Justia Energy, Oil & Gas Law Opinion Summaries

Articles Posted in Labor & Employment Law
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Respondent, widow of an employee of Pacific Operators Offshore, sought benefits under the Longshore and Harbor Workers' Compensation Act (LHWCA), 33 U.S.C. 901 et seq., pursuant to the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1333(b), which extended LHWCA coverage to injuries "occurring as the result of operations conducted on the [OCS]" for the purpose of extracting natural resources from the shelf. The ALJ dismissed her claim, reasoning that section 1333(b) did not cover the employee's fatal injury because his accident occurred on land, not on the OCS. The Labor Department's Benefits Review Board affirmed, but the Ninth Circuit reversed. The Court concluded that the Ninth Circuit's "substantial-nexus" test was more faithful to the text of section 1333(b). The Court understood the Ninth Circuit's test to require the injured employee to establish a significant causal link between the injury that he suffered and his employer's on-OCS operations conducted for the purpose of extracting natural resources from the OCS. View "Pacific Operators Offshore, LLP v. Valladolid" on Justia Law

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This case arose when Southern Power terminated its service agreement with Georgia Power, represented by Local 84, and Alabama Power, represented by Local 801-1, taking over four electricity generating plants' operations. Local 84 and Local 801-1 requested recognition, contending that Southern Power qualified as a successor employer to Georgia Power and Alabama Power. After a hearing, an ALJ found that Southern Power violated sections 8(a)(1) and (5) of the National Labor Relations Act (NLRA), 29 U.S.C. 151 et seq., ordering it to recognize and bargain with the unions. The ALJ also found that the three-plant bargaining unit represented by Local 84 was inappropriate. On March 20, 2009, the Board, acting with only two sitting members, issued an order affirming the ALJ's findings but found, however, that the Georgia Power three-plant bargaining unit was proper given the unit's bargaining history. Southern Power petitioned for review and the court remanded in light of New Process Steel, which required at least three members to exercise the Board's authority. On November 30, 2010, a three-member panel of the Board affirmed the ALJ's decision and adopted the recommended Order. Southern Power subsequently petitioned for review of the Board's November 30 Order. The court held that it lacked jurisdiction to consider two of Southern Power's arguments, another was time-barred, and two others failed on the merits. Accordingly, the court denied the petition and granted the Board's cross-application for enforcement. View "Southern Power Co. v. NLRB" on Justia Law

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This appeal involved a putative class action brought against several oil and gas companies and several companies that provide labor for offshore oil and gas projects. Plaintiffs alleged that defendants maintained a hiring scheme to employ foreign workers on the Outer Continental Shelf in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1961-1968, and the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1331 et seq. The district court disposed of all plaintiffs' claims and then entered final judgment dismissing all claims. The court held that the Service Defendants did not violate RICO because the law that would make their conduct racketeering activity did not apply in the place where that conduct occurred, namely vessels floating on the waters of the Outer Continental Shelf. The court rejected plaintiffs' contention that the exemptions the Service Defendants possessed to the OCSLA manning requirements did not shield them from RICO liability because those exemptions were fraudulently obtained. The court also held that plaintiffs could not state a claim for a private right of action for damages under the OCSLA and the district court's dismissal was proper. The court further held that the district court did not err in disposing plaintiffs' OCSLA enforcement claim. Accordingly, the judgment of the district court was affirmed. View "Brown, et al. v. Offshore Specialty Fabricators, et al." on Justia Law

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In September 2007, Petitioner Mitchell Glasgow was severely burned from a fire at an oil well at which he worked. At the time, Therral Story Well Service (TSWS) directly employed Mr. Glasgow. The mineral owners contracted with another company, PAR Minerals, Inc., to produce oil and gas. In turn, PAR Minerals contracted with TSWS to drill a well. The well penetrated into formations that were pressurized with hydrocarbons. Mr. Glasgow was circulating water trough the well while waiting for heavier drilling mud to be pumped into the well to control the pressure. A TSWS employee told Mr. Glasgow to stand away from the well because the pressure was dangerous, but a PAR Minerals "on-site supervisor" ordered Mr. Glasgow to get on his station at the pump, and jump away only if gas escaped from the well. Gas escaped, ignited, and severely burned Mr. Glasgow. Mr. Glasgow filed suit against PAR Minerals and its insurer. PAR Minerals would receive service of process one year later. PAR Minerals moved for summary judgment, arguing that it was Mr. Glasgow's "statutory employer" and therefore immune to lawsuits like his. The district court granted PAR Minerals' motion, holding that because of the year delay in getting PAR Minerals notice of the lawsuit, Mr. Glasgow's suit was prescribed and untimely. A split appellate court affirmed the district court's dismissal, and Mr. Glasgow appealed. After a thorough review of the record, the Supreme Court found that the lower courts erred in dismissing Mr. Glasgow's claims as prescribed. The Court reversed the lower courts' holdings and remanded the case for further proceedings.