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DOL/MSHA RIN: 1219-AB51 Publication ID: Fall 2006 
Title: Criteria and Procedures for Proposed Assessment of Civil Penalties 
Abstract: MSHA is proposing to amend its civil penalty regulations to increase penalty amounts, to revise the process for proposing civil penalties and to implement requirements of the Mine Improvement and New Emergency Response Act (MINER Act) of 2006. The key civil penalty provisions of the MINER Act are: minimum penalties of $2,000 and $4,000, respectively, for unwarrantable failure citations and orders; penalties of not less than $5,000 and not more than $60,000 for failure to timely notify MSHA of a death or an injury or entrapment with a reasonable potential to cause death; and penalties of up to $220,000 for “flagrant” violations — those involving “a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.” Updating these regulations will strengthen incentives for compliance. 
Agency: Department of Labor(DOL)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 30 CFR 100   
Legal Authority: 30 USC 815    30 USC 820    30 USC 957    Section 8 of the MINER Act   
Legal Deadline:  None

Statement of Need: A recent upward trend in citations for violations of MSHA’s safety and health regulations, coupled with a high number of fatalities at mines this year, have called into question the effectiveness of the current civil penalty regulations. Congress responded by passing the MINER Act to provide MSHA with statutory authority for some of the needed changes to the civil penalty regulations. MSHA is proposing additional changes to strengthen existing regulations, which will be an important tool in the reduction of fatalities and improvement in miner safety and health.

Summary of the Legal Basis: Promulgation of this regulation is authorized by the Federal Mine Safety and Health Act of 1977 and the MINER Act of 2006.

Alternatives: The Agency considered a variety of approaches to calculating civil penalties and is proposing the approach that it believes best achieves the objectives of the Agency.

Anticipated Costs and Benefits: Using 2005 violation and assessment data as a baseline, MSHA estimates that all violations in 2005, if assessed under the proposed rule, would result in approximately $68 million in penalties annually, which is an increase of $43 million. However, MSHA projects that the higher penalties will induce operators to increase compliance efforts, thereby decreasing the number of violations by about 19% and resulting in increased penalties of $21 million. MSHA believes the projected increased compliance with health and safety regulations would result in fewer injuries and fatalities, but such benefits have not been scientifically established. Accordingly, MSHA has not prepared a quantitative estimate of the expected reduction in injuries and fatalities.

Risks: The Mine Act imposes civil penalties as a means of ensuring compliance with the requirements of the Act. The Congress intended that the imposition of civil penalties would induce mine operators to be proactive in their approach to mine safety and health, and take necessary action to prevent safety and health hazards before they occur. MSHA’s regulations apply to 14,480 mine operators and 6,693 independent contractors, as well as the 214,450 miners and 72,739 contract workers they employ.

Timetable:
Action Date FR Cite
NPRM  09/08/2006  71 FR 53054   
NPRM Comment Period End  11/09/2006  71 FR 62572   
Final Action  12/00/2006    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: Yes 
Agency Contact:
Patricia W. Silvey
Director, Office of Standards, Regulations, and Variances
Department of Labor
Mine Safety and Health Administration
Room 631, 1100 Wilson Boulevard, Room 2350,
Arlington, VA 22209-3939
Phone:202 693-9440
Fax:202 693-9441
Email: silvey.patricia@dol.gov