[Federal Register Volume 75, Number 80 (Tuesday, April 27, 2010)]
[Rules and Regulations]
[Pages 21987-21990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-9689]


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FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

29 CFR Part 2700


Penalty Settlement Procedure

AGENCY: Federal Mine Safety and Health Review Commission.

ACTION: Interim rule with request for comments.

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SUMMARY: The Federal Mine Safety and Health Review Commission (the 
``Commission'') is an independent adjudicatory agency that provides 
hearings and appellate review of cases arising under the Federal Mine 
Safety and Health Act of 1977, or Mine Act. Hearings are held before 
the Commission's Administrative Law Judges, and appellate review is 
provided by a five-member Review Commission appointed by the President 
and confirmed by the Senate. The Commission is adopting an interim rule 
to streamline the process for settling civil penalties assessed under 
the Mine Act.

DATES: The interim rule takes effect on May 27, 2010. The Commission 
will accept written and electronic comments received on or before June 
28, 2010.

ADDRESSES: Written comments should be mailed to Michael A. McCord, 
General Counsel, Office of the General Counsel, Federal Mine Safety and 
Health Review Commission, 601 New Jersey Avenue, NW., Suite 9500, 
Washington, DC 20001, or sent via facsimile to 202-434-9944. Persons 
mailing written comments shall provide an original and three copies of 
their comments. Electronic comments should state ``Comments on Penalty 
Settlement Rule'' in the subject line and be sent to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Michael A. McCord, General Counsel, 
Office of the General Counsel, 601 New Jersey Avenue, NW., Suite 9500, 
Washington, DC 20001; telephone 202-434-9935; fax 202-434-9944.

SUPPLEMENTARY INFORMATION:

Background

    Since 2006, the number of new cases filed with the Commission has 
dramatically increased. From 2000 through 2005, an average of 
approximately 2300 cases were filed with the Commission per year. In 
2006 and 2007, between approximately 3000 and 4000 new cases were filed 
each year, while in 2008 and 2009, approximately 9000 cases were filed 
each year.
    In order to deal with its burgeoning caseload, the Commission is 
considering

[[Page 21988]]

various ways to streamline its processing of cases. One approach the 
Commission has explored is to simplify how it processes civil penalty 
settlements.
    Under section 110(k) of the Mine Act, 30 U.S.C. 820(k), a proposed 
civil penalty that has been contested before the Commission may be 
settled only with the approval of the Commission. Under the 
Commission's current practice, a party submits to a Commission 
Administrative Law Judge a motion to approve a penalty settlement that 
includes for each violation the amount of the penalty proposed by the 
Department of Labor's Mine Safety and Health Administration, the amount 
of the penalty agreed to in settlement, and facts in support of the 
penalty agreed to by the parties. 29 CFR 2700.31(b). A Commission Judge 
considers the motion and evaluates the penalty agreed to by the parties 
based on the criteria set forth in section 110(i) of the Mine Act, 30 
U.S.C. 820(i). If the Judge concludes that the settlement is consistent 
with the statutory criteria, the Judge issues a decision approving the 
settlement and setting forth the reasons for approval.
    In all penalty proceedings, except for discrimination proceedings 
arising under section 105(c) of the Mine Act, 30 U.S.C. 815(c), or 
proceedings against individuals pursuant to section 110(c) of the Mine 
Act, 30 U.S.C. 820(c), the interim rule sets forth several new 
requirements regarding how parties file settlement motions with the 
agency. First, it requires that a party filing a motion to approve a 
penalty settlement submit a proposed decision approving settlement 
(``proposed order'') with the motion. Second, it requires the filing 
party to submit the motion and proposed order electronically. The basic 
requirements for content of a motion to approve settlement still apply 
in that a movant must include in a motion for each violation the amount 
of the proposed penalty, the amount of the penalty agreed to in 
settlement, and facts that support the penalty agreed to by the 
parties. A filing party may set forth this information in the proposed 
order and incorporate the proposed order by reference in the motion. 
The interim rule includes a new requirement that the party filing the 
motion certify that the opposing party has reviewed the motion and has 
authorized the filing party to represent that the opposing party 
consents to the granting of the motion and the entry of the proposed 
order approving settlement. The interim rule also requires that, if a 
motion has been filed by a Conference and Litigation Representative 
(``CLR'') on behalf of the Secretary of Labor, the accompanying 
proposed order must include a provision in which the Judge accepts the 
CLR to represent the Secretary in accordance with the notice of either 
limited or unlimited appearance previously filed with the Commission.
    The content of orders approving settlement will vary depending upon 
the particular facts and circumstances of each case. The Commission 
will make sample forms for proposed orders approving settlement 
available on the Commission's Web site (http://www.fmshrc.gov).
    In all penalty proceedings, except discrimination and section 
110(c) proceedings, parties will file any settlement motion 
electronically by attaching electronic copies of the motion and 
proposed order to an e-mail to the Commission. The e-mail address to 
which settlement motions must be sent and instructions for filing are 
set forth on the Commission's Web site (http://www.fmshrc.gov). The 
Commission expects that the electronic submission of such settlement 
motions with proposed orders will significantly reduce the amount of 
time it takes for the Commission to dispose of settlement motions.
    Electronic filing is effective upon the date of transmission. The 
transmitting party has the responsibility of retaining records showing 
the date of transmission, including receipts. Filers should request a 
delivery receipt when filing electronically with the Commission using 
the option for a delivery receipt, if available on the filer's e-mail 
program. This receipt is automatically generated when the e-mail is 
delivered to the Commission's e-mail server. Parties may also use the 
option of a read receipt, which is generated when the e-mail is opened.
    Any signature line set forth within a motion to approve settlement 
submitted electronically must include the notation ``/s/'' followed by 
the typewritten name of the party or representative of the party filing 
the document. The Commission shall consider such a representation of 
the signature to be the original signature of the representative for 
all purposes unless the party representative shows that such 
representation of the signature was unauthorized. See 29 CFR 2700.6. 
Although the interim rule requires electronic filing, the Commission 
may allow a party to file non-electronically with the permission of the 
Judge.
    The interim rule requires that a copy of a motion and proposed 
order be served on the opposing party as expeditiously as possible. The 
Commission recognizes that some parties may not have the capability of 
being served with the motion and proposed order by e-mail, facsimile 
transmission, or commercial delivery. Under such circumstances, the 
filing party may serve the motion and proposed order on the opposing 
party by mail. Permission of the Judge is unnecessary for service by 
non-electronic means.
    Currently, there are instances in which the Secretary files a 
motion to approve settlement before the Secretary has filed a petition 
for assessment of penalty. Some of those instances occur when the 
Commission has granted the Secretary an extension of time to file the 
petition, and the case settles before the petition is due under the 
extension. When a case settles before the Secretary has filed a 
petition, the Commission requires the filing party to file a copy of 
the proposed penalty assessment and copies of the citations and/or 
orders with the motion to approve settlement and does not require the 
Secretary to file the petition. The interim rule continues this 
practice. Thus, under the interim rule, if the filing party 
electronically files a motion to approve settlement and proposed order 
before the Secretary has filed a petition for assessment of penalty, 
the filing party must also file as attachments electronic copies of the 
proposed penalty assessment and citations and orders at issue. Under 
such circumstances, the Secretary need not file a petition for 
assessment of penalty.
    The interim rule also provides that if a party filing a motion to 
approve settlement and proposed order fails to include in the motion 
and proposed order information required by this rule and the 
Commission's instructions on its Web site, the Commission will not 
accept for filing the motion and proposed order. Rather, the Commission 
will inform the filing party of the need for correction and 
resubmission.
    Discrimination proceedings and section 110(c) proceedings are 
specifically excepted from paragraph (b) of the Commission's new 
interim rule. The Commission's current practice shall continue to apply 
to such proceedings. Thus, in discrimination or section 110(c) 
proceedings, a party will submit a hard paper copy of a motion to 
approve settlement to the Judge that includes for each violation the 
amount of the proposed penalty, the amount of the penalty agreed to in 
settlement, and the supporting facts. Filing and service in such 
proceedings shall be accomplished in accordance with the provisions of 
29 CFR 2700.5 and 2700.7.

[[Page 21989]]

Notice and Public Procedure

    Although notice-and-comment rulemaking requirements under the 
Administrative Procedure Act (``APA'') do not apply to rules of agency 
procedure (see 5 U.S.C. 553(b)(3)(A)), the Commission invites members 
of the interested public to submit comments on the interim rule in 
order to assist the Commission in its deliberations regarding the 
adoption of a permanent rule. The Commission will accept public 
comments until June 28, 2010.
    The Commission is an independent regulatory agency and, as such, is 
not subject to the requirements of E.O. 12866, E.O. 13132, or the 
Unfunded Mandates Reform Act, 2 U.S.C. 1501 et seq.
    The Commission has determined under the Regulatory Flexibility Act 
(5 U.S.C. 601 et seq.) that this rule would not have a significant 
economic impact on a substantial number of small entities. Therefore, a 
Regulatory Flexibility Statement and Analysis has not been prepared.
    The Commission has determined that the Paperwork Reduction Act (44 
U.S.C. 3501 et seq.) does not apply because this rule does not contain 
any information collection requirements that require the approval of 
the OMB.
    The Commission has determined that the Congressional Review Act, 5 
U.S.C. 801, is not applicable here because, pursuant to 5 U.S.C. 
804(3)(C), this rule ``does not substantially affect the rights or 
obligations of non-agency parties.''

List of Subjects in 29 CFR Part 2700

    Administrative practice and procedure, Mine safety and health, 
Penalties, Whistleblowing.

0
For the reasons stated in the preamble, the Federal Mine Safety and 
Health Review Commission amends 29 CFR part 2700 as follows:

PART 2700--PROCEDURAL RULES

0
1. The authority citation for part 2700 continues to read as follows:

    Authority: 30 U.S.C. 815, 820, 823, and 876.

0
2. Section 2700.5 is amended by revising paragraph (b) to read as 
follows:


Sec.  2700.5  General requirements for pleadings and other documents; 
status or informational requests.

* * * * *
    (b) Where to file. Unless otherwise provided for in the Act, these 
rules, or by order:
    (1) Until a Judge has been assigned to a case, all documents shall 
be filed with the Commission. Documents filed with the Commission shall 
be addressed to the Executive Director and mailed or delivered to the 
Docket Office, Federal Mine Safety and Health Review Commission, 601 
New Jersey Avenue, NW., Suite 9500, Washington, DC 20001; facsimile 
delivery as allowed by these rules (see section 2700.5(e)), shall be 
transmitted to (202) 434-9954.
    (2) After a Judge has been assigned, and before a decision has been 
issued, documents shall be filed with the Judge at the address set 
forth on the notice of the assignment.
    (3) Documents filed in connection with interlocutory review shall 
be filed with the Commission in accordance with section 2700.76.
    (4) After the Judge has issued a final decision, documents shall be 
filed with the Commission as described in paragraph (b)(1) of this 
section.

0
3. Revise Sec.  2700.31 to read as follows:


Sec.  2700.31  Penalty settlement.

    (a) General. A proposed penalty that has been contested before the 
Commission may be settled only with the approval of the Commission upon 
motion. A motion to approve a penalty settlement shall include for each 
violation the amount of the penalty proposed by the Secretary, the 
amount of the penalty agreed to in settlement, and facts in support of 
the penalty agreed to by the parties.
    (b) Motion accompanied by proposed order. In all penalty 
proceedings, except for discrimination proceedings arising under 
section 105(c) of the Mine Act, 30 U.S.C. 815(c), or proceedings 
against individuals pursuant to section 110(c) of the Mine Act, 30 
U.S.C. 820(c), a settlement motion must be accompanied by a proposed 
order approving settlement. Forms for proposed orders approving 
settlement are available on the Commission's Web site (http://www.fmshrc.gov).
    (1) Certification. The party filing a motion must certify that the 
opposing party has reviewed the motion, and has authorized the filing 
party to represent that the opposing party consents to the granting of 
the motion and the entry of the proposed order approving settlement.
    (2) Appearance by CLR. If a motion has been filed by a Conference 
and Litigation Representative (``CLR'') on behalf of the Secretary, the 
proposed order approving settlement accompanying the motion shall 
include a provision in which the Judge accepts the CLR to represent the 
Secretary in accordance with the notice of either limited or unlimited 
appearance previously filed with the Commission.
    (3) Filing and service of motion accompanied by proposed order.
    (i) Electronic filing. A motion and proposed order shall be filed 
electronically according to the requirements set forth in this rule and 
instructions on the Commission's Web site (http://www.fmshrc.gov). 
Filing is effective upon the date of the electronic transmission of the 
motion and proposed order. The transmitting party is responsible for 
retaining records showing the date of transmission, including receipts. 
Any signature line set forth within a motion to approve settlement 
submitted electronically shall include the notation ``/s/'' followed by 
the typewritten name of the party or representative of the party filing 
the document. Such representation of the signature shall be deemed to 
be the original signature of the representative for all purposes unless 
the party representative shows that such representation of the 
signature was unauthorized. See 29 CFR 2700.6. A motion and proposed 
order filed electronically constitute written documents for the purpose 
of applying the Commission's procedural rules (29 CFR part 2700), and 
such rules apply unless an exception to those rules is specifically set 
forth in this rule. Any copies of the motion and proposed order which 
have been printed and placed in the official case file by the 
Commission shall have the same force and effect as original documents.
    (ii) Filing by non-electronic means. A party may file a motion to 
approve settlement and an accompanying proposed order by non-electronic 
means only with the permission of the Judge.
    (iii) Service. A settlement motion and proposed order shall be 
served on all parties or their representatives as expeditiously as 
possible. If a party cannot be served by e-mail, facsimile 
transmission, or commercial delivery, a copy of the motion and proposed 
order may be served by mail. A certificate of service shall accompany 
the motion and proposed order setting forth the date and manner of 
service.
    (4) Filing of motion and proposed order prior to filing of 
petition. If a motion to approve settlement and proposed order is filed 
with the Commission before the Secretary has filed a petition for 
assessment of penalty, the filing party must also submit as attachments 
electronic copies of the proposed penalty assessment and citations and 
orders at issue. If such attachments are filed, the Secretary need not 
file a petition for assessment of penalty.
    (5) Non-acceptance of motion and proposed order. If a party filing 
a motion to approve settlement and a proposed order fails to include in 
the

[[Page 21990]]

motion and proposed order information required by this rule and the 
Commission's instructions posted on the Commission's Web site, the 
Commission will not accept for filing the motion and proposed order. 
Rather, the Commission will inform the filing party of the need for 
correction and resubmission.
    (c) Final order. Any order by the Judge approving a settlement 
shall set forth the reasons for approval and shall be supported by the 
record. Such order shall become the final order of the Commission 40 
days after issuance unless the Commission has directed that the order 
be reviewed. A Judge may correct clerical errors in an order approving 
settlement in accordance with the provisions of 29 CFR 2700.69(c).

    Dated: April 21, 2010.
Mary Lu Jordan,
Chairman, Federal Mine Safety and Health Review Commission.
[FR Doc. 2010-9689 Filed 4-26-10; 8:45 am]
BILLING CODE 6735-01-P