**FEDERAL MINESAFETY AND HEALTH REVIEW COMMISSION**

 

OFFICE OF ADMINISTRATIVE LAW JUDGES

1331 PENNSYLVANIA AVE., N.W., SUITE 520N

WASHINGTON, DC 20004-1710

TELEPHONE: 202-434-9900 / FAX: 202-434-9949

 
| SECRETARY  OF LABOR

    MINE SAFETY AND HEALTH     

    ADMINISTRATION (MSHA),

                               Petitioner

 

 

                        v.

 

 

THE  HARRISON COUNTY COAL     COMPANY,

                               Respondent                                                                                          | CIVIL  PENALTY PROCEEDING

 

Docket  No. WEVA 2020-0203

A.C.  No. 46-01318-505388

 

 

 

 

 

Mine:  Harrison County Mine |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**ORDER ACCEPTING APPEARANCE**

**DECISION APPROVING SETTLEMENT**

**ORDER TO MODIFY**

**ORDER TO PAY**

 

Before: JudgeMcCarthy

            Thiscase is before the undersigned upon a 101-citation Petition for the Assessmentof Civil Penalty under section 105(d) of the Federal Mine Safety and Health Actof 1977, 30 U.S.C. § 815(d).  This docket was created prior to the policy ofsplitting dockets with excessive amounts of citations.  Under the currentpolicy, this docket would not have been accepted in its current, voluminousstate.

            TheSecretary of Labor’s Conference and Litigation Representative (“CLR”) filed anotice of limited appearance with the penalty petition.  It is**ORDERED**thatthe CLR be accepted to represent the Secretary.  *Cyprus Emerald Res. Corp.*,16 FMSHRC 2359 (Nov. 1994).

            TheCLR has filed a motion to approve settlement proposing a reduction in thepenalties from $59,978.00 to $58,109.00.  The CLR states that Citations No.9185453, 9186421, and 9187211 have been vacated.  The Secretary’s discretion tovacate a citation or order is not subject to review.  *E.g.*, *RBKConstr. Inc.*, 15 FMSHRC 2099 (Oct. 1993).  Citation No. 9186521 remainsunchanged, but the CLR justifies the reduction in penalty by stating there is alegitimate factual and legal dispute regarding gravity and negligence.  The CLRalso requests that Citation No. 9186420 be modified to reduce the level ofnegligence from moderate to low.

TheRespondent’s parent company, Murray Energy Holdings Co., filed for Chapter 11Bankruptcy Protection on October 29, 2019, in the United States BankruptcyCourt for the Southern District of Ohio, *In re Murray Energy Holdings Co.,*CaseNo. 19-56885.  As stated in the settlement motion, some of the citations in thisdocket are subject to the bankruptcy proceeding, while other citations arenot.  As stated below, the Respondent will pay the citations in accordance withterms of the settlement agreement.

Section362(a) of the Bankruptcy Code provides for an automatic stay of thecommencement or continuation of any administrative or judicial proceedingsagainst a Chapter 11 Bankruptcy petitioner.  11 U.S.C. § 362(a).  An exceptionto this stay, however, is granted by §362(b)(4), which  exempts from theautomatic stay any proceeding by a governmental unit to enforce its police orregulatory power.  11 U.S.C. §362(b)(4).  This exception has been applied tocases seeking equitable relief and cases concerning monetary damages orpenalties.  *See In re Commerce Oil Co.,* 847 F.2d 291, 297 (6th Cir.1988); *United States v. Nicolet, Inc.,* 857 F.2d 202, 208-10 (3dCir. 1988); *U.S. v. Oil Transport Co., Inc.*, 172 B.R. 834 (Bankr. E.D.La. 1994); *U.S. v. Energy Intern,, Inc.,* 19 B.R. 1020 (Bankr. S.D. Ohio 1981)(holding that action by the United States to collect a civil penalty assessedby the Department of the Interior, Office of Surface Mining, against debtor,for numerous violations of Surface Mining Control and Reclamation Act of 1977,was one to enforce its regulatory power and thus not stayed by the debtor'sfiling of a bankruptcy petition)).  

TheCommission has held that the Secretary of Labor, Department of Labor, and MSHAare “government units” within the meaning of 362(b)(4), as the Secretary ofLabor brings civil penalty proceedings in an effort to effectuate and enforcethe mandatory safety standards of the Mine Act.  *Big Laurel Mining Corp.,*37FMSHRC 1997, 1997-99 (Sept. 2015);  *Hidden Splendor Res., Inc.,*35FMSHRC 1548, 1549-50 (June 2013); *Hoist Excavating, Inc. ̧*17 FMSHRC 101,102 (Feb. 1995); *Jim Walter Res., Inc.,* 12 FMSHRC 1521, 1530 (Aug.1990).   

Althoughthe entry of a money judgment by a governmental unit, if related to its policeor regulatory powers, is not affected by the automatic stay, actual enforcementof such judgment must take place through the bankruptcy court.  *In re Weller*,189 B.R. 467, 471 (Bankr. E.D. Wis. 1995); *NLRB v. Continental Hagen Corp.,*932 F.2d 828, 834 (9th Cir.1991); *NLRB v. P.I.E. Nationwide, Inc.,* 923F.2d 506 (7th Cir.1991); *Eddleman v. U.S. Dept. of Labor,* 923 F.2d 782(10th Cir.1991); *In re Tauscher*, 7 B.R. 918(Bankr. E.D. Wis. 1981).

            Theundersigned considered the representations and documentation submitted in thiscase, and the undersigned concludes that the proffered settlement is fair,reasonable, appropriate under the facts, and protects the public interest under*The American Coal Co.*, 38 FMSHRC 1972, 1976 (Aug. 2016), and isappropriate under the criteria set forth in § 110(i) of the Act.  The settlementamounts are as follows:
| Citation No. | Assessment | Settlement |  | Citation No. | Assessment | Settlement |  |
|--------------|------------|------------|--|--------------|------------|------------|--|
| 9185453      | $654.00    | $0.00      |  | 9185713      | $344.00    | $344.00    |  |
| 9185454      | $514.00    | $514.00    |  | 9185714      | $2,550.00  | $2,550.00  |  |
| 9185455      | $514.00    | $514.00    |  | 9185715      | $121.00    | $121.00    |  |
| 9185456      | $405.00    | $405.00    |  | 9186425      | $154.00    | $154.00    |  |
| 9185457      | $230.00    | $230.00    |  | 9186426      | $558.00    | $558.00    |  |
| 9185979      | $372.00    | $372.00    |  | 9186427      | $319.00    | $319.00    |  |
| 9185458      | $214.00    | $214.00    |  | 9186428      | $121.00    | $121.00    |  |
| 9185459      | $214.00    | $214.00    |  | 9186429      | $250.00    | $250.00    |  |
| 9185706      | $250.00    | $250.00    |  | 9186430      | $1,345.00  | $1,345.00  |  |
| 9186408      | $604.00    | $604.00    |  | 9189333      | $154.00    | $154.00    |  |
| 9186409      | $372.00    | $372.00    |  | 9189334      | $474.00    | $474.00    |  |
| 9186410      | $405.00    | $405.00    |  | 9186431      | $604.00    | $604.00    |  |
| 9186411      | $121.00    | $121.00    |  | 9189336      | $121.00    | $121.00    |  |
| 9186412      | $142.00    | $142.00    |  | 9185716      | $214.00    | $214.00    |  |
| 9186413      | $558.00    | $558.00    |  | 9186434      | $2,993.00  | $2,993.00  |  |
| 9189323      | $474.00    | $474.00    |  | 9186435      | $2,353.00  | $2,353.00  |  |
| 9185707      | $121.00    | $121.00    |  | 9186436      | $344.00    | $344.00    |  |
| 9186414      | $121.00    | $121.00    |  | 9186437      | $121.00    | $121.00    |  |
| 9186415      | $474.00    | $474.00    |  | 9186438      | $474.00    | $474.00    |  |
| 9186416      | $474.00    | $474.00    |  | 9186439      | $474.00    | $474.00    |  |
| 9186417      | $250.00    | $250.00    |  | 9185717      | $181.00    | $181.00    |  |
| 9186418      | $1,852.00  | $1,852.00  |  | 9185718      | $214.00    | $214.00    |  |
| 9186419      | $2,763.00  | $2,763.00  |  | 9185719      | $372.00    | $372.00    |  |
| 9189324      | $474.00    | $474.00    |  | 9186520      | $405.00    | $405.00    |  |
| 9189325      | $121.00    | $121.00    |  | 9186521      | $1,057.00  | $688.00    |  |
| 9189326      | $708.00    | $708.00    |  | 9186522      | $604.00    | $604.00    |  |
| 9189327      | $270.00    | $270.00    |  | 9182135      | $250.00    | $250.00    |  |
| 9185708      | $832.00    | $832.00    |  | 9182136      | $121.00    | $121.00    |  |
| 9185709      | $6,148.00  | $6,148.00  |  | 9186523      | $121.00    | $121.00    |  |
| 9186420      | $405.00    | $181.00    |  | 9186524      | $121.00    | $121.00    |  |
| 9186421      | $250.00    | $0.00      |  | 9186525      | $121.00    | $121.00    |  |
| 9186422      | $902.00    | $902.00    |  | 9189342      | $604.00    | $604.00    |  |
| 9186423      | $832.00    | $832.00    |  | 9189343      | $372.00    | $372.00    |  |
| 9185710      | $121.00    | $121.00    |  | 9186480      | $604.00    | $604.00    |  |
| 9185711      | $2,763.00  | $2,763.00  |  | 9186527      | $1,345.00  | $1,345.00  |  |
| 9186424      | $181.00    | $181.00    |  | 9186528      | $181.00    | $181.00    |  |
| 9189331      | $121.00    | $121.00    |  | 9186529      | $154.00    | $154.00    |  |
| 9189332      | $250.00    | $250.00    |  | 9186530      | $154.00    | $154.00    |  |
| 9185712      | $604.00    | $604.00    |  | 9186532      | $250.00    | $250.00    |  |

 

 

 
| Citation No. | Assessment | Settlement |  | Citation No. | Assessment | Settlement |  |
|--------------|------------|------------|--|--------------|------------|------------|--|
| 9186533      | $214.00    | $214.00    |  | 9186484      | $2,550.00  | $2,550.00  |  |
| 9186481      | $1,345.00  | $1,345.00  |  | 9186538      | $832.00    | $832.00    |  |
| 9186535      | $474.00    | $474.00    |  | 9186539      | $168.00    | $168.00    |  |
| 9187211      | $372.00    | $0.00      |  | 9186540      | $319.00    | $319.00    |  |
| 9187212      | $474.00    | $474.00    |  | 9186541      | $121.00    | $121.00    |  |
| 9186482      | $604.00    | $604.00    |  | 9189350      | $372.00    | $372.00    |  |
| 9189345      | $372.00    | $372.00    |  | 9189351      | $474.00    | $474.00    |  |
| 9189346      | $372.00    | $372.00    |  | 9189352      | $121.00    | $121.00    |  |
| 9189347      | $121.00    | $121.00    |  | 9189353      | $121.00    | $121.00    |  |
| 9189348      | $1,242.00  | $1,242.00  |  | 9186545      | $270.00    | $270.00    |  |
| 9189349      | $121.00    | $121.00    |  | 9189354      | $250.00    | $250.00    |  |
| 9186483      | $270.00    | $270.00    |  | TOTAL        | $59,978.00 | $58,109.00 |  |

 

 

**WHEREFORE**,the motion for approval of settlement is **GRANTED**.

            It is **ORDERED**that Citation No.9186420 be **MODIFIED** to reduce the level of negligence from moderate tolow.

Itis further **ORDERED** that the operator pay a total penalty of $58,109.00 pursuantto the terms of the settlement agreement.1

 

 

 

 

/s/Thomas P. McCarthy

                                                                        ThomasP. McCarthy

                                                                        AdministrativeLaw Judge

 

 

 

 

 

Distribution:

 

ChrisA. Weaver

U.S.Department of Labor

MSHA604 Cheat Road

Morgantown,WV 26508

 

Wm.Allen McGilton

MurrayEnergy Corporation

46226National Road

St.Clairsville, OH 43950

 

/ztb

----

1Payment should be sent to:  Pay.gov, a service of the U.S. Department of theTreasury, at https://www.pay.gov/public/form/start/67564508or, alternately, Mine Safety & Health Administration, U.S. Department ofLabor, Payment Office, P.O. Box 790390, St. Louis, MO 63179-0390.