DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,775

LAREDO PETROLEUM, INC.
INCLUDING ON-SITE LEASED WORKERS FROM
ROWLAND GROUP
FARMERS BRANCH, TEXAS

Notice of Negative Determination
After Statutory Reconsideration

As required by the Trade Adjustment Assistance Reauthorization
Act of 2015 (TAARA 2015), which was enacted as Title IV of the Trade
Preferences Extension Act of 2015, Public Law No. 114-27, section
405(a)(1)(A), the investigation into this petition was reopened for
a reconsideration investigation to apply the requirements for worker
group eligibility under chapter 2 of title II of the Trade Act of
1974, as amended by the TAARA 2015, to the facts of this petition
(statutory reconsideration).

The initial investigation, initiated January 21, 2015, resulted
in a negative determination, issued on February 6, 2015, that was based
on separations not related to increased imports or shifts in production
abroad. The determination was applicable to workers and former workers
of Laredo Petroleum, Inc., including on-site leased workers from Rowland
Group, Farmers Branch, Texas (herein referred to as “Laredo Petroleum”).
The workers’ firm is engaged in activities related to the production of
crude oil and natural gas; specifically, engaged in exploration,
development, and acquisition of crude oil and natural gas properties
primarily in the Permian region of the United States. The petitioning
worker group supports those activities by providing office support
functions (i.e. land, geology, operations, human resources, accounting,
etc.).

Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the separations
were not caused by increased imports, nor a shifts to a foreign country
or an acquisition of from a foreign country. The firm was not identified
by the International Trade Commission as materially injured by imports.
Finally, the firm does not produce a component part or supply services
to a firm whose workers were certify eligible to apply for Trade
Adjustment Assistance (TAA).

With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that imports of crude oil or natural gas did
not contribute importantly to worker separations. Aggregate United
States imports of crude oil or natural gas did not increase during
the same period of time in which United States production of crude oil
and natural gas was decreasing – full year 2013 to full year 2014. The
petitioner’s allegation of increasing foreign oil and natural gas
production did not correlate to an increase in aggregate United States
imports of crude oil and/or natural gas or the decrease in United States
production of crude oil and/or natural gas, during the same period.
Furthermore, the firm did not import services like or directly competitive
to the services supplied by the worker group.

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 and
natural gas or like or directly competitive articles to a foreign country
or acquire crude oil and natural gas or like or directly competitive
articles from a foreign country. Additionally, the firm did not shift
or acquire services like or directly competitive to the services
supplied the workers the subject of the investigation.

With respect to Section 222(b)(2) of the Act, the investigation
revealed that Laredo Petroleum is not a Supplier or 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, 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 Laredo Petroleum,
Inc., including on-site leased workers from Rowland Group, Farmers
Branch, Texas, who were engaged in employment related to the production
of crude oil and natural gas to apply for adjustment assistance, in
accordance with Section 223 of the Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 3rd day of December, 2015


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




DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,775

LAREDO PETROLEUM, INC.
INCLUDING ON-SITE LEASED WORKERS FROM
ROWLAND GROUP
FARMERS BRANCH, TEXAS

Negative Determinations Regarding Eligibility
To Apply for Worker Adjustment Assistance
And Alternative Trade 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) and
(b) of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). 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 three 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 such 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 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) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase 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 or subdivision.

(B) Shift in Production Path:
(i) there has been a shift in production by such workers'
firm or subdivision to a foreign country of articles
like or directly competitive with articles which are
produced by such firm or subdivision; and
(ii)(I) the country to which the workers' firm has
shifted production of the articles is a party to a
free trade agreement with the United States;
(II)the country to which the workers' firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase
in imports of articles that are like or directly
competitive with articles which are or were produced
by such firm or subdivision.

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 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."
The investigation was initiated in response to a petition
filed on January 21, 2015 by a state workforce office on behalf
of workers of Laredo Petroleum, Inc., Farmers Branch, Texas.
The workers' firm is engaged in activities related to the
production of oil and natural gas. Specifically, the worker
group is engaged in exploration, development, and acquisition
of oil and natural gas properties. The worker group includes
on-site leased workers from Rowland Group.
The petitioner alleged that, "Domestic oil and gas
exploration is being curtailed due to international
availability and import of product at a lower price."
During the course of the investigation, information was
collected from the workers' firm, the petitioner, and industry
sources.
With respect to Section 222(a)(2)(A), the investigation
revealed that the worker separations are not attributable to
increased imports of oil or natural gas. The investigation
confirmed that the firm did not increase imports of articles
like or directly competitive with oil and natural gas during
the relevant period of investigation. In addition, customer
imports did not contribute importantly to the worker
separations as Laredo Petroleum did not experience a loss of
sales and/or production during the relevant period of
investigation. Further, United States aggregate imports of oil
and natural gas have not increased during the relevant period
of investigation.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the workers' firm did not shift
production of oil or natural gas to a foreign country.
With respect to Section 222(b) of the Act, the
investigation revealed that Laredo Petroleum is not a Supplier
or 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).
In order for the Department to issue a certification of
eligibility to apply for Alternative Trade Adjustment Assistance
(ATAA), the worker group must be certified eligible to apply for
Trade Adjustment Assistance (TAA). Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Laredo Petroleum,
Inc., including on-site leased workers from Rowland Group,
Farmers Branch, Texas engaged in activities related to the
production of oil and natural gas, specifically exploration,
development, and acquisition of oil and natural gas
properties, are denied eligibility to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, as
amended, and are also denied eligibility to apply for
alternative trade adjustment assistance under Section 246 of
the Trade Act of 1974, amended.

Signed in Washington, D.C. this 6th day of February 2015.


/s/Michael W. Jaffe
______________________________
MICHAEL W. JAFFE
Certifying Officer, Office of
Trade Adjustment Assistance