Akzo Nobel Salt, Inc. v. Federal Mine Safety & Health Review Commission

                  United States Court of Appeals

               FOR THE DISTRICT OF COLUMBIA CIRCUIT

        Argued April 17, 2000       Decided May 26, 2000 

                           No. 99-1370

                    Akzo Nobel Salt, Inc. and 
                     Cargill, Incorporated, 
                           Petitioners


                                v.

      Federal Mine Safety and Health Review Commission and 
                       Secretary of Labor, 
                           Respondents

        On Petition for Review of a Final Decision by the 
         Federal Mine Safety and Health Review Commission

     Mark N. Savit argued the cause for petitioners.  With him 
on the brief were Adele L. Abrams, and David J. Farber.

     Jerald S. Feingold, Attorney, U.S. Department of Labor, 
argued the cause for respondent.  With him on the brief was 
W. Christian Schumann, Counsel.

     Before:  Williams, Randolph and Garland, Circuit Judges.

     Opinion for the Court filed by Circuit Judge Williams.

     Williams, Circuit Judge:  The Federal Mine Safety and 
Health Act of 1977 (the "Mine Act") authorizes the Secretary 
of Labor, acting through the Mine Safety and Health Admin-
istration ("MSHA") to promulgate "mandatory health or safe-
ty standards for the protection of life and prevention of 
injuries in coal or other mines."  Mine Act s 101(a), 30 U.S.C. 
s 811(a).  At issue here is a standard governing escapeways 
from mines:

     Every mine shall have two or more separate, properly 
     maintained escapeways to the surface from the lowest 
     levels which are so positioned that damage to one shall 
     not lessen the effectiveness of the others.  A method of 
     refuge shall be provided while a second opening to the 
     surface is being developed.  A second escapeway is rec-
     ommended, but not required, during the exploration or 
     development of an ore body.
     
30 CFR s 57.11050.

     When maintenance at Akzo Nobel Salt's Cleveland Mine 
required temporary shut-down of one of the mine's two 
escapeways, Akzo received a citation for violating this stan-
dard.  After successfully contesting the citation before an 
ALJ, Akzo lost on the Secretary's appeal to the Federal Mine 
Safety and Health Review Commission.  The Commission 
took the view--now espoused by the Secretary as well--that 
the regulation unambiguously required every mine to have at 
least two escapeways operable at all times that miners (other 
than ones involved in escapeway repair or maintenance) were 
in the mine.  Akzo (together with Cargill, Inc., which pur-
chased the Cleveland Mine during the litigation but will 
henceforth be disregarded), petitioned this court for review.

     The regulation does not have the supposedly unambiguous 
meaning assigned it by the Commission (and before us by the 
Secretary as well).  "[P]roperly maintained" is not identical 
to "continuously functioning."  Moreover, because the Secre-
tary's interpretation of s 57.11050(a) has vacillated over time, 

we remand for the Commission to ascertain the interpretation 
that the Secretary currently espouses and to resolve the case 
under standard principles governing deference to an agency's 
interpretation of its regulations.

                             *  *  *

     The parties have stipulated to the relevant facts.  The Akzo 
Cleveland Mine was opened in 1961.  It operates two hoists 
to transport miners and material to and from the surface, 
each hoist being contained within a separate shaft.  Because 
of the construction of the wire ropes used in the hoists, these 
ropes must be adjusted periodically to ensure that they're 
tight and of equal length.

     On November 6, 1995 counsel for Akzo wrote to Vernon 
Gomez, then MSHA's Administrator for Metal and Nonmetal 
Mine Safety and Health, asking for clarification of MSHA's 
interpretation of 30 CFR s 57.11050(a) when one escapeway 
is taken out of use for repairs, leaving only one escapeway 
available for immediate use.  Gomez responded on December 
8, 1995, saying that "if a hoist could be returned to service 
within 1 hour of the need to be used then evacuation of the 
mine would not be required."  On December 15 Akzo's coun-
sel informed the Secretary that it would plan a hoist outage 
over the upcoming holidays to test the Gomez interpretation, 
which has become known as the "one-hour rule."  On Decem-
ber 25 the planned outage took place.  The hoist was shut 
down for roughly three and a half hours;  that period included 
a time during which it could not have been returned to 
service in less than an hour.  During this shift there were 
three miners underground doing work unrelated to the main-
tenance.  On January 25, 1996 an MSHA inspector issued two 
citations under s 104(d) of the Mine Act, 30 U.S.C. s 814(d):  
one under 30 CFR s 50.10 for failure to report the incident 
immediately, and a second one under 30 CFR s 57.11050(a).

     Akzo contested the January 25th citations (as well as an 
earlier citation for failure to comply with s 50.10) pursuant to 
s 105(d) of the Mine Act, 30 U.S.C. s 815(d).  Both Akzo and 
the Secretary moved for summary decision, and the ALJ 

ruled in Akzo's favor, vacating the citations.  The Secretary 
did not appeal the decision on s 50.10, so we need not address 
it.  As for the s 57.11050(a) citation, the ALJ found that 
Gomez's one-hour interpretation was not contained within the 
regulation's text and was "a significant departure from 
MSHA's apparent prior practice that has a substantial ad-
verse impact on AKZO's mining rights and compliance obli-
gations."  Akzo Nobel Salt, Inc. v. Secretary of Labor, Mine 
Safety and Health Administration, 18 F.M.S.H.R.C. 1950, 
2027 (ALJ 1996).  It followed that the Gomez letter was "a 
substantive rule subject to APA notice, comment, and publica-
tion requirements."  Id.  Indeed, the ALJ rejected the con-
tention that the Gomez letter constituted "the prevailing 
definitive interpretation[ ] of section 57.11050."  Id. at 2019.  
Rather, the letter was "a private communication," which "was 
prepared unilaterally and was not shared with other members 
of the mining community, and its contents have apparently 
never been reduced to other written form."  Id. at 2020.

     The Secretary appealed, arguing (as summarized by the 
Commission) that the one-hour rule was an interpretive rule 
and therefore did not require notice-and-comment rulemak-
ing, see 5 U.S.C. s 553(b)(A), and that the interpretation was 
"reasonable and consistent with the language and purpose of 
the standard."  Secretary of Labor, Mine Safety and Health 
Administration v. Akzo Nobel Salt, Inc., 21 F.M.S.H.R.C. 
846, 850 (F.M.S.H.R.C. 1999).  In an opinion joined by two 
commissioners, the Commission took a more stringent view of 
the regulation than Akzo and the ALJ or even the Secretary.  
It reversed the ALJ on the ground that Akzo's conduct was in 
violation of "the plain terms" of the regulation, which it saw 
as requiring that "an operator must provide two means of 
escape at all times."  Id. at 853.  Commissioner Marks 
agreed that the plain meaning of the regulation required 
reversal but wrote separately to discuss a variety of matters.  
Akzo attacks Marks's opinion as "no more than an emotional 
screed," Petitioner's Initial Br. at 29, but because the plurali-
ty opinion is unsustainable we need not consider the Marks 
opinion.

     We defer to an agency's interpretation of its own regula-
tions "unless it is plainly erroneous or inconsistent with the 
regulation," Thomas Jefferson University v. Shalala, 512 U.S. 
504, 512 (1994) (internal quotation marks omitted).  And 
when, as in this case, the Commission and the Secretary 
adopt conflicting interpretations, it is the Secretary's that 
deserves deference.  Secretary of Labor, Mine Safety and 
Health Administration v. FMSHRC, 111 F.3d 913, 920 (D.C. 
Cir. 1997);  see also Martin v. Occupational Safety & Health 
Review Comm'n, 499 U.S. 144, 152-53 (1991) (holding that 
because the Occupational Safety and Health Act of 1970 
invests rulemaking and enforcement authority in the Secre-
tary of Labor, his or her interpretations, rather than those of 
the adjudicatory Occupational Safety and Health Review 
Commission, are accorded deference).

     Although at the time this litigation arose the Secretary's 
position was the one-hour rule (at least as evidenced by the 
Gomez letter and its enforcement action against Akzo), her 
primary litigation position here is to ask us to affirm the 
Commission on its stated ground--that when miners are 
underground, s 57.11050 unambiguously requires, at all 
times, two functioning escapeways.  She rests this in part on 
the truth that use of the word "shall" indicates that the 
condition is mandatory, as well on legislative history.  The 
Senate reports both to the Mine Act and to its predecessor 
the Coal Act, she argues, contain references to instances 
when lives were lost because "a second escapeway was not 
provided."  S. Rep. No. 91-411, at 84 (1969) (Coal Act Senate 
Report);  see also S. Rep. No. 95-181, at 4 (1977) (Mine Act 
Senate Report).

     Both the Secretary's textual argument and argument from 
legislative history are misplaced to the point of distraction.  
The ambiguity in this case is not whether s 57.11050 man-
dates two escapeways.  It does.  And the Cleveland Mine, 
unlike those cited in the Senate reports, has two escapeways.  
As petitioner rightly observes, a car owner with two cars, one 
of them in the shop for an oil change, still "has" two cars.

     The real issue, as the Secretary quite rightly framed it in 
her brief before the Commission, is "what the standard 
requires when only one escapeway is functional."  Secretary's 
Commission Br. at 8.  Nothing in s 57.11050 definitely ad-
dresses this question:  "properly maintained" is not unambig-
uously the same as "continuously functioning."  Neither the 
text, legislative history, nor general safety purpose of the 
regulation, nor all three taken together, answer the Secre-
tary's well-framed question unambiguously.  Ultimate resolu-
tion of the issue would seem to require some exploration of 
the phrase "properly maintained."

     Had the Secretary projected her view through her various 
mouthpieces with any consistency, we would rule on the 
permissibility of that view.  But here we have the Gomez 
letter's one-hour rule, offered initially by Gomez and pursued 
by the Secretary's litigation counsel before the Commission.  
Then we have the Secretary's two views before us--the view 
that s 57.11050 unambiguously demands immediate evacua-
tion for any period of incomplete functioning, and the view 
that immediate evacuation is a reasonable resolution of the 
regulation's ambiguity.  The Supreme Court has stated that 
when interpreting an ambiguous regulation we normally owe 
deference to the Secretary's litigation position before the 
Commission.  Martin, 499 U.S. at 157.  The Secretary's 
interpretation before the Commission is "agency action, not a 
post hoc rationalization of it."  Id.  And, "when embodied in a 
citation, the Secretary's interpretation assumes a form ex-
pressly provided for by Congress," id. (citing 29 U.S.C. 
s 658), and is therefore "as much an exercise of delegated 
lawmaking powers as is the Secretary's promulgation of" a 
regulation.  Id.  But the Secretary now ranks her earlier 
view (the Gomez one-hour rule) lowest among her prefer-
ences, instead favoring the Commission's "at all times" read-
ing (either as the "plain" message of the regulation or, as a 
fallback, as a resolution of its ambiguity).

     In considering the permissibility of the "at all times" 
interpretation, we recognize that courts defer to agency inter-
pretations of ambiguous regulations first put forward in the 
course of litigation, but only where they "reflect the agency's 
fair and considered judgment on the matter in question."  

Auer v. Robbins, 519 U.S. 452, 462 (1997);  Church of Scien-
tology of California v. IRS, 792 F.2d 153, 165 (Silberman, J., 
concurring) (D.C. Cir. 1986);  compare Christensen v. Harris 
County, __ U.S. __, 2000 WL 504548, *6 (U.S. 2000) (noting 
that agency interpretations that lack the force of law (such 
as those embodied in opinion letters and policy statements) 
"do not warrant Chevron-style deference" when they inter-
pret ambiguous statutes but do receive deference under 
Auer when interpreting ambiguous regulations).  In assess-
ing the likelihood of such "considered judgment," we have 
noted, for example, whether the agency had previously 
"adopted a different interpretation of the regulation or con-
tradicted its position on appeal," National Wildlife Federa-
tion v. Browner, 127 F.3d 1126, 1129 (D.C. Cir. 1997), as, of 
course, the Secretary has here.  Compare Association of 
Bituminous Contractors, Inc. v. Apfel, 156 F.3d 1246, 1252 
(D.C. Cir. 1998), deferring to an agency's litigation position 
where it appeared simply to articulate an explanation of 
longstanding agency practice.  By contrast, the flip-flops 
here mark the Secretary's position as the sort of "post hoc 
rationalizations" to which courts will not defer.  Martin, 499 
U.S. at 156.  Moreover, litigation counsel's simultaneous ad-
vocacy of several different positions strongly suggests to us 
that the Secretary has in fact never grappled with--and thus 
never exercised her judgment over--the conundrum posed 
by the regulation's clear ambiguity.  We thus do not pass on 
the permissibility of any of these interpretations.  On re-
mand, of course, the Secretary might offer a permissible in-
terpretation, yet one which because of concerns over fair 
notice could not be applied punitively against Akzo here.  
Trinity Broadcasting of Florida, Inc. v. FCC, __ F.3d __, 
2000 WL 426981, *14-*15 (D.C. Cir. 2000).

     Accordingly, we vacate the Commission's decision and re-
mand for it to secure from the Secretary an authoritative 
interpretation of s 57.11050, and to resolve the case applying 
standard deference principles to that interpretation.

     The decision of the Commission is vacated and remanded.

                                                      So ordered.