Secretary of Labor v. Genesis Alkali, LLC

Plain-English summary

Genesis Alkali mailed both its payment and its notice of contest before the deadline. It mistakenly sent both to the St. Louis penalty payment address instead of sending the contest to MSHA's Civil Penalty Compliance Office in Arlington. The Secretary did not oppose reopening but urged the operator to improve its filing process. The Commission found excusable neglect because the contest was timely mailed to the wrong address. It reopened the assessment, remanded the matter, and directed the Secretary to file a penalty petition within 45 days.

Decision snapshot

• Cited authority: 30 U.S.C. § 815(a)
• Outcome: The final assessment was reopened and remanded for further proceedings.
• Key point: A timely contest sent to MSHA's payment address may support reopening, but operators must separate payment and contest routing.

Full text (FMSHRC public release)

FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

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

WASHINGTON,
DC 20004-1710

SECRETARY
OF LABOR,

MINE
SAFETY AND HEALTH       

ADMINISTRATION
(MSHA)           

v.

GENESIS
ALKALI, LLC

:

:

:

:

:

:

:

Docket
No. WEST 2022-0223

A.C.
No. 48-00152-549400

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

ORDER

BY THE COMMISSION:

This
matter arises under the Federal Mine Safety and Health Act of 1977, 30 U.S.C. §
801 et seq. (2018) (“Mine Act”). On May 3, 2022, the Commission received from Genesis
Alkali, LLC (“Genesis”) a motion seeking to reopen a penalty assessment that
had become a final order of the Commission pursuant to section 105(a) of the
Mine Act, 30 U.S.C. § 815(a).

Under
section 105(a) of the Mine Act, 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).

Records
of the Department of Labor’s Mine Safety and Health Administration (“MSHA”)
indicate that the proposed assessment was delivered on February 14, 2022, and
became a final order of the Commission on March 16, 2022. Genesis asserts that
on March 7, 2022, it mistakenly mailed both the payment and its notice of
contest to the incorrect address for the payment of penalties in St. Louis, MO,
instead of correctly mailing it to MSHA’s Civil Penalty Compliance Office in
Arlington, Virginia. The Secretary does not oppose the request to reopen, but
urges the operator to take steps to ensure that future penalty contests are
timely filed.

Having
reviewed Genesis’s request and the Secretary’s response, we find
that the operator acted with excusable neglect by inadvertently mailing the
notice of contest to the wrong address, despite doing so in a timely manner. The operator, however, should reassess its procedures to
ensure that future contests are properly filed. 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 a petition 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:

Erik
Dullea, Esq.

Husch
Blackwell LLP

1801
Wewatta Street, Suite 1000

Denver,
CO 80202

[email protected]

Donna
Vetrano Pryor, Esq.

Husch
Blackwell LLP

1801
Wewatta Street, Suite 1000

Denver,
CO 80202

[email protected]

Kayla
Loveless, Esq.

Husch
Blackwell LLP

1801
Wewatta Street, Suite 1000

Denver,
CO 80202

[email protected]

Emily
Toler Scott, Esq.

Counsel,
Appellate Litigation

Division
of Mine Safety and Health

Office
of the Solicitor

U.S.
Department of Labor

201
12th Street South – Suite 401

Arlington,
VA 22202-5450

[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]

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]