(a) Before production begins. (1) The United States Supreme Court
has held that the Act is applicable to employees of a company which was
engaged in preliminary oil well drilling, even though the holes were
drilled to a specified depth which was short of where the oil was
expected to be found. 26 The Act would also apply to
drilling operations even though no oil was discovered. 27
Laborers employed in erecting drilling rigs would also be
covered.28 Other preparatory work before drilling begins in
an oil field, such as staking oil claims, surveying, clearing the land,
assembling materials and equipment, erecting sheds, derricks or dikes
would also be within the scope of the Act.29 Preliminary work
such as the foregoing has the requisite close and immediate tie with the
production of goods for commerce to be within the coverage of the Act.
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26 Warren-Bradshaw Drilling Co. v. Hall, 317 U.S. 8.
27 Culver v. Bell & Loffland, 146 F. (2d) 20.
28 Devine v. Levy, 39 F. Supp. 44.
29 Straughn v. Schlumberger Well Surveying Corp., 72 F.
Supp. 511.
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(2) Similarly, coverage extends to employees engaged in the
installation of machinery to be used in covered production in a new
factory building, even though the construction of the building itself
may not have been subject to the Act. Such installation is considered to
be a preliminary production activity rather than simply part of the
construction of the building.
(3) If the construction project is subject to the Act, preliminary
activities, such as surveying, clearing, draining and leveling the land,
erecting necessary buildings to house materials and equipment, or the
demolition of structures in order to begin building the covered
facility, are subject to the Act. 30
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30 Coverage of preparation of plans and designs is discussed
in Sec. 776.19(b) (2).
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(b) Facilities used in aid of the covered construction. The
installation of facilities, and the repair and maintenance of trucks,
tools, machinery and other equipment to be used by a contractor in the
furtherance of his covered construction work, are activities subject to
the Act.
