Genwal Resources, Inc., et al.

Read the official release (fmshrc.gov)

Plain-English summary

The parties submitted a consolidated settlement covering citations and orders arising from the 2007 Crandall Canyon Mine fatal accidents and numerous other enforcement dockets involving four related operators. The companies admitted the Mine Act violations for purposes of the agency proceedings, and the Secretary supplied factual support for the agreed modifications and penalties. Judge Richard W. Manning approved the settlement, including vacaturs, reduced characterizations, and retained flagrant findings summarized in the decision's tables. He ordered combined payments of $1,150,000 and dismissed the contest proceedings.

Decision snapshot

• Cited standards: 30 C.F.R. §§ 50.10, 50.20(a), 75.203(a), 75.220(a), 75.223(a), 75.223(b), and 75.364(h)
• Outcome: The consolidated settlement was approved, the listed citations and orders were affirmed, modified, or vacated, and total penalties of $1.15 million were ordered.
• Key point: A large multi-docket settlement can resolve citation characterizations and penalties when the motion provides factual support and addresses the statutory penalty factors.

Full text (FMSHRC public release)

Federal Mine Safety and Health Review Commission

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

721 19TH STREET, SUITE 443

DENVER, CO 80202-2500

303-844-5267/FAX 303-844-5268

October 4, 2012

GENWAL RESOURCES, INC., and

:

CONTEST PROCEEDINGS

UTAH AMERICAN ENERGY, INC.

:

Contestants

:

Docket No. WEST 2008-1422-R

:

Order No. 7697001; 07/24/2008

:

:

Docket No. WEST 2008-1423-R

:

Order No. 7697002; 07/24/2008

:

:

Docket No. WEST 2008-1424-R

:

Order No. 7697003; 07/24/2008

:

:

Docket No. WEST 2008-1425-R

:

Order No. 7697004; 07/24/2008

:

:

Docket No. WEST 2008-1426-R

:

Order No. 7697005; 07/24/2008

:

:

Docket No. WEST 2008-1427-R

v.

:

Order No. 7697006; 07/24/2008

:

:

Docket No. WEST 2008-1428-R

:

Order No. 7697007; 07/24/2008

:

:

Docket No. WEST 2008-1429-R

:

Order No. 7697008; 07/24/2008

:

:

Docket No. WEST 2008-1430-R

:

Citation No. 7697011; 07/24/2008

:

:

Docket No. WEST 2008-1431-R

:

Citation No. 7697012; 07/24/2008

:

:

Docket No. WEST 2008-1432-R

:

Order No. 7018222; 07/24/2008

:

SECRETARY OF LABOR,

:

Docket No. WEST 2008-1433-R

MINE SAFETY AND HEALTH

:

Citation No. 7018224; 07/24/2008

ADMINISTRATION (MSHA),

:

Respondent

:

Docket No. WEST 2008-1434-R

:

Citation No. 7018225; 07/24/2008

:

:

Docket No. WEST 2008-1435-R

:

Citation No. 7018226; 07/24/2008

:

Docket No. WEST 2008-1436-R

:

Order No. 7018227; 07/24/2008

:

:

Docket No. WEST 2008-1437-R

:

Order No. 7018228; 07/24/2008

:

:

Docket No. WEST 2008-1438-R

:

Citation No. 7018229; 07/24/2008

:

:

Crandall Canyon Mine

:

Mine ID 42-01715

SECRETARY OF LABOR,

:

CIVIL PENALTY PROCEEDINGS

MINE SAFETY AND HEALTH

:

ADMINISTRATION (MSHA),

:

Docket No. WEST 2008-1475

Petitioner

:

A.C. No. 42-01715-159798-01

:

v.

:

Docket No. WEST 2008-1476

:

A.C. No. 42-01715-159798-02

GENWAL RESOURCES, INC., and

:

UTAH AMERICAN ENERGY, INC.

:

Respondent

:

Crandall Canyon Mine

:

SECRETARY OF LABOR,

:

CIVIL PENALTY PROCEEDINGS

MINE SAFETY AND HEALTH

:

ADMINISTRATION (MSHA),

:

Docket No. WEST 2009-86

Petitioner

:

A.C. No. 42-02028-164100-01

:

:

Docket No. WEST 2009-87

:

A.C. No. 42-02028-164100-02

v.

:

:

Docket No. WEST 2009-145

:

A.C. No. 42-02028-167616-02

:

:

Docket No. WEST 2009-147

:

A.C. No. 42-02028-167044-02

ANDALEX RESOURCES, INC.,

:

Respondent

:

Aberdeen Mine

:

SECRETARY OF LABOR,

:

CIVIL PENALTY PROCEEDINGS

MINE SAFETY AND HEALTH

:

ADMINISTRATION (MSHA),

:

Docket No. WEST 2011-1482

Petitioner

:

A.C. No. 42-02241-263701

:

v.

:

Docket No. WEST 2012-97

:

A.C. No. 42-02241-266768

UTAH AMERICAN ENERGY, INC.,

:

Respondent

:

Lila Canyon Mine

SECRETARY OF LABOR,

:

CIVIL PENALTY PROCEEDINGS

MINE SAFETY AND HEALTH

:

ADMINISTRATION (MSHA),

:

Docket No. WEST 2011-1062

Petitioner

:

A.C. No. 42-02233-254745

:

:

Docket No. WEST 2011-1223

:

A.C. No. 42-02233-257835

:

:

Docket No. WEST 2011-1312

:

A.C. No. 42-02233-260425

:

:

Docket No. WEST 2011-1479

:

A.C. No. 42-02233-263445

:

:

Docket No. WEST 2012-94

v.

:

A.C. No. 42-02233-266525-01

:

:

Docket No. WEST 2012-95

:

A.C. No. 42-02233-266525-02

:

:

Docket No. WEST 2012-234

:

A.C. No. 42-02233-269203

:

:

Docket No. WEST 2012-326

:

A.C. No. 42-02233-272063

:

:

Docket No. WEST 2012-490

:

A.C. No. 42-02233-277776

:

:

Docket No. WEST 2012-651

:

A.C. No. 42-02233-280469

:

:

Docket No. WEST 2012-704

:

A.C. No. 42-02233-283085

:

:

Docket No. WEST 2012-901

:

A.C. No. 42-02233-286086

:

WEST RIDGE RESOURCES, INC.,

:

Docket No. WEST 2012-1039

Respondent

:

A.C. No. 42-02233-289173

:

:

Docket No. WEST 2012-1070

:

A.C. No. 42-02233-291876-01

:

:

Docket No. WEST 2012-1071

:

A.C. No. 42-02233-291876-02

:

:

West Ridge Mine

ORDER TO MODIFY

DECISION APPROVING SETTLEMENT

ORDER TO PAY PENALTIES

Before:             Judge Manning

These cases are before me upon notices of contest and petitions for assessment of civil
penalty under section 105(d) of the Federal Mine Safety and Health Act of 1977 (the “Mine
Act”). These proceedings concern dockets arising from the fatal accidents which occurred at the
Crandall Canyon Mine in August of 2007, as well other dockets that involve citations and orders
that the parties have resolved as a result of their negotiations.

The Secretary has filed a motion to approve settlement of all of the pending citations and
order in the above-captioned dockets (40 violations). The motion to approve settlement
specifies the factual bases for the modifications to the citations and orders and support for the
changes in the originally proposed amounts for these violations.

The Secretary represents that, after careful consideration of the penalty criteria set forth
in section 110(i) of the Mine Act, she has concluded that the modifications to the citations and
orders and the amended penalties proposed in the settlement motion are in the public interest
and adequately promote the purposes of the Mine Act, including the deterrence of future
violations. The mine operators that were charged with the violations have admitted, for
purposes of proceedings under the Mine Act, that they violated the Mine Act, the Secretary’s
regulations, or the Secretary’s safety standards as set forth in the motion to approve settlement
and as summarized in this decision approving the settlement.

The parties agree that Andalex Resources, Inc. should be substituted for Utah American
Energy, Inc., for all purposes in contest Docket Nos. WEST 2008-1422-R through WEST 2008-1438-R and in penalty Docket Nos. WEST 2008-1475 and WEST 2008-1476. Genwal
Resources, Inc. was and continues to be a wholly owned subsidiary of Andalex Resources, Inc.

I have considered the representations and documentation submitted in these cases, and I
conclude that the proffered settlement is appropriate under all six of the criteria set forth in
section 110(i) of the Mine Act.

30 U.S.C. § 820(i). The Secretary agrees to make the
modifications to the citations and orders as reflected in the motion and as shown below:

TABLE 1

Penalty Docket

Citation/Order

Type of Violation

Standard

Characterizations

Proposed
Penalty

Amended
Penalty

WEST 2008-1475

7018222

75.220(a)

104(d)(2), Occurred, S&S,

Reckless Disregard, Flagrant

$220,000

$207,000

`

7018224

50.20(a)

Vacated

$60,000

0

7018225

50.20(a)

104(a), No Likelihood, Non-S&S, High Negligence

$60,000

$5,000

7018226

50.20(a)

104(a), No Likelihood, Non-S&S, Moderate negligence

$25,000

$2,500

7018227

75.220(a)

104(a), Highly Likely, S&S

Moderate negligence

$60,000

$28,500

7018228

75.220(a)

104(a), Highly Likely, S&S,

Moderate negligence

$60,000

$28,500

7018229

75.223(b)

104(a), Unlikely, Non-S&S,

Moderate negligence

$25,000

$2,500

7697001

50.10

Vacated

$220,000

0

7697002

50.10

104(d)(2), Occurred, S&S,

Reckless Disregard, Flagrant

$220,000

$207,000

7697003

50.10

104(d)(2), Occurred, S&S

High negligence, Not Flagrant

$220,000

$60,000

7697004

75.223(a)

Vacated

$60,000

0

7697005

75.223(a)

104(a), Occurred, S&S,

Moderate negligence

$60,000

$60,000

7697006

75.223(a)

104(d)(2), Occurred, S&S,

Reckless Disregard, Flagrant

$220,000

$220,000

7697007

75.203(a)

104(d)(2), Occurred, S&S,

High negligence

$60,000

$60,000

7697008

75.203(a)

104(d)(2), Occurred, S&S,

High negligence

$60,000

$60,000

7697011

50.10

104(a), Unlikely, Non-S&S,

Low negligence

$5,000

$5,000

7697012

§ 316(b)

104(a), S&S, Low negligence

$4,000

$3,000

Total Docket Penalty

$1,639,000

$949,000

WEST 2008-1476

Citation

Standard

Gravity and Negligence

Proposed
Penalty

Amended
Penalty

7018230

75.364(h)

104(a), Unlikely, Non-S&S,

Moderate negligence

$117

$117

7018231

75.364(h)

104(a), Unlikely, Non-S&S,
Moderate negligence

$117

$117

7018232

75.364(h)

104(a), Unlikely, Non-S&S,
Moderate negligence

$117

$117

Total Docket Penalty

$351

$351

Total Penalties

$1,639,351

$949,351

OTHER SETTLED DOCKETS

TABLE 2

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2009-86

7288432

$8,421

$5,565

7288435

$9,122

$6,025

8454006

$1,657

$1,100

8454007

$2,473

$1,635

Total Docket Penalty

$21,673

$14,325

TABLE 3

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2009-87

8454003

$334

$225

8454005

$334

$225

8454008

$190

$125

8454013

$263

$180

Total Docket Penalty

$1,121

$755

TABLE 4

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2009-145

7636839

$2,515

$1,665

Total Docket Penalty

$2,515

$1,665

TABLE 5

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2009-147

6686481

$1,026

$680

7288325

$585

$390

Total Docket Penalty

$1,611

$1,070

TABLE 6

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2011-1062

8461506

$1,412

$935

8461456

$1,304

$870

8461511

$807

$535

8461512

$2,901

$1,915

8461514

$460

$310

8458756

$687

$455

8461515

$5,080

$3,355

8459017

$1,111

$735

Total Docket Penalty

$13,762

$9,110

TABLE 7

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2011-1223

8459020

$460

$305

8458759

$807

$535

8461068

$263

$175

8461069

$263

$175

8461465

$807

$535

8461466

$807

$535

8461467

$3,996

$2,640

8459204

$2,106

$1,390

8459205

$425

$280

8459206

$190

$125

8461533

$873

$580

8461534

$138

$90

Total Docket Penalty

$11,135

$7,365

TABLE 8

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2011-1312

8461535

$873

$580

8465080

$2,678

$1,770

8461537

$873

$580

8461070

$207

$140

8461539

$1,530

$1,010

8461542

$138

$90

8461547

$5,080

$3,360

8461548

$5,080

$3,360

8461549

$687

$460

8461550

$687

$460

Total Docket Penalty

$17,833

$11,810

TABLE 9

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2011-1479

8461528

$11,306

$7,460

7289401

$585

$390

8461552

$873

$579

8461554

$1,026

$680

7289405

$2,901

$1,915

7289406

$585

$386

8461558

$873

$576

8461560

$873

$576

8458299

$3,689

$2,435

8458300

$499

$330

6688635

$1,657

$1,095

6688636

$1,795

$1,185

6688640

$585

$386

6688641

$687

$455

8461683

$873

$576

8459304

$873

$576

8459422

$1,203

$795

8461613

$946

$625

Total Docket Penalty

$31,829

$21,020

TABLE 10

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2011-1482

8460982

$1,200

$800

Total Docket Penalty

$1,200

$800

TABLE 11

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-94

8458987

$2,473

$1,640

8458988

$2,473

$1,640

8458990

$2,473

$1,640

8458991

$2,473

$1,640

Total Docket Penalty

$9,892

$6,560

TABLE 12

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-95

8461541

$1,304

$860

8461543

$1,203

$800

8461555

$1,203

$800

8461692

$946

$630

8461696

$540

$360

8461697

$585

$390

8461698

$4,329

$2,860

Total Docket Penalty

$10,110

$6,700

TABLE 13

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-97

8458986

$807

$540

Total Docket Penalty

$807

$540

TABLE 14

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-234

8461702

$585

$390

8461703

$4,329

$2,860

8461704

$807

$540

8459309

$362

$240

8459310

$1,203

$800

8461706

$585

$390

8461707

$873

$580

8461708

$585

$390

8461709

$499

$330

8461710

$499

$330

8461711

$499

$330

Total Docket Penalty

$10,826

$7,180

TABLE 15

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-326

8461532

$1,304

$860

8461715

$6,458

$4,265

8461716

$6,458

$4,265

8461717

$6,458

$4,265

8461718

$1,111

$740

8461720

$873

$575

8461763

$873

$575

8461764

$1,026

$680

8461767

$1,026

$680

8458389

$946

$630

8458391

$634

$420

8459325

$1,304

$860

8461768

$873

$575

8461769

$873

$575

8461770

$873

$575

8461771

$873

$575

Total Docket Penalty

$31,963

$21,115

TABLE 16

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-490

8459704

$745

$495

8461679

$1,412

$935

8461680

$1,412

$935

8461419

$634

$420

8461421

$3,405

$2,250

8461423

$807

$535

8461424

$946

$625

8461426

$308

$209

8459560

$2,106

$1,390

8461427

$873

$580

8461428

$745

$495

8461430

$1,530

$1,010

Total Docket Penalty

$14,923

$9,879

TABLE 17

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-651

8461691

$1,304

$860

8461283

$807

$535

8461699

$425

$280

8459432

$807

$535

8461714

$585

$390

8459544

$5,961

$3,935

8461631

$1,203

$795

8459552

$1,795

$1,185

8459556

$1,657

$1,095

8461425

$1,304

$860

8461847

$634

$420

8461433

$687

$455

8461435

$1,026

$680

8461741

$585

$390

8461436

$1,026

$680

8461782

$946

$625

8461783

$946

$625

8459227

$1,111

$735

8459789

$425

$280

Total Docket Penalty

$23,234

$15,360

TABLE 18

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-704

8461882

$873

$580

8459796

$1,657

$1,095

8459716

$1,026

$680

8461888

$873

$580

8461889

$16,867

$11,135

8461890

$2,473

$1,635

8460956

$3,689

$2,435

8460958

$3,689

$2,435

Total Docket Penalty

$31,147

$20,575

TABLE 19

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-901

8460955

$1,111

$735

8460959

$873

$580

8461858

$873

$580

8459719

$1,111

$735

8459722

$1,026

$680

8461892

$873

$580

8461921

$2,678

$1,770

8461963

$873

$580

8461893

$3,689

$2,435

8459803

$873

$580

8461964

$873

$580

8461965

$873

$580

Total Docket Penalty

$15,726

$10,415

TABLE 20

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-1039

8461968

$873

$580

8461789

$585

$390

8461970

$1,026

$680

8461759

$9,634

$6,360

8461760

$9,634

$6,360

8461861

$9,634

$6,360

8461903

$190

$125

8461862

$2,106

$1,390

Total Docket Penalty

$33,682

$22,245

TABLE 21

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-1070

8461891

$11,000

$7,260

Total Docket Penalty

$11,000

$7,260

TABLE 22

Penalty Docket

Citation/Order

Proposed Penalty

Amended Penalty

WEST 2012-1071

8465214

$1,026

$680

8459732

$1,530

$1,010

8459733

$687

$455

8459805

$946

$625

8459740

$1,530

$1,010

8482001

$745

$495

8461867

$946

$625

Total Docket Penalty

$7,410

$4,900

ORDER

For good cause shown, the motion to approve settlement is GRANTED. The citations
and orders are hereby AFFIRMED, MODIFIED, or VACATED as summarized above. It is
ORDERED that Andalex Resources, Inc., and Genwal Resources, Inc., pay a penalty of
$949,351.00, that Andalex Resources, Inc., pay a further penalty of $17,815.00, that West Ridge
Resources, Inc., pay a penalty of $181,494.00, and that UtahAmerican Energy, Inc., pay a

penalty of $1,340.00. Each of these payments shall be made within 30 days of the date of this
decision.

The contest proceedings are hereby DISMISSED.

/s/ Richard W. Manning

Richard W. Manning

Administrative Law Judge

Distribution:

Thomas C. Means, Esq., Crowell & Moring, 1001 Pennsylvania Ave NW Fl 10, Washington, DC
20004-2595

Marco M. Rajkovich, Jr., Esq., Rajkovich, Williams, Kilpatrick & True, PLLC, 2333 Alumni
Park Plaza, Suite 310, Lexington, KY 40517

Jason W. Hardin, Esq., Fabian & Clendenin, P.C., 215 State Street, Suite 1200, Salt Lake City,
UT 84111-2323

Timothy S. Williams, Esq., Office of the Solicitor, U.S. Department of Labor, 1999 Broadway,
Suite 1600, Denver, CO 80202

Derek J. Baxter, Esq., Office of the Solicitor, U.S. Department of Labor, 1100 Wilson Boulevard
22nd Floor, Arlington, VA 22209-2296

/atc