{"operation":"document","citation":"CPF 420055009","title":"NAVAJO NATION OIL AND GAS COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2005-01-07","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420055009.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420055009.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420055009","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420055009","body":"Notice of Probable Violation involving NAVAJO NATION OIL AND GAS COMPANY. PHMSA's enforcement data identifies the cited regulation as 195.452(b)(2). The case was opened on 2005-01-07 and is reported as closed as of 2006-06-21. Proposed civil penalty: $5,000. Assessed civil penalty: $5,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420055009_Final Order_06212006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420055009/420055009_Final%20Order_06212006.pdf\n\nCPF_NO_4-2005-5009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420055009/CPF_NO_4-2005-5009.pdf\n\n420055009_Final Order_06212006.pdf\n\nU.S. Department\nof Transportation\nPipeline and\nHazardous Materials Safety\nAdministration JUN 2 1 2006\n400 Seventh Street, S.W.\nWashington. D.C. 20590\nMr. Wilson Groen\nPresident\nNavajo Nation Oil and Gas Company\nP.O. Box 4439\nWindow Rock, AZ 865 15-4439\nRe: CPF No. 4-2005-5009 I\n,\nDear Mr. Groen:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in\nthe above-referenced case. It makes a finding of violation and assessds a civil penalty of\n$5,000. It further finds that you have completed the actions specified lin the Notice required\nto comply with the pipeline safety regulations. When the civil penalti is paid, this\nenforcement action will be closed. Your receipt of the Final Order cohstitutes service under\n49 C.F.R. 5 190.5. I\nI\nf\nSincerely, I\nI\nJames Reynolds\nPipeline Compliance Re6istry\nOffice of Pipeline Safetx\nEnclosure\nCERTIFIED MAIL -RETURN RECEIPT REQUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION ~\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of\nNavajo Nation Oil and Gas Company,\nRespondent\n)\n)\n)\n) CPF No. 4-21005-5009\nFINAL ORDER\nOn October 12-15, 2004, pursuant to 49 U.S.C. 5 601 17, a representadive of the Research and\nSpecial Programs Administration, Office of Pipeline Safety, conducted on-site pipeline safety\ninspection of Respondent's Integrity Management Program (IMP) in qindow Rock, Arizona.'\nAs a result of the inspection, the Director, Southwest Region, issued to Respondent, by letter\ndated January 7, 2005, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed\nfinding that Respondent violated 49 C.F.R. 5 195.452(b)(2) and prqposed assessing a civil\npenalty of $5,000 for the alleged violation. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violation.\nI\nRespondent responded to the Notice by letter dated February 2, 2 0 0 ~ . Respondent did not\ncontest the allegation of violation and stated that it would comply with the Proposed Compliance\nOrder. Respondent submitted documentation of corrective action by letter dated October 23,\n2005, and requested that the proposed civil penalty be reduced or eliainated. Respondent did\nnot request a hearing, and therefore has waived its right to one.\nFINDING OF VIOLATION\nIn its Response, Respondent did not contest the violation alleged in the Notice and stated that it\nwould comply with the Proposed Compliance Order. Accordingly, I find that Respondent\nviolated the following section of 49 C.F.R. Part 195, as more fully described in the Notice:\n49 C.F.R. 5 195.452(b)(2) - failing to identify each pipeline Qr pipeline segment that\ncould affect a high consequence area (HCA). Respondent failed to analyze the potential\n-- -\n1The Norman Y. Mineta Research and Special Programs Improvement Act, Pub. L. No. 108-426,\n118 Stat. 2423 (2004), created the Pipeline and Hazardous Materials Safety Administration (PHMSA) and\ntransferred the authority of RSPA exercised under chapter 601 of title 49, Unitgd States Code, to the\nAdministrator of PHMSA. See also 70 Fed. Reg. 8299,8301-8302 (2005).\n\n\n\neffect of failures on pipeline segments that do not directly interbect an HCA, but could\nstill affect an HCA. Respondent also did not have a procedure fok analyzing the potential\neffect of failures on segments that do not directly intersect an HCA.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. 8 60122, Respondent is subject to a civil penalty notto exceed $100,000 per\nviolation for each day of the violation up to a maximum of $1,000,000 for any related series of\nviolations. The Notice proposed a total civil penalty of $5,000 for th$ violation of 49 C.F.R.\n§ 195.452(b)(2).\n49 U.S.C. 4 60122 and 49 C.F.R. 8 190.225 require that, in determinin$ the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation,\ndegree of Respondent's culpability, history of Respondent's prior offenqes, Respondent's ability\nto pay the penalty, good faith by Respondent in attempting to achieve c'pmpliance, the effect on\nRespondent's ability to continue in business, and such other matters as jdstice may require.\nIn response to the Notice, Respondent provided explanation concernin4 the violation and stated\nthat it has taken action to achieve compliance with the applicable regul ion. While Respondent\ndid undertake corrective measures to achieve compliance, those me 7sures do not justify a\nreduction in the civil penalty proposed for the violation, because the masures were taken after\nthe inspection and in response to this enforcement action. Respoadent has not submitted\ninformation that would warrant a reduction in the proposed civil penalty mount.\nFailure to identi@ each pipeline or pipeline segment that could affect a$ HCA may preclude the\nassessment, evaluation, repair and validation through comprehensive aqalysis of the integrity of\neach hazardous liquid pipeline segment that, in the event of a leak 04 failure, could affect an\nHCA.\nAccordingly, having reviewed the record and considered the assesbment criteria, I assess\nRespondent a total civil penalty of $5,000. Respondent has the ability tck pay this penalty without\nadversely affecting its ability to continue in business.\nPayment of the civil penalty must be made within 20 days of service. Playment may be made by\nsending a certified check or money order (containing the CPF Number for this case) payable to\n\"U.S. Department of Transportation\" to the Federal Aviation Adminiqtration, Mike Monroney\nAeronautical Center, Financial Operations Division (AMZ-300), P.O.; Box 25082, Oklahoma\nCity, OK 73 125.\nFederal regulations (49 C.F.R. § 89.21(b)(3)) also permit this payrn$nt to be made by wire\ntransfer, through the Federal Reserve Communications System (~edwide), to the account of the\nU.S. Treasury. Detailed instructions are contained in the enclosure. Qbestions concerning wire\ntransfers should be directed to: Financial Operations Division (AMa-300), Federal Aviation\n\n\n\nAdministration, Mike Monroney Aeronautical Center, P.O. Box 250812, Oklahoma City, OK\n73 125; (405) 954-8893.\nFailure to pay the $5,000 civil penalty will result in accrual of interest alt the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9, and 49 C.F.@. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per m u m will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a United\nStates District Court.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order for the violation of 49 C.F.R. 1s 195.452(b)(2). Under\n49 U.S.C. § 601 18(a), each person who engages in the transportation of dazardous liquids or who\nowns or operates a pipeline facility is required to comply with the aplplicable safety standards\nestablished under Chapter 601. The Director, Southwest Region, has iddicated that Respondent\nhas taken the following actions specified in the Proposed Compliance Order:\nRespondent has documented its process for identifying pipelipe segments that could\naffect an HCA and has applied that process to each pipeline system in Respondent's IMP.\nAccordingly, since compliance has been achieved with respect to {his violation, it is not\nnecessary to include the compliance terms in this Order.\nUnder 49 C.F.R. 9 190.21 5, Respondent has a right to submit a Petitiob for Reconsideration of\nthis Final Order. The petition must be received within 20 days of Respondent's receipt of this\nFinal Order and must contain a brief statement of the issue(s). The filing of the petition\nautomatically stays the payment of any civil penalty assessed. However, if Respondent submits\npayment for the civil penalty, the Final Order becomes the final admipistrative action and the\nright to petition for reconsideration is waived. The terms and conditioqs of this Final Order are\neffective on receipt.\nJUN 2 1 2i)k\nDate Issued","truncated":false,"body_characters":8936}