Former Employees of Apache Corp. v. United States

18 Ct. Int'l Trade 259, 850 F. Supp. 24
CourtUnited States Court of International Trade
DecidedApril 6, 1994
DocketCourt No. 92-06-00404
StatusPublished
Cited by2 cases

This text of 18 Ct. Int'l Trade 259 (Former Employees of Apache Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Former Employees of Apache Corp. v. United States, 18 Ct. Int'l Trade 259, 850 F. Supp. 24 (cit 1994).

Opinion

Opinion

Carman, Judge:

Plaintiffs challenge the determination by the Secretary of Labor (Labor) that plaintiffs are ineligible for trade adjustment assistance under 19 U.S.C. § 2272 (1988). This Court has jurisdiction pursuant to 28 U.S.C. § 1581(d)(1) (1988) and, for the reasons which follow, enters judgment for defendant.

I. Background

Plaintiffs filed a petition for trade adjustment assistance on December 26,1991 in anticipation of layoffs that were due to begin on January 11,1992. Administrative Record (R.) at 2. At the time of filing, plaintiff were employed in the Denver, Colorado office of the Apache Corporation (Apache). Id. According to plaintiffs’ petition, “Apache Corporation is an independent oil and gas exploration and production company that markets natural gas and crude oil.” Id.

In an attachment to their petition, plaintiffs described the bases which they believed entitled them to certification for trade adjustment assistance. R. at 3. Plaintiffs indicated low-priced, imported oil depressed domestic oil and natural gas prices and caused domestic oil and gas producers to cut domestic operations. Id. With respect to Apache, plaintiffs claimed foreign competition has adversely affected the company. Id. Specifically, plaintiffs stated “Apache’s net income declined over thirty percent to $19.8 million through the third quarter 1991.” Id. Plaintiffs attributed this decline to a “drop in crude oil and natural gas prices * * * following] the Iraqi withdrawal from Kuwait” after the Persian Gulf crisis. Id. Plaintiffs noted as compared with the first nine months of 1990, the prices at which Apache sold its oil and natural gas through the first three quarters of 1991 slid 16.49 and 9.21 percent, respectively. Id. According to plaintiffs, in order to remedy its [260]*260economic downturn and as a “direct and calculated response to foreign competition,” Apache relocated its headquarters to Houston in order to “increase Apache’s ability to compete in an industry whose contraction is directly linked to foreign pressure.” Id. This relocation, maintained plaintiffs, would “cause loss of employment to numerous workers from the Denver office.” Id. In conclusion, plaintiffs stated “Apache Corporation has been certified in the past, but not the same workers.” Id.

In response to plaintiffs’ petition, Labor initiated an investigation to determine whether plaintiffs were eligible for certification for trade adjustment assistance. Id. at 8. After conducting its investigation, Labor made the following findings: (1) “[aggregate U.S. imports of like or directly competitive articles * * * increased;” (2) “Employment at the firm did * * * decline during the relevant period;” (3) “[s]ales at the firm * * * did not decline significantly; ” and (4) “ [production at the firm did not decline significantly.” Id. at 199.

On March 4,1992, Labor published its Notice of Negative Determination Regarding Eligibility To Apply for Worker Adjustment Assistance which indicated plaintiffs were ineligible for certification. Determinations Regarding Eligibility To Apply for Worker Adjustment Assistance, 57 Fed. Reg. 7793, 7794 (Dep’t of Labor 1992); see also R. at 200. In its Notice, Labor identified the three criteria that plaintiffs had to meet to be eligible for certification and concluded plaintiffs did not meet the second criterion, namely “that sales or production, or both, of such firm or subdivision have decreased absolutely.” R. at 200-01. Specifically, Labor noted “ [sjales and production at Apache Corporation increased in 1990 compared to 1989, and increased in January through September, 1991, compared to the same period of 1990.” Id. at 201. Labor also indicated Apache’s anticipated layoffs were attributable to the relocation of the companys headquarters from Denver, Colorado to Houston, Texas. Id.

Plaintiffs subsequently asked Labor to reconsider its negative determination on March 17, 1992. Id. at 206. Plaintiffs sought reconsideration “because production volumes rather than sales were used in reaching the conclusion” that plaintiffs were ineligible for certification. Id. According to plaintiffs,

Apache has historically been an acquisition company, recently acquiring more than $514 million of producing properties from Amoco. For this reason, price is a more equitable and less distorting basis than production volumes in this analysis. An examination of production alone fails to properly identify the negative impact of foreign trade on this industry as a whole and specifically on Apache.

Id. Plaintiffs’ submission reiterated with greater specificity the position plaintiffs had taken in their original petition — that inexpensive, imported oil and natural gas have depressed domestic prices and have caused Apache’s prices and sales to decline. Id. at 206-07,209. In addition, plaintiffs claimed “[t]he increased imports of crude oil and natural gas have impacted the Rocky Mountain region most strongly, where [261]*261exploration and production costs are much higher.” Id. at 207 (footnotes omitted). Plaintiffs also emphasized Apache’s efforts to find and exploit foreign oil reserves. Id. at 207-08. Plaintiffs concluded “the increase of foreign imports of crude oil and natural gas have contributed directly to the loss of jobs for workers at the Denver office of Apache Corporation.” Id. at 210. One of the plaintiffs later advised Labor by telephone that Labor had granted certification to other workers in the Denver area and prices and profits for crude oil had decreased due to imports. Id. at 241.

On April 16, 1992, Labor published its Notice of Negative Determination Regarding Application for Reconsideration in response to plaintiffs request. Negative Determination Regarding Application for Reconsideration, 57 Fed. Reg. 13,382 (Dep’t of Labor 1992) (Reconsideration Notice); R. at 244. Labor’s Notice stated the following:

Investigation files show that up to mid-1991 Apache was primarily a gas producer with crude oil production. On July 1,1991 Apache acquired MW Petroleum Corporation, a subsidiary of Amoco. This acquisition greatly increased Apache’s crude oil and natural gas production. Further, before Apache acquired MW Petroleum in mid-1991, Apache had increased sales and production of crude oil and increased sales and production of natural gas in 1990 compared to 1989 and in the first six months of 1991 compared to the same period in 1990.
The findings also show that Apache, in order to effectively integrate and manage its acquired properties, is in the process of moving its headquarters from Denver to Houston. This corporate decision would not form a basis for a worker group certification.

Reconsideration Notice, 57 Fed. Reg. at 13,382; R. at 245-46.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Great American Ins. Co. of Ny
791 F. Supp. 2d 1337 (Court of International Trade, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
18 Ct. Int'l Trade 259, 850 F. Supp. 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-apache-corp-v-united-states-cit-1994.