{"operation":"document","citation":"CPF 32022036WL","title":"NAVAJO NATION OIL AND GAS COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-03-01","effective_on":null,"summary":"CLOSED warning letter citing 195.446(a), 195.446(b)(4), 195.446(c)(4), 195.446(d)(1), 195.446(d)(3), 195.446(g)(2), 195.446(h)(6).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022036wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022036wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022036wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022036WL","body":"Warning Letter involving NAVAJO NATION OIL AND GAS COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.446(a),  195.446(b)(4),  195.446(c)(4),  195.446(d)(1),  195.446(d)(3),  195.446(g)(2),  195.446(h)(6). The case was opened on 2022-03-01 and is reported as closed as of 2022-03-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022036WL_Operator Response to Notice_05242022_(21-201004).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022036WL/32022036WL_Operator%20Response%20to%20Notice_05242022_(21-201004).pdf\n\n32022036WL_Warning Letter_03012022_(21-201004).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022036WL/32022036WL_Warning%20Letter_03012022_(21-201004).pdf\n\n32022036WL_Warning Letter_03012022_(21-201004)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022036WL/32022036WL_Warning%20Letter_03012022_(21-201004)_text.pdf\n\n32022036WL_Warning Letter_03012022_(21-201004)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: jmcclure@nnogc.com and jrobertson@nnogc.com\nMarch 1, 2022\nMr. James McClure, CEO\nNavajo Nation Oil and Gas\nPO Box 4439\nWindow Rock, AZ 86515\nCPF 3-2022-036-WL\nDear Mr. McClure:\nFrom May 24 to 28, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nyour Control Room Management procedures and records in Montezuma Creek, Utah.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. 195.446 Control room management.\n(a) General. (1) This section applies to each operator of a pipeline facility with a\ncontroller working in a control room who monitors and controls all or part of a\npipeline facility through a SCADA system. Each operator must have an follow\nwritten control room management procedures that implement the requirements of\nthis section. The procedures required by this section must be integrated, as\nappropriate with the operator’s written procedures required by § 195.402…\n\n\n\nNavajo Nation Oil and Gas (NNOG Running Horse Pipeline) failed to follow their\nProcedure 500-4.5 to provide fatigue training, as required by 195.446(d)(3), to a new\ncontroller prior to being initially qualified to operate the pipeline. It also failed to provide\nfatigue training at least once each three calendar years for one qualified controller who\nhad 7 years of service and did not take fatigue training until 4/6/2021.\nAdditionally, the procedure identified form RHPT-500.2 to “[d]ocument compliance with\nthe educational requirements.” This form documented controller sleep hours to evaluate\nfatigue levels. The form, in turn, was intended to be reviewed quarterly by the supervisor\nto evaluate fatigue levels, as well as to review the fatigue procedures for effectiveness as\ndefined in procedures 500-2.2.2 and 500-4.5.1. The controller did not use this form, so\nthere was no information to review.\n2. 195.446 Control room management.\n(a)…\n(b) Roles and responsibilities. Each operator must define the roles and\nresponsibilities of a controller during normal, abnormal, and emergency operating\nconditions. To provide for a controller’s prompt and appropriate response to\noperating conditions, an operator must define each of the following:\n(1)…\n(2)…\n(3)…\n(4) A method of recording controller shift-changes and any hand-over of\nresponsibility between controllers…\nNNOG Running Horse Pipeline failed follow their procedure to conduct and document\nshift turnover on 6/14/18, when another controller took responsibility for the system\ninside the normal shift of Monday to Monday. Mid-week changes occurred due to\nvacations or other reasons where a different controller assumed responsibility, but no\nshift turnover documentation was completed. This was identified upon review of shift\nchange documents for June 11, 2018. The operator could not produce shift change\ndocuments for the date that indicated a different controller was assuming responsibility.\n3. 195.446 Control room management.\n(a)…\n(c) Provide adequate information. Each operator must provide its controllers with\nthe information, tools, processes and procedures necessary for the controllers to\ncarry out the roles and responsibilities the operator had defined by performing each\nof the following:\n(1)…\n2\n\n\n\n(2)…\n(3)…\n(4) Test any backup SCADA system at least once each calendar year, but at\nintervals not to exceed 15 months…\nNNOG Running Horse Pipeline failed to test and document their back up SCADA server\nfor years 2018, 2019 and 2020, as required by this section and Procedure 500-3.4.\nThe operator did test the server and provided a record of the test on August 2, 2021. No\nfurther action is required.\n4. 195.446 Control room management.\n(a)…\n(d) Fatigue mitigation. Each operator must implement the following methods to\nreduce the risk associated with controller fatigue that could inhibit a controller’s\nability to carry out the roles and responsibities the operator has defined:\n(1) Establish shift lengths and schedule rotations that provide controllers off-duty\ntime sufficient to achieve eight hours of continuours sleep;\nNNOG Running Horse Pipeline failed to document and factor in all the time the\nindividual was working for the company to provide controllers off-duty time sufficient to\nachieve 8 hours of continuous sleep. The NNOG Running Horse Pipeline controllers\nfunction on a 7-day rotation in the controller role. The controllers work a standard 8-hour\nday, Monday–Friday with weekends off. During the controller rotation week, the\nassigned controller is on call for any after-hours issues. They take their laptop computers\nhome and may monitor and control from there, if needed, or go back to the office. When\nthere is an alarm, a third party after hours call center is alerted and notifies the controller\nthere is an alarm. These hours are not tracked for hours of service, but are tracked for\npayroll purposes. After hours response is only tracked for hours of service if the\ncontroller responds by going to the control room.\n5. 195.446 Control room management\n(a)…\n(g) Operating experience. Each operator must assure that lessons learned from its\noperating experience are incorporated, as appropriate, into its control room\nmanagement procedures by performing each of the following:\n(2) Include lessons learned from the operator’s experience in the training program\nrequired by this section.\nNNOG Running Horse Pipeline failed to document the lessons learned and training\ndates that related to internal abnormal operations and emergencies, as required by\n§195.446(g)(2). The lessons learned were only shared verbally with the controllers.\n3\n\n\n\nAlso, NNOG Running Horse Pipeline did not include accidents or events outside NNOG\nto share and incorporate them into training.\n6. 195.446 Control room management.\n(a)…\n(h) Training. Each operator must establish a controller training program and\nreview the training program content to identify potential improvements at least\nonce each calendar year, but at intervals not to exceed 15 months. An operator’s\nprogram must provide for training each controller to carry out the roles and\nresponsibilities defined by the operator. In addition, the training program must\ninclude the following elements:\n(6) Control room team training and exercises that include both controllers and other\nindividuals, defined by the operator, who would reasonably be expected to\noperationally collaborate with controllers (control room personnel) during normal,\nabnormal or emergency situations. Operators must comply with the team training\nreqirements under this paragraph no later than January 23, 2018.\nNNOG Running Horse Pipeline failed to identify individuals who operationally\ncollaborate with control room personnel as of January 23, 2018, and provide team\ntraining by January 23, 2019, as required by §195.446(h)(6). The first team training was\nconducted on May 2021.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a\nrelated series of violations. For violation occurring on or after January 11, 2021 and before May\n3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to 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 items identified in this letter. Failure to do so will result in\nNavajo Nation Oil and Gas being subject to additional enforcement action.\n4\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2022-036-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, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Joe Robertson, Director Operations jrobertson@nnogc.com\n5","truncated":false,"body_characters":10408}