Stillwater Mining Co. v. Federal Mine Safety & Health Review Commission

Stillwater Mining Company petitions for review of a final order issued by the Federal Mine Safety and Health Review Commission assessing a civil penalty on Stillwater for violating a general safety regulation prohibit ing use of equipment beyond its design capacity. Stillwater contends that the regulation is impermissibly vague, application of the regulation is arbitrary and capricious, and there is not substantial evidence to support a finding that the equipment was being used beyond its design capacity. We reject these contentions, deny the petition for review, and thereby affirm the sanction.

I.

Stillwater operates an underground platinum mine near Nye, Montana. Ore from the mine is brought to the surface and dropped into chutes, each approximately 6 feet wide and 210 feet long. The chutes are constructed with bends that direct changes in the flow of the ore, thereby permitting the chutes to store up to 300 tons of material. At the bottom of each chute is a gate assembly that allows workers to funnel ore into waiting railcars. The gate assembly is supported by steel I-beams bolted to the chute with eight one-inch diameter bolts.

On August 21,1995, two Stillwater employees…

dissenting.

Following an accident that killed one of Stillwater Mining Company’s employees, an Administrative Law Judge (“ALJ”) assessed a fine against Stillwater for violating a federal regulation that prohibits the use of equipment beyond its design capacity. See Stillwater Mining Co. v. Secretary of Labor, 18 F.M.S.H.R.C. 1291, 1298 (1996). The majority holds that the ALJ’s conclusion is supported by substantial evidence; I respectfully disagree.

After Stillwater’s employees bring ore up to the surface, they load it into long chutes. Located at the bottom of each chute is a gate assembly through which the ore is funneled into railcars. On August 21, 1995, the gate assembly on one of Stillwater’s chutes collapsed, allowing ore to rush through the chute and to kill one of Stillwater’s workers. At the time of the accident, the chute had been in operation for five years, during which time over 200,000 tons of ore had been pulled through without incident.

Following the accident, Stillwater was charged with violating 30 C.F.R. § 57.14205 , which provides that “Machinery, equipment, and tools shall not be used beyond the design capacity intended by the manufacturer, where such use…