Mid-Continent Resources, Inc. (ALJ decision, May 27, 1992)

Plain-English summary

Mid-Continent Resources reached a settlement with the Secretary in a civil penalty case involving three citations at the Dutch Creek Mine. The proposed penalties were $91 each for two citations, with the third reduced from $91 to $55, for a total amended amount of $237 before the bankruptcy adjustment. Judge John J. Morris approved the settlement as reasonable and in the public interest, dissolved the reconsolidation order, and affirmed the citations and amended penalties. Because Mid-Continent was operating as a Chapter 11 debtor in possession, the order authorized a $165 civil-penalty claim after bankruptcy-court approval.

Decision snapshot

• Governing provision: 30 U.S.C. § 820(i)
• Outcome: The settlement, citations, and amended penalties were affirmed, and a $165 claim was authorized in the bankruptcy case subject to bankruptcy-court approval.
• Key point: The judge approved a negotiated penalty resolution and allowed the Secretary to assert the reduced amount as a bankruptcy claim.

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION OFFICE OF ADMINISTRATIVE LAW JUDGES
THE FEDERAL BUILDING
ROOM 280,1244 SPEER BOULEVARD
DENVER, CO 80204

SECRETARY OF LABOR,
: CIVIL PENALTY PROCEEDING
MINE SAFETY AND HEALTH
:
ADMINISTRATION (MSHA),
: Docket No. WEST 91-509
Petitioner
: A.C. No. 05-00301-03779
:
v. :
: Dutch Creek Mine
MID-CONTINENT RESOURCES, INC.,
:
Respondent
:

DECISION

Appearances: Margaret A. Miller, Esq., TWnbra Leonard, Esq.
Office of the Solicitor, U.S. Department of Labor, Denver, Colorado, for Petitioner;
Edward Mulhall, Jr., Esq., DELANEY t BALCOMB, P.C., Glenwood Springs, Colorado.
Before: Judge Morris

This is a civil penalty proceeding initiated by Petitioner against Respondent pursuant to the Federal Mine Safety and Health Act of 1977, 30 30 U.S.C. § 801 et seq. (the “Act”). The civil pen- alties sought here are for the violation of mandatory regulations promulgated pursuant to the Act.
A hearing in this case and related cases was held in Glen- wood Springs, Colorado, on February 26, 1992. The parties reached an amicable settlement and subsequently filed a written Joint Motion to Approve Settlement.
Respondent further filed a suggestion of bankruptcy.
The Citations, the original assessments, and the proposed dispositions are as follows:
Amended
Citation No. Proposed Penalty Proposed Penalty
3586644
$91
3586645
$91
3586646 $91 $55

905

Page 2

In support of their motion, the parties suhnitted informa- tion relating to the statutory criteria for assessing civil pen- alties as contained in 30 U.S.C. § 820(i).
I have reviewed the settlement and I find it is reasonable and in the public interest. It should be approved.
Accordingly, I enter the following:

ORDER

1. The order of reconsolidation entered on March 2, 1992, is DISSOLVED.
2. The above Citations and amended penalties are AFFIRMED.
3. Respondent filed a case under Chapter 11 of the Bank- ruptcy Code and is operating its bankruptcy estate as a debtor- in-possession. Accordingly, upon approval of the United States Bankruptcy Court in Case No. 91-11658 PAC, it is ORDERED that civil penalties will be assessed against the Respondent in the amount of $165 and Petitioner is authorized to assert such assess- ment as a claim in Respondent's Bankruptcy Case.

rative Law Judge

Distribution:
Margaret A. Miller, Esq., mmbra Leonard, Esq., Office of the Solicitor, U.S. Department of Labor, 1585 Federal Office Build- ing, 1961 Stout Street, Denver, CO 80294 (Certified Mail) Edward Mulhall, Jr., Esq., DELANEY c BALCOMB, P.C., Drawer 790, Glenwood Springs, CO 81602 (Certified Mail)

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