect a positive pressurization unit, which pressurizes the control room for the fluid catalytic cracking unit and detects the presence of hazardous vapors. Item 12 alleges that Delek failed to determine and document a response to the findings of a 2005 compliance audit in a timely manner. 3 As with Item 4, the audit at issue in Item 12 was conducted before Delek took possession of the refinery.

The Secretary of Labor brought an enforcement action against Delek for these and other violations. The administrative law judge affirmed seven of the violations ■with penalties totaling $32,850. Secretary of Labor v. Delek, 2011 WL 12709990 (OSHA Apr. 27, 2011) (Delek 1). 4 Delek appealed six of the seven violations to the Occupational Safety and Health' Review Commission (OSHRC or Commission). 5 The Commission unanimously vacated two violations and upheld a third. Secretary of Labor v. Delek, 2015 WL 1957889 (OSHRC Apr. 23, 2015) (Delek II). In a 2-1 split decision, the Commission also upheld the three remaining violations; Commissioner MacDougall dissented from the Commission’s decision affirming these three violations. Id. at *16-27. The final three violations, each carrying a penalty of $6,300, are the subject of this appeal.

II.

We review the Commission’s factual findings to determine whether they are supported by substantial evidence in the record considered as a whole. MICA Corp. v. OSHRC, 295 F.3d 447, 449 (5th Cir. 2002). We review the Commission’s legal conclusions to determine whether they are “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law.” Trinity Marine Nashville, Inc. v. OSHRC, 275 F.3d 423, 427 (5th Cir. 2001); 5 U.S.C. § 706(2)(A).

*175 We will defer to the agency’s interpretation of its own organic statute only if the text is ambiguous and the agency’s interpretation is reasonable. Chevron, USA, Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837, 844, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984); Lari v. Holder, 697 F.3d 273, 278 (6th Cir. 2012). We will consider all the “traditional tools of statutory construction” before concluding that a statute is ambiguous. Contender Farms, LLP v. U.S. Dep't of Agric., 779 F.3d 258, 269 (5th Cir. 2015). If we determine that the text is clear, we owe no deference to the agency’s interpretation. City of Arlington v. FCC, — U.S. —, 133 S.Ct. 1863, 1874, 185 L.Ed.2d 941 (2013) (‘Where Congress has established a clear line, the agency cannot go beyond it[.]”); Lari, 697 F.3d at 278. If, however, we determine that the text is ambiguous, we -will defer -to the agency’s reasonable interpretation. Lari, 697 F.3d at 278. Likewise, we will defer to an agency’s reasonable interpretation of its own regulations when the text of the regulation is ambiguous. Christensen v. Harris Cty., 529 U.S. 576, 588,120 S.Ct. 1655, 146 L.Ed.2d 621 (2000). “In situations in which the meaning of regulatory language is not free from doubt, the reviewing court should give effect to the agency’s interpretation so long as it is reasonable,” and it “sensibly conforms to the purpose and wording of the regulations.” Martin, 499 U.S. at 150-51, 111 S.Ct. 1171 (alterations omitted). If the regulation is clear, we will not defer. Christensen, 529 U.S. at 588, 120 S.Ct. 1655; see also Moore v. Hannon Food Serv., Inc., 317 F.3d 489, 495-96 (5th Cir. 2003).

III.

A.

We first consider Delek’s challenge to the citations for Items 4 and 12. Items 4 and 12 relate to the process hazard analysis (PHA) and compliance audits required by Section 1910.119. That provision requires an employer to update and revali-date a PHA every five years. 29 C.F.R. § 1910.119(e)(6). A PHA. requires the full-time labor of five to twelve skilled engineers and managers and generally takes four to six weeks.

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845 F.3d 170, 2017 CCH OSHD 33,562, 26 OSHC (BNA) 1207, 2016 U.S. App. LEXIS 23382, 2016 WL 7480236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delek-refining-ltd-v-occupational-safety-health-review-commission-ca5-2016.