99-13968. Baker Atlas, Headquartered in Houston, TX; Negative Determination Regarding Application for Reconsideration

[Federal Register Volume 64, Number 106 (Thursday, June 3, 1999)]
[Notices]
[Pages 29890-29891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13968]


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DEPARTMENT OF LABOR

Employment and Training Administration
[TA-W-35, 434]


Baker Atlas, Headquartered in Houston, TX; Negative Determination 
Regarding Application for Reconsideration

    By application bearing the postmark date April 14, 1999, the 
petitioners requested administrative reconsideration of the 
Department's negative determination regarding eligibility for workers 
and former workers of the subject firm to apply for Trade Adjustment 
Assistance (TAA). The denial notice applicable to workers of Baker 
Atlas, headquartered in Houston, Texas, was signed on February 24, 
1999, and published in the Federal Register on April 6, 1999 (63 FR 
16753).
    Pursuant to 29 CFR 90.18(c) reconsideration may be granted under 
the following circumstances:
    (1) If it appears on the basis of facts not previously considered 
that the determination complained of was erroneous;
    (2) If it appears that the determination complained of was based on 
a mistake in the determination of facts not previously considered; or
    (3) If in the opinion of the Certifying Officer, a 
misinterpretation of facts or of the law justified reconsideration of 
the decision.
    The petition was filed on behalf of workers of the subject firm 
headquarters and oilfield equipment production facility in Houston, 
Texas. The investigation was expanded to include workers of the subject 
firm engaged in the exploration and drilling of crude oil in Texas, 
Louisiana, California, Pennsylvania, Massachusetts and Colorado (TA-W-
35, 434A-E). The Baker Atlas workers at the field locations were 
certified eligible to apply for TAA and are not subject of the 
application for reconsideration. The investigation applicable to the 
headquarters and oilfield equipment production workers resulted in a 
negative determination based on the finding that the workers did not 
meet the ``contributed importantly'' group eligibility requirement of 
section 222(3) of the Trade Act of 1974, as amended. The oilfield 
equipment produced by workers at Baker Atlas in Houston was used 
exclusively by the subject firm drilling and exploration operations in 
Texas and five other States. Other findings of the investigation 
revealed that the United States is a net exporter of oilfield 
equipment.

[[Page 29891]]

    The petitioners contend that the Department based its negative TAA 
determination for headquarters and oilfield equipment production staff 
on the mistaken premise that the workers could be certified only if the 
imports of oilfield equipment have contributed importantly to worker 
separations. The petitioners maintain that since the oilfield equipment 
produced in Houston is used predominantly by Baker Atlas at its own 
exploration and drilling sites, increased imports of crude oil did 
contribute to closing those exploration and drilling sites.
    The 1988 Omnibus Trade and Competitiveness Act amendments to the 
Trade Act of 1974 extended coverage to service workers engaged in 
exploration and drilling for crude oil and natural gas. Therefore, the 
workers at the Baker Atlas field locations met the ``contributed 
importantly'' criterion of the group eligibility requirements of the 
Trade Act. The same consideration cannot be given to those workers 
producing oilfield equipment for Baker Atlas in Houston, Texas. U.S. 
imports of crude oil cannot be considered like or directly competitive 
with imports of oilfield equipment.

Conclusion

    After review of the application and investigative findings, I 
conclude that there has been no error or misinterpretation of the law 
or of the facts which would justify reconsideration of the Department 
of Labor's prior decisions. Accordingly, the application is denied.

    Signed at Washington, DC, this 20th day of May 1999.
Grant D. Beale,
Acting Director Office of Trade Adjustment Assistance.
[FR Doc. 99-13968 Filed 6-2-99; 8:45 am]
BILLING CODE 4510-30-M