Secretary of Labor v. Teichert Aggregates

Plain-English summary

Teichert Aggregates operated a surface sand and gravel mine where a conveyor head pulley could be reached from a work platform surrounded by handrails. Judge Margaret A. Miller held that the handrails did not adequately guard the moving parts because a miner could climb through or over them, and the guarding standard must account for a worker entering without following lockout procedures. MSHA materials also gave the operator fair notice that a handrail alone was insufficient. The judge affirmed the non-S&S, low-negligence citation and assessed the proposed $114 penalty.

Decision snapshot

• Cited standard: 30 C.F.R. § 56.14107(a)
• Outcome: The guarding citation was affirmed and a $114 penalty was assessed.
• Key point: A lockout policy and surrounding handrail do not replace a guard that prevents contact with accessible moving machine parts.

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH
REVIEW COMMISSION

OFFICE OF
ADMINISTRATIVE LAW JUDGES

721 19TH STREET, SUITE
443

DENVER, CO 80202-2500

TELEPHONE: 303-844-5266
/ FAX: 303-844-5268

May 9, 2017

SECRETARY
OF LABOR

MINE
SAFETY AND HEALTH   

ADMINISTRATION,
(MSHA),

Petitioner,

v.

TEICHERT
AGGREGATES,

Respondent.

CIVIL
PENALTY PROCEEDING

Docket
No. WEST 2017-0028

A.C.
No. 04-02792-419417

Mine:
Vernalis Plant

DECISION AND
ORDER

Appearances:   Randy
L. Cardwell, Mine Safety and Health Administration, U.S. Department of Labor, Vacaville,
California, for Petitioner;

Luis
A. Garcia, Office of the Solicitor, U.S. Department of Labor, Los Angeles,
California, for Petitioner;

Alberto
Ramirez, pro se , Sacramento, California, for Respondent.

Before:                        Judge
Miller

This case is
before me upon a petition for assessment of civil penalty filed by the
Secretary of Labor pursuant to Section 105(d) of the Federal Mine Safety and
Health Act of 1977, 30 U.S.C. § 815(d) (“the Act”). This docket involves one
citation issued pursuant to Section 104(a) of the Act with an originally proposed
penalty of $114.00. The parties presented testimony and evidence regarding the citation
at a hearing held in Sacramento, California, on April 12, 2017. The Secretary
provided a memorandum of law regarding this single guarding violation prior to
the hearing.

I.       
FINDINGS
OF FACT AND CONCLUSIONS OF LAW

The Vernalis Plant is a surface sand and
gravel mine located in San Joaquin County, California. The parties have
stipulated that Teichert Aggregates is an “operator” as defined in Section 3(d)
of the Mine Act, 30 U.S.C. § 803(d), and that the mine is subject to the
provisions of the Mine Act and the jurisdiction of the Commission. Jt. Stips.
¶¶ 2-6.

Citation No. 8873581 was issued for
violation of 30 C.F.R. § 56.14107(a) for an inadequate guard on a head pulley. The
Secretary alleges that the violation was unlikely to cause injury, that if an
injury did occur it would be permanently disabling, that the violation was not significant
and substantial, and that it was the result of low negligence. The Secretary
proposed a penalty of $114.00 based on his penalty criteria. Based upon the
parties’ stipulations, my review of the entire record, my observation of the
demeanors of the witnesses, and consideration of the parties’ legal arguments,
I find that the Secretary has proven that a violation occurred as alleged.

A.      MSHA’s
Inspection

Inspector William Edminister has been a
mine inspector for nine years, and has a total of 16 years mining experience. He
is familiar with the Vernalis sand and gravel operation and familiarized
himself with the mine file prior to conducting an inspection there. The mine
employs approximately 40 to 50 miners, with production primarily on the day
shift. Edminister travelled to the mine on August 1, 2016, to conduct a regular
inspection beginning in the late afternoon. During the course of his inspection,
he observed the 2 CNV 25 tripper conveyor. The tripper conveyor is an overland
conveyor that moves finished product from one location to another, where it is
dumped onto a stock pile. The end of the conveyor, where this citation was
issued, is on a trolley and can be moved to change the location of dumping. Edminister
and the others in the inspection party walked the length of the conveyor on the
designated walkway, up the slope to the discharge point at the top. At the end
of the conveyor walkway, the inspector climbed a ladder about seven or eight feet
up to the work platform. From that platform, Edminister observed a second work
platform higher up where the head pulley was located. The platform with the pulley
was surrounded by a handrail. The Respondent’s Exhibit 3-14 shows an aerial
view of the conveyor and work platform with the pulley. Edminister did not
enter the work platform, but observed that a miner could enter it by climbing
over or through the handrails. Other than the handrails, the head pulley was
not guarded on either side. The unguarded area was 26 inches wide and 40 inches
above the work platform. The aerial photograph shows a shovel on the work
platform that miners use to dislodge material in the discharge chute, bringing
them very close to the unguarded portion of the pulley.

The Secretary’s Exhibits 3 and 4 are
photographs that show the unguarded pulley as observed by the inspector. The
inspector explained that there were exposed moving machine parts at the drive
shaft area where the head pulley passes over the drum. The primary purpose of
the work platform, which was added after the conveyor was purchased, is to
service the head pulley. The bearings must be changed periodically, and miners
must occasionally access the platform to unclog the discharge point. Some maintenance
on the pulley can be completed by visual inspection, and lubrication is done with
a remote grease line. However, if the grease line fails or material builds up
at the chute, a miner must enter the area and will be exposed to the moving
parts.

Edminister testified that the moving
parts as he observed them could pull a miner into the area, possibly causing a
fatal injury. He was told that the pulley had been unguarded for quite a while,
but he was not certain exactly how long. He understood that the mine had a lock-out/tag-out
policy for anyone accessing the area and that the area was not accessed often. Due
to the limited exposure, he designated the citation as non-S&S and unlikely
to cause injury. He chose also to designate the negligence as low because mine
management believed that the handrail around the work platform was sufficient
to protect miners from the pulley.

The
mine operator called three witnesses, all of whom were present for at least
part of this inspection. Chris Walters, the assistant hot plant operator, has
worked at the plant for 13 years. He has not worked on the cited platform but testified
that the miners are trained not to enter the area unless they have de-energized
and locked out the belt. He also explained that the miners know not to go past
the handrails on the platform, and that the only time a miner would come close
to the pulley would be to do work on it. He explained that miners occasionally
enter the area to change the direction of the discharge chute, but that they
de-energize the equipment first. The moving parts are not accessible, in his
view, when miners are following the safety procedure. Mark Muniain, the plant
repairmen, agreed that the area is accessed only for maintenance, which is
infrequent. He testified that it was possible for a miner to go through or over
the rails and access the cited area, but that this would be against the mine’s
safety procedures.

Michael Goss has been a superintendent
for Teichert for 14 years and has worked at the Vernalis location slightly more
than a year. He was called at home when Edminister arrived to conduct an
inspection, and he returned to the mine to accompany the inspector. He was
present for the inspection of the conveyor area and the work platform. He
explained that the unguarded pulley had been unguarded during the year he was
at the plant, and he believed that the work platform had been added eight or
ten years earlier when the bearings on the pulley had to be changed. He believes
additional guarding was not necessary because the area with moving machine
parts was completely enclosed by a handrail with a mid-rail. In his view, if
someone were to trip and fall as they entered the work platform, the handrail
would prevent contact with the unguarded area.  

B.     
The
Violation

Based on his observations, Edminister
issued Citation No. 8873581 for an unguarded head pulley. The Secretary alleges
a violation of 30 C.F.R. § 56.14107, which provides that

(a) Moving
machine parts shall be guarded to protect persons from contacting gears,
sprockets, chains, drive, head, tail, and takeup pulleys, flywheels, couplings,
shafts, fan blades, and similar moving parts that can cause injury.

(b) Guards shall not be required where
the exposed moving parts are at least seven feet away from walking or working
surfaces.

The parties
agree that a work platform on the 2 CNV 25 tripper conveyor provided access
to the head pulley, and that there were moving machine parts inside the pulley
which had the potential to cause injury. The parts were exposed to someone
standing on the work platform. The issue is whether the machine parts were
“guarded” under the meaning of the standard. The Secretary argues that the
exposed parts of the head pulley violated § 56.14107. However, Teichert argues
that the handrails surrounding the pulley were sufficient guarding to satisfy
the standard. In the Secretary’s view, the handrails did not constitute a guard
because they were too easily defeated.

A plurality of the Commission has found
that § 56.14107 is ambiguous because “its language is broad and does not
specify the extent of guarding required or explain how moving parts should be
guarded.” Alan Lee Good , 23 FMSHRC 995, 1004 (Sept. 2001) (Jordan and
Beatty, Comm’rs). In cases involving an ambiguous regulatory provision,
Commission judges must defer to the Secretary’s interpretation of his own
regulation “as long as it is reasonable.” Small Mine Dev. , 37 FMSHRC 1892,
1894 (Sept. 2015) (quoting Tenet HealthSystems Healthcorp. v. Thompson ,
254 F.3d 238, 248 (D.C. Cir. 2001)); see also Auer v. Robins , 519 U.S.
452, 461 (1997) (holding that an agency’s interpretation of its own regulation
is “controlling unless plainly erroneous or inconsistent with the regulation”).

The purpose of
MSHA’s guarding standards is to “prevent, to the greatest extent possible, accidents
in the use of [mechanical] equipment.” See Arch of Ky., Inc. , 13
FMSHRC 753, 756 (May 1991) (quoting 38 Fed. Reg. 4976, 4977 (Feb. 1973))
(interpreting a different guarding standard). Here, several witnesses testified
that it was possible for a miner to climb over or through the handrail to reach
the work platform near the pulley. If he did so, he would be exposed to the
moving machine parts. The additional guard required by the inspector would
prevent such a person from coming into contact with the moving parts. The
additional guard did not impede the functioning of the pulley and would be
crucial in the event of someone entering the work platform without
de-energizing the pulley. Thus, I find that the handrail alone would not
prevent an accident involving the pulley “to the greatest extent possible.” Therefore,
the Secretary’s interpretation requiring a guard on the specific moving parts
is a reasonable interpretation of the regulation.

Teichert also
argues that additional guarding was not necessary because the mine has a
lock-out/tag-out policy which would require that the pulley be de-energized
before anyone performed maintenance on it. However, the Commission has found
that guarding standards should be interpreted to account for “all relevant
exposure and injury variables” including “the vagaries of human contact.” Thompson
Bros. Coal Co. , 6 FMSHRC 2094, 2097 (Sept. 1984). Consistent with this, Commission
judges have interpreted guarding standards to require that guarding be adequate
to prevent injury in the event that an employee carelessly disregards a
lock-out/tag-out policy. See, e.g., Climax Molybdenum Co ., 38 FMSHRC
2453, 2460 (Sept. 2016) (ALJ); Dix River Stone Inc ., 29 FMSHRC 186, 203
(Mar. 2007) (ALJ); Calco Inc ., 15 FMSHRC 480, 484 (Mar. 1993) (ALJ). Here,
I credit the miners’ testimony that Teichert had a lock-out/tag-out policy that
was consistently followed. Nevertheless, the pulley guarding needed to account
for the unlikely event of a miner entering the area without following the
policy. The guarding observed by the inspector would not have been adequate to
prevent injury in that occasion. Accordingly, I find that the Secretary has
proven a violation of the standard.

C.     
Fair
Notice

While I find
that the Secretary’s interpretation of the standard is reasonable, Teichert is entitled
to due process protections prior to enforcement of that interpretation. Hecla
Ltd. , 38 FMSHRC 2117, 2125 (Aug. 2016). Due process requires that laws “give
the person of ordinary intelligence a reasonable opportunity to know what is
prohibited, so that he may act accordingly.” Id . (quoting Grayned v.
City of Rockford , 408 U.S. 104, 108 (1972)). In the context of regulatory interpretation,
a court must not allow deference to an agency’s interpretation to “validat[e]
the application of a regulation that fails to give fair warning of the conduct
it prohibits or requires.” Id . (quoting Suburban Air Freight, Inc. v.
Trans. Sec. Admin. , 716 F.3d 679, 683-84 (D.C. Cir. 2013)). This is known
as the “fair notice doctrine.” Id .

The Commission
evaluates fair notice using the reasonably prudent person standard. Hecla ,
38 FMSHRC at 2125. Under that test, application of a standard to a set of facts
is consistent with fair notice if “a reasonably prudent person familiar with
the mining industry and the protective purposes of the standard would have
recognized the specific prohibition or requirement of the standard.” Ideal
Cement Co ., 12 FMSHRC 2409, 2416 (Nov. 1990). In applying the reasonably
prudent person standard, the Commission has taken into account a wide variety
of factors, including the text of the regulation, its placement in the overall
regulatory scheme, explicit definitions in the regulations or the Act, the
regulatory history, the consistency of the agency’s enforcement, and whether
MSHA has published notices informing the regulated community of its
interpretation . See Hecla, 38 FMSHRC at
2125-26; Wolf Run Mining Co ., 32 FMSHRC 1669, 1682 (Dec. 2010); Island
Creek Coal Co. , 20 FMSHRC 14, 24-25 (Jan. 1998); Morton Int’l, Inc .,
18 FMSHRC 533, 539 (Apr. 1996); Ideal Cement Co ., 12 FMSHRC at 2416 . Also relevant is the testimony of the inspector
and the operator’s employees as to whether they believed the cited condition to
be a violation. Island Creek, 20 FMSHRC at 24-25. Finally, the
Commission has looked to evidence of accepted safety practices in the industry.
See BHP Minerals Int’l Inc. , 18 FMSHRC 1342, 1345 (Aug. 1996); Ideal
Cement , 12 FMSHRC at 2416.

In this case,
the mine operator has not provided sufficient facts to establish a fair notice defense.
There was some testimony that the work platform without a guard had been in
place for eight to ten years, but another witness said the platform had only
been in place for a year or two. Further, there was no indication that the
practice of leaving that pulley unguarded was an accepted safety practice in
the industry or that it had been viewed by a previous inspector. Instead, the
Secretary has shown that MSHA has published many notices regarding this type of
guard, and provided power point presentations and training materials. The
Secretary introduced a portion of MSHA’s Program Policy Manual, which is sent
to mine operators. Sec’y Ex. 7. The manual states that “the use of chains to
rail off walkways and travelways near moving machine parts … is not in
compliance with” § 57.14107. Id . The Secretary also introduced a PowerPoint
presentation that is available to mine operators on the MSHA website. Sec’y Ex.

9. The PowerPoint presentation includes a photograph of a pulley on a work
   platform with a handrail and indicates that the guarding is insufficient. Id .
   at 24. At the Vernalis plant, miners could easily crawl over or through the
   handrails to the work platform to dislodge rock or to work on the conveyor. In
   fact, Respondent’s Exhibit 3-14, an aerial photograph of the conveyor and the
   pulley cited, shows a shovel laying on the work platform, presumably to
   dislodge rock that may be caught in or around the pulley area. A reasonable
   miner would have been aware that a guard was needed in this situation,
   particularly in view of the information in the PowerPoint and Program Policy
   Manual from MSHA. When the mine added the work platform, it should have been
   aware that the moving pulley needed a guard.

The MSHA
inspector designated the citation as low negligence and non S&S. He
indicated that he designated the violation as low negligence for several
reasons. First some of the mine personnel believed that the handrail was
sufficient to protect against inadvertent contact with the moving pulley. Next
the work platform had probably been in place during past inspections without
the guard. Likewise, the inspector believed the gravity was not serious, given
the limited use of the work platform and the mine’s training and lock-out/tag-out
policies. Therefore, in addition to the low negligence, Edminister designated
the violation as not significant and substantial. I agree that the mine
operator’s arguments do not negate the violation, but instead indicate that the
violation was properly designated as low negligence and was non-S&S.

II.     PENALTY

The principles
governing the authority of Commission Administrative Law Judges to assess civil
penalties de novo for violations of the Mine Act are well established. Section
110(i) of the Mine Act delegates to the Commission and its judges “authority to
assess all civil penalties provided in [the] Act.” 30 U.S.C. § 820(i). The duty
of proposing penalties is delegated to the Secretary. 30 U.S.C. §§ 815(a),
820(a). The Secretary calculates penalties using the penalty regulations set
forth in 30 C.F.R. § 100.3 or following the guidelines for special assessments
in 30 C.F.R. § 100.5. When an operator notifies the Secretary that it intends
to challenge a penalty, the Secretary then petitions the Commission to assess
the penalty. 29 C.F.R. § 2700.28. Commission judges are not bound by the Secretary’s
penalty regulations or his special assessments. Am. Coal Co ., 38 FMSHRC
1987, 1990 (Aug. 2016). Rather, the Act requires that in assessing civil
monetary penalties, the judge must consider six statutory penalty criteria: the
operator’s history of violations, its size, whether the operator was negligent,
the effect on the operator’s ability to continue in business, the gravity of
the violation, and whether the violation was abated in good faith. 30 U.S.C. §
820(i). In keeping with this statutory requirement, the Commission has held
that judges must make findings of fact on the statutory penalty criteria. Sellersburg
Stone Co ., 5 FMSHRC 287, 292 (Mar. 1983), aff'd , 736 F.2d 1147, 1152
(7th Cir. 1984). Once these findings have been made, a judge’s penalty
assessment for a particular violation is an exercise of discretion “bounded by
proper consideration of the statutory criteria and the deterrent purposes
underlying the Act’s penalty scheme.” Id . at 294; see also Cantera
Green , 22 FMSHRC 616, 620 (May 2000). The Commission requires that its
judges explain any substantial divergence from the penalty proposed by the
Secretary. Am. Coal , 38 FMSHRC at 1990. However, the judge’s assessment
must be de novo based upon her review of the record, and the Secretary’s
proposal should not be used as a starting point or baseline. Id .

The Secretary
has proposed a penalty of $114.00 for this violation. The history of violations
introduced by the Secretary shows that the mine regularly complies with the
standards and abated this violation in good faith. The mine operator is a large
one, and has not raised the issue of the ability to pay. The negligence is low
and the violation is not significant and substantial. Based upon my review of
the six penalty criteria, I assess the penalty of $114.00 as proposed by the
Secretary.

III. ORDER

Respondent is
hereby ORDERED to pay the Secretary of Labor the sum of $114.00 within
30 days of the date of this decision.

/s/
Margaret A. Miller

Margaret
A. Miller

Administrative
Law Judge

Distribution:
(U.S. First Class Certified Mail)

Randy Cardwell,
CLR, U.S. Department of Labor, MSHA, 991 Nut Tree Road, 2nd Floor, Vacaville,
CA 95687

Luis Garcia,
Senior Trial Attorney, Office of the Solicitor, U.S. Department of Labor, 350 S.
Figueroa Street, Suite 370, Los Angeles, CA 90071

Alberto Ramirez,
Project Manager, Teichert Aggregates, 3500 American River Drive, P.O. Box
15002, Sacramento, CA 95864