Former Employees of Marathon Ashland Pipeline, LLC v. Chao

215 F. Supp. 2d 1345, 26 Ct. Int'l Trade 739, 26 C.I.T. 739, 24 I.T.R.D. (BNA) 1665, 2002 Ct. Intl. Trade LEXIS 72
CourtUnited States Court of International Trade
DecidedJuly 16, 2002
DocketSlip Op. 02-67; 00-04-00171
StatusPublished
Cited by18 cases

This text of 215 F. Supp. 2d 1345 (Former Employees of Marathon Ashland Pipeline, LLC v. Chao) 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 Marathon Ashland Pipeline, LLC v. Chao, 215 F. Supp. 2d 1345, 26 Ct. Int'l Trade 739, 26 C.I.T. 739, 24 I.T.R.D. (BNA) 1665, 2002 Ct. Intl. Trade LEXIS 72 (cit 2002).

Opinion

Opinion

BARZILAY, Judge.

I. introduction

This case is before the court on Plaintiffs’ motion for judgment upon the administrative record pursuant to USCIT Rule 56.1(c)(1). Plaintiffs seek judicial review of the Secretary of Labor’s (the “Secretary” or “Labor”) denial of certification for trade adjustment assistance (TAA) under Section 222 of the Trade Act of 1974, (the “Act”), as amended and codified at 19 U.S.C. § 2272 (1994). See Notice of Determination Regarding Eligibility to Apply for Worker Adjustment Assistance and NAFTA Transitional Adjustment Assistance (“Determination”), 64 Fed.Reg. 72690, 72691 (Dep’t of Labor Dec. 2, 1999), reconsideration denied, 65 Fed Reg. 8743 (Dep’t of Labor Feb. 22, 2000). Plaintiffs are former Marathon Ashland Pipeline workers who were employed as gaugers, who state that they performed the functions, inter alia, of testing and determining the quality of crude oil to be purchased and transported. The Secretary determined that the Plaintiffs did not satisfy the statutory criteria under 19 U.S.C. § 2272(a)(3). The Secretary then voluntarily asked for remand of her negative determination to acquire additional information regarding the transportation of articles produced by the parent company of Plaintiffs’ employer, Marathon Ashland Pipe Line LLC (“Marathon Ashland”). The Secretary’s Notice of Negative Determination of Reconsideration on Remand (“Remand Determination”), 66 Fed.Reg. 52784 (Dep’t of Labor Oct. 17, 2001), again denied plaintiffs’ petition for certification. Plaintiffs contend the Secretary’s initial Determination and Remand Determination are unsupported by substantial evidence and not in accordance with law. Plaintiffs initially claimed that the Secretary failed to investigate: 1) the actual nature of the work performed by the Plaintiffs; 2) whether Plaintiffs’ separations were caused by a reduced demand for their services from their parent firm, or a firm otherwise related, whose workers independently meet the statutory criteria for certification under the Act; and 3) whether increased imports of crude oil contributed importantly to Plaintiffs’ separations. Following the Secretary’s Remand Determination, Plaintiffs reassert all original arguments and additionally claim that the Secretary failed to request information concerning: 1) Marathon Oil Company’s (“Marathon Oil”) (Marathon Ashland’s *1348 parent company) importation of foreign oil between 1997 and 1999; 2) the extent to which the importation of oil by Marathon Oil caused or contributed to Marathon Ashland’s decrease in domestic oil production and sales; 3) the basis for Marathon Oil’s cessation of purchasing oil from the Illinois Basin Area; and 4) the nexus between Marathon Ashland’s activities and the crude oil purchased or produced by its parent or related companies. Plaintiffs ask that the Secretary’s determination be reversed or, in the alternative, remanded back to the Department for further investigation.

The court has jurisdiction pursuant to 28 U.S.C. § 1581(d)(1) (1994) to review the Department of Labor’s final determination regarding eligibility of workers for TAA under Section 223 of the Trade Act of 1974, as amended, 19 U.S.C. § 2273 (1994).

After reviewing the administrative records and the briefs of the parties, the court again remands the action to the Secretary for further proceedings in accordance with this opinion.

II. Background

On October 23, 1999, Plaintiffs filed a petition for TAA with the Department of Labor under Section 221(a) of the Act on behalf of Operations Technicians at Marathon Ashland. See Administrative Record (".A.R.”) at l. 1 Marathon Ashland is a [“ .”] A.R. at 18. Prior to the administrative review of Plaintiffs’ petition, some of Marathon Oil Company’s workers had been certified for TAA. Plaintiffs worked at Marathon Ashland’s Bridgeport, Illinois, location and petitioned the Secretary for TAA after their separation from Marathon Ashland.

The Secretary issued a Notice of Investigation on November 8, 1999, to determine if Plaintiffs were eligible for TAA. See 64 Fed.Reg. 69039. Labor had to ascertain if “increased imports have contributed importantly to actual or threatened decreases in employment and to decreases in sales or production at the petitioning workers’ plant.” 2 , A.R. at 12. *1349 To facilitate the investigation, Labor sent an information request to Marathon Ash-land’s Human Resource Representative, Mike Leland, asking him to furnish specific information regarding Marathon Ashland’s organizational structure, sales, production, employment, and imports. In Leland’s response he stated, inter alia, that [ ] See A.R. at 16-18. Based on Leland’s response and other information compiled from the investigation, the Secretary determined that Plaintiffs did not “produce” an article within the meaning of Section 222(3) and their separation was not “caused importantly by a reduced demand for services from a parent firm....” 3 A.R. at 24. The Secretary found that because “[t]he Department of Labor has consistently determined that the performance of services does not constitute production of an article, as required by Section 222 of the Trade Act of 1974,” Plaintiffs did not qualify for TAA benefits. Id.

On December 16, 1999, Plaintiffs requested reconsideration of the negative determination. Plaintiffs asserted that their jobs involved more than merely transporting crude oil. Plaintiffs contended that their work as gaugers constituted “production” of an article pursuant to Section 222 of the Act. Plaintiffs argued that as gaugers they tested the crude oil and determined if the oil “was of such quality as to be purchased by Marathon Oil Company and transported into the pipe line maintained by Marathon Ashland Pipe Line LLC.” A.R. at 33. Labor reviewed the application and determined: 1) the workers provided a service that was not covered by the Act; 2) although some Marathon Oil workers received TAA certification, Marathon Ashland did not serve the locations under existing certification; and 3) the Plaintiffs were terminated because of the sale of their firm’s assets to another company. Notice of Negative Determination Regarding Application for Reconsideration (“Determination Reconsideration”), 65 Fed.Reg. 8743. Citing to the 1988 Omnibus Trade and Competitiveness Act amendments to the Trade Act of 1974, Labor explained that the amendments “extended coverage to service workers engaged in exploration and drilling for crude oil and natural gas.” Id.

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215 F. Supp. 2d 1345, 26 Ct. Int'l Trade 739, 26 C.I.T. 739, 24 I.T.R.D. (BNA) 1665, 2002 Ct. Intl. Trade LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/former-employees-of-marathon-ashland-pipeline-llc-v-chao-cit-2002.