Robert B. Reich, Secretary of Labor, United States Department of Labor v. Montana Sulphur & Chemical Company

In this appeal from a subpoena enforcement order, we revisit the boundaries limiting an administrative agency’s ability to conduct preliminary investigations.

I

Montana Sulphur & Chemical Company (MSCC) is a chemical manufacturer which deals with hazardous materials, including hydrogen sulfide. On December 10, 1991, the Billings office of the Occupational Safety & Health Administration (OSHA) received a phone call from an individual purporting to be an employee of MSCC. The individual revealed a detailed knowledge of MSCC’s plant and described numerous alleged health hazards. On request, the individual agreed to come to OSHA’s office to sign a written complaint.

The signed complaint alleged six unsafe conditions; the only allegation relevant to this case was a contention that MSCC did not x-ray its welds or certify its welders. If true, this posed a safety hazard because improper welding could rupture and result in the release of lethally toxic chemicals. OSHA’s area director reviewed the complaint and, based on the complaint and the information provided in the telephone call, determined that an inspection was warranted. OSHA arranged with MSCC to inspect its plant in…