{"operation":"document","citation":"CPF 420125027S","title":"NAVAJO NATION OIL AND GAS COMPANY — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-07-23","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125027s.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125027s.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125027s","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420125027S","body":"Safety Order involving NAVAJO NATION OIL AND GAS COMPANY. The dataset does not identify a cited regulation for this case. The case was opened on 2012-07-23 and is reported as closed as of 2020-06-30. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420125027S_Closure Letter_06302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Closure%20Letter_06302020.pdf\n\n420125027S_Closure Letter_06302020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Closure%20Letter_06302020_text.pdf\n\n420125027S_Consent Agreement_07052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Agreement_07052013.pdf\n\n420125027S_Consent Agreement_07052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Agreement_07052013_text.pdf\n\n420125027S_Consent Order Letter_07052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Order%20Letter_07052013.pdf\n\n420125027S_Consent Order Letter_07052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Order%20Letter_07052013_text.pdf\n\n420125027S_NOPSO_07232012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_NOPSO_07232012.pdf\n\n420125027S_NOPSO_07232012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_NOPSO_07232012_text.pdf\n\n420125027S_Closure Letter_06302020_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nJune 30, 2020\nJames McClure\nPresident and Chief Executive Officer\nNavajo Nation Oil and Gas Pipeline\n50 Narbano Circle West\nSt. Michaels, Arizona 86511\nCPF 4-2012-5027S\nDear Mr. McClure:\nOn February 11, 2020, Navajo Nation Oil and Gas Company (NNOGC) submitted via email its\nRequest to Confirm Termination of Proceedings under Part VI of the Consent Agreement in the\nabove referenced case. Based on our review of the documentation provided, it has been\ndetermined that you have complied with the terms of the Consent Agreement.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nCc: Joseph P. Robertson, P.E., Director of Pipeline Operations, NNOGC\n\n420125027S_Consent Order Letter_07052013_text.pdf\n\nJULY 5, 2013\nMr. Louis Denetsosie\nInterim President and CEO\nNavajo Nation Oil & Gas Company\n50 Narbono Circle West\nSt. Michaels, AZ 86511\nRe: CPF No. 4-2012-5027S\nDear Mr. Denetsosie:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement that you\nsigned on June 10, 2013. Service of the Consent Order and Consent Agreement by certified mail\nis deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Rod Seeley, Director, Southwest Region, PHMSA\nMs. Susan A. Olenchuk, Esq., Van Ness Feldman, LLP, 1050 Thomas Jefferson Street\nNW, Washington, DC 20007\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nNavajo Nation ) CPF No. 4-2012-5027S\nOil & Gas Company, )\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated July 23, 2012 the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) Office of Pipeline Safety issued a Notice of Proposed Safety Order (Notice) to Navajo\nNation Oil & Gas Company (Respondent) in this case.\nIn accordance with 49 C.F.R. § 190.239, the Notice alleged that Respondent’s Running Horse\nPipeline (RHP) system extending approximately 87 miles from the Montezuma Creek, Utah area\ncrossing Southwest Colorado and terminating near Bisti, New Mexico has an apparent condition\nthat, without corrective measures, would pose a pipeline integrity risk to public safety, property,\nor the environment and proposed that Respondent take certain actions to address the condition.\nSpecifically, the Notice alleged that onsite inspections of the RHP by PHMSA in October, 2011\nhad identified safety inadequacies including apparent non-compliance with various safety\nrequirements in 49 C.F.R. Part 192 and that as a result, Respondent’s safety programs appear to\nbe inadequate.\nIn response to the Notice, Respondent requested an informal consultation and Respondent and\nPHMSA engaged in good faith settlement discussions resulting in the Consent Agreement\nattached to this Order that settles all of the allegations in the Notice.\nAccordingly, the foregoing Consent Agreement is hereby approved and incorporated by\nreference into this Order. The Respondent is hereby ordered to comply with terms of the\nConsent Agreement, effective immediately.\n\n\n\nPursuant to 49 U.S.C. 60101 et seq., failure to comply with this Consent Order may result in the\nassessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case\nfor judicial enforcement. The terms and conditions of this Consent Order are effective upon\nservice in accordance with 49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420125027S_Consent Agreement_07052013_text.pdf\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\n____________________________________\nIn the Matter of )\nNavajo Nation ) CPF No. 4-2012-5027S\nOil & Gas Company, )\n)\n)\n)\nRespondent )\n____________________________________)\nOn July 23, 2012, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), U.S. Department of Transportation, issued a Notice of Proposed Safety Order\n(Notice) to Navajo Nation Oil & Gas Company (NNOGC or Respondent).1 The Notice\nalleges that Respondent’s 16-inch diameter hazardous liquid pipeline system designated\nas the Running Horse Pipeline (RHP) has an apparent condition that, without corrective\nmeasures, would pose a pipeline integrity risk to public safety, property, or the\nenvironment.2 Specifically, the Notice alleged that onsite inspections of the RHP by\nPHMSA in October, 2011 had identified safety inadequacies including apparent non-\ncompliance with various safety requirements in 49 C.F.R. Part 192 and that as a result,\nRespondent’s safety programs appear to be inadequate.\nOn August 22, 2012, Respondent requested an informal consultation in response to the\nNotice. On September 24, 2012, the informal consultation was held in Houston, Texas at\nwhich time Respondent and PHMSA engaged in good faith settlement discussions\nresulting in this Consent Agreement (“Agreement”).\nHaving agreed that settlement of this proceeding will avoid further administrative\nproceedings or litigation and that entry of this Consent Agreement is the most appropriate\nmeans of resolving the Notice, pursuant to 49 C.F.R. Part 190, without adjudication of\nCONSENT AGREEMENT\n1 NNOGC is a federally chartered corporation under Section 17 of the Indian Reorganization Act, 25\nU.S.C. §477. Pursuant to that authority, the Secretary of the Interior has issued articles of incorporation, at\nthe request of the Navajo Nation, to NNOGC setting out the various powers necessary to conduct its\nbusiness.\n2 The Running Horse Pipeline system extends approximately 87 miles from the Montezuma Creek, Utah\narea crossing Southwest Colorado and terminating near Bisti, New Mexico.\n\n\n\nany issue of fact or law, and upon consent and agreement of Respondent and PHMSA\n(“the Parties”), the Parties agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as operator of the RHP, Respondent and its\npipeline system are subject to the jurisdiction of the Federal pipeline safety laws, 49\nU.S.C. 60101 et seq., and the regulations and administrative orders issued thereunder.\nFor purposes of this Consent Agreement, Respondent acknowledges that it received\nproper notice of PHMSA’s action in this proceeding and that the Notice states claims\nupon which relief may be granted pursuant to 49 U.S.C. 60101 et seq. and the regulations\nand orders issued thereunder.\n2. Respondent agrees, for purposes of this Consent Agreement, that the conditions\nidentified in the Notice exist and agrees to address them by completing the actions\nspecified in Section II of this agreement (“Work to be Performed”) and Appendix A.\nThese actions, including any work plans and schedules, shall automatically be\nincorporated into this Agreement. This Consent Agreement does not constitute a finding\nof violation of any Federal law or regulation and may not be used in any civil proceeding\nof any kind as evidence or proof of any fact, fault or liability, or as evidence of the\nviolation of any law, rule, regulation or requirement, except in a proceeding to enforce the\nprovisions of this Agreement.\n3. After Respondent returns this signed Agreement, PHMSA’s representative will\npresent it to the Associate Administrator for Pipeline Safety recommending that the\nAssociate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Consent Agreement. The terms of\nthis Agreement constitute an offer of settlement until accepted by the Associate\nAdministrator. Upon the effective date of this agreement, any request for a hearing\nsubmitted by Respondent shall be automatically withdrawn.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights\nto contest the adequacy of notice, or the validity of the Consent Order or this Consent\nAgreement, including all rights to administrative or judicial hearings or appeals.\n5. This Consent Agreement shall apply to and be binding upon PHMSA, and upon\nRespondent, its officers, directors, and employees, and its successors, assigns, or other\nentities or persons otherwise bound by law. Respondent agrees to provide a copy of this\nAgreement and any incorporated work plans and schedules to all of Respondent’s\nofficers, employees, and agents whose duties might reasonably include compliance with\nthis Agreement.\n2\n\n\n\n6. For all transfers of ownership or operating responsibility of Respondent’s\nRunning Horse Pipeline system, Respondent shall provide a copy of this Consent\nAgreement to the prospective transferee at least 30 days prior to such transfer and\nsimultaneously provide written notice of the prospective transfer to the Director,\nSouthwest Region, PHMSA (Director) who issued the Notice.\n7. This Consent Agreement constitutes the final, complete and exclusive agreement\nand understanding between the Parties with respect to the settlement embodied in this\nAgreement, and the Parties acknowledge that there are no representations, agreements or\nunderstandings relating to the settlement other than those expressly contained in this\nAgreement, except that the terms of this Agreement may be construed by reference to the\nNotice.\n8. Nothing in this Consent Agreement affects or relieves Respondent of its\nresponsibility to comply with all applicable requirements of the Federal pipeline safety\nlaws, 49 U.S.C. § 60101 et seq., and the regulations and orders issued thereunder.\nNothing in this Agreement alters PHMSA’s right of access, entry, inspection, and\ninformation gathering or PHMSA’s authority to bring enforcement actions against\nRespondent pursuant to the Federal pipeline safety laws, the regulations and orders issued\nthereunder, or any other provision of Federal or State law.\n9. This Consent Agreement does not waive or modify any Federal, State, or local\nlaws or regulations that are applicable to Respondent’s pipeline systems. This agreement\nis not a permit, or a modification of any permit, under any Federal, State, or local laws or\nregulations. Respondent remains responsible for achieving and maintaining compliance\nwith all applicable Federal, State, and local laws, regulations and permits.\n10. This Consent Agreement does not create rights in, or grant any cause of action to,\nany third party not party to this Agreement. The U.S. Department of Transportation is not\nliable for any injuries or damages to persons or property arising from acts or omissions of\nRespondent or its officers, employees, or agents carrying out the work required by this\nAgreement. Respondent agrees to hold harmless the U.S. Department of Transportation,\nits officers, employees, agents, and representatives form any and all causes of action\narising from any acts or omissions of Respondent or its contractors in carrying out the\nwork required by this Agreement.\nII. Work to be Performed\n11. Respondent agrees to perform all actions in the work plan set forth in Appendix\nA which is hereby incorporated into this Consent Agreement including any sub-plans\ndeveloped under the work plan. The work plan shall be revised as necessary to\nincorporate new information obtained during the evaluations and remedial activities\nperformed under the work plan. Submit any such plan revisions to the Director for prior\napproval. The Director may approve work plan elements incrementally.\n3\n\n\n\n12. Respondent agrees to submit periodic reports to the Regional Director in\naccordance with the work plan reporting requirements that include appropriate\ndocumentation of the results of the work performed to date under this Agreement\nincluding documentation and technical justifications supporting decisions made in\nconducting testing and analyses and otherwise performing the work.\n13. Respondent agrees to maintain documentation of the costs associated with\nimplementation of the work plan in the following categories: the total costs associated\nwith: (1) testing, evaluations and information analysis; (2) revisions of procedures and\nadditional monitoring and inspections; and (3) physical changes to pipeline facilities,\nincluding repairs, replacements and other modifications and agrees to make this\ninformation available to PHMSA upon request.\n14. The Director may grant an extension of time for completion of any of the work to\nbe performed upon a written request timely submitted demonstrating good cause for an\nextension.\nIII. Review and Approval Process\n15. With respect to any submission under Section II of this Consent Agreement and\nAppendix A that requires the acceptance of the Director, the Director may: (a) accept, in\nwhole or in part, the submission, (b) accept the submission on specified conditions, (c)\nnot accept, in whole or in part, the submission, or (d) any combination of the foregoing.\nIn the event of acceptance, acceptance in part, or acceptance upon conditions, Respondent\nwill proceed to take all action required by the submission as accepted by the Director,\nsubject to Respondent’s right to invoke the dispute resolution procedures in Section IV\nwith respect to any conditions identified by the Director. In the event that the Director\ndoes not accept all or any portion of the submission, the Director will provide Respondent\nwith a written notice of the deficiencies. Respondent will correct all deficiencies within\nthe time specified by the Director and resubmit it for acceptance.\nIV. Dispute Resolution\n16. The Director and Respondent will informally attempt to resolve any disputes\narising under this Consent Agreement. If Respondent and the Director are unable to\ninformally resolve the dispute within 15 days, Respondent may request in writing, within\n10 days, a written determination resolving the dispute from the Associate Administrator\nfor Pipeline Safety providing all information that Respondent believes is relevant to the\ndispute. If the request is submitted as provided herein, the Associate Administrator will\nissue a determination in writing which shall be final. The existence of a dispute and\nPHMSA’s consideration of matters placed in dispute shall not excuse, toll, or suspend\nany term or timeframe for completion of any work to be performed under this Agreement\n4\n\n\n\nduring the pendency of the dispute resolution process except as agreed by the Director or\nthe Associate Administrator in writing.\nV. Enforcement\n17. This Consent Agreement, as adopted by the Consent Order, is subject to all\nenforcement authorities available to PHMSA under 49 U.S.C. § 60101 et seq. and 49\nC.F.R. Part 190, including administrative civil penalties under § 60122 of up to $200,000\nper violation for each day the violation continues, if PHMSA determines that Respondent\nis not proceeding in accordance with terms of the Agreement, determinations made by the\nRegional Director, or if appealed, decisions of the Associate Administrator. All work\nplans and associated schedules set forth or referenced in Section II and Appendix A shall\nbe automatically incorporated into this Consent Agreement and are enforceable in the\nsame manner.\nVI. Record Keeping and Information Disclosure\n18. Respondent agrees to maintain records demonstrating compliance with all\nrequirements of this Consent Agreement for a period of at least five years following\ncompletion of all work to be performed. For any reports, plans, or other deliverables\nrequired to be submitted to PHMSA pursuant to this Consent Agreement, Respondent\nmay assert a claim of business confidentiality or other protections applicable to the\nrelease of information by PHMSA, covering part or all of the information required to be\nsubmitted to PHMSA pursuant to this agreement in accordance with 49 C.F.R. Part 7.\nThe claim of confidentiality shall be marked in writing on each page, and shall include a\nstatement specifying the grounds for each claim of confidentially. PHMSA shall\ndetermine release of any information submitted pursuant to this Consent Agreement in\naccordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT\nand/or PHMSA policies, and other applicable regulations and Executive Orders.\nVII. Effective Date\n19. The “Effective Date” as used herein is the date on which this Consent Agreement\nhas been signed by both Respondent and PHMSA. Unless specified to the contrary, all\ndeadlines for actions required by this agreement run from the Effective Date of this\nagreement.\nVIII. Modification\n20. The terms of this Consent Agreement may be modified by mutual agreement of\nthe parties. Such modifications shall be in writing and shall be signed by both parties.\n5\n\n\n\nIX. Termination\n21. This Consent Agreement shall terminate upon the completion of all terms set\nforth in Section II and Appendix A as determined by the Director. Respondent may\nrequest written confirmation from PHMSA that this Agreement is terminated. To the\nextent ongoing monitoring is required, PHMSA may terminate this Agreement with\nrespect to all other requirements with the exception of such monitoring. Nothing in this\nAgreement prevents Respondent from completing any of the obligations earlier than the\ndeadlines provided for herein.\nX. Ratification\n22. The parties undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Consent Agreement and to execute and legally\nbind such party to this document.\n23. The Parties hereby agree to all conditions and terms of this Consent Agreement:\nFor PHMSA: For Respondent:\n___________________________ ____________________________\nRod M. Seeley Louis Denetsosie\nDirector, Southwest Region Interim President and CEO\nPHMSA NNOGC\n_____________________ _____________________\nDate Date\n6\n\n\n\nAPPENDIX A\n\n\n\nScope of Work for Third-Party Compliance Consultant and Implementation Plan,\nNavajo Nation Oil and Gas Company\nCPF No. 4-2012-5027S\nThis Scope of Work for Third Party Compliance Consultant and Implementation Plan\n(Plan) has been prepared by Navajo Nation Oil and Gas Company (NNOGC) to resolve\nthe Notice of Proposed Safety Order (NOPSO) issued by the Pipeline and Hazardous\nMaterials Safety Administration on July 23, 2012 (CPF No. 4-2012-5027S) with respect\nto the Running Horse Pipeline (RHP) as more fully described in the NOPSO. Compliance\nIssues identified in the NOPSO include the following: atmospheric corrosion\ninspections; cathodic protection; documentation of pipe and materials specifications\nand characteristics; documentation of hydrostatic testing; settings of overpressure\nprotection devices; effectiveness of Operator Qualification program; consideration of\nseam type in in-line inspection assessments; breakout tank inspections or documented\nchange in configuration of tanks; liaison with emergency responders; SCADA security,\nperformance, and alarm handling; repair practices, including the use of clock springs;\naerial patrolling; lock-out/tag-out practices; internal corrosion monitoring and\nmitigation; and soil erosion and structural support.\nNNOGC has made recent, significant efforts to improve its pipeline safety compliance\nprogram including the addition of three new pipeline personnel with engineering,\nregulatory and pipeline data management responsibilities, increased employee\ntechnical training, and closer partnerships with outside consultants. The Plan\nanticipates increased management involvement in compliance activities to allow for\neffective supervision of employees and consultants and to ensure that improvements\nare sustained for the long term.\nAs set forth in detail below, this Plan is comprised of three main parts.\nPart I of the Plan describes the scope of work for a comprehensive review, to be\nperformed by an independent third-party consultant (TPC), of NNOGC’s overall\ncompliance with 49 C.F.R. Part 195. The TPC’s comprehensive review will include all\naspects of NNOGC’s 49 C.F.R. Part 195 compliance program including written\nprocedures, RHP inspection, testing, operations and maintenance practices, and record-\nkeeping and document management practices. At the conclusion of the Part 195\ncomprehensive review, the TPC will simultaneously present a report containing findings\nand recommendations to NNOGC and the PHMSA Southwest Region Director (Director)\nincluding a description of all deficiencies identified.\nPart II of the Plan describes the development and execution of a comprehensive\nImplementation Plan to address, as appropriate, the issues identified in the NOPSO and\n\n\n\nthe findings and recommendations of the TPC as a result of the Part 195 comprehensive\nreview. The TPC will identify deficiencies, devise solutions, and participate in the\ndevelopment of the Implementation Plan that NNOGC will implement to ensure that its\nRHP practices and procedures comply with regulatory requirements for the long term.\nThe Implementation Plan will address all areas requiring action identified by the TPC\nduring the comprehensive Part 195 compliance review, will set forth and include\nproposed schedules for completion, and will be submitted to the Director for approval.\nUpon approval of the Implementation Plan by the Director, NNOGC and its consultant\nand contractors shall execute the Implementation Plan.\nPart III of the Plan sets forth task-specific activities that NNOGC is undertaking or will\nundertake in advance of, or in parallel with, the completion of the comprehensive Part\n195 compliance review by the TPC and subsequent Implementation Plan. These task-\nspecific activities address certain issues identified in the NOPSO that can be resolved\noutside of, but in conjunction with, the comprehensive Part 195 compliance review and\nImplementation Plan.3\nPart I. Scope of Work for Comprehensive Part 195 Compliance Review by Third Party\nConsultant [Related to NOPSO Item 1A]\nNNOGC will retain a TPC to comprehensively review and evaluate all aspects of\nNNOGC’s 49 C.F.R. Part 195 compliance program, including the results of testing,\nevaluations, or other activities currently performed by other outside consultants and\ncontractors. Selection of the TPC must be approved by the Director prior to initiating\nthe compliance review. The comprehensive Part 195 review will cover, among other\nthings, NNOGC’s written procedures, operations and maintenance practices, record-\nkeeping, and document management practices, and the resulting report shall be\nsubmitted to the Director at the same time it is provided to NNOGC. When the\ncomprehensive review is complete, NNOGC and the TPC will prepare a comprehensive\nImplementation Plan and schedule for the Director’s approval that implements the\nactions necessary to bring the RHP into compliance.\nDescribed below is the scope of work for the Part 195 compliance review that will be\nperformed by the TPC. The compliance time frames are measured from the date\nPHMSA issues an order approving a Consent Agreement (Agreement) that will adopt\nthe requirements of this Plan.\n1. TPC Selection: NNOGC shall select a TPC to perform a comprehensive review of all\naspects of NNOGC’s 49 C.F.R. Part 195 compliance program, including written\nprocedures, operations and maintenance practices, record keeping, and\n2\n3 Parts IV – VI contain administrative provisions on reporting, completion of work, and termination\napplicable to all parts of the Plan.\n\n\n\n2. document management practices. Selection of the TPC must be approved by the\nDirector. After receiving approval from the Director, NNOGC will hire the TPC.\nThe following milestone dates apply:\na. b. c. NNOGC will identify TPC candidates and provide credentials and\nqualifications to the Director 60 days from Agreement.\nThe Director will notify NNOGC of its decision regarding the TPC 90 days\nfrom Agreement.\nNNOGC will hire the TPC 30 days from approval of the TPC by the Director.\nScope of TPC Work: The TPC shall perform the following:\na. Perform Initial Site Visit: The TPC will undertake an initial site visit at the\nappropriate NNOGC offices to meet NNOGC employees, review the tasks\nperformed under Part 195, review NNOGC’s system of records, and collect\ndocuments and data. The initial site visit shall include a tour of the RHP right\nof way and facilities. The initial site visit shall occur within 60 days of when\nNNOGC hires the TPC. The TPC shall be provided with a copy of the NOPSO.\nb. Perform Comprehensive Review of Part 195 Compliance Program: The TPC\nshall work in partnership with NNOGC to perform a comprehensive review of\nall aspects of NNOGC’s Part 195 compliance program. The TPC shall perform\nthe following tasks:\ni. Review Written Procedures: Perform a section-by-section review of all\nof NNOGC’s written Part 195 compliance programs and procedural\nmanuals and identify any areas requiring action to meet Part 195\nrequirements. The TPC will complete its review of NNOGC’s written\nprocedures within 90 days of the initial visit.\nii. Review Data and Recordkeeping: Perform a review of NNOGC’s records\nof compliance with the requirements of Part 195 and the systems for\ngenerating and maintaining documentation of pipeline attributes and\ncompliance and maintenance records. The review shall include an\nidentification of any Part 195-required data which is unavailable,\nverification that NNOGC’s work tracking systems accurately reflect\nthe compliance deadlines in Part 195, and identification of any areas\nrequiring action to meet Part 195 requirements. The TPC will\ncomplete its review of data and recordkeeping within 120 days of the\ninitial visit.\n3\n\n\n\niii. Review Operations and Maintenance Practices: Conduct an in-person\nmeeting and interview with each NNOGC employee with Part 195\ncompliance responsibilities in order to determine how NNOGC\nimplements its Part 195 compliance program, and to assess what\nadditional subject matter expertise may be necessary within NNOGC.\nThe TPC will observe NNOGC employees performing select activities\nin the field and identify any areas requiring action to meet Part 195\nrequirements. The TPC will complete its review of implementation\nand field practices within 120 days of initial visit.\nc. Communicate TPC Progress: The TPC shall work with NNOGC to prepare bi-\nweekly written status reports briefly describing the progress of the activities\nlisted in Section 2(b). The first report shall be submitted to the Director 30\ndays after the initial visit, with subsequent reports due bi-weekly thereafter\nuntil the delivery of the TPC’s report in section 2(d).\nd. Present Findings and Recommendations for Performance Improvement:\nUpon completion of the comprehensive Part 195 compliance review, the TPC\nwill provide the TPC’s findings and recommendations to the Director at the\nsame time they are provided to NNOGC. The TPC’s report shall identify\nareas requiring action. The TPC shall meet with NNOGC within 30 days of\nthe completion of the TPC’s review to begin the development of the\nImplementation Plan. The TPC shall participate in the development of the\nImplementation Plan for remedial action, as set forth in Part II, and oversee\nthe execution of the Implementation Plan(s).\nPart II. Development and Execution of Implementation Plans\nAfter completion of the comprehensive Part 195 compliance review, the TPC and\nNNOGC will work together to develop a comprehensive Implementation Plan designed\nto address the issues identified in the NOPSO and the TPC’s findings and\nrecommendations and assist NNOGC in taking action Part 195 compliance program.\nThe Implementation Plan, which may contain sub-plans, will set forth completion\nschedules, and may include provisions allowing NNGOC to work with other outside\ncontractors to implement certain compliance activities. The TPC or NNOGC will submit\nthe Implementation Plan to the Director for review and approval. Upon approval by the\nDirector, NNOGC shall execute the Implementation Plan. The TPC will conduct ongoing\nconsultation, oversight, and training as necessary during the execution of the\nImplementation Plan by NNOGC employees or outside contractors.\n4\n\n\n\nIn addition to addressing the TPC’s findings and recommendations resulting from the\nPart 195 compliance review, the Implementation Plan will also address the issues\ndescribed in the NOPSO, as set forth below:\n1. Unavailable Data and Records: How NNOGC will handle data required by Part 195\nbut which is unavailable. [Related to NOPSO Items 1B – 1P]\n2. Data Integration: [Related to NOPSO Items 1B-1P]\na. How NNOGC will integrate data about its pipeline into a comprehensive data\nintegration tool capable of displaying RHP attributes, and appropriate\ninspection, maintenance, and repair data in a graphical overlay format.\nb. What data will be used, and how unavailable data will be considered in the\nintegration.\nc. How NNOGC will use the data integration tool to support NNOGC’s\ncompliance with Part 195 regulatory requirements.\n3. Identifying and Addressing Compliance and Safety Issues: How NNOGC’s Part 195\ncompliance procedures and practices will be revised, as appropriate, to specify\nactions NNOGC will take to address compliance or safety issues identified in day-\nto-day operations and through its inspection and maintenance programs.\n[Related to NOPSO Items 1A – 1P]\n4. Integrity Management Program: How NNOGC’s integrity management program\n(IMP) will be revised, as appropriate, to verify that NNOGC identifies all threats,\nquantifies and assesses risks, implements appropriate and timely responses, and\nselects and implements appropriate preventive and mitigative measures. [Related\nto NOPSO Items 1D and 1K]\n5. Operator Qualification: [Related to NOPSO Items 1G and 1J]\na. How NNOGC will verify that RHP employees are qualified to perform Part\n195 covered tasks and that NNOGC’s Operator Qualification program meets\nregulatory requirements.\nb. How NNOGC will continue to provide RHP employees with necessary job\nskills training.\nc. How NNOGC will ensure that all covered tasks are included in the Operator\nQualification program and that qualification/requalification practices provide\na legitimate means for confirming the knowledge and skills needed to\nperform a covered task.\n6. Corrosion Control: How NNOGC will revise, as appropriate, its atmospheric, internal\nand external corrosion control programs to verify that corrosion risks are\n5\n\n\n\nidentified and mitigated and that corrosion data is being analyzed and acted upon.\n[Related to NOPSCO Items 1L, 1M, and 1N]\n7. Communications with PHMSA: The TPC and NNOGC shall work together to provide\nthe Director monthly reports regarding the status of the Implementation Plan.\nSuch reports shall describe the Implementation Plan tasks that have been\ncompleted, remain ongoing, and are planned, and whether it is associated with\naddressing a Safety Order item(s). The first report shall be submitted no later\nthan 30 days after the Director approves the Implementation Plan, with\nsubsequent reports due monthly thereafter until the completion report(s)\ndescribed below have been submitted.\n8. Completion Report: Within 45 days of completing the Implementation Plan, the\nTPC and NNOGC shall jointly prepare and submit an Implementation Plan\nCompletion Report to the Director.\nPart III. Task-Specific Work Plans\nSeparate from the work to be performed in Parts I and II, NNOGC will perform several\nTask-Specific Work Plans to address certain issues identified in the NOPSO which can be\nresolved outside of, but in parallel with, the work described in Parts I and II. These\nTask-Specific Work Plan projects are described below.\n1. Mainline LF-ERW Seams. In addition to any seam evaluation and remediation work\nperformed pursuant to the broad review of NNOGC’s IMP under the\ncomprehensive Part 195 review , NNOGC will continue to use Non Destructive\nExamination (NDE) methods to inspect the low frequency electric resistance\nwelded (LF-ERW) seams whenever the RHP mainline is exposed. NNOGC also will\nemploy an in-line inspection (ILI) tool capable of identifying long seam defects for\nfuture assessments of the RHP mainline. NNOGC also will develop, as appropriate,\na procedure for addressing any seam defects discovered during future ILI and NDE\nassessments. NNOGC will develop such procedure within 180 days of the\nAgreement. [Related to NOPSO item 1D]\n2. Corrosion Control. In addition to any corrosion control improvements identified as\na result of the comprehensive Part 195 review, NNOGC will remove the 2-inch\ndiameter deadleg piping at the Morgan Lake station no later than 12 months from\nthe Agreement. [Related to NOPSO Items 1L and 1N]\n3. Maximum Operating Pressure and Station Upgrades. NNOGC will retain an outside\nconsultant to review available historical pipeline records, including hydrotest\nrecords, and use relevant records to validate the established Maximum Operating\n6\n\n\n\nPressure (MOP) of the RHP mainline pipe and RHP stations. Such review and\nvalidation efforts shall consider PHMSA Advisory Bulletin 12-06 (77 FR 26822) as\nappropriate. NNOGC will also perform the RHP station piping modernization\nprojects specified below in order to support MOP validation. When review of\navailable historical records is complete, any information which is missing but\nnecessary is obtained or other solutions are identified, and any specified station\nmodernization work is complete, NNOGC’s outside consultant will prepare MOP\ncalculation worksheets that validate the bases for the MOP on the RHP mainline\nand at the RHP stations and submit such documentation to the Director. Such\nworksheets shall reference the specific documents relied upon to validate MOP\nand either attach or provide a description of the location of such documents.\nNNOGC will back up and retain all MOP-related documentation. [Related to\nNOPSO Items 1B and 1C]\ni. Engage outside consultant to\nreview historical pipeline records in support\nof MOP 6 months from Agreement\nii. Replace the buried piping at Morgan Lake\nStation and perform a hydrotest to establish\nstation MOP 12 months from Agreement\niii. Hydrotest remaining untested pipe\nat Bisti Station 12 months from Agreement\niv. Install pressure reducing valve at the\nconnection between the RHP mainline\nand the trucking facility at Bisti 9 months from Agreement\nv. Retain outside consultant to perform a system\nsurge analysis that includes reviewing operation\nof facility, addressing the adequacy of\noverpressure protection devices and locations,\nand recommending any changes. 6 months from Agreement\nvi. Prepare MOP calculation worksheets\nfor the RHP mainline and stations 9 months from Agreement\nvii. Engage outside consultant engineering firm\nand verify that the surge tank at Montezuma Creek\nhas adequacy capacity and is qualified for MOP 9 months from\nAgreement\n7\n\n\n\n4. 5. 6. Milepost 39 Erosion. NNOGC has retained an engineering firm to explore options\nfor developing a long-term permanent solution to address the erosion at Milepost\n39 (MP39) in order to ensure the structural integrity of the pipeline. Pursuant to\nthe engineer’s recommendation, NNOGC will rebury the line using horizontal\ndirectional drill (HDD) technology. Field work related to the HDD is scheduled to\nbegin in April 2013. The project is expected to be completed in the summer.\nNNOGC continues to monitor the erosion occurring at MP 39 by visually inspecting\nthe exposed RHP mainline pipe at this location and measuring the unsupported\nspan lengths after every rainfall. [Related to NOPSCO Item 1O]\ni. ii. Engineering firm to provide recommendations\nto NNOGC Completed\nRebury the line at MP39 using HDD 6 months from Agreement\nClock Spring Repairs. NNOGC will retain an outside consultant to review and assess\nthe three 2010 clock spring repairs. The consultant will evaluate whether clock\nspring was the appropriate repair method and will make recommendations\nregarding remediation, as appropriate. NNOGC also will evaluate whether RHP\nstaff or outside consultants will perform future clock spring repairs. [Related to\nNOPSO Item 1]\ni. Identify outside consultant 3 months from Agreement\nii. Evaluate and remediate, as appropriate, the 2010\nClock spring repairs 6 months from Agreement\niii. Evaluate who should perform future\nclock spring repairs 9 months from Agreement\nSCADA. In addition to the broader control room management program review that\nwill be performed under the comprehensive Part 195 review, NNOGC will install\nan access control system for the SCADA control room at Montezuma Creek.\nNNOGC will retain an outside contractor to conduct a study of the RHP mainline\nleak detection system, and make recommendations regarding the benefits of\ninstalling additional pressure monitoring devices along the RHP mainline. NNOGC\nwill then develop and implement, as appropriate, a plan for improving the\nsensitivity of the RHP leak detection system. NNOGC will also retain an outside\ncontractor to perform a test of the SCADA automatic shutdown system, and to\nassist NNOGC with the proper calibration of the SCADA automatic shutdown\nfunctions. [Related to NOPSO Item 1G]\ni. ii. Install SCADA control room access controls 12 months from\nAgreement\nRetain consultant to study RHP leak detection\n8\n\n\n\niii. iv. system and make recommendations for\nimproving system sensitivity 15 months from Agreement\nDevelop and implement plan to improve\nleak detection sensitivity 18 months from Agreement\nTest and calibrate SCADA automatic shutdown\nSystem 21 months from Agreement\n7. Aerial Patrols. NNOGC will review the adequacy of its current method of aerial\npatrols, verify its effectiveness, and perform annual blind tests of its aerial\npatrolling contractor, during scheduled patrols, and as otherwise necessary to\nverify the adequacy of patrols. [Related to NOPSO Item 1I]\ni. Review adequacy of current pipeline patrols Agreement\n6 months from\nPart IV. Communications with PHMSA.\na. NNOGC shall provide the Director monthly reports describing the status of\neach action required in the Implementation Plan and the Task Specific Work\nPlans. The first report shall","truncated":true,"body_characters":41296}