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TAA Decision 91234

Note: Determinations for this case number, this case number with an alphabetic suffix, and any appeals or amendments appear below.

        DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-91,234

CYCLONE DRILLING, INC.
GILLETTE, WYOMING

Negative Determination Regarding Eligibility
To Apply for Worker Adjustment Assistance

      In accordance with Section 223 of the Trade Act of 1974, as 
amended ("Act"), 19 U.S.C. § 2273, the Department of Labor 
herein presents the results of an investigation regarding 
certification of eligibility to apply for worker adjustment 
assistance.
      Workers of a firm may be eligible for worker adjustment 
assistance if they satisfy the criteria of subsection (a), (b) 
or (e) of Section 222 of the Act, 19 U.S.C. § 2272(a), (b) and 
(e).  For the Department of Labor to issue a certification for 
workers under Section 222(a) of the Act, 19 U.S.C. § 2272(a), 
the following criteria must be met:
(1)	The first criterion (set forth in Section 222(a)(1) of the 
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant 
number or proportion of the workers in the workers' firm 
must have become totally or partially separated or be 
threatened with total or partial separation.

(2)	The second criterion (set forth in Section 222(a)(2) of the 
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two 
ways:
(A) Increased Imports Path:
(i)	sales or production, or both, at the workers' firm 
must have decreased absolutely; AND 
(ii)	(I) 	imports of articles or services like or directly 
competitive with articles or services produced or 
supplied by the workers' firm have increased, OR
(II)(aa) imports of articles like or directly 
competitive with articles into which the 
component part produced by the workers' firm was 
directly incorporated have increased; OR
(II)(bb) imports of articles like or directly 
competitive with articles which are produced 
directly using the services supplied by the 
workers' firm have increased; OR
(III) imports of articles directly incorporating 
component parts not produced in the U.S. that are 
like or directly competitive with the article 
into which the component part produced by the 
workers' firm  was directly incorporated have 
increased; AND
(iii) the increase in imports described in clause (ii)    
contributed importantly to such workers' separation 
or threat of separation and to the decline in the 
sales or production of such firm.

(B) Shift in Production or Supply Path:
(i)(I)	there has been a shift by the workers' firm to a 
foreign country in the production of articles or 
supply of services like or directly competitive with 
those produced/supplied by the workers' firm; OR
   (II)	there has been an acquisition from a foreign 
country by the workers' firm of articles/services that 
are like or directly competitive with those 
produced/supplied by the workers' firm; and
(ii)	the shift described in clause (i)(I) or the 
acquisition of articles or services described in 
clause (i)(II) contributed importantly to such 
workers' separation or threat of separation.

      For the Department to issue a secondary worker 
certification under Section 222(b) of the Act, 19 U.S.C. § 
2272(b), to workers of a Supplier or a Downstream Producer, the 
following criteria must be met:
 (1) a significant number or proportion of the workers in 
the workers' firm or an appropriate subdivision of the 
firm have become totally or partially separated, or 
are threatened to become totally or partially 
separated;
      
(2)	the workers' firm is a Supplier or Downstream Producer 
to a firm that employed a group of workers who 
received a certification of eligibility under Section 
222(a) of the Act, 19 U.S.C. § 2272(a), and such 
supply or production is related to the article or 
service that was the basis for such certification; and
      
      (3)	either 
(A) 	the workers' firm is a supplier and the component 
parts it supplied to the firm described in paragraph 
(2) accounted for at least 20 percent of the 
production or sales of the workers' firm; 
or 
(B) a loss of business by the workers' firm with the 
firm  described in paragraph (2) contributed 
importantly to the workers' separation or threat of 
separation.

      Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the 
terms "Supplier" and "Downstream Producer."
      Workers of a firm may also be considered eligible if they 
are publicly identified by name by the International Trade 
Commission as a member of a domestic industry in an 
investigation resulting in a category of determination that is 
listed in Section 222(e) of the Act, 19 U.S.C. § 2272(e).
      The group eligibility requirements for workers of a firm 
under Section 222(e) of the Act, 19 U.S.C. § 2272(e), can be 
satisfied if the following criteria are met:
(1) 	the workers' firm is publicly identified by name by 
the International Trade Commission as a member of a 
domestic industry in an investigation resulting in-- 
(A)  an affirmative determination of serious injury or 
threat thereof under section 202(b)(1);
(B)  an affirmative determination of market disruption 
or threat thereof under section 421(b)(1); or
(C)  an affirmative final determination of material 
injury or threat thereof under section 
705(b)(1)(A) or 735(b)(1)(A) of the Tariff Act of 
1930 (19 U.S.C. 1671d(b)(1)(A) and 
1673d(b)(1)(A));

(2) 	the petition is filed during the 1-year period 
beginning on the date on which--
(A)  a summary of the report submitted to the 
President by the International Trade Commission 
under section 202(f)(1) with respect to the 
affirmative determination described in paragraph 
(1)(A) is published in the Federal Register under 
section 202(f)(3); or
(B)  notice of an affirmative determination described 
in subparagraph (1) is published in the Federal 
Register; and  

	(3)  the workers have become totally or partially   
		separated from the workers' firm within--
		(A)  the 1-year period described in paragraph (2); or
		(B)  notwithstanding section 223(b), the 1-year 
			period preceding the 1-year period described in 
			paragraph (2).
      
      The investigation was initiated in response to a petition 
filed on December 16, 2015 by an American Job Center on behalf 
of workers of Cyclone Drilling, Inc., Gillette, Wyoming (herein 
referred to as "Cyclone Drilling, Inc.").  The workers' firm is 
engaged in activities related to the production of oil and 
natural gas.  Specifically, the workers are oil and natural 
gas drillers.  Drilling activities are considered activities 
related to the production of oil and natural gas under 19 USC 
2272(c)(2).    
      The petitioner provided the following allegations: "Oil 
and Gas has been shifted to Organization of the Petroleum 
Exporting Companies (OPEC) suppliers.  Also, we are unable to 
sell oil and gas or trade to other countries."  The petitioner 
also supplied that the drilling rig count was falling due to 
increase imports of crude oil and natural gas.
      During the course of the investigation, information was 
collected from the petitioner, workers' firm and the United 
States Energy Information Administration. 
      With respect to Section 222(a)(2)(A)(ii) of the Act, the 
investigation revealed that imports of crude oil, natural gas, 
or natural gas liquids did not contribute importantly to 
worker separations.  Aggregate United States imports of crude 
oil, natural gas, or natural gas liquids did not increase 
during the same period of time in which United States 
production of crude oil and natural gas was decreasing 
(January through November 2015 compared to the corresponding 
2014 period). The petitioner's allegation of the price of oil 
falling and the oil and natural gas rig count decline did not 
correlate to an increase in aggregate United States imports of 
crude oil, natural gas, and/or natural gas liquids or the 
decrease in United States production of crude oil, natural gas 
and/or natural gas liquids.
	With respect to Section 222(a)(2)(B) of the Act, the 
investigation revealed that the firm did not shift the 
production of crude oil, natural gas, and/or natural gas 
liquids or a like or directly competitive article to a foreign 
country or acquire crude oil, natural gas, and/or natural gas 
liquids or a like or directly competitive article from a 
foreign country. 
      With respect to Section 222(b)(2) of the Act, the 
investigation revealed that Cyclone Drilling, Inc. is not a 
Supplier or acts as a Downstream Producer to a firm that 
employed a group of workers who received a certification of 
eligibility under Section 222(a) of the Act, 19 U.S.C. § 
2272(a).
      Finally, the group eligibility requirements under Section 
222(e) of the Act, have not been satisfied either because 
Criterion (1) has not been met since the workers' firm has not 
been publicly identified by name by the International Trade 
Commission as a member of a domestic industry in an 
investigation resulting in an affirmative finding of serious 
injury, market disruption, or material injury, or threat 
thereof. 
Conclusion
	After careful review of the facts obtained in the 
investigation, I determine that the requirements of Section 222 
of the Act, 19 U.S.C. § 2272, have not been met and, therefore, 
deny the petition for group eligibility of Cyclone Drilling, 
Inc., Gillette, Wyoming engaged in activities related to the 
production of crude oil, natural gas, and/or natural gas 
liquids, specifically oil and gas drillers, to apply for 
adjustment assistance, in accordance with Section 223 of the 
Act, 19 U.S.C. § 2273. 
Signed in Washington, D.C. this 28th day of February 2016.

/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance

      

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