Secretary of Labor v. Alex Energy, Inc., et al. (ALJ decision, July 27, 2017)
Secretary of Labor v. Alex Energy, Inc., et al. (FMSHRC WEVA 2016-530, et al.): $803,156 global settlement approved
Apply this to your situation
This order from 2017 bound only the parties to this case; it isn't precedent. Ask about your situation and see what the current MSHA standards and Commission precedent say, with citations.
Plain-English summary
The Secretary and multiple Alpha Natural Resources subsidiaries presented a global settlement covering 97 civil penalty proceedings, six related contest proceedings, and 523 citations and orders. The proposed penalties totaled $1,606,312. The parties agreed to reduce that amount to $803,156 while Alpha's parent company was in Chapter 11 bankruptcy, with the Secretary receiving an allowed administrative claim to be paid in full under the bankruptcy plan. Chief Judge Robert J. Lesnick found the settlement appropriate under the Mine Act's penalty criteria, approved withdrawal of the six contests, and ordered payment within 30 days.
Decision snapshot
- Governing provisions: 30 U.S.C. §§ 815(d) and 820(i)
- Outcome: The global settlement was approved, six contests were withdrawn, and Alpha Natural Resources was ordered to pay $803,156.
- Key point: The settlement resolved 523 citations and orders at half the proposed total while preserving the Secretary's claim for full payment of the agreed amount through bankruptcy.
Full text (FMSHRC public release)
FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION
OFFICE OF
ADMINISTRATIVE LAW JUDGES
1331 PENNSYLVANIA
AVE., N.W., SUITE 520N
WASHINGTON, DC
20004-1710
TELEPHONE:
202-434-9950 / FAX: 202-434-9949
SECRETARY OF LABOR,
MINE SAFETY AND HEALTH
ADMINISTRATION (MSHA),
Petitioner
v.
ALEX ENERGY, INC.;
ALPHA COAL WEST;
CUMBERLAND COAL RESOURCES, LP;
DICKENSON-RUSSELL COAL COMPANY;
EMERALD COAL RESOURCES, LP;
KINGSTON MINING, INC.;
KNOX CREEK COAL CORPORATION;
MARFORK COAL COMPANY;
PARAMOUNT COAL COMPANY;
POWER MOUNTAIN COAL COMPANY;
REPUBLIC ENERGY (ELK RUN COAL COMPANY, INC.);
SIDNEY COAL COMPANY;
SPARTAN MINING COMPANY, INC.;
Respondents.
CUMBERLAND COAL RESOURCES, LLC ,
Contestant
v.
SECRETARY OF LABOR
MINE SAFETY AND HEALTH
ADMINISTRATION (MSHA),
Respondent
EMERALD COAL RESOURCES, LP,
Contestant
v.
SECRETARY OF LABOR
MINE SAFETY AND HEALTH
ADMINISTRATION (MSHA),
Respondent
KINGSTON MINING, INC,
Contestant
v.
SECRETARY OF LABOR
MINE SAFETY AND HEALTH
ADMINISTRATION (MSHA),
Respondent
MARFORK COAL COMPANY, INC.,
Contestant
v.
SECRETARY OF LABOR
MINE SAFETY AND HEALTH
ADMINISTRATION (MSHA),
Respondent.
CIVIL PENALTY PROCEEDINGS
Docket No. WEVA 2017-0007
A.C. No. 46-08787-419124
Mine: Jerry Fork Eagle
Docket No. WEVA 2016-0530
A.C. No. 46-08977-414431
Mine: Edwight Surface Mine
Docket No. WEST 2016-0688
A.C. No. 48-00732-417342
Mine: Belle Ayr Mine
Docket No. WEST 2017-0011
A.C. No. 48-00732-419767
Mine: Belle Ayr Mine
Docket No. WEST 2017-0060
A.C. No. 48-00732-422060
Mine: Belle Ayr Mine
Docket No. WEST 2017-0155
A.C. No. 48-00732-426371
Mine: Belle Ayr Mine
Docket No. PENN 2016-0142
A.C. No. 36-05018-403227
Mine: Cumberland Mine
Docket No. PENN 2016-0186
A.C. No. 36-05018-405519
Mine: Cumberland Mine
Docket No. PENN 2016-0187
A.C. No. 36-05018-405519
Mine: Cumberland Mine
Docket No. PENN 2016-0250
A.C. No. 36-05018-410385
Mine: Cumberland Mine
Docket No. PENN 2016-0254
A.C. No. 36-05018-412007
Mine: Cumberland Mine
Docket No. PENN 2016-0265
A.C. No. 36-05018-412753
Mine: Cumberland Mine
Docket No. PENN 2016-0266
A.C. No. 36-05018-412753
Mine: Cumberland Mine
Docket No. PENN 2016-0313
A.C. No. 36-05018-415157
Mine: Cumberland Mine
Docket No. PENN 2016-0315
A.C. No. 36-05018-417506
Mine: Cumberland Mine
Docket No. PENN 2017-0001
A.C. No. 36-05018-419879
Mine: Cumberland Mine
Docket No. PENN 2017-0019
A.C. No. 36-05018-422195
Mine: Cumberland Mine
Docket No. PENN 2017-0084
A.C. No. 36-05018-426549
Mine: Cumberland Mine
Docket No. VA 2016-0223
A.C. No. 44-02277-416614
Mine: Moss No. 3 Plant
Docket No. VA 2017-0008
A.C. No. 44-05311-419098
Mine: McClure River Plant
Docket No. PENN 2016-0137
A.C. No. 36-05466-402236
Mine: Emerald Mine No. 1
Docket No. PENN 2016-0138
A.C. No. 36-05466-402236
Mine: Emerald Mine No. 1
Docket No. PENN 2016-0180
A.C. No. 36-05466-404377
Mine: Emerald Mine No. 1
Docket No. PENN 2016-0189
A.C. No. 36-05466-406608
Mine: Emerald Mine No. 1
Docket No. PENN 2016-0190
A.C. No. 36-05466-407666
Mine: Emerald Mine No. 1
Docket No. WEVA 2015-1034
A.C. No. 46-08625-391848
Mine: Kingston No. 1
Docket No. WEVA 2015-1035
A.C. No. 46-08625-391848
Mine: Kingston No. 1
Docket No. WEVA 2016-0252
A.C. No. 46-08625-403276
Mine: Kingston No. 1
Docket No. WEVA 2016-0362
A.C. No. 46-08625-405568
Mine: Kingston No. 1
Docket No. WEVA 2016-0363
A.C. No. 46-08932-405572
Mine: Kingston No. 2
Docket No. WEVA 2016-0411
A.C. No. 46-08625-407843
Mine: Kingston No. 1
Docket No. WEVA 2016-0412
A.C. No. 46-08932-407846
Mine: Kingston No. 2
Docket No. WEVA 2016-0473
A.C. No. 46-08625-410448
Mine: Kingston No. 1
Docket No. WEVA 2016-0474
A.C. No. 46-08932-410451
Mine: Kingston No. 1
Docket No. WEVA 2016-0509
A.C. No. 46-08625-412788
Mine: Kingston No. 1
Docket No. WEVA 2016-0510
A.C. No. 46-08932-412791
Mine: Kingston No. 2
Docket No. WEVA 2016-0537
A.C. No. 46-08932-415188
Mine: Kingston No. 2
Docket No. WEVA 2016-0539
A.C. No. 46-08625-415185
Mine: Kingston No. 1
Docket No. WEVA 2016-0587
A.C. No. 46-08625-417551
Mine: Kingston No. 1
Docket No. WEVA 2016-0588
A.C. No. 46-08932-417553
Mine: Kingston No. 2
Docket No. WEVA 2017-0012
A.C. No. 46-08932-419952
Mine: Kingston No. 2
Docket No. WEVA 2017-0181
A.C. No. 46-04343-426593
Mine: Kingston Processing
Docket No. VA 2016-0237
A.C. No. 44-05236-417108
Mine: Coal Creek Prep Plant
Docket No. WEVA 2016-0114
A.C. No. 46-08315-395962
Mine: Brushy Eagle
Docket No. WEVA 2016-0115
A.C. No. 46-08315-395962
Mine: Brushy Eagle
Docket No. WEVA 2016-0117
A.C. No. 46-09091-395966
Mine: Horse Creek Eagle
Docket No. WEVA 2016-0235
A.C. No. 46-08315-402480
Mine: Brushy Eagle
Docket No. WEVA 2016-0288
A.C. No. 46-08315-404630
Mine: Brushy Eagle
Docket No. WEVA 2016-0289
A.C. No. 46-08315-404630
Mine: Brushy Eagle
Docket No. WEVA 2016-0291
A.C. No. 46-09048-404635
Mine: Slip Ridge Cedar Grove Mine
Docket No. WEVA 2016-0292
A.C. No. 46-09091-404637
Mine: Horse Creek Eagle
Docket No. WEVA 2016-0394
A.C. No. 46-09048-407030
Mine: Slip Ridge Cedar Grove Mine
Docket No. WEVA 2016-0395
A.C. No. 46-09091-407031
Mine: Horse Creek Eagle
Docket No. WEVA 2016-0396
A.C. No. 46-09091-407031
Mine: Horse Creek Eagle
Docket No. WEVA 2016-0445
A.C. No. 46-08315-408818
Mine: Brushy Eagle
Docket No. WEVA 2016-0457
A.C. No. 46-08315-409549
Mine: Brushy Eagle
Docket No. WEVA 2016-0458
A.C. No. 46-09048-409554
Mine: Slip Ridge Cedar Grove Mine
Docket No. WEVA 2016-0492
A.C. No. 46-09048-411991
Mine: Slip Ridge Cedar Grove Mine
Docket No. WEVA 2016-0493
A.C. No. 46-09048-411991
Mine: Slip Ridge Cedar Grove Mine
Docket No. WEVA 2016-0494
A.C. No. 46-09091-411993
Mine: Horse Creek Eagle
Docket No. WEVA 2016-0495
A.C. No. 46-09092-411994
Mine: Allen Powellton Mine
Docket No. WEVA 2016-0533
A.C. No. 46-08315-414427
Mine: Brushy Eagle
Docket No. WEVA 2016-0535
A.C. No. 46-09092-414435
Mine: Allen Powellton Mine
Docket No. WEVA 2016-0536
A.C. No. 46-09092-414435
Mine: Allen Powellton Mine
Docket No. WEVA 2016-0538
A.C. No. 46-09091-414434
Mine: Horse Creek Eagle
Docket No. WEVA 2016-0573
A.C. No. 46-09048-416634
Mine: Slip Ridge Cedar Grove Mine
Docket No. WEVA 2016-0574
A.C. No. 46-09091-416636
Mine: Horse Creek Eagle
Docket No. WEVA 2016-0575
A.C. No. 46-09091-416668
Mine: Horse Creek Eagle
Docket No. WEVA 2017-0006
A.C. No. 46-08315-419121
Mine: Brushy Eagle
Docket No. WEVA 2017-0008
A.C. No. 46-09048-419129
Mine: Slip Ridge Cedar Grove
Docket No. WEVA 2017-0009
A.C. No. 46-09091-419131
Mine: Horse Creek Eagle
Docket No. WEVA 2017-0010
A.C. No. 46-09091-419131
Mine: Horse Creek Eagle
Docket No. WEVA 2017-0049
A.C. No. 46-08315-421486
Mine: Brushy Eagle
Docket No. WEVA 2017-0107
A.C. No. 46-08315-423681
Mine: Brushy Eagle
Docket No. WEVA 2017-0149
A.C. No. 46-08837-425730
Mine: Coon Cedar Grove Mine
Docket No. VA 2016-0128
A.C. No. 44-07223-404619
Mine: Deep Mine 41
Docket No. VA 2016-0205
A.C. No. 44-06929-414196
Mine: Deep Mine No. 26
Docket No. VA 2016-0206
A.C. No. 44-07223-414198
Mine: Deep Mine No. 41
Docket No. VA 2016-0221
A.C. No. 44-06929-416391
Mine: Deep Mine No. 26
Docket No. VA 2016-0222
A.C. No. 44-07223-416392
Mine: Deep Mine No. 41
Docket No. VA 2016-0240
A.C. No. 44-05270-418835
Mine: Toms Creek Complex
Docket No. VA 2016-0241
A.C. No. 44-07322-418842
Mine: Cabin Ridge Surface Mine
Docket No. VA 2017-0003
A.C. No. 44-06929-418838
Mine: Deep Mine No. 26
Docket No. VA 2017-0004
A.C. No. 44-06929-418838
Mine: Deep Mine No. 26
Docket No. VA 2017-0005
A.C. No. 44-07163-418839
Mine: 88 Strip
Docket No. VA 2017-0006
A.C. No. 44-07223-418840
Mine: Deep Mine 41
Docket No. VA 2017-0091
A.C. No. 44-07322-427760
Mine: Cabin Ridge Surface Mine
Docket No. WEVA 2016-0590
A.C. No. 46-06880-417549
Mine: Power Mountain Processing
Docket No. WEVA 2016-0490
A.C. No. 46-09163-411574
Mine: Roundbottom Powellton Deep Mine
Docket No. WEVA 2016-0570
A.C. No. 46-09163-416179
Mine: Roundbottom Powellton Deep Mine
Docket No. WEVA 2016-0571
A.C. No. 46-09163-416179
Mine: Roundbottom Powellton Deep Mine
Docket No. KENT 2017-0027
A.C. No. 15-09724-420830
Mine: No. 1 Prep Plant
Docket No. WEVA 2016-0491
A.C. No. 46-01544-411779
Mine: Road Fork No. 51 Mine
Docket No. WEVA 2016-0526
A.C. No. 46-01544-414206
Mine: Road Fork No. 51 Mine
Docket No. WEVA 2016-0572
A.C. No. 46-01544-416401
Mine: Road Fork No. 51 Mine
Docket No. WEVA 2017-0005
A.C. No. 46-01544-418846
Mine: Road Fork No. 51 Mine
Docket No. WEVA 2017-0189
A.C. No. 46-01544-427766
Mine: Road Fork No. 51 Mine
CONTEST PROCEEDINGS
Docket No. PENN 2016-0122-R
Order No. 9073630; 01/11/2016
Docket No. PENN 2016-0133-R
Citation No. 9073699; 01/28/2016
Docket No. PENN 2016-0134-R
Citation No. 9074040; 01/28/2016
Mine: Cumberland Mine
Mine ID: 36-05018
Docket No. PENN 2016-0037-R
Order No. 7030180; 09/22/2015
Mine: Emerald Mine No. 1
Mine ID: 36-05466
Docket No. WEVA 2016-0059-R
Citation No. 9053591; 09/22/2015
Mine: Kingston No. 1 Mine
Mine ID: 46-08625
Docket No. WEVA 2016-0240-R
Citation No. 9054035; 02/23/2016
Mine: Horse Creek Eagle
Mine ID: 46-09091
ORDER OF
CONSOLIDATION
DECISION
APPROVING SETTLEMENT
ORDER TO PAY
Before: Judge Lesnick
These cases are before me upon ninety-seven petitions for the assessment of the civil penalties filed under section 105(d) of the Federal Mine Safety and Health Act of 1977, 30 U.S.C. § 815(d), and six related Notices of Contest.
It is ORDERED that these
cases are CONSOLIDATED for purposes of settlement, pursuant to Commission Procedural Rule 12. 29 C.F.R. § 2700.12.
The parties have filed a joint motion to approve global settlement of the above referenced dockets. The parties propose a reduction in the total penalty from $1,606,312.00 as proposed by the Secretary to $803,156.00. The settlement amounts for the 523 citations and orders were submitted by the parties in their joint motion, and Exhibits 1 and 2 attached thereto.
In support of
the penalty reduction, the parties represent that the Respondents’ parent organization, Alpha Natural Resources, Inc., is currently pursuing Chapter 11 bankruptcy protection. [1] The parties further represent as follows:
In exchange for this settlement, Alpha
confirms that the Secretary will have an “Allowed Administrative Claim” in the Bankruptcy Case for the Agreed Amount that will be satisfied in full in accordance with the Plan. Consequently, the relief requested herein will resolve objections to the Administrative Claim in the Bankruptcy Case and the risks of litigation concerning the Affected Citations/Orders.
I have considered the representations and documentation submitted in this case, and I conclude that the proffered settlement is appropriate under the criteria set forth in Section 110(i) of the Act.
WHEREFORE , the motion for approval of settlement and the motion to withdraw contest of Contest Docket Nos. PENN 2016-0122, PENN 2016-0133, PENN 2016-0134, PENN 2016-0037, WEVA 2016-0059, and WEVA 2016-0240, are GRANTED .
It is further ORDERED that
Alpha Natural Resources, Inc., pay a penalty of $803,156.00 within thirty (30) days of this order. [2]
/s/ Robert J. Lesnick
Robert J. Lesnick
Chief Administrative Law Judge
Distribution:
Eric Silkwood, Esq., Hardy & Pence, PLLC, 500 Lee Street East, Suite 701, Charleston, WV 25301
Dana Ferguson, Esq., U.S. Department of Labor, Office of the Solicitor, 2-1 12th Street South, Suite 401, Arlington, VA 22202
/med
[1] In Re: Alpha Natural
Resources, Inc. , et al., Ch. 11, Case No. 15-33896-KRH (Bankr. E.D.V.A. filed Aug. 3, 2015).
[2] Payment should be sent to: MINE SAFETY AND HEALTH ADMINISTRATION, U.S. DEPARTMENT OF LABOR, PAYMENT OFFICE, P. O. BOX 790390, ST. LOUIS, MO 63179-0390
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