DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,881

NABORS COMPLETION & SERVICES COMPANY
A SUBSIDIARY OF C&J ENERGY SERVICES, LTD.
GAYLORD, MICHIGAN

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 March 16, 2015, resulted
in a negative determination, issued on May 7, 2015, that was based
on the firm not producing an article. The determination was
applicable to workers and former workers of Nabors Completion &
Services Company, a subsidiary of C&J Energy Services, LTD.,
Gaylord, Michigan (herein referred to as “Nabors Completion &
Services Company”). The workers’ firm is engaged in activities
related to the production of oil and natural gas. Specifically the
workers were engaged in hydraulic fracturing, cementing, and
acidizing of oil and natural gas wells across the United States.
The workers are considered to be engaged in activities related to
the production of oil and natural gas under 19 U.S.C. 2271 (c)(2).
Based on information reviewed during the reconsideration
investigation, the Department of Labor determines that the firm did
not shift production of oil, natural gas, or natural gas liquids
(NGLs) to a foreign country or acquire articles from a foreign
country. Increased imports of articles like or directly competitive
to those produced by the workers of the subject firm have not
increased while domestic production decline of oil, natural gas, or
NGLs was declining.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that With respect to Section
222(a)(2)(A)(ii) of the Act, the investigation revealed that
imports of crude oil, natural gas, or NGLs did not contribute
importantly to worker separations. Aggregate United States
imports of crude oil, natural gas, or NGLs did not increase
during the same period of time in which United States production
of crude oil, natural gas, and NGLs were decreasing (2014
compared 2013 and January through February 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 NGLs while
United States production of crude oil, natural gas and/or NGLs
was declining.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the production
of oil, natural gas, and/or NGLs or a like or directly
competitive article to a foreign country or acquire oil, natural
gas, and/or NGLs or a like or directly competitive article from a
foreign country. The firm was purchased by another United States
firm who moved the firm to another location within the United
States.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Nabors Completion & Services Company
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, 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 Nabors
Completion & Services Company, a subsidiary of C&J Energy
Services, LTD., Gaylord, Michigan, who were engaged in employment
related to the production of oil, natural gas, and NGLs to apply
for adjustment assistance, in accordance with Section 223 of the
Act, 19 U.S.C. § 2273.

Signed in Washington, D.C. this 2nd day of March, 2016

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




DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-85,881

NABORS COMPLETION & SERVICES COMPANY
GAYLORD, MICHIGAN

Negative Determination 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 by an American Job Center on March 16, 2015 on behalf of
workers of Nabors Completion & Services Company, Gaylord,
Michigan. The workers' firm is engaged in activities related to
the supply of fracking and drilling services.
The petitioner claimed that the importing and stock piling
of crude oil from foreign countries has taken away the demand for
products locally, resulting in worker separations.
During the course of the investigation, information was
collected from the workers' firm.
The investigation revealed that Nabors Completion & Services
Company, Gaylord, Michigan, does not produce an article within the
meaning of Section 222(a) or Section 222(b) of the Act. In order
to be considered eligible to apply for adjustment assistance under
Section 223 of the Trade Act of 1974, the worker group seeking
certification (or on whose behalf certification is being sought)
must work for a "firm" or appropriate subdivision that produces an
article. The definition of a firm includes an individual
proprietorship, partnership, joint venture, association,
corporation (including a development corporation), business trust,
cooperative, trustee in bankruptcy, and receiver under decree of
any court.
During the investigation, the Department of Labor obtained
information that revealed that the workers' firm did not produce an
article; rather, the workers' firm supplied services related to
fracking and drilling services.
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 Nabors Completion &
Services Company, Gaylord, Michigan engaged in activities related
to the supply of fracking and drilling services are denied
eligibility to apply for adjustment assistance under Section 223 of
the Trade Act of 1974, and are also denied eligibility to apply for
alternative trade adjustment assistance under Section 246 of the
Trade Act of 1974.

Signed in Washington, D.C., this 7th day of May, 2015.

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