Secretary of Labor v. Big Ridge, Inc.

Plain-English summary

MSHA cited Big Ridge for violating electrical-equipment examination requirements at the Willow Lake Portal Mine and proposed $25,810 based on high negligence and unwarrantable failure. The Judge removed those enhanced findings, found moderate negligence, and assessed $15,000. While the Secretary's review petition was pending, the parties settled by restoring the original high-negligence and unwarrantable-failure designations but retaining the Judge's $15,000 penalty. The Commission approved the settlement as supported by the record and the Mine Act penalty criteria. Because the mine had permanently closed and Big Ridge had already paid the assessed penalties, no further payment was due.

Decision snapshot

• Cited standard: 30 C.F.R. § 75.512
• Outcome: The original high-negligence and unwarrantable-failure findings were restored, the penalty remained $15,000 instead of the proposed $25,810, and no additional payment was required.
• Key point: A settlement may preserve a reduced penalty while restoring the citation's original enhanced negligence and enforcement designations.

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION

1331 PENNSYLVANIA
AVENUE, NW, SUITE 520N

WASHINGTON, D.C. 20004‑1710

SECRETARY OF LABOR,                            :        

MINE SAFETY AND HEALTH                 
:         Docket Nos.    LAKE 2013-66                      

ADMINISTRATION (MSHA)                    
:                                 LAKE 2012-506

:                                 LAKE 2013-251

v.                                              
:                                 LAKE 2013-252                        

:                                 LAKE 2013-307                    

BIG RIDGE, INC.                                          
:                                 LAKE 2012-896

:                                            

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

DECISION APPROVING SETTLEMENT

BY THE COMMISSION:

These proceedings
arising under the Federal Mine Safety and Health Act of 1977,

30 U.S.C. § 801 et seq.
(2012) (“Mine Act”), involve Order No. 8445268 in Docket No. LAKE 2013-66,
which was issued by the Department of Labor’s Mine Safety and Health
Administration to Big Ridge, Inc. Big Ridge contested the order and associated
civil penalty before a Commission Administrative Law Judge, who issued a decision
in the case on April 16, 2014. 36 FMSHRC 999 (Apr. 2014) (ALJ).

Order
No. 8445268 was issued under section 104(d)(1) of the Mine Act, 30 U.S.C.

§ 814(d)(1), for a violation
of the electrical equipment examination requirements set forth in 30 C.F.R. §
75.512. The Secretary alleged that the violation was an unwarrantable failure
to comply with a mandatory standard that resulted from the operator’s high
negligence, and proposed a penalty of $25,810. The Judge removed the
unwarrantable failure designation, determined that Big Ridge had acted with
moderate negligence, and assessed a penalty of $15,000 for this violation. 36
FMSHRC at 1024-25, 1046. The Secretary of Labor filed a petition for
discretionary review (“PDR”), which we granted. The Secretary’s PDR sought to
reverse the Judge’s changes to the unwarrantable failure and negligence
designations for this order, as well as a higher penalty. Neither party sought
review of the remaining citations, orders, or their associated penalties.

The Secretary
and Big Ridge subsequently filed a joint motion requesting that the Commission
approve a settlement agreement between the parties. The request for approval of
settlement was filed in accordance with section 110(k) of the Mine Act, 30
U.S.C. § 820(k), which provides, in
relevant part, that “[n]o proposed penalty which has been contested before the
Commission under section 105(a) shall be compromised, mitigated, or settled
except with the approval of the Commission.” Commission Procedural Rule 31(a)
provides that a “proposed penalty that has been contested before the Commission
may be settled only with the approval of the Commission upon motion.” 29 C.F.R.
§ 2700.31(a). The movant is required to provide “facts in support of the
penalty agreed to by the parties.” 29 C.F.R. §§ 2700.31(b)(1), (c)(1). 

In
their joint filing, the parties seek to settle this matter for the $15,000
penalty assessed by the Judge for Order No. 8445268. This amount is a reduction
from the Secretary’s original penalty proposal of $25,810. 36 FMSHRC at 1025. The
parties have also agreed that the Secretary’s original unwarrantable failure
and high negligence designations will be restored.

The
parties’ joint request for approval of settlement is granted. In light of the
factual justifications provided by the parties, we determine that the penalty
is appropriate under the criteria set forth in section 110(i) of the Mine Act,
30 U.S.C. § 820(i). We further find that the terms of the settlement are supported
by the record, in accordance with Commission case law. See Black Beauty Coal
Co., 34 FMSHRC 1856, 1864 (Aug. 2012), citing Knox Ct.y Stone Co.,
3 FMSHRC 2478, 2480 (Nov. 1981). Finally, we note that the Willow Lake
Portal Mine, where the violation took place, has been permanently closed. 36
FMSHRC at 1037.  Because the operator has paid the assessed penalties in full,
Big Ridge owes no further payment in executing the terms of the settlement.

/s/ Mary Lu Jordan

Mary
Lu Jordan, Chairman

/s/
Michael G. Young

Michael
G. Young, Commissioner

/s/
Robert F. Cohen, Jr.

Robert
F. Cohen, Jr., Commissioner  

/s/ Patrick K. Nakamura

Patrick K. Nakamura, Commissioner

/s/
William I. Althen

William
I. Althen, Commissioner