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CP-2024-VM508-0020-ADOSH · Arizona Division of Occupational Safety and Health · 2026-01-16

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

DIVISION OF OCCUPATIONAL SAFETY AND HEALTH OF THE INDUSTRIAL COMMISSION OF ARIZONA, Complainant,

OCEAN BLUE COTTONWOOD, LLC, Respondent.

No. CP-2024-VM508-0020-ADOSH

FINDINGS AND ORDER APPROVING SETTLEMENT AGREEMENT

On November 2, 2023, the Division of Occupational Safety and Health of The Industrial Commission of Arizona ("Complainant" or the "Division") conducted an inspection of Respondent Ocean Blue Cotton wood, LLC.. ("Respondent")' s worksite located at484 South Main Street, Cottonwood, Arizona 86326. As a result of Inspection No. CP-2024-VM508-0020, the Division issued one "Serious" citation to Respondent on April 26, 2024

WHEREAS, Respondent timely filed a Notice of Contest with respect to the above-mentioned citation, and the Division and Respondent now desire to settle this matter without the necessity of a formal hearing, both parties agree that it is in their respective best interests to settle this matter without going through the procedures, time and expense associated with litigation and a formal hearing.

FINDINGS AND CONCLUSIONS

NOW, THEREFORE, the parties agree to settle this matter as follows:

On December 31, 2025, the parties filed a Settlement Agreement resolving all issues

and disputes involved in this matter. The Settlement Agreement appears to be consistent with the provisions and objectives of the Arizona Occupational Safety and Health Act. Accordingly, pursuant to A.A.C. R20-5-827 of the Occupational Safety and Health Rules of Procedure Before the Industrial Commission of Arizona, the Settlement Agreement is incorporated by this reference, adopted, and made a part of this order.

The Settlement Agreement is in furtherance of the purpose of the Arizona

Occupational Safety and Health Act of 1972 and represents a full and final determination of this matter.

ORDER

Citation 1 Item 1 be reclassified as Non-Serious. The penalty shall be reduced to $2,344.00.

Citation 2 Item 1 shall remain as Non Serious.

Citation 2 Item 2 shall remain as Non Serious.

Citation 2 Item 3 and all subparts, allegations, abatement requirements and penalties thereunder are deleted.

Citation 2 Item 4 shall remain as Non Serious.

Citation 2 Item 5 and all subparts, allegations, abatement requirements and penalties thereunder are deleted.

Citation 2 Item 6 shall remain as Non Serious.

3. In exchange for the reclassification and reduction in the penalty of Citation 1 Item 1, and

the deletion of Citation 2 Item 3 and Citation 2 Item 5, OCEAN BLUE agrees to provide ADOSH with the following within 60 days of the approved settlement:

a.) The OSHA 300 Log, Summary A portion for the workplace

b.) The acknowledgement of Premier Risk Management LLC’s walkaround visits

c.) Proof that evacuation and fire extinguisher training was provided to employees

4. The parties understand and agree that no further hearings will be scheduled.

5. The parties acknowledge that any modification to a citation classification or penalty level, or any deletion of a citation with the associated penalty in this Settlement Agreement are contingent upon the Respondent’s substantial compliance with section 3(a)-(g) of this agreement. Failure by the Respondent to substantially comply with section 3(a)-(g) of this Settlement Agreement constitutes a material breach of the agreement and shall mean that ADOSH can request that the Citation deleted under this Settlement Agreement be reinstated and affirmed by the Industrial Commission of Arizona.

6. Respondent shall deliver this signed Settlement Agreement on or before January 5,

2026, to attorney Christina M. Lopez, Industrial Commission, Legal Division, 800 W. Washington, Suite 303, Phoenix, AZ 85007 or via email at [email redacted].

7. The parties agree that this is a settlement of a disputed matter, and that the Citation,

classifications, notifications of penalty, this Settlement Agreement and/or the Administrative Law Judge’s Final Order, individually and/or collectively, are not an admission by the Respondent, nor any of its employees that it or they violated, knowingly or otherwise, the requirements of any law, regulation or standard whatsoever, including, but not limited to A.R.S. § 23-403 or any standard or regulation adopted pursuant to A.R.S. § 23-410 or § 23-414, or any other provision of Article 10 – Division of Occupational Safety and Health enumerated as A.R.S. § 23-401, et seq. Nor is it an admission by Respondent, or any of its employees, that any of the conditions alleged in the Citation issued as a result of Inspection No. CP-2024-VM508-0020-ADOSH existed or were the cause, proximate cause or contributing factor of any allegations in the Citation including any accident, damages, injuries, or death related in any way to the Citation.

8. Respondent represents as a material fact leading to the Settlement Agreement that Respondent will comply with the terms of this Settlement Agreement and will continue to comply with the Arizona Occupational Safety and Health Act of 1972.

9. This Settlement Agreement is in furtherance of the purpose of industrial safety and the Arizona Occupational Safety and Health Act of 1972.

10. This Settlement Agreement is a full and final determination of this matter and obviates any need for, and constitutes a waiver of the right to, a hearing or any alternate determination on the merits of the Citation or the abatement requirements or penalty stated in the Citation.

11. The undersigned hereby represents that they have sufficient authority to enter into this agreement and bind the represented entity.

IT IS FURTHER ORDERED that each party is to bear its own attorney’s fees and costs.

NOTICE

Any party dissatisfied with this Decision may request review by the Review Board, filing a written request with the Administrative Law Judge Division of the Industrial Commission within fifteen (15) days after service of this Decision as provided by Arizona Revised Statutes, §§ 23-421(C) and 23-423(A) and (B). If no such request is made within the time provided, this Decision becomes final.

By: Tammy L. Eigenheer

The Honorable Tammy L. Eigenheer

Administrative Law Judge

DATED IN PHOENIX, ARIZONA, THIS 16th day of January 2026.

BEFORE THE OFFICE OF ADMINISTRATIVE HEARINGS

CERTIFICATE OF SERVICE

The attached FINDINGS & ORDER APPROVING SETTLEMENT AGREEMENT was placed in, and is now a part of, the Office of Administrative Hearings file and was served on the parties named below via mail/email/facsimile on 16th day of January 2026:

Brian Hudson, Director

[email redacted]

ADOSH

Christina Lopez, Esq.

Industrial Commission of Arizona

[email redacted]

Attorney for ADOSH

Jesse Atencio

For Alexander Lazar, General Manager

Ocean Blue Cottonwood, LLC

[email redacted]

Respondent

By: OAH Staff