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UR-2025-MS021-0045 · Arizona Division of Occupational Safety and Health · 2025-07-31

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

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

Complainant

v.

REEF ON ENTERPRISES INC.,

Respondent

No. UR-2025-MS021-0045

FINDINGS & ORDER APPROVING SETTLEMENT AGREEMENT

On October 28, 2024, the Division of Occupational Safety and Health of the Industrial Commission of Arizona (“Complainant” or “Division”) conducted an inspection of a Reef On Enterprises Inc. (“Respondent”) worksite, located at 3199 W. Chandler Blvd., Chandler, AZ 85226, designated as Inspection No. UR-2025-MS021-0045, which resulted in ADOSH issuing a Citation and Notification of Penalty (“Citation”) to Respondent on January 16, 2025.

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 July 28, 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

IT IS HEREBY ORDERED that:

Citation 1 Item 1a is reclassified from Serious to Nonserious and the assessed penalty is reduced from $14,518.00 to $1,000.00.

Citation 1 Item 1b is reclassified from Serious to Nonserious and the assessed penalty remains at $0.00.

IT IS FURTHER ORDERED that:

In exchange for the above, Respondent agrees to [and shall]:

Participate in one Consultation visit for the purpose of putting together a dive “permit,” using a confined space permit as a template. By “permit” the parties mean a pre-dive safety checklist to be completed by Respondent before each shift, rather than a formal permit to be submitted to an agency or department;

Work with the Consultation Unit as necessary to provide ADOSH with the dive “permit,” referred to above, which will be used at the beginning of each work shift, modifying a confined space permit so that it is consistent with the thirty-page Safe Diving Plan of the Respondent, specifying, among other things, diver names, activities to be performed during a dive, emergency contact information, time each diver went into the water, time each diver came out of the water, rescue equipment available for the dive, and the name of the standby diver maintaining each dive permit;

Ensure that the dive team goes over the relevant dive permit for each dive; and

Complete the pre-dive permit at the beginning of each shift, which allows a dive team to complete dives for that day.

IT IS FURTHER ORDERED that the legal effect of A.A.C. R20-5-817 is waived.

NOTICE

Any party dissatisfied with this Decision may request review to the Review Board by 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 Eigenheer

Administrative Law Judge

DATED IN PHOENIX, ARIZONA, THIS 31st day of July 2025.

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 the 31st day of July 2025:

Brian Hudson, Director

Division of Occupational Safety and Health

Industrial Commission of Arizona

[email redacted]

ADOSH Director

Scott J. Cooley, Esq.

Legal Division

Industrial Commission of Arizona

[email redacted]

Attorney for ADOSH

Jerry D. Ohrn, President

Reef On Enterprises Inc.

c/o Christian Lestinsky, Esq.

Lang, Thal, King & Hanson P.C.

[email redacted]

Respondent

By: OAH Staff