Secretary of Labor v. Twentymile Coal Co.

456 F.3d 151, 373 U.S. App. D.C. 1, 2006 U.S. App. LEXIS 16951, 2006 WL 1867249
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 7, 2006
Docket05-1124
StatusPublished
Cited by72 cases

This text of 456 F.3d 151 (Secretary of Labor v. Twentymile Coal Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Secretary of Labor v. Twentymile Coal Co., 456 F.3d 151, 373 U.S. App. D.C. 1, 2006 U.S. App. LEXIS 16951, 2006 WL 1867249 (D.C. Cir. 2006).

Opinion

Opinion for the Court filed by Circuit Judge GARLAND.

GARLAND, Circuit Judge.

This case represents the first time in more than twenty years 1 that the Federal Mine Safety and Health Review Commis *152 sion has overturned a decision by the Secretary of Labor to cite the owner-operator of a mine, as well as its independent contractor, for safety violations committed by the contractor. This court has long recognized the Secretary’s discretionary authority to cite the owner-operator, the independent contractor, or both for contractor violations. Because the Mine Act provides no meaningful standards against which to judge the Secretary’s decisions regarding which party to cite, the Commission is generally without authority to review such decisions. We therefore grant the Secretary’s petition for review and vacate the Commission’s ruling.

I

The Mine Act requires the Secretary of Labor, acting through the Mine Safety and Health Administration (MSHA), to promulgate mandatory safety and health standards for the mining industry and to conduct regular mine inspections. 30 U.S.C. §§ 811, 813(a). If a MSHA inspector discovers conditions that violate safety or health standards, § 104 of the Act directs the Secretary to issue a citation or an order to the mine’s “operator.” 30 U.S.C. §§ 814(a). The Act defines an “operator” as “any owner, lessee, or other person who operates, controls, or supervises a ... mine or any independent contractor performing services or construction at such mine.” 30 U.S.C. § 802(d) (emphasis added). (The entities listed before the italicized “or” are also known as “production-operators.” 2 )

The Federal Mine Safety and Health Review Commission (FMSRHC) is an independent agency charged with adjudicating disputes under the Mine Act, including disputes over whether safety standards have been violated. See 30 U.S.C. §§ 815, 823. The Commission appoints administrative law judges (ALJs) to conduct trial-type proceedings to hear such disputes. See 30 U.S.C. § 823(d)(1). Any person aggrieved by a decision of an ALJ may request discretionary review by the Commission, see 30 U.S.C. § 823(d)(2)(A)®, and any person aggrieved by an order of the Commission may obtain review in this court, see 30 U.S.C. § 816(a)(1).

Twentymile owns and operates the Foi-del Creek Mine, an underground coal mine in Routt County, Colorado. In its capacity as owner-operator, Twentymile often uses independent contractors to undertake various projects at the mine. On August 14, 2001, Twentymile hired Precision Excavating, Inc., an independent contractor, to perform work on a refuse pile.

On August 30, 2001, MSHA Inspector Michael Havrilla conducted an inspection of the surface areas of the Foidel Creek Mine. During the course of his inspection, Havrilla observed that the equipment used by Precision’s employees violated six safety standards. Among the violations were a leaking diesel fuel tank on a pan scraper, and a ten-by-ten-inch opening on a service truck’s air compressor that permitted contact with the drive belts and pulley. When Havrilla discussed the violations with a Precision employee, he learned that Twen-tymile had not examined the contractor’s equipment prior to its use at the mine. See Secretary of Labor v. Twentymile Co., 25 F.M.S.H.R.C. 352, 356 (2003) (hereinafter ALJ Decision). Fearing that Precision’s violations might augur an increase in contractor violations, Havrilla decided that issuing citations to both Precision and Twentymile was the best way to guarantee mine safety. See id. at 356-57.

Precision, the independent contractor, did not contest the citations and paid the *153 $352 penalty assessed against it by MSHA. Twentymile,' however, contested the citations and the attendant $900 penalty. In a hearing before an ALJ, Twentymile stipulated that the conditions described in the citations constituted violations of the Mine Act, but argued that it was improper for the Secretary to cite it for violations committed by Precision. See id. at 353.

On July 7, 2003, the ALJ ruled in the Secretary’s favor. Citing Commission precedent, the ALJ held that, “in instances of multiple operators, the Secretary has wide enforcement discretion and ‘may, in general, proceed against an owner-operator, his contractor, or both.’ ” ALJ Decision, 25 F.M.S.H.R.C. at 358 (quoting Secretary of Labor v. Mingo Logan Coal Co., 19 F.M.S.H.R.C. 246, 249 (1997)). The ALJ found no abuse of discretion with respect to the Secretary’s decision to cite Twentymile as well as Precision. See id. at 359. Although he recognized the nonbinding nature of enforcement guidelines issued by the Secretary to identify when to charge an owner-operator, the ALJ found that “the citations easily fit within” the guidelines. Id. at 359; see id. at 359 n. 1 (referring to Enforcement Policy and Guidelines for Independent Contractors, App. A to Independent Contractors, 45 Fed.Reg. 44494, 44497 (July 1,1980) (hereinafter Enforcement &uidelines )). 3 In particular, the ALJ found that “Twentym-ile’s failure to inspect the equipment or ensure that the contractor inspected the equipment was an omission that contributed to the violations,” and that “Twentymile exercised sufficient control over the scraper and service truck” to warrant a citation. ALJ Decision, 25 F.M.S.H.R.C. at 360. The ALJ also credited the MSHA inspector’s statement that “he was concerned that safety hazards on contractors’ equipment were not being adequately addressed” because the “cited conditions were rather obvious,” and that “by issuing citations to Twentymile, the safety violations would get more immediate attention than if he only cited the contractor.” Id. at 359.

Twentymile appealed the ALJ’s decision to the Commission. See Secretary of Labor v. Twentymile Coal Co., 27 F.M.S.H.R.C. 260 (2005) (hereinafter Commission Decision). The company asserted that, under the Mine Act, an owner-operator is liable only for its own violations, and that the Secretary was therefore without authority to cite it for the violations of its independent contractor. See id. at 263. The Secretary responded that court and Commission precedents were directly to the contrary. See id.

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Bluebook (online)
456 F.3d 151, 373 U.S. App. D.C. 1, 2006 U.S. App. LEXIS 16951, 2006 WL 1867249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/secretary-of-labor-v-twentymile-coal-co-cadc-2006.