# OR-OSHA v. Loy Clark Pipeline, Co.

> Court of Appeals of Oregon · June 8, 2022 · 320 Or. App. 205

URL: https://www.frixlaw.com/law-library/cases/10601803

## Case

- **Court:** Court of Appeals of Oregon
- **Decided:** June 8, 2022
- **Citations:** 320 Or. App. 205; 514 P.3d 544
- **Precedential status:** Published
- **Opinion:** Opinion
- **Judges:** Pagán
- **Cited by:** 6 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/10601803

## How later opinions describe it (automated extraction)

- stating “that deference is owed only to the authority that promulgated the rule, not to interpreta- tions made by those without policy-making authority”

## Opinion text

205

Argued and submitted April 1, reversed and remanded June 8, petition for
review denied November 23, 2022 (370 Or 471)

OCCUPATIONAL SAFETY
& HEALTH DIVISION,
Petitioner,
v.
LOY CLARK PIPELINE, CO.,
Respondent.
Workers’ Compensation Board
1700028SH; A171747
514 P3d 544

In this review from a decision of the Workers’ Compensation Board, the
agency contests the board’s determination that employer did not violate certain
workplace safety rules related to an excavation in northwest Portland. About 30
days before the scheduled hearing, the administrative law judge (ALJ) rejected
the agency’s amendment to the workplace safety citation by concluding that the
amendment would delay the hearing and that the amendment amounted to a new
violation under applicable administrative rules. Among other things, the agency
assigns error to the ALJ’s decision to reject the amendment to the citation.
Held: The ALJ erroneously interpreted the applicable rule related to the timing
of amendments. Although an ALJ may set a schedule for a contested case, includ-
ing limiting the timing of amendments, such limit must be communicated to the
parties before an amendment is filed. Absent a different schedule communicated
to the parties, an ALJ is without discretion to reject an amendment on timing
grounds. As the agency’s amendment in this case merely clarified the factual
allegations it intended to prove at the hearing and did not change the time or
place of the alleged violation, nor allege a violation of a different safety rule, the
amendment did not constitute a new violation within the meaning of the rules.
Reversed and remanded.

Erin K. Galli, Assistant Attorney General, argued the
cause for petitioner. Also on the briefs were Ellen F. Rosenblum,
Attorney General, and Benjamin Gutman, Solicitor General.
James S. Anderson argued the cause for respondent.
Also on the brief were George W. Goodman and Cummins,
Goodman, Denley & Vickers, P. C.
Before Shorr, Presiding Judge, and Mooney, Judge, and
Pagán, Judge.
PAGÁN, J.
Reversed and remanded.
206 OR-OSHA v. Loy Clark Pipeline, Co.

PAGÁN, J.
Petitioner, Oregon Occupational Safety and Health
Administration (OR-OSHA) seeks review of a Workers’
Compensation Board (WCB) order, following a hearing
before an administrative law judge (ALJ), which concluded
that OR-OSHA failed to establish a violation arising from
an excavation in northwest Portland. OR-OSHA alleged
that employer, Loy Clark Pipeline Company, failed to obtain
“locates” for underground utilities prior to digging at a work
site.1 In October 2016, employer’s workers struck an under-
ground natural gas line, causing a leak and, eventually, a
series of explosions.
OR-OSHA advances a number of arguments on
review; however, as we conclude that OR-OSHA is correct
that the ALJ erred by not allowing OR-OSHA’s amendment
to the citation prior to hearing, we write only to address that
assignment of error. Our resolution of that issue obviates
the need to address OR-OSHA’s arguments related to the
ALJ’s order on reconsideration and the ALJ’s determination
that employer had complied with the applicable safety rules.
We reverse and remand.
Although the relevant facts are largely procedural,
to provide context, we briefly summarize the background
facts giving rise to this review.
BACKGROUND
In 2016, employer was performing excavation and
utility work at a construction site in northwest Portland,
near the intersection of NW 23rd Avenue and NW Glisan
Street, including installation of an underground conduit and
a new power pole on the north side of NW Glisan. Employer
obtained “locate” marks for the underground utilities in
that area on July 12, 2016. A photograph in the appellate
record taken around July 12 depicts a yellow dashed paint
marking from the street, crossing the north sidewalk of NW
1
“Locate” marks are color-coded marks that depict the approximate surface
location for underground utilities. See generally OAR 952-001-0010(12) (defining
“marks” to include “stakes, paint or other clearly identifiable material, to show
the field location or absence of underground facilities at a proposed work site”);
OAR 952-001-0070 (explaining marking for underground facilities).
Cite as 320 Or App 205 (2022) 207

Glisan, and ending at a natural gas meter on the side of a
building. On July 19, employer’s crew removed a portion of
the sidewalk, excavated, and installed several power con-
duits, before later covering the opening with a temporary
asphalt patch. Notably, the marks that were on the portion
of sidewalk that was removed were lost and no new marks
were made on the asphalt patch.
In September 2016, employer had a separate project
on the south side of NW Glisan Street; that project was not
related to the July project. Employer obtained locate marks
for the south side project before excavation.
On October 19, 2016, employer started work on
another project on the north side of the street—this time to
install a junction box for a Comcast line—in the same area
as the July excavation. The foreman for the October job had
not been on the July job, so, although he was aware of pre-
vious excavations in the area, he did not know the specific
details. No new locate marks were made for the October job.
When the crew arrived, the marks from the July 12 utility
locate were faint and faded, in particular the yellow marks
that indicated natural gas lines. The foreman observed the
work site, saw some of the locate marks, and thought he
could see “what was going where.” All three of employer’s
workers saw markings for underground gas lines near the
excavation site, but none of them thought the line was run-
ning through the area to be excavated. Using saws and a
backhoe, the workers removed a portion of the asphalt patch
and concrete sidewalk. As the foreman was using the back-
hoe to remove gravel underneath the sidewalk, the backhoe
caught a natural gas line, causing a leak. A number of explo-
sions occurred as a result, injuring eight people and causing
more than $17 million in property damage.
Afterward, the foreman and another worker saw a
yellow locate mark on the street curb and another yellow
mark on the street that indicated a one-inch natural gas
line near the excavation. The foreman had parked the back-
hoe over the locates from the July 2016 job, and so he had
not seen them that morning. He testified that, had he seen
those marks, he would have known there was a natural gas
line in the work area.
208 OR-OSHA v. Loy Clark Pipeline, Co.

OR-OSHA investigated the incident and noted that
after the locate marks were placed in July, employer exca-
vated in the area, installed conduit, and closed the excavation
with temporary asphalt. One OR-OSHA officer noted that
part of the July locate marks had been removed during the
July job and had not been replaced. An OR-OSHA manager
noted that the yellow natural gas mark on the curb was faint.
After the investigation, OR-OSHA issued employer
a citation for violating 29 CFR § 1926.651(b)(1), which
requires:
“The estimated location of utility installations, such
as sewer, telephone, fuel, electric, water lines, or any
other underground installations that reasonably may be
expected to be encountered during excavation work, shall
be determined prior to opening an excavation.”
Under the statutory and regulatory authority cre-
ated by the Oregon Safe Employment Act (OSEA), OR-OSHA
“has promulgated rules setting safety and health standards
for a vast range of workplaces and occupational activities.”2
OR-OSHA v. United Parcel Service, Inc., 312 Or App 424,
432, 494 P3d 959 (2021). OAR 437-003-0001(16)(b) adopts 29
CFR § 1926.651 in full.
In the original citation proposing $4,900 in penal-
ties, OR-OSHA alleged:
“On October 19, 2016, the excavator operator struck a
1-inch steel natural gas line located at the northeast cor-
ner of NW Glisan at NW 23rd, causing an explosion in a
nearby building and significant damage to other structures
in the area. During this particular phase of the work, the
employer did not obtain locates for the area in which the
excavator damaged the 1-inch line. Locates had been done
for other sections of the project.”
Employer requested a hearing on the matter, and
the parties engaged in discovery. About two years later, and
approximately 30 days before the hearing was scheduled to
take place, OR-OSHA filed an amendment to the citation.
The amended citation alleged:
2
“ORS 654.001 to 654.295, 654.412 to 654.423, 654.750 to 654.780 and
654.991 may be cited as the Oregon Safe Employment Act.” ORS 654.001.
Cite as 320 Or App 205 (2022) 209

“On October 19, 2016, the employer’s excavator operator
struck a 1-inch steel natural gas line located underground
near the northeast corner of NW Glisan at NW 23rd, which
was a gas line that may reasonably have been expected
to have been encountered. A resulting explosion occurred
in a nearby building that caused significant damage to it
and other structures in the area. During this particular
phase of the work, prior to opening the excavation, the
employer did not adequately determine through locates or
other acceptable means the estimated location of the gas
line that was damaged. Locates had been done for other
sections of the project.”
Employer moved to vacate the amended citation,
arguing that “OR-OSHA decided that it had the right to
unilaterally amend the citation in this case without first
getting authorization from the forum,” and that the amend-
ment was “in essence, a brand new citation.” According to
employer, the statement of facts upon which the citation was
based “constitute[d] a new and different manner in which
Employer allegedly violated 29 CFR 1926.651(b)(1),” and the
new citation was made well after the 180-day limit set out
in ORS 654.071(3).
OR-OSHA responded that, under the applicable
administrative rules, in particular, OAR 438-085-0526,
OR-OSHA had the right to amend the citation until the date
and time set for hearing, and that the amendment “simply
describe[d] with more particularity [employer’s] conduct,
which OR-OSHA intends to prove at hearing.”
The ALJ determined that the rule was “condi-
tional,” that is, “providing the ALJ with discretion to not
allow such amendments.” Moreover, the ALJ determined
that the amendment “change[d] the nature of the employer’s
conduct,” was “substantially different” from the original
citation, and therefore was a “new” citation when compared
to the original. The ALJ struck the amendment and pro-
ceeded to hearing on the original allegation.
A hearing was conducted and the ALJ ultimately
dismissed the citation, having determined that employer
had obtained locates prior to excavation. This petition for
review followed the ALJ’s order and later reconsideration.
OR-OSHA raises three assignments of error. The first
210 OR-OSHA v. Loy Clark Pipeline, Co.

issue relates to an amended order issued by the ALJ after
OR-OSHA filed this petition for review. OR-OSHA argues
that the ALJ did not have jurisdiction to issue an amended
order after the petition for review was filed.3 Second,
OR-OSHA assigns error to the ALJ’s determination that
employer did not violate 29 CFR § 1926.651(b)(1). Finally,
OR-OSHA assigns error to the ALJ’s decision to strike the
amended citation, requiring OR-OSHA to proceed at the
hearing on the original citation. As noted above, because
we conclude that the decision to strike the amended citation
was error, we do not reach the merits of OR-OSHA’s first
and second assignments of error.
ANALYSIS
On review, as framed by the parties, we must first
consider what standard of review applies. OR-OSHA con-
tends that a legal error standard of review applies to the
ALJ’s interpretation of OAR 438-085-0526. Employer con-
tends that, because OAR 438-085-0526 is a rule promul-
gated by the WCB, the board, acting through the ALJ,
interpreted the rule and such interpretation is entitled to
deference if plausible and not contrary to law.
Courts are authorized to overrule an agency’s inter-
pretation of a rule if an agency has “erroneously interpreted
a provision of law.” ORS 183.482(8)(a). The relevant provi-
sions of law may include administrative rules. Don’t Waste
Oregon Com. v. Energy Facility Siting, 320 Or 132, 142, 881
P2d 119 (1994). When an agency’s interpretation of a rule is
“plausible” and not “inconsistent with the wording of the rule
itself, or with the rule’s context, or with any other sources of
law,” we defer to that interpretation. Id. However, that defer-
ence is owed only to the authority that promulgated the rule,
not to interpretations made by those without policy-making
authority. Id. at 142 n 8; United Parcel Service, 312 Or App
at 442 (OR-OSHA’s interpretation of federal rule that had
been adopted by OR-OSHA was plausible and therefore
entitled to deference); Ring v. Employment Dept., 205 Or App
532, 536, 134 P3d 1096 (2006) (distinguishing department
3
The parties do not dispute—and we agree—that this matter is properly
before us. Given our disposition on the third assignment of error, the validity of
the amended order is immaterial.
Cite as 320 Or App 205 (2022) 211

with policy making authority from ALJ without authority to
articulate policy through interpretation of rules).
In any event, we need not decide whether the ALJ’s
interpretation of OAR 438-085-0526 would be entitled to
deference, because we conclude that the interpretation is
“inconsistent with the wording of the rule itself, or with
the rule’s context,” and therefore, we would not defer to it.
In interpreting an administrative rule, we begin with the
text and context, just as we would for interpreting a stat-
ute. United Parcel Service, 312 Or App at 436. We may also
consider the rule’s adoption history. Brand Energy Services,
LLC v. OR-OSHA, 261 Or App 210, 214, 323 P3d 356 (2014).
We begin with the text.
OAR 438-085-0526 provides:
“(1) Unless otherwise provided by the Administrative
Law Judge, amendments to the citation and to the request
for hearing, including affirmative defenses, shall be allowed
up to the date and time set for hearing.
“(2) An amendment made by OR-OSHA under this
rule may not allege a new violation or increase a penalty.
“(3) Amendments made in accordance with this rule
are effective upon filing.
“(4) If a party is prejudiced by the timing of the amend-
ment, a postponement or continuance may be allowed.”
The dispute in this review turns on the interpreta-
tion, first, of section (1) and, later, when considering if the
amendment alleged a new violation, of section (2). The gen-
eral structure of section (1) begins with an apparent excep-
tion to the general rule stated after the first clause. The
use of the phrase “[u]nless otherwise provided” is commonly
understood to signal some exception to a general rule. See
State v. Connally, 339 Or 583, 590, 125 P3d 1254 (2005) (con-
cluding that the phrase “[u]nless otherwise provided” meant
an exception to the general rule); see also Webster’s Third
New Int’l Dictionary 2503 (unabridged ed 2002) (“unless: 1:
under any other circumstance than that: except on the con-
dition that”); id. at 1598 (“otherwise: 2: in different circum-
stances: under other conditions”). Unlike in many rules and
statutes, where the exception points to other provisions, the
212 OR-OSHA v. Loy Clark Pipeline, Co.

exception in this rule explains where “otherwise provided”
comes from: the administrative law judge hearing the case.
Thus, the ALJ may provide an exception to the general rule.

The general rule, in unambiguous terms, allows
either side to amend the citation or the responsive pleadings,
“up to the date and time set for hearing.” For our analysis,
the key idiom—“shall be allowed”—provides a limitation on
the authority of the ALJ to disallow amendments to either
the citation or responsive pleadings. See Williams v. Philip
Morris Inc., 344 Or 45, 59, 176 P3d 1255 (2008) (noting that
in statutes “shall” generally indicates something is man-
datory); Webster’s at 2085 (“shall: 2b - used in laws, regu-
lations, or directives to express what is mandatory”). The
words and structure of the general rule in section (1) indi-
cate that either side may file amendments, at any time after
the citation is served or the request for hearing is made,
up until the hearing commences. That general rule of sec-
tion (1) addresses only the timing of when an amendment is
allowed to be filed and places no substantive limitations on
an amendment.

The location of the exception to the general rule
within section (1), coupled with the narrow temporal limita-
tion, provides insight as to what type of exception the ALJ
may make—a limitation on when amendments may be filed.
Given the mandatory language of the general rule govern-
ing when amendments are allowed, we are led to the log-
ical conclusion that an ALJ may limit when amendments
are allowed but must provide the parties guidance about
those limitations in advance. That is to say that an ALJ
may inform the parties that amendments must be served
and filed at a time earlier than the “date and time set for
hearing,” but without having done so before an amendment
is filed, the ALJ is without discretion, under section (1), to
deny an amendment as untimely. We can conceive of no
other meaning that harmonizes both the general rule and
the exception contained in section (1). As in statutory con-
struction, interpretation of a rule should give effect to each
provision in it. See, e.g., Force v. Dept. of Rev., 350 Or 179,
190, 252 P3d 306 (2011) (statutory provisions interpreted to
give effect to all); Growing Green Panda v. Dept. of Human
Cite as 320 Or App 205 (2022) 213

Services, 302 Or App 325, 332, 461 P3d 1026, rev den, 366
Or 552 (2020) (applying statutory construction framework
to administrative rule). Accepting employer’s argument that
the ALJ has after-the-fact discretion to disallow amend-
ments would alter the mandatory nature of the word “shall”
in a manner that is inconsistent with our historical under-
standing of that term.
The contextual setting for OAR 438-085-0526 pro-
vides additional support for the likely meaning of section (1).
Consider the remedy provision of section (4). That provision
provides that the ALJ may, at the ALJ’s discretion, post-
pone or continue a case “[i]f a party is prejudiced by the tim-
ing of the amendment.” Similar language in another pro-
vision promulgated by the WCB has been construed as “a
classic grant of discretion to the ALJ.” SAIF v. Kurcin, 334
Or 399, 405, 50 P3d 1167 (2002) (discussing OAR 438-006-
0091 which provides, in part that “[t]he Administrative Law
Judge may continue a hearing for further proceedings”). It
would be inconsistent to read the different language between
sections (1), using the word “shall,” and (4), using the word
“may,” pertaining to the ALJ to mean the same thing. Thus,
an ALJ may remedy prejudice flowing from the timing of
an amendment but may not, without previously setting a
different schedule, deny the amendment solely on timing
grounds.
Employer’s contextual argument relies on a state-
ment of policy contained in OAR 438-085-0805, which spec-
ifies that it “is the duty of the [ALJ] to conduct a fair and
impartial hearing and to avoid delay.” We fail to see how a
general statement of duty for the ALJ can transform the
mandatory language of OAR 438-085-0526(1) into a matter
of discretion for the ALJ. That is particularly so when the
duty imposed on the ALJ is understood in context of the
broader policy expressed by the WCB in OAR 438-085-0017.
That rule provides:
“(1) It is the policy of the Board to provide for the
prompt and fair disposition of contested cases, encourage
settlements, formal and informal, consistent with the pur-
poses of the Act, and provide an impartial forum for hear-
ings on cases that cannot be resolved between the parties.
214 OR-OSHA v. Loy Clark Pipeline, Co.

“(2) These rules shall be liberally construed to carry
out the policy of the Board and the purposes of the Act.”
The broader policy expressed by the WCB promotes
the dual goals of both promptness and fairness in resolving
contested cases through an impartial forum. Absent a pol-
icy statement that prioritizes promptness above other stated
goals of either the WCB or the OSEA, we cannot read a gen-
eral duty to avoid delay as overriding the words selected by
the WCB and the context for the amendment rule.
As a consequence of the meaning of OAR 438-085-
0526(1) in context, the ALJ’s interpretation that it had dis-
cretion to reject OR-OSHA’s amendment is inconsistent
with the wording and context of the rule itself and there-
fore, implausible.4 Absent a different schedule previously set
by the ALJ, the ALJ erred by concluding that OR-OSHA’s
amendment could be rejected solely as a matter of ALJ
discretion.
Turning to our analysis of OAR 438-085-0526(2)
and whether the proposed amendment alleged a new vio-
lation, we return to the text. Section (2) provides that “[a]n
amendment made by OR-OSHA under this rule may not
allege a new violation or increase a penalty.” The question
on review is whether the ALJ erred by concluding that
OR-OSHA’s amendment to the factual allegations consti-
tuted a “new violation” within the meaning of the rule. The
question whether an amendment constitutes a “new viola-
tion” is one of law that we review for legal error. OR-OSHA
v. A&B Sheet Metal Works, LLC, 302 Or App 455, 458, 461
P3d 1094, rev den, 366 Or 760 (2020).
The term “new violation” is partially defined by
other administrative rules applicable to contested cases
under OSEA. “Violation” is defined to mean “[t]he breach of
a person’s duty to comply with an Oregon occupational safety
or health law, rule or order.” OAR 438-085-0026(26); see also
OAR 437-001-0015(63). The consequence of that definition
is that not all workplace accidents or injuries constitute a
4
We reach the same conclusion whether or not we afford deference to the
ALJ’s interpretation. It follows that if an interpretation of a rule is implausible,
the interpretation is also legal error, and would therefore require remedy regard-
less of what standard of review applied.
Cite as 320 Or App 205 (2022) 215

violation and, conversely, a violation can exist absent acci-
dent or injury. The relevant question reduces to whether a
duty was imposed by “law, rule or order,” and whether a per-
son’s actions or inactions breached that duty. Inherent in
whether a person’s actions or inactions breached a duty is
a nexus to time, place, and circumstances of how the duty
was breached. The administrative definition of “violation”
implies that a discrete set of factual conditions is the rele-
vant unit of measure to determine whether a violation has
occurred.
“New” is not defined in the relevant statutes or
rules, thus we assume a plain meaning, informed by, among
other things, dictionary definitions. See Growing Green
Panda, 302 Or App at 333-34. As used in the rule, “new”
is an adjective modifying “violation.” Likely definitions for
“new,” as an adjective, include “being other than the former
or old: having freshly come into a new relation (as use, con-
nection, or function) ” or “different or distinguished from a person, place,
or thing of the same kind or name that has longer or previ-
ously existed .” Webster’s
at 1522. Apparent from those definitions is a relative rela-
tionship between things being compared and a requirement
that sufficient difference exists between the things for the
latter to be considered “other than the former” or “different
* * * from * * * that [which] previously existed.”
The contextual setting for the definition of “vio-
lation” provides additional support to the inference that a
particular set of factual conditions is the relevant measure
for violations. See ORS 654.025(3)(c) (generally limiting
instances when “a state of facts or condition constitutes a
violation of more than one rule” to only one citation or one
penalty). The legislature, in defining a “serious violation,”
set the unit of measurement as “a condition which exists,
or * * * one or more practices, means, methods, operations
or processes which have been adopted or are in use.” ORS
654.086(2). That definition of serious violation, focusing on a
discrete set of facts or practices, adds considerable weight to
the understanding that a discrete and logically related group
of facts existing at a specific period in time is how a “vio-
lation” should be measured. See also ORS 654.071(2)(a) - (c)
216 OR-OSHA v. Loy Clark Pipeline, Co.

(requiring that a citation contain information as to date and
place, statement of facts, and reference to legal authority
for alleged violation); Assn. of Oregon Loggers v. Dept. of Ins.
and Finance, 130 Or App 594, 600-01, 883 P2d 859, rev den,
320 Or 493 (1994) (noting that ORS 654.025(3)(c) allows only
one punishment for a single “incident” or “state of facts or
condition” that may violate multiple rules).
The broader principles served by the “new violation”
rule include maintaining the 180-day limitation on citations
prescribed by statute, ORS 654.071(3), and preventing unfair
prejudice to the employer. The unfair prejudice principle is
animated by the need to provide an opportunity to prepare
an adequate defense. See, e.g., Sachdev v. Oregon Medical
Board, 292 Or App 778, 785, 426 P3d 118 (2018) (discuss-
ing the Oregon Administrative Procedures Act (APA), in
the context of disciplinary proceedings for medical profes-
sionals, and the contours of administrative notice require-
ments). Although, by its terms, the APA is not applicable to
cases brought under OSEA, see ORS 183.315(1), cases inter-
preting parallel language are useful.
The citation notice requirement of OSEA, ORS
654.071(2), requires among other things, a “plain statement
of facts upon which the citation is based,” and a “reference to
the law, regulation, rule, standard or order relied upon.” The
analogous APA provision, ORS 183.415(3), requires a “short
and plain statement of the matters asserted or charged,”
and a “reference to the particular sections of the statutes
and rules involved.” In Sachdev, we interpreted the APA
provision to require that a “notice of disciplinary action * * *
refer to the statute or rule upon which it relies as a ground to
impose discipline and must indicate which statutory ground
the board [would actually] press at the contested case hear-
ing.” 292 Or App at 788. When an agency has alleged more
than one statutory ground for discipline, the agency “may
not rely only on factual allegations to notify the licensee
of the statutory ground on which it will proceed.” Id.; see
also Murphy v. Oregon Medical Board, 270 Or App 621, 631,
348 P3d 1173 (2015) (notice did not provide adequate notice
of statutory bases for discipline); Villanueva v. Board of
Psychologist Examiners, 175 Or App 345, 358, 27 P3d 1100
(2001), adh’d to on recons, 179 Or App 134, 39 P3d 238 (2002)
Cite as 320 Or App 205 (2022) 217

(same). What Sachdev, Murphy, and Villanueva all imply is
that, in assessing whether a notice complied with the statu-
tory requirements, the importance of the factual conditions
(“a short and plain statement”) is somewhat attenuated when
compared to the statutory basis for imposing discipline. To
meet the statutory requirement for the statement of facts,
it is sufficient to explain when and where the occurrence
giving rise to discipline proceedings happened—the infor-
mation about how the facts violated a particular duty is tied
to the specific statutory basis portion of the notice. Stated
in terms of what the notice provision protects, a party can
reasonably understand the allegations against them when
the notice provides reference to the “particular sections of
statutes and rules involved” and factual detail about what
factual occurrence an agency will pursue. Sachdev, 292 Or
App at 793 (concluding that the notice provided sufficient
facts, notably a specific date and circumstances, to consti-
tute a plain statement of facts); see also Murphy, 270 Or App
at 631 (reversing when board’s conclusion was not based on
legal theories alleged in notice). The ability for a party to
understand, from the notice, the allegations against them is
the gravamen to the ability to prepare a defense.
A proposed amendment that does not allege new
operative facts or a violation of a different rule than orig-
inally cited should not impair a party’s ability to under-
stand the allegations against them or their ability to defend
against those allegations. In those circumstances, it is error
for an ALJ to conclude that the proposed amendment consti-
tuted a “new violation” under section (2).
Here, in both the original and amended citation,
OR-OSHA alleged that employer violated only a single appli-
cable safety rule. That rule imposes only the broad duty to
“determine[ ] prior to opening an excavation” the “estimated
location of utility installations.” 29 CFR § 1926.651(b)(1).
OR-OSHA originally alleged that employer “did not obtain
the locates” of the gas lines prior to excavation. The amended
citation alleged that employer failed to “adequately deter-
mine, through locates or other acceptable means, the esti-
mated location” of the gas lines. OR-OSHA did not allege
new operative facts or a different rule violation. To be sure,
OR-OSHA’s proposed amendment, as noted, changed some
218 OR-OSHA v. Loy Clark Pipeline, Co.

of the details with respect to how the duty was breached.
Importantly, OR-OSHA’s amendment did not change what
duty employer failed to meet, nor did it change when or where
the breach occurred, and for those reasons, the amendment
would not have impaired employer’s ability to prepare a
defense. OR-OSHA’s amended citation rephrased what it had
originally alleged: the actions employer took to ensure it was
aware of the utility lines in place before excavating did not
comply with the applicable rule. To the extent that “new vio-
lation” is shorthand for the requirements for notice—in fur-
therance of the interest in preparing a defense—discussed
in Sachdev, OR-OSHA’s amendment did not constitute an
allegation of a new violation.5 Employer struggles to identify
what new discovery, witnesses, or expert testimony would
be required if the amendment were allowed, and that diffi-
culty is consistent with our conclusion that the amendment
did not deprive employer of the ability to adequately prepare
for its defense. In this situation, the ALJ erred in conclud-
ing that the proposed amendment alleged a new violation,
because the amendment did not allege sufficiently different
facts to constitute a “new violation” under the definition in
the rules.
As we conclude that the ALJ impermissibly denied
OR-OSHA’s amendment to the citation, we need not address
the other assignments of error raised by OR-OSHA. We note
that whether OR-OSHA’s interpretation of the adopted fed-
eral rule, 29 CFR § 1926.651(b)(1), was entitled to deference
was, at the time of the administrative hearing, “an open
question in Oregon.” A&B Sheet Metal Works, 302 Or App
at 463 n 1. Since the hearing, we have determined that we
will defer to OR-OSHA’s interpretation of an adopted fed-
eral rule “if it is plausible given the text and context [of the
rule] and not inconsistent with any source of law.” United
Parcel Service, 312 Or App at 436. On remand, the ALJ may
have an opportunity, in the first instance, to determine if
5
In Sachdev, for instance, when determining that the Oregon Medical Board
failed to provide adequate notice, we focused on the fact that the board had origi-
nally alleged that the doctor in question provided “substandard care” to patients
but then proceeded on a theory that the doctor violated ORS 677.190(24) by pre-
scribing a controlled substance without following the accepted procedures. 292
Or App at 794. We concluded “[n]othing in the allegation could be reasonably
understood to convey that the board would proceed on [that] ground.” Id.
Cite as 320 Or App 205 (2022) 219

OR-OSHA’s interpretation of 29 CFR § 1926.651(b)(1) is
entitled to such deference.
Reversed and remanded.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/10601803. Public record. Not legal advice.
