Secretary of Labor v. Iron Cumberland, LLC

Plain-English summary

Iron Cumberland failed to contest two proposed penalty assessments within 30 days. The mine changed ownership and management near the end of 2021, including hiring a new safety director, and the transition altered internal processing procedures. Iron Cumberland learned of the missed assessments only after receiving delinquency notices. The Secretary did not oppose reopening but urged the operator to prevent future late contests. The Commission consolidated the two matters, found inadvertent administrative errors caused by the management changes, reopened both assessments, and remanded them.

Decision snapshot

• Cited authority: 30 U.S.C. § 815(a); 30 C.F.R. §§ 100.7, 2700.1(b), 2700.12, and 2700.28
• Outcome: Both final assessments were reopened and the consolidated matters were remanded for further proceedings.
• Key point: Documented ownership and management changes supported reopening when they disrupted the mine's penalty-processing procedures.

Full text (FMSHRC public release)

FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

1331 PENNSYLVANIA AVENUE, NW, SUITE 520N

WASHINGTON, D.C. 20004‑1710

SECRETARY OF LABOR, :

MINE SAFETY AND HEALTH : Docket No. PENN 2022-0029

ADMINISTRATION (MSHA) : A.C. No. 36-05018-546442

:

v. : Docket No. PENN 2022-0045

: A.C. No. 36-05018-544866

IRON CUMBERLAND, LLC :

BEFORE: Jordan, Chair; Althen, Rajkovich, and Baker, Commissioners

ORDER

BY THE COMMISSION:

These matters arise under the Federal Mine Safety and Health Act of 1977, 30 U.S.C. § 801 et seq. (2018) (“Mine Act”).[1] On February 23 and February 25, 2022, the Commission received from Iron Cumberland, LLC (“Iron Cumberland”) motions seeking to reopen penalty assessments that had become final orders of the Commission pursuant to section 105(a) of the Mine Act, 30 U.S.C. § 815(a).

Under section 105(a), an operator who wishes to contest a proposed penalty must notify the Secretary of Labor no later than 30 days after receiving the proposed penalty assessment. If the operator fails to notify the Secretary, the proposed penalty assessment is deemed a final order of the Commission. 30 U.S.C. § 815(a).

We have held, however, that in appropriate circumstances, we possess jurisdiction to reopen uncontested assessments that have become final Commission orders under section 105(a). Jim Walter Res., Inc., 15 FMSHRC 782, 786-89 (May 1993) (“JWR”). In evaluating requests to reopen final orders, the Commission has found guidance in Rule 60(b) of the Federal Rules of Civil Procedure, under which the Commission may relieve a party from a final order of the Commission on the basis of mistake, inadvertence, excusable neglect, or other reason justifying relief. See 29 C.F.R. § 2700.1(b) (“the Commission and its Judges shall be guided so far as practicable by the Federal Rules of Civil Procedure”); JWR, 15 FMSHRC at 787. We have also observed that default is a harsh remedy and that, if the defaulting party can make a showing of good cause for a failure to timely respond, the case may be reopened and appropriate proceedings on the merits permitted. See Coal Prep. Servs., Inc., 17 FMSHRC 1529, 1530 (Sept. 1995).

The Department of Labor’s Mine Safety and Health Administration (“MSHA”) indicates that the proposed assessments were delivered to the operator on November 12, 2021, and December 9, 2021. The assessments became final orders of the Commission on December 13, 2021, and January 10, 2022.

Iron Cumberland maintains that at the end of the 2021 year, the mine underwent new ownership, as well as a change to new management. The change in management included the hiring of a new Director of Safety in late December. This transition in leadership led to procedural and processing changes that resulted in the inadvertent mistake of failing to timely contest the proposed assessments.

Iron Cumberland first learned of the assessments when it received the delinquency notices in January and February 2022. The Secretary does not oppose the requests to reopen but urges the operator to take steps to ensure that future penalty contests are timely filed in accordance with MSHA’s regulations at 30 C.F.R. § 100.7 and the Commission’s procedural rules.

Having reviewed Iron Cumberland’s requests and the Secretary’s responses, we find that due to inadvertent administrative errors resulting from changes in management at the mine, the operator failed to timely contest the penalty assessments. In the interest of justice, we hereby reopen this matter and remand it to the Chief Administrative Law Judge for further proceedings pursuant to the Mine Act and the Commission’s Procedural Rules, 29 C.F.R. Part 2700. Accordingly, consistent with Rule 28, the Secretary shall file petitions for assessment of penalty within 45 days of the date of this order. See 29 C.F.R. § 2700.28.

/s/ Mary Lu Jordan

Mary Lu Jordan, Chair

/s/ William I. Althen

William I. Althen, Commissioner

/s/ Marco M. Rajkovich, Jr.

Marco M. Rajkovich, Jr., Commissioner

/s/ Timothy J. Baker

Timothy J. Baker, Commissioner

Distribution:

R. Henry Moore, Esq.

Fisher & Phillips LLP

Six PPG Place, Suite 830

Pittsburgh, PA 15222

[email protected]

April Nelson, Esq.

Associate Solicitor

Office of the Solicitor

U.S. Department of Labor

Division of Mine Safety and Health

201 12th Street South, Suite 401

Arlington, VA 22202

[email protected]

Emily Toler Scott, Esq.

Counsel for Appellate Litigation

Office of the Solicitor

U.S. Department of Labor

Division of Mine Safety and Health

201 12th Street South, Suite 401

Arlington, VA 22202

[email protected]

Melanie Garris

USDOL/MSHA, OAASEI/CPCO

201 12th Street South, Suite 401

Arlington, VA 22202

[email protected]

Chief Administrative Law Judge Glynn F. Voisin

Federal Mine Safety Health Review Commission

1331 Pennsylvania Avenue, NW Suite 520N

Washington, DC 20004-1710

[email protected]

[1] For the limited purpose of addressing these motions to reopen, we hereby consolidate docket numbers PENN 2022-0029 and PENN 2022-0045, involving similar procedural issues. 29 C.F.R. § 2700.12.