May 20, 2013

Tenth Circuit: ALJ’s Credibility Determinations Deserve Great Weight

The Tenth Circuit issued its opinion in Cordero Mining LLC v. Secretary of Labor on Thursday, November 15, 2012.

Cindy Clapp was a long time employee at a coal mine operated by Cordero Mining. She was terminated after making several complaints about safety issues. The Secretary of Labor filed a complaint of discrimination on her behalf, alleging Cordero violated § 105(c) of the Federal Mine Safety and Health Act of 1977 (the Act). An ALJ found Cordero had violated the Act and ordered Clapp be reinstated with back pay and imposed a civil penalty of $40,000. As the Federal Mine Safety and Health Review Commission denied review, Cordero petitioned for review of the final decision.

The Tenth Circuit held the ALJ’s findings were supported by substantial evidence. Clapp had established a prima facie case of discrimination by 1) showing she engaged in the protected activity of raising safety concerns and 2) that she was terminated for that activity, not for insubordination. The ALJ’s credibility determinations deserved great weight.

The court also rejected Cordero’s challenge to the back pay award as Cordero failed to meet its burden of establishing Clapp “did not exercise reasonable diligence” in finding new employment and thereby mitigating her damages. Finally, the court found substantial evidence supported the ALJ’s civil penalty, including the chilling effect Clapp’s termination would have on other miners.

Tenth Circuit: Dismissal for Failure to Exhaust Administrative Remedies Not Abuse of Discretion

The Tenth Circuit Court of Appeals published its opinion in Gilmore v. Weatherford on Tuesday, September 4, 2012.

Mine tailings piles known as “chat” have value as fill and gravel. Two piles at issue in this case consist of comingled property because they are owned partially by unrestricted owners and partially by “restricted” owners. The restricted owners are descendants of Quapaw Tribe members who were deemed incompetent and so are unable to freely alienate their property under federal law. Three restricted owners sued Bingham Sand and Gravel for conversion and an accounting for allegedly removing chat without compensating the restricted owners, and Weatherford, as representative of an estate that allegedly sold chat to Bingham. The plaintiffs claimed Bureau of Indian Affairs (BIA) approval was required for any sale or removal of chat from the piles. The plaintiffs also sued the Secretary of the Interior and BIA officials under the Administrative Procedure Act (APA) seeking to compel agency action, and sought an accounting from the BIA.

The district court dismissed the claims against the federal defendants for failure to exhaust administrative remedies. Although the accounting claim was not governed by the APA, the district court exercised its judicial discretion to require exhaustion of that claim as well. The Tenth Circuit held that was not an abuse of discretion.

Once the district court dismissed the claims against the federal defendants, it dismissed the claims against the private defendants for lack of subject matter jurisdiction. The plaintiffs claimed that the removal of the restricted chat required approval of the Secretary of the Interior. The Tenth Circuit reversed the dismissal of all claims regarding the private defendants because the “conversion claim presents a substantial and disputed question of federal law sufficient to confer federal question jurisdiction under 28 U.S.C. § 1331.” With the federal question conversion claim reinstated, the district court could properly exercise supplemental jurisdiction over the accounting claim.

 

Spark the Discussion: Hemp for Victory

“Spark the Discussion” is a monthly Legal Connection column highlighting the hottest trends in the emerging field of medical marijuana law. This column is brought to you by Vicente Sederberg, LLC, a full-service, community-focused medical marijuana law firm.

By Brian Vicente, Esq. and Rachelle Yeung

In the final weeks of the Colorado legislative session, while House Democrats and Republicans were fiercely battling over same-sex civil unions, a landmark piece of drug policy reform legislation snuck through the Legislature nearly unopposed. The “Hemp Bill,” or HB 12-1099, sets up the framework for the study and use of industrial hemp, and seeks to use this “taboo” crop to clean up contaminated soil through a process called phytoremediation.

The passage of the Hemp Bill is a victory in a 70-year long battle against the prohibition of marijuana and a turning point towards a more sensible approach to drug policy. The regulation of marijuana is a topic of increasing importance to Colorado voters because of Amendment 64, the statewide ballot initiative to regulate marijuana like alcohol, which will be voted on in November. Amendment 64 would also make Colorado the first state in the nation to regulate the cultivation, processing, and sale of industrial hemp.

Historically, hemp production was encouraged in the United States – from being one of the most important crops in colonial America to being promoted by the federal government in a World War II film called “Hemp for Victory.” However, growing hemp has been outlawed since the Controlled Substances Act, because of its close association with marijuana.

Though it shares the same genus (“Cannabis sativa L.”) as its better-known cousin, industrial hemp is distinguished from marijuana by its low concentration of the psychoactive ingredient tetrahydrocannabinols, or THC. Industrial hemp contains no more than three-tenths of a percent of THC.

Several factors make Colorado a particularly compelling candidate for hemp-based phytoremediation. Extensive mining throughout the state has left vast tracts of land contaminated with toxic waste. Phytoremediation would remove those toxins from the ground, which could then be used for agriculture and cattle grazing which are cornerstones of the state’s economy. Finally, a plant requiring very little water to grow – like hemp – is a necessity in a water-constrained state like Colorado.

The use of industrial hemp in phytoremediation is not entirely novel. In 1986, the explosion at the Chernobyl Nuclear Plant caused severe radioactive contamination in areas up to 100 km away. Soil in that area became saturated with toxic waste and heavy-metals which rendered it useless for agriculture. In 1998, a group called PHYTOTECH began growing hemp in the area to decontaminate the soil and, according to Slavik Dushenkov, a research scientist with the company, “Hemp prov[ed] to be one of the best phytoremediative plants we have been able to find.”

Activists hope that phytoremediation is just the introduction of industrial hemp into mainstream use. Hemp is cheap and easy to grow, requiring few pesticides and no herbicides. It can be used in textiles, construction materials, paper products, and even body care products. Hemp seed is considered a “superfood” – a good source of protein and dietary fiber, high in B-vitamins and essential omega-3 and omega-6 fatty acids. Hemp can even be reduced to ethanol and biofuel, a boon to our petroleum-addicted society. Some activists go so far as calling hemp “the plant that could save the world.”

A similar bill was introduced in the Colorado Legislature in 1994 by then-Senator Loyd Casey, but received only a single, sad vote before disappearing into history. If Governor Hickenlooper gives this year’s HB-1099 his stamp of approval – and given its support in the Legislature, there is no reason he would not – Colorado could become the first state in the nation to grow industrial hemp since the 1930s.

Brian Vicente, Esq., is a founding member of Vicente Consulting, LLC, a law firm providing legal solutions for the medical marijuana community. He also serves as executive director of Sensible Colorado, the state’s leading non-profit working for medical marijuana patients and providers. Brian is the chair of the Denver Mayor’s Marijuana Policy Review Panel, serves on the Colorado Department of Revenue Medical Marijuana Oversight Panel, and coordinates the Colorado Bar Association’s Drug Policy Project.The opinions and views expressed by Featured Bloggers on CBA-CLE Legal Connection do not necessarily represent the opinions and views of the Colorado Bar Association, the Denver Bar Association, or CBA-CLE, and should not be construed as such.

Tenth Circuit: Panel Decision Affirmed Granting Lifetime and Survivor Benefits under Black Lung Benefits Act

The Tenth Circuit Court of Appeals published its opinion in Bridger Coal Co. v. United States Dep’t of Labor on Tuesday, February 28, 2012.

The Tenth Circuit affirmed the panel decision. Under the Black Lung Benefits Act, a coal miner who is totally disabled due to pneumoconiosis from coal mine employment is entitled to lifetime benefits. If the miner dies due to pneumoconiosis from coal mine employment, the miner’s surviving spouse is entitled to benefits. Pursuant to the Act’s administrative provisions, an Administrative Law Judge awarded lifetime benefits to Merrill D. Lambright and survivor benefits to his widow in 2005. Lambright’s claims arose out of his employment with Petitioner Coal Company. In 2006, a three-member panel of the U.S. Department of Labor Benefits Review Board vacated the ALJ’s decision and remanded for reconsideration. In 2008, the ALJ denied benefits on both the lifetime and survivor claims. In 2009, a three-member panel of the Board reversed this decision and reinstated the 2005 ALJ’s award of benefits. On reconsideration en banc, the full five-member Board was unable to reach a disposition in which at least three permanent members concurred. As a result, the 2009 panel decision stood. Petitioner appeals, challenging the scope of the 2009 panel’s authority to review the 2008 ALJ decision, the standard used in determining whether to award benefits, and the onset-date determination. The Court affirmed the 2009 panel decision.

Colorado Supreme Court: Statewide Voter Approval Not Required when Making Adjustments to the Tax Due on Coal Extracted from Colorado Lands

The Colorado Supreme Court issued its opinion in Huber, Exec. Dir., Colorado Dep’t of Revenue v. Colorado Mining Assoc. on October 31, 2011.

CRS § 39-29-106—Amendement 1—Colo. Const. art. X, § 20—Taxation—Prospective Application of Constitutional Amendment.

The Supreme Court held that statewide voter approval is not required when the Department of Revenue implements quarterly adjustments to the tax due per ton of coal extracted from Colorado lands as required by CRS § 39-29-106. The court of appeals’ judgment was reversed.

The General Assembly adopted the coal severance tax of CRS § 39-29-106 in 1988, before approval of Amendment 1, Colo. Const. art. X, § 20. Amendment 1 requires advance voter approval for new taxes, tax rate increases, and tax policy changes that directly cause net revenue gains. CRS § 39-29-106 establishes a tax rate with two components to calculate the severance tax owed: (1) a base rate of $0.36 per ton of coal extracted; and (2) a quarterly 1% increase or decrease to the base rate calculated by changes to the index of producers’ prices, a federally prepared economic index that roughly tracks inflation.

After Amendment 1 became effective, the Department of Revenue suspended implementation of the statutorily required quarterly adjustments to the tax due, leaving in place a tax of $0.54 per ton of coal extracted. In 2007, the Department of Revenue concluded that implementation of the two-part tax rate formula was non-discretionary and did not conflict with Amendment 1, and it adjusted the tax due to $0.76 per ton. The court of appeals concluded that each time the Department of Revenue calculates an upward adjustment in the tax due, Amendment 1 requires statewide voter approval.

The Supreme Court concluded that Amendment 1 is prospective in application and that implementation of the two-part tax rate formula in CRS § 39-29-106 (the base rate plus the non-discretionary adjustment factor) is not a “tax rate increase.” Instead, collection of the tax as prescribed is a non-discretionary duty required of the Department of Revenue by a taxing statute that is not subject to Amendment 1’s voter approval requirements. Because the Department of Revenue has no discretion to increase or alter the tax rate formula of CRS § 39-29-106, Amendment 1’s prospective check on the legislature does not apply.

Summary and full case available here.

HB 11-1308: Distributing Federal Mineral Leasing Revenues Related to Naval Oil Shale Reserves

On April 27, 2011, Rep. Randy Baumgardner, R-Steamboat Springs, and Sen. Steve King, R-Grand Junction, introduced HB 11-1308 – Concerning the distribution of federal mineral leasing revenues related to naval oil shale reserves to affected counties in Colorado. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill specifies that all moneys received by the state from the United States treasury out of the anvil points fund shall be directly transferred by the state treasurer to the county treasurers of the affected counties as follows:

  • 40% to Garfield county;
  • 40% to Rio Blanco county;
  • 10% to Mesa county; and
  • 10% to Moffat county.

Assigned to the Agriculture, Livestock, & Natural Resources Committee; the bill is scheduled for committee review on Wednesday, May 4, Upon Adjournment.

Since this summary, the bill was postponed indefinitely.

Summaries of other featured bills can be found here.

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2013-05-21 06:51:42