Sapphire Coal Company (Commission decision, March 17, 2011)

Plain-English summary

Sapphire Coal asked the Commission to reopen two penalty assessments that became final orders. The company said it had faxed contest forms to MSHA six business days after the assessments were issued, although the fax confirmation did not identify the documents or case numbers. MSHA had no record of receiving the forms but did not dispute Sapphire's assertions. The Commission denied reopening without prejudice because Sapphire did not explain why it waited about four months after receiving delinquency letters to seek relief. Sapphire could file an amended or renewed request within 30 days.

Decision snapshot

• Governing provisions: 29 C.F.R. § 2700.1(b); 30 U.S.C. §§ 801 and 815(a)
• Outcome: Reopening was denied without prejudice, with 30 days allowed for an amended or renewed request.
• Key point: An operator seeking to reopen a final assessment must explain its delay after receiving a delinquency notice, even when it claims the original contest was timely sent.

Full text (FMSHRC public release)

Federal Mine Safety and Health Review Commission

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

601 NEW JERSEY AVENUE, NW

SUITE 9500

WASHINGTON, DC 20001

March 17, 2011

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

SAPPHIRE COAL COMPANY

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Docket No. KENT 2011-171

A.C. No. 15-19297-215828

Docket No. KENT 2011-172

A.C. No. 15-02057-215805

BEFORE: Jordan, Chairman; Duffy, Young, Cohen, and Nakamura, Commissioners

ORDER

BY THE COMMISSION:

These matters arise under the Federal Mine Safety and Health Act of 1977, 30 U.S.C.
§ 801 et seq. (2006) (“Mine Act”). On November 3, 2010, the Commission received motions by counsel to reopen penalty assessments issued to Sapphire Coal Company (“Sapphire”) that became final orders of the Commission pursuant to section 105(a) of the Mine Act, 30 U.S.C.
§ 815(a).

Under section 105(a) of the Mine Act, an operator who wishes to contest a proposed penalty must notify the Secretary of Labor no later than 30 days after receiving the proposed penalty assessment. If the operator fails to notify the Secretary, the proposed penalty assessment is deemed a final order of the Commission. 30 U.S.C. § 815(a).

We have held, however, that in appropriate circumstances, we possess jurisdiction to reopen uncontested assessments that have become final Commission orders under section 105(a). Jim Walter Res., Inc., 15 FMSHRC 782, 786-89 (May 1993) (“JWR”). In evaluating requests to reopen final section 105(a) orders, the Commission has found guidance in Rule 60(b) of the Federal Rules of Civil Procedure under which, for example, a party could be entitled to relief from a final order of the Commission on the basis of mistake, inadvertence, or excusable neglect. See 29 C.F.R. § 2700.1(b) (“the Commission and its Judges shall be guided so far as practicable by the Federal Rules of Civil Procedure”); JWR, 15 FMSHRC at 787. We have also observed that default is a harsh remedy and that, if the defaulting party can make a showing of good cause for a failure to timely respond, the case may be reopened and appropriate proceedings on the merits permitted. See Coal Prep. Servs., Inc., 17 FMSHRC 1529, 1530 (Sept. 1995).

On April 6, 2010, the Department of Labor’s Mine Safety and Health Administration (“MSHA”) issued Proposed Assessment Nos. 000215828 and 000215805 to Sapphire. On June 30, 2010, MSHA issued delinquency letters in both cases. Sapphire asserts that it timely faxed contest forms to MSHA’s Civil Penalty Compliance Office on April 14, 2010 – six business days after issuance of the proposed assessment. As support, Sapphire submits, in part, copies of the documents allegedly filed, including the proposed assessment forms, and a facsimile confirmation page.

Sapphire paid the remaining uncontested citations on May 10, 2010.

Although the Secretary states that MSHA has no record of receiving penalty contest forms for the referenced cases, she does not dispute Sapphire’s assertions. The Secretary nevertheless opposes Sapphire’s request to reopen on the grounds that Sapphire has failed to explain why it waited four months after MSHA issued the delinquency letters to file its motions to reopen.

Having reviewed Sapphire’s request to reopen and the Secretary’s response thereto, we conclude that Sapphire has failed to explain why it delayed approximately four months in responding to the delinquency notice sent by MSHA.

Therefore, the operator has failed to
provide an adequate basis for the Commission to reopen the penalty assessments. Accordingly, we hereby deny without prejudice Sapphire’s requests to reopen. FKZ Coal Inc., 29 FMSHRC 177, 178 (Apr. 2007); Petra Materials, 31 FMSHRC 47, 49 (Jan. 2009). The words “without prejudice” mean that Sapphire may submit another request to reopen Assessment Nos. 000215828 and 000215805.

Any amended or renewed request by the operator to reopen this assessment must be filed within 30 days of this order. Any such request filed after that time will be denied with prejudice.

Mary Lu Jordan, Chairman

Michael F. Duffy, Commissioner

Michael G. Young, Commissioner

Robert F. Cohen, Jr., Commissioner

Patrick K. Nakamura, Commissioner

Distribution:

Robert H. Beatty, Jr., Esq.

Dinsmore & Shohl, LLP

215 Don Knotts Blvd., Suite 310

Morgantown, WV 26501

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Melanie Garris

Office of Civil Penalty Compliance

MSHA

U.S. Dept. of Labor

1100 Wilson Blvd., 25th Floor

Arlington, VA 22209-3939

Chief Administrative Law Judge Robert J. Lesnick

Federal Mine Safety & Health Review Commission

601 New Jersey Avenue, N.W., Suite 9500

Washington, D.C. 20001-2021