DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-86,117

CONOCOPHILLIPS SAN JUAN BUSINESS UNIT
INCLUDING ON-SITE LEASED WORKRERS FROM
AYAN TECH SOLUTIONS, BAKER PETROLITE - BAKER HUGHES OILFIELD
OPERATIONS INC., BELCAN TECH SERVICES, BLANCO CONSULTING,
INC., CHAMPION TECHNOLOGIES, INC., CHENAULT CONSULTING, INC.,
DIAMOND DERRICK ENGINEERING, ENCOMPASS TECHNICAL DESIGN, GOMEZ
CONSULTING, IT SERVICES 2, LIQUID LEVEL, INC., MOTE DRILLING,
INC., MCCLELLAN VICK CONSULTING, INC., NATIONAL-OILWELL, L.P.,
WOOD GROUP, PAC, PREMIER NDT SERVICES, SAS, SCOTT P. SMITH
CONSULTING, SMITH CONSULTING, ELWOOD STAFFING - SOS STAFFING
SERVICES, INC., SYNERGY CONSULTING, TAYLOR TECHNICAL SERVICES,
INC., AND VELOCITY IT GROUP
FARMINGTON, NEW MEXICO

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 June 23, 2015 by a State Workforce Office on behalf of
workers of ConocoPhillips San Juan Business Unit, Farmington,
New Mexico (herein referred to as "ConocoPhillips"). The
workers' firm is engaged in activities related to the production
of crude oil and natural gas. Specifically, the workers
provide technical and administrative support activities
related to the exploration and production of crude oil and
natural gas. The subject worker group includes on-site leased
workers from Ayan Tech Solutions, Baker Petrolite - Baker
Hughes Oilfield Operations, Belcan Tech Services, Blanco
consulting, Inc., Champion Technologies, Inc., Chenault
Consulting, Inc., Diamond Derrick Engineering, Encompass
Technical Design, Gomez Consulting, IT Services 2, Liquid
Level, Inc., MoTe Drilling, Inc. McClellan Vick Consulting,
Inc., National-Oilwell, L.P., Wood Group - PAC, Premier NDT
Services, SAS, Scott P. Smith Consulting, Smith Consulting,
Elwood Staffing-SOS Staffing Services, Inc., Synergy
Consulting, Taylor Technical Services, Inc., and Velocity IT
Group.
The petitioner alleges that, "There is a low value of oil
and gas and cost of production. This company is a direct
supplier to the oil field and oil industry. Due to export and
import effects on the industry, there is a decrease in the
price of barrels and this has impacted the product provided."
During the course of the investigation, information was
collected from the workers' firm, the petitioner, and 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 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 (2014 compared 2013 and January through May 2015
compared to the corresponding 2014 period). The petitioner's
allegation of the price of oil falling 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.
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 a like or directly
competitive article to a foreign country or acquire crude oil
and natural gas 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 ConocoPhillips 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 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 ConocoPhillips San
Juan Business Unit, including on-site leased workers from
Ayan Tech Solutions, Baker Petrolite - Baker Hughes Oilfield
Operations, Belcan Tech Services, Blanco consulting, Inc.,
Champion Technologies, Inc., Chenault Consulting, Inc.,
Diamond Derrick Engineering, Encompass Technical Design, Gomez
Consulting, IT Services 2, Liquid Level, Inc., MoTe Drilling,
Inc. McClellan Vick Consulting, Inc., National-Oilwell, L.P.,
Wood Group - PAC, Premier NDT Services, SAS, Scott P. Smith
Consulting, Smith Consulting, Elwood Staffing-SOS Staffing
Services, Inc., Synergy Consulting, Taylor Technical Services,
Inc., and Velocity IT Group, Farmington, New Mexico engaged in
activities related to the production of 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 30th day of December, 2015.

/s/Jacquelyn R. Mendelsohn
______________________________
JACQUELYN R. MENDELSOHN
Certifying Officer, Office of
Trade Adjustment Assistance