Chao v. Mallard Bay Drilling

• Citation: 151 L.Ed.2d 659,122 S.Ct. 738,534 U.S. 235
• Decision Date: 09 January 2002
• Docket Number: 00-927
• Parties: ELAINE L. CHAO, SECRETARY OF LABOR, PETITIONER v. MALLARD BAY DRILLING, INC.SUPREME COURT OF THE UNITED STATES
• Court: U.S. Supreme Court

534 U.S. 235

122 S.Ct. 738

151 L.Ed.2d 659

NOTICE: This opinion is subject to formal revision before publication in the preliminary print of the United States Reports. Readers are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, of any typographical or other formal errors, in order that corrections may be made before the preliminary print goes to press

ELAINE L. CHAO, SECRETARY OF LABOR, PETITIONER v MALLARD BAY DRILLING, INC.

No. 00-927

SUPREME COURT OF THE UNITED STATES

Argued October 31, 2001

Decided January 9, 2002

Syllabus

While Rig 52, respondent's oil and gas exploration barge, was drilling a well in Louisiana's territorial waters, an explosion on board killed or injured several workers. Pursuant to its statutory authority, the United States Coast Guard (Coast Guard or Guard) investigated the incident, but did not accuse respondent of violating any of its regulations. Indeed, the Guard noted that the barge was an "uninspected vessel," see 46 U.S.C. § 2101 (43), as opposed to an "inspected vessel" subject to comprehensive Coast Guard regulation, see §3301. Subsequently, the Occupational Safety and Health Administration (OSHA) cited respondent for violations of the Occupational Safety and Health Act of 1970 (OSH Act or Act) and its regulations. Respondent challenged OSHA's jurisdiction to issue the citations on the grounds that Rig 52 was not a "workplace" under §4(a) of the Act and that §4(b)(1) of the Act pre-empted OSHA jurisdiction because the Coast Guard had exclusive authority to prescribe and enforce occupational safety and health standards on vessels such as Rig 52. In rejecting both challenges, the Administrative Law Judge (ALJ) found that Rig 52 was a "workplace" under the Act and held that the Coast Guard had not pre-empted OSHA's jurisdiction, explaining that there was no industry-wide exemption from OSHA regulations for uninspected vessels and no Coast Guard regulation specifically regulating the citations' subject matter. The Occupational Safety and Health Review Commission issued a final order assessing a penalty against respondent. Without addressing the §4(a) issue, the Fifth Circuit reversed, holding that the Coast Guard's exclusive jurisdiction over the regulation of seamen's working conditions aboard vessels such as Rig 52 precluded OSHA's regulation under §4(b)(1), and that this pre-emption encompassed both inspected and uninspected vessels.

Held:

1. Because the Guard has neither affirmatively regulated the working conditions at issue, nor asserted comprehensive regulatory jurisdiction over working conditions on uninspected vessels, it has not exercised its authority under §4(b)(1). The OSH Act does not apply to working conditions as to which other federal agencies "exercise" statutory authority to prescribe or enforce occupational safety and health standards or regulations. §4(b)(1), 29 U.S.C. § 653 (b)(1). Congress' use of "exercise" makes clear that mere possession by another federal agency of unexercised authority is insufficient to displace OSHA's jurisdiction. Furthermore, another federal agency's minimal exercise of some authority over certain vessel conditions does not result in complete pre-emption of OSHA jurisdiction. To determine whether Coast Guard regulations have pre-empted jurisdiction over Rig 52's working conditions, it is thus necessary to examine the contours of the Guard's exercise of its statutory authority. With respect to inspected vessels, the parties do not dispute that OSHA's regulations have been pre-empted because the Coast Guard has exercised its broad statutory authority over workers' occupational health and safety, 46 U.S.C. § 3306 . Indeed, OSHA and the Coast Guard signed a Memorandum of Understanding recognizing that the Guard has displaced OSHA's jurisdiction over all working conditions on inspected vessels, including those not addressed by specific regulations. In contrast, the Guard's regulatory authority over uninspected vessels is more limited. Its general maritime regulations do not address the occupational safety and health concerns faced by inland drilling operations on such vessels and, thus, do not pre-empt OSHA's authority in this case. And, although the Guard has engaged in a limited exercise of its authority to regulate specific working conditions on certain types of uninspected vessels, respondent has not identified any specific regulations addressing the types of risk and vessel at issue here. Pp. 59.

2. Rig 52 was a "workplace" under §4(a) of the Act. It was located within a geographic area described in §4(a) a State and §4(a) attaches no significance to the fact that it was anchored in navigable waters. Pp. 9-10. 212 F.3d 898, reversed.

ON WRIT OF CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

Stevens, J., delivered the opinion of the Court, in which all Members joined, except Scalia, J., who took no part in the decision of the case.

Opinion of the Court

Justice Stevens delivered the opinion of the Court.

Respondent operates a fleet of barges used for oil and gas exploration. On April 9, 1997, one of those barges, "Rig 52," was towed to a location in the territorial waters of Louisiana, where it drilled a well over two miles deep. On June 16, 1997, when the crew had nearly completed drilling, an explosion occurred, killing four members of the crew and injuring two others. Under United States Coast Guard (Coast Guard or Guard) regulations, the incident qualified as a "marine casualty" because it involved a commercial vessel operating "upon the navigable waters of the United States." 46 CFR § 4.03- 1 (2000).

Pursuant to its statutory authority, the Coast Guard conducted an investigation of the casualty. See 46 U.S.C. § 6101- 6104, 6301 6308 (1994 ed. and Supp. V).¹ The resulting report was limited in scope to what the Guard described as "purely vessel issues," and noted that the Guard "does not regulate mineral drilling operations in state waters, and does not have the expertise to adequately analyze all issues relating to the failure of an oil/natural gas well." App. to Pet. for Cert. 24a. The Guard determined that natural gas had leaked from the well, spread throughout the barge, and was likely ignited by sparks in the pump room. The report made factual findings concerning the crew's actions, but did not accuse respondent of violating any Coast Guard regulations. Indeed, the report noted the limits of the Guard's regulation of vessels such as Rig 52: The report explained that, although Rig 52 held a Coast Guard Certificate of Documentation, it had "never been inspected by the Coast Guard and is not required to hold a Certificate of Inspection or be inspected by the Coast Guard." Id., at 27a. In Coast Guard terminology, Rig 52 was an "uninspected vessel," see 46 U.S.C. § 2101 (43), as opposed to one of the 14 varieties of "inspected vessels" subject to comprehensive Coast Guard regulation, see 46 U.S.C. § 3301 (1994 ed. and Supp. V).

Based largely on information obtained from the Coast Guard concerning this incident, the Occupational Safety and Health Administration (OSHA) cited respondent for three violations of the Occupational Safety and Health Act of 1970 (OSH Act or Act), 84 Stat. 1590, as amended, 29 U.S.C. § 651 et seq. (1994 ed. and Supp. V), and the Act's implementing regulations. The citations alleged that respondent failed promptly to evacuate employees on board the drilling rig; failed to develop and implement an emergency response plan to handle anticipated emergencies; and failed to train employees in emergency response. No. 97-1973, 1998 WL 917067, *1 (OSHRC, Dec. 28, 1998). Respondent did not deny the charges, but challenged OSHA's jurisdiction to issue the citations on two grounds: that Rig 52 was not a "workplace" within the meaning of §4(a) of the Act;² and that §4(b)(1) of the Act pre-empted OSHA jurisdiction because the Coast Guard had exclusive authority to prescribe and enforce standards concerning occupational safety and health on vessels in navigable waters.³

The Administrative Law Judge (ALJ) rejected both jurisdictional challenges. Finding that respondent's "employees were not performing navigational-related activities" and that Rig 52 "was stationary and within the territorial boundaries of the State of Louisiana," he concluded that Rig 52 was a "workplace" within the meaning of the Act. Id., at *3. The ALJ then held that the Coast Guard had not pre-empted OSHA's jurisdiction under §4(b)(1), explaining that respondent had identified no basis for an "industry-wide exemption from OSHA regulations" for uninspected vessels, and had failed to identify any Coast Guard regulation "specifically regulat[ing]" the subject matter of the citations. Id., at *4. In the ALJ's view, another federal agency cannot pre-empt OSHA's jurisdiction under §4(b)(1) unless that agency exercises its statutory authority to regulate a particular working condition: Mere possession of the power to regulate is not enough.⁴ The Occupational Safety and Health Review Commission declined review of the ALJ's decision and issued a final order assessing a penalty against respondent of $4,410 per citation. Id., at *1.

Without reaching the question whether Rig 52 was a "workplace" under §4(a) of the OSH Act, the United States Court of Appeals for the Fifth Circuit reversed. It held that the Coast Guard "has exclusive jurisdiction over the regulation of working conditions of seaman aboard vessels such as [Rig 52], thus precluding OSHA's regulation under Section 4(b)(1) of the OSH Act." 212 F.3d 898, 900 (2000). The Court of Appeals determined that this pre-emption encompassed uninspected vessels such as Rig 52, as well as inspected ones, explaining that the Coast Guard "has in fact exercised" its "authority to issue safety regulations for uninspected vessels" as §4(b)(1) requires for pre-emption. Id., at 901 (stating, with respect to...