Chao, Sec. of Labor v. Mallard Bay Drilling, Inc. (01/09/2002)

Questions presented: Has the U.S. Coast Guard "exercise[d] statutory authority to prescribe or enforce standards or regulations affecting occupational safety or health" concerning "working conditions of employees" (29 U.S.C. @ 653(b)(1)) on "uninspected vessels" (46 U.S.C. @ 2101(43)) so as to displace the application of 1970 Occupational Safety and Health Act, 29 U.S.C. @ 651 et seq.?

BY MICHELE LEUNG, MEDILL NEWS SERVICE

All Bobby Jordan wanted was a good nights sleep, but because of his earplugs, he missed the call to evacuate his quarters.

In June 1997, Jordan was as an electrician working the day shift aboard a drilling rig, the Mr. Beldon, which was stationed at an oil well at Little Bayou Pigeon, La. The Mr. Beldon belonged to Mallard Bay Drilling, Inc., which owns and operates rigs for oil and gas exploration. The crew of the Mr. Beldon was in the final stages of drilling a well for Denbury Management, Inc., which holds oil and gas properties. During one shift of round-the-clock operations, the night crew was up and working, removing mud from the pit.

However, the crew lost control of the well when mud began to drain out too fast and natural gas seeped into the mud. Shutting off the pumps and the valves onboard the rig didnt stop the blowout, and officials on the Mr. Beldon ordered all day crewmembers to evacuate to a tugboat.

When Jordan was roused from his sleep, he saw that his day crewmates had already gone. Soon, a natural gas explosion occurred behind him, and Jordan took a blow to the head from flying debris.

At the same time, Johnny Chaddick tried to find his way out of an office on the rig, but smoke and heat from the explosion prevented him from going anywhere. Chaddick, a representative of Denburry Management, escaped by jumping from the rig to a boat moored next to the Mr. Beldon. Chaddick broke both ankles in jumping but waved a life jacket in the air to signal for help. He caught the attention of another boat, the Miss Dee Dee, which turned around and picked him up.

The day after the explosion, the U.S. Coast Guard reviewed the scene and tallied the costs. The Mr. Beldon was declared a "total constructive loss." Four crewmembers died in the accident, and two men, Jordan and Chaddick, were seriously injured.

While the Coast Guard found that officials on the Mr. Beldon did not follow proper emergency procedures, it had no regulations governing this matter and referred the Mr. Beldon to the Occupational Safety and Health Administration.

In April 1998, OSHA, under the aegis of the Department of Labor, found that Mallard Bay Drilling failed to abide by the OSH Act, which mandates a safe working environment for all employees working anywhere in the country. OSHA levied a $13,230 fine for three violations.

Mallard agued that OSHAs jurisdiction should not extend to the Mr. Beldon because earlier cases have established that OSHA regulations do not apply to the working conditions of seamen. It added that legislators have given the Coast Guard authority to act in this incident.

"The Department of Transportation gave the Coast Guard power to do whatever they need to do," said Patrick J. Veters, who represents Mallard. "Once the Coast Guard [is empowered] to act on behalf of seamen, OSHA power is displaced."

Eight months after the drilling company received its fine, the OSHA Review Commission dismissed Mallards claims that OSHA did not have jurisdiction on the rig. Administrative Law Judge Ken S. Welsch said OSHAs authority is necessary in protecting workers from unsafe conditions on vessels that dont require the Coast Guards inspection, as was the case of the Mr. Beldon.

"OSHA provides the only significant regulation of non-navigational working conditions for seamen employed on these vessels," Welsch said. "Absent OSH Act coverage, these conditions would be completely unregulated."

Mallard's request for another OSHA review was denied.

In June 2000, a unanimous 5th Circuit Court of Appeals reversed. The panel said precedent had been set in giving the Coast Guard exclusive authority in supervising seamens work environments and added that there is no need for two federal agencies to overlap in governing working conditions.

"Such redundant control programs offer little except confusion, governmental proliferation and stultification of enterprise," Judge W. Eugene Davis said.

In addition, Davis said that because of geographic limitations, the Coast Guard is better suited to regulate the maritime workplace than is OSHA.

On Feb. 20, 2001, the U.S. Supreme Court granted certiorari in the case, and on Jan. 9, 2002, the Court held 8-0 that OSHA has jurisdiction to impose strict safety standards for seamen, despite the Coast Guard's more limited jurisdiction over other navigation matters.

Justice John Paul Stevens wrote the unanimous opinion. Justice Antonin Scalia did not take part in the decision.