Secretary of Labor v. Prairie State Generating Company, LLC

Plain-English summary

Prairie paid 19 of 23 penalties and intended to contest the other four. It said that it mailed the contest on the payment date but used the wrong address or otherwise made a mailing mistake. After MSHA sent a delinquency notice, Prairie moved to reopen the four citations. The Secretary did not oppose relief. The Commission found that the late filing resulted from a mistake, reopened the four citations, and remanded the case.

Decision snapshot

• Cited authority: 30 U.S.C. § 815(a)
• Outcome: Four citations were reopened and remanded.
• Key point: A contest mailed to the wrong address supported reopening when the operator had separately paid the uncontested penalties.

Full text (FMSHRC public release)

FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

1331
PENNSYLVANIA AVE., N.W., SUITE 520N

WASHINGTON,
DC 20004-1710

SECRETARY
OF LABOR,

MINE
SAFETY AND HEALTH

ADMINISTRATION
(MSHA)

                    v.

PRAIRIE
STATE GENERATING

COMPANY
LLC,

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Docket
No. LAKE 2023-0038

A.C.
No. 11-03193-559468

BEFORE: Jordan,
Chair; Althen, Rajkovich, and Baker, Commissioners

ORDER

BY THE COMMISSION:

        This

case arises under the Federal Mine Safety and Health Act of 1977, 30 U.S.C. §
801 et seq. (2018) (“Mine Act”). On November 18, 2022, the Commission received
from Prairie State Generating Company LLC (“Prairie”) a motion to reopen a final
order of the Commission pursuant to section 105(a) of the 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 orders, the Commission has found guidance
in Rule 60(b) of the Federal Rules of Civil Procedure, under which the
Commission may relieve a party from a final order of the Commission on the
basis of mistake, inadvertence, excusable neglect, or other reason justifying
relief. 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).

        Records

of the Department of Labor’s Mine Safety and Health Administration (“MSHA”)
indicate that the proposed assessment was delivered to the operator on August 8,
2022, and became a final order of the Commission on September 7, 2022. On
August 17, 2022, Prairie paid the proposed civil penalty for 19 of the 23
citations at issue in the assessment. Praire asserts that on that day it also
mailed a notice of contest, reflecting its intent to contest the remaining four
citations and civil penalties. On October 24, 2022, MSHA sent the operator a
delinquency notice after failing to receive Prairie’s notice of contest. On
November 18, 2022, Prairie filed a motion to reopen the four citations that it
originally sought to contest, stating that it mailed the form to the wrong
address or otherwise made a mistake in mailing it. The Secretary of Labor does
not oppose the operator’s motion, but reminds Prairie to ensure that future
contests are timely mailed to MSHA’s Civil Penalty Compliance Office in
Arlington, Virginia.

Having reviewed Prairie’s request and the Secretary’s response, we find that the
operator has demonstrated that its failure to timely file was the result of a
mistake. In the interest of justice, we hereby
reopen Citation Nos. 9199089, 9199090, 9196779, and 9199099 and remand the case
to the Chief Administrative Law Judge for further proceedings pursuant to the
Mine Act and the Commission’s Procedural Rules, 29 C.F.R. Part 2700. Accordingly,
consistent with Rule 28, the Secretary shall file a petition for
assessment of penalty within 45 days of the date of this order. See 29
C.F.R. § 2700.28.

/s/
Mary Lu Jordan

Mary Lu Jordan,
Chair

/s/ William I.
Althen

William I. Althen,
Commissioner

/s/ Marco M. Rajkovich,
Jr.

Marco M.
Rajkovich, Jr., Commissioner

/s/ Timothy J.
Baker

Timothy J. Baker,
Commissioner

Distribution:

Philip
K. Kontul, Esq.

Ogletree,
Deakins, Nash, Smoek & Stewart, P.C.

One
PPG Place, Ste. 1900

Pittsburgh,
PA 15222

[email protected]

April
Nelson, Esq.

Associate
Solicitor

Office
of the Solicitor

U.S.
Department of Labor

Division
of Mine Safety and Health

201
12th Street South, Suite 401

Arlington,
VA 22202

[email protected]

Emily
Toler Scott, Esq.

Counsel
for Appellate Litigation

Office
of the Solicitor

U.S.
Department of Labor

Division
of Mine Safety and Health

201
12th Street South, Suite 401

Arlington,
VA 22202

[email protected]

Melanie
Garris

USDOL/MSHA,
OAASEI/CPCO

201
12th Street South, Suite 401

Arlington,
VA 22202

[email protected]

Chief
Administrative Law Judge Glynn F. Voisin

Federal
Mine Safety Health Review Commission

Office
of the Chief Administrative Law Judge

1331
Pennsylvania Avenue, NW Suite 520N

Washington,
DC 20004-1710

[email protected]