Petitioner Type: State
Impact Date:
Filed Date: 04/07/2020
Most Recent Update: 12/09/2020
Determination Date: 12/09/2020
Expiration Date:
Employment and Training Administration
TA-W-95,872
NOAH HORN WELL DRILLING INC.
VANSANT, VIRGINIA
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 April 7, 2020 by a state workforce office on behalf of
workers of Noah Horn Well Drilling Inc., Vansant, Virginia
(Noah Horn Well Drilling Inc.). The workers' firm is engaged
in activities related to the production of oil and gas
(drilling). The workers also supply water well drilling
services.
The petitioner alleged, "Contracts have been lost due to
an increase in imports of natural gas and crude petroleum over
the past 2 years resulting in job loss to workers."
During the course of the investigation, information was
collected from the workers' firm, the petitioner, the major
declining customer(s) of the workers' firm, and from the United
States Energy Information Administration (USEIA).
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed that Noah Horn Well Drilling Inc. did
not increase imports of oil, gas, or water well drilling
services or services like or directly competitive. The
workers' firm did not report imports of the aforementioned
articles in 2018, 2019, or during the period of January
through March 2020. Additionally, the workers' firm did not
report imports of oil or gas during the aforementioned period,
or articles like or directly competitive. A survey was
conducted of the major declining customer(s) of the workers'
firm regarding purchases of the aforementioned
services/articles and services/articles like or directly
competitive. The survey did not reveal imports of the
aforementioned services/articles or services/articles like or
directly competitive during the aforementioned period.
Lastly, information was collected from the USEIA as it
pertains to United States production and imports of crude oil,
natural gas, and natural gas liquids. The information
revealed increases in United States production of crude oil,
natural gas, and natural gas liquids during the aforementioned
period.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the firm did not shift the supply of
oil, gas, and water well drilling services or a like or
directly competitive service to a foreign country or acquire
oil, gas, and water well drilling services or a like or
directly competitive service from a foreign country.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Noah Horn Well Drilling Inc. is
not a Supplier 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).
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Noah Horn Well Drilling Inc. does
not act 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 Noah Horn Well
Drilling Inc., Vansant, Virginia engaged in activities related
to the supply of oil, gas, and water well drilling services as
well as the production of oil and 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 9th day of December 2020.
/s/Hope D. Kinglock
______________________________
HOPE D. KINGLOCK
Certifying Officer, Office of
Trade Adjustment Assistance