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. Footnote 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. Footnote 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