{"operation":"document","citation":"CPF 32022020WL","title":"CONTINENTAL RESOURCES, INC. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-05-02","effective_on":null,"summary":"CLOSED warning letter citing 194.107(c)(1)(ix), 195.406(b), 195.573(a)(1), 195.573(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022020wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022020wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022020wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022020WL","body":"Warning Letter involving CONTINENTAL RESOURCES, INC.. PHMSA's enforcement data identifies the cited regulations as 194.107(c)(1)(ix),  195.406(b),  195.573(a)(1),  195.573(e). The case was opened on 2022-05-02 and is reported as closed as of 2022-05-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022020WL_Warning Letter_05022022_(21-208610).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022020WL/32022020WL_Warning%20Letter_05022022_(21-208610).pdf\n\n32022020WL_Warning Letter_05022022_(21-208610)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022020WL/32022020WL_Warning%20Letter_05022022_(21-208610)_text.pdf\n\n32022020WL_Warning Letter_05022022_(21-208610)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: jack.stark@clr.com; Patrick.mcgrew@clr.com\nMay 2, 2022\nJack Stark\nPresident and COO\nContinental Resources\n20 North Broadway\nOklahoma City, OK 73102\nCPF 3-2022-020-WL\nDear Mr. Stark:\nFrom April 27-30, 2021 a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected\nContinental Resources (Continental) records and field assets in Sydney, Montana.\nAs a result of the inspection, it is alleged that Continental has committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items\ninspected and the probable violations are:\n1. § 194.107 General response plan requirements.\n(a) . . . .\n(c) Each response plan must include:\n(1) A core plan consisting of—\n(ix) Drill program—an operator will satisfy the requirement for a drill\nprogram by followingthe National Preparedness for Response Exercise\nProgram (PREP) guidelines. An operator choosing not to follow PREP\nguidelines must have a drill program that is equivalent to PREP. The\noperator must describe the drill program in the response plan and OPS will\ndetermine if the program is equivalent to PREP.\nContinental failed to satisfy the requirements of the PREP Program, or a program equivalent to\nPREP. During the records inspection, Continental staff stated that they do not have a record of,\nand did not perform, an unannounced spill response exercise in calendar year 2020.\n\n\n\n2. § 195.406 Maximum operating pressure.\n(a) . . . .\n(b) No operator may permit the pressure in a pipeline during surges or other\nvariations from normal operations to exceed 110 percent of the operating pressure\nlimit established under paragraph (a) of this section. Each operator must provide\nadequate controls and protective equipment to control the pressure within this limit.\nContinental did not provide adequate protective equipment to control the pressure during surges\nor variations from normal operations. During the field inspection, PHMSA staff observed that\nContinental did not have a means of controlling the pressure within the limits required.\nContinental must provide a means of pressure control to protect its pipeline from variations that\ncould exceed 110 percent of the operating pressure established by § 195.406.\n3. § 195.573 What must I do to monitor external corrosion control?\n(a) Protected pipelines. You must do the following to determine whether cathodic\nprotection required by this subpart complies with §195.571:.\n(1) Conduct tests on the protected pipeline at least once each calendar year, but\nwith intervals not exceeding 15 months. However, if tests at those intervals are\nimpractical for separaretly protected short sections of bare or ineffectively\ncoated pipelines, testing may be done at least once every 4 calendar years, but\nwith intervals not exceeding 39 months.\nContinental failed to conduct tests of its cathodic protection system in 2018 and 2019. During\nthe records inspection, PHMSA staff noted the last cathodic protection system inspection was\ncompleted on May 21, 2017. Continental, however, is required to complete an inspection of its\ncathodic protection systems annually, not to exceed 15 months.\n4. § 195.573 What must I do to monitor external corrosion control?\n(a). . . .\n(e) Corrective action. You must correct any identified deficiency in corrosion\ncontrol as required by §195.401(b). However, if the deficiency involves a pipeline in\nan integrity management program under §195.452, you must correct the deficiency\nas required by §195.452(h).\nContinental failed to correct deficiencies in its corrosion control system within a resonable time-\nframe. At the time of the inspection, Continental had not implemented the recommendations for\nthe correction of deficiencies documented in the 2017 cathodic protection survey.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a\nrelated series of violations. For violation occurring on or after May 3, 2021 and before March 21,\n2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not\n2\n\n\n\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for\na related series of violations. For violation occurring on or after July 31, 2019 and before January\n11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation\npersists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nContinental Recources, Inc. being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2022-020-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\ncc: Mr. Patrick McGrew, Senior HSE Specialist, Continental Resources, Inc.\n(Patrick.mcgrew@clr.com )\n3","truncated":false,"body_characters":7196}