Chao v. Mallard Bay Drilling, Inc.
Headline: Court limits Coast Guard’s exclusive safety authority and allows OSHA to enforce workplace rules on uninspected oil-drilling barges, making it easier for federal inspectors to cite operators after accidents.
Holding:
- Allows OSHA to cite uninspected drilling barge operators for workplace safety failures.
- Requires other agencies to show they actually regulated the same working conditions to pre-empt OSHA.
- Distinguishes inspected vessels (Coast Guard rules apply) from uninspected vessels (OSHA may apply).
Summary
Background
Respondent operates a fleet of barges used for oil and gas drilling. One barge, called Rig 52, drilled in Louisiana territorial waters and suffered an explosion that killed four crew members and injured two. The Coast Guard investigated as a "marine casualty" and issued a limited report focused on vessel issues, noting it did not regulate mineral drilling in state waters. Relying in part on the Coast Guard’s findings, OSHA cited the barge operator for failing to evacuate crew, lacking an emergency response plan, and failing to train employees. The operator did not deny the charges but challenged OSHA’s authority and argued Coast Guard preemption; lower panels split on the issue.
Reasoning
The central question was whether the Coast Guard’s authority displaced OSHA’s ability to enforce workplace safety on uninspected barges like Rig 52. The Court said that Section 4(b)(1) bars OSHA only when another agency has actually exercised its statutory authority to prescribe or enforce standards affecting the particular working conditions at issue. The Court recognized that the Coast Guard has comprehensive authority for "inspected" vessels and an agreement with OSHA that displaces OSHA there, but found that the Coast Guard’s general marine-safety rules for uninspected vessels do not address drilling hazards on stationary barges. Because the Coast Guard had not affirmatively regulated these drilling conditions or claimed broad jurisdiction over uninspected vessels, its authority did not pre-empt OSHA here.
Real world impact
The ruling means OSHA may enforce safety standards on operators of uninspected drilling barges in State waters when Coast Guard rules do not cover the specific hazards. Employers operating such barges can be cited for failures like lack of evacuation plans, training, or emergency procedures. The decision differentiates inspected vessels (where the Coast Guard has displaced OSHA) from uninspected vessels, and requires agencies to show an actual exercise of regulatory authority to pre-empt OSHA. The Court reversed the Fifth Circuit and restored OSHA’s authority in this case.
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