# NAVAJO NATION OIL AND GAS COMPANY — Safety Order

- **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:** Not available
- **summary:** CLOSED safety order.
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- **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.

Official case documents:

420125027S_Closure Letter_06302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Closure%20Letter_06302020.pdf

420125027S_Closure Letter_06302020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Closure%20Letter_06302020_text.pdf

420125027S_Consent Agreement_07052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Agreement_07052013.pdf

420125027S_Consent Agreement_07052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Agreement_07052013_text.pdf

420125027S_Consent Order Letter_07052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Order%20Letter_07052013.pdf

420125027S_Consent Order Letter_07052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_Consent%20Order%20Letter_07052013_text.pdf

420125027S_NOPSO_07232012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_NOPSO_07232012.pdf

420125027S_NOPSO_07232012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125027S/420125027S_NOPSO_07232012_text.pdf

420125027S_Closure Letter_06302020_text.pdf

ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
June 30, 2020
James McClure
President and Chief Executive Officer
Navajo Nation Oil and Gas Pipeline
50 Narbano Circle West
St. Michaels, Arizona 86511
CPF 4-2012-5027S
Dear Mr. McClure:
On February 11, 2020, Navajo Nation Oil and Gas Company (NNOGC) submitted via email its
Request to Confirm Termination of Proceedings under Part VI of the Consent Agreement in the
above referenced case. Based on our review of the documentation provided, it has been
determined that you have complied with the terms of the Consent Agreement.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Cc: Joseph P. Robertson, P.E., Director of Pipeline Operations, NNOGC

420125027S_Consent Order Letter_07052013_text.pdf

JULY 5, 2013
Mr. Louis Denetsosie
Interim President and CEO
Navajo Nation Oil & Gas Company
50 Narbono Circle West
St. Michaels, AZ 86511
Re: CPF No. 4-2012-5027S
Dear Mr. Denetsosie:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement that you
signed on June 10, 2013. Service of the Consent Order and Consent Agreement by certified mail
is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Rod Seeley, Director, Southwest Region, PHMSA
Ms. Susan A. Olenchuk, Esq., Van Ness Feldman, LLP, 1050 Thomas Jefferson Street
NW, Washington, DC 20007
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Navajo Nation ) CPF No. 4-2012-5027S
Oil & Gas Company, )
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated July 23, 2012 the Pipeline and Hazardous Materials Safety Administration
(PHMSA) Office of Pipeline Safety issued a Notice of Proposed Safety Order (Notice) to Navajo
Nation Oil & Gas Company (Respondent) in this case.
In accordance with 49 C.F.R. § 190.239, the Notice alleged that Respondent’s Running Horse
Pipeline (RHP) system extending approximately 87 miles from the Montezuma Creek, Utah area
crossing Southwest Colorado and terminating near Bisti, New Mexico has an apparent condition
that, without corrective measures, would pose a pipeline integrity risk to public safety, property,
or the environment and proposed that Respondent take certain actions to address the condition.
Specifically, the Notice alleged that onsite inspections of the RHP by PHMSA in October, 2011
had identified safety inadequacies including apparent non-compliance with various safety
requirements in 49 C.F.R. Part 192 and that as a result, Respondent’s safety programs appear to
be inadequate.
In response to the Notice, Respondent requested an informal consultation and Respondent and
PHMSA engaged in good faith settlement discussions resulting in the Consent Agreement
attached to this Order that settles all of the allegations in the Notice.
Accordingly, the foregoing Consent Agreement is hereby approved and incorporated by
reference into this Order. The Respondent is hereby ordered to comply with terms of the
Consent Agreement, effective immediately.



Pursuant to 49 U.S.C. 60101 et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case
for judicial enforcement. The terms and conditions of this Consent Order are effective upon
service in accordance with 49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety

420125027S_Consent Agreement_07052013_text.pdf

DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590
____________________________________
In the Matter of )
Navajo Nation ) CPF No. 4-2012-5027S
Oil & Gas Company, )
)
)
)
Respondent )
____________________________________)
On July 23, 2012, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), U.S. Department of Transportation, issued a Notice of Proposed Safety Order
(Notice) to Navajo Nation Oil & Gas Company (NNOGC or Respondent).1 The Notice
alleges that Respondent’s 16-inch diameter hazardous liquid pipeline system designated
as the Running Horse Pipeline (RHP) has an apparent condition that, without corrective
measures, would pose a pipeline integrity risk to public safety, property, or the
environment.2 Specifically, the Notice alleged that onsite inspections of the RHP by
PHMSA in October, 2011 had identified safety inadequacies including apparent non-
compliance with various safety requirements in 49 C.F.R. Part 192 and that as a result,
Respondent’s safety programs appear to be inadequate.
On August 22, 2012, Respondent requested an informal consultation in response to the
Notice. On September 24, 2012, the informal consultation was held in Houston, Texas at
which time Respondent and PHMSA engaged in good faith settlement discussions
resulting in this Consent Agreement (“Agreement”).
Having agreed that settlement of this proceeding will avoid further administrative
proceedings or litigation and that entry of this Consent Agreement is the most appropriate
means of resolving the Notice, pursuant to 49 C.F.R. Part 190, without adjudication of
CONSENT AGREEMENT
1 NNOGC is a federally chartered corporation under Section 17 of the Indian Reorganization Act, 25
U.S.C. §477. Pursuant to that authority, the Secretary of the Interior has issued articles of incorporation, at
the request of the Navajo Nation, to NNOGC setting out the various powers necessary to conduct its
business.
2 The Running Horse Pipeline system extends approximately 87 miles from the Montezuma Creek, Utah
area crossing Southwest Colorado and terminating near Bisti, New Mexico.



any issue of fact or law, and upon consent and agreement of Respondent and PHMSA
(“the Parties”), the Parties agree as follows:
I. General Provisions
1. Respondent acknowledges that as operator of the RHP, Respondent and its
pipeline system are subject to the jurisdiction of the Federal pipeline safety laws, 49
U.S.C. 60101 et seq., and the regulations and administrative orders issued thereunder.
For purposes of this Consent Agreement, Respondent acknowledges that it received
proper notice of PHMSA’s action in this proceeding and that the Notice states claims
upon which relief may be granted pursuant to 49 U.S.C. 60101 et seq. and the regulations
and orders issued thereunder.
2. Respondent agrees, for purposes of this Consent Agreement, that the conditions
identified in the Notice exist and agrees to address them by completing the actions
specified in Section II of this agreement (“Work to be Performed”) and Appendix A.
These actions, including any work plans and schedules, shall automatically be
incorporated into this Agreement. This Consent Agreement does not constitute a finding
of violation of any Federal law or regulation and may not be used in any civil proceeding
of any kind as evidence or proof of any fact, fault or liability, or as evidence of the
violation of any law, rule, regulation or requirement, except in a proceeding to enforce the
provisions of this Agreement.
3. After Respondent returns this signed Agreement, PHMSA’s representative will
present it to the Associate Administrator for Pipeline Safety recommending that the
Associate Administrator adopt the terms of this Agreement by issuing an administrative
order (Consent Order) incorporating the terms of this Consent Agreement. The terms of
this Agreement constitute an offer of settlement until accepted by the Associate
Administrator. Upon the effective date of this agreement, any request for a hearing
submitted by Respondent shall be automatically withdrawn.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights
to contest the adequacy of notice, or the validity of the Consent Order or this Consent
Agreement, including all rights to administrative or judicial hearings or appeals.
5. This Consent Agreement shall apply to and be binding upon PHMSA, and upon
Respondent, its officers, directors, and employees, and its successors, assigns, or other
entities or persons otherwise bound by law. Respondent agrees to provide a copy of this
Agreement and any incorporated work plans and schedules to all of Respondent’s
officers, employees, and agents whose duties might reasonably include compliance with
this Agreement.
2



6. For all transfers of ownership or operating responsibility of Respondent’s
Running Horse Pipeline system, Respondent shall provide a copy of this Consent
Agreement to the prospective transferee at least 30 days prior to such transfer and
simultaneously provide written notice of the prospective transfer to the Director,
Southwest Region, PHMSA (Director) who issued the Notice.
7. This Consent Agreement constitutes the final, complete and exclusive agreement
and understanding between the Parties with respect to the settlement embodied in this
Agreement, and the Parties acknowledge that there are no representations, agreements or
understandings relating to the settlement other than those expressly contained in this
Agreement, except that the terms of this Agreement may be construed by reference to the
Notice.
8. Nothing in this Consent Agreement affects or relieves Respondent of its
responsibility to comply with all applicable requirements of the Federal pipeline safety
laws, 49 U.S.C. § 60101 et seq., and the regulations and orders issued thereunder.
Nothing in this Agreement alters PHMSA’s right of access, entry, inspection, and
information gathering or PHMSA’s authority to bring enforcement actions against
Respondent pursuant to the Federal pipeline safety laws, the regulations and orders issued
thereunder, or any other provision of Federal or State law.
9. This Consent Agreement does not waive or modify any Federal, State, or local
laws or regulations that are applicable to Respondent’s pipeline systems. This agreement
is not a permit, or a modification of any permit, under any Federal, State, or local laws or
regulations. Respondent remains responsible for achieving and maintaining compliance
with all applicable Federal, State, and local laws, regulations and permits.
10. This Consent Agreement does not create rights in, or grant any cause of action to,
any third party not party to this Agreement. The U.S. Department of Transportation is not
liable for any injuries or damages to persons or property arising from acts or omissions of
Respondent or its officers, employees, or agents carrying out the work required by this
Agreement. Respondent agrees to hold harmless the U.S. Department of Transportation,
its officers, employees, agents, and representatives form any and all causes of action
arising from any acts or omissions of Respondent or its contractors in carrying out the
work required by this Agreement.
II. Work to be Performed
11. Respondent agrees to perform all actions in the work plan set forth in Appendix
A which is hereby incorporated into this Consent Agreement including any sub-plans
developed under the work plan. The work plan shall be revised as necessary to
incorporate new information obtained during the evaluations and remedial activities
performed under the work plan. Submit any such plan revisions to the Director for prior
approval. The Director may approve work plan elements incrementally.
3



12. Respondent agrees to submit periodic reports to the Regional Director in
accordance with the work plan reporting requirements that include appropriate
documentation of the results of the work performed to date under this Agreement
including documentation and technical justifications supporting decisions made in
conducting testing and analyses and otherwise performing the work.
13. Respondent agrees to maintain documentation of the costs associated with
implementation of the work plan in the following categories: the total costs associated
with: (1) testing, evaluations and information analysis; (2) revisions of procedures and
additional monitoring and inspections; and (3) physical changes to pipeline facilities,
including repairs, replacements and other modifications and agrees to make this
information available to PHMSA upon request.
14. The Director may grant an extension of time for completion of any of the work to
be performed upon a written request timely submitted demonstrating good cause for an
extension.
III. Review and Approval Process
15. With respect to any submission under Section II of this Consent Agreement and
Appendix A that requires the acceptance of the Director, the Director may: (a) accept, in
whole or in part, the submission, (b) accept the submission on specified conditions, (c)
not accept, in whole or in part, the submission, or (d) any combination of the foregoing.
In the event of acceptance, acceptance in part, or acceptance upon conditions, Respondent
will proceed to take all action required by the submission as accepted by the Director,
subject to Respondent’s right to invoke the dispute resolution procedures in Section IV
with respect to any conditions identified by the Director. In the event that the Director
does not accept all or any portion of the submission, the Director will provide Respondent
with a written notice of the deficiencies. Respondent will correct all deficiencies within
the time specified by the Director and resubmit it for acceptance.
IV. Dispute Resolution
16. The Director and Respondent will informally attempt to resolve any disputes
arising under this Consent Agreement. If Respondent and the Director are unable to
informally resolve the dispute within 15 days, Respondent may request in writing, within
10 days, a written determination resolving the dispute from the Associate Administrator
for Pipeline Safety providing all information that Respondent believes is relevant to the
dispute. If the request is submitted as provided herein, the Associate Administrator will
issue a determination in writing which shall be final. The existence of a dispute and
PHMSA’s consideration of matters placed in dispute shall not excuse, toll, or suspend
any term or timeframe for completion of any work to be performed under this Agreement
4



during the pendency of the dispute resolution process except as agreed by the Director or
the Associate Administrator in writing.
V. Enforcement
17. This Consent Agreement, as adopted by the Consent Order, is subject to all
enforcement authorities available to PHMSA under 49 U.S.C. § 60101 et seq. and 49
C.F.R. Part 190, including administrative civil penalties under § 60122 of up to $200,000
per violation for each day the violation continues, if PHMSA determines that Respondent
is not proceeding in accordance with terms of the Agreement, determinations made by the
Regional Director, or if appealed, decisions of the Associate Administrator. All work
plans and associated schedules set forth or referenced in Section II and Appendix A shall
be automatically incorporated into this Consent Agreement and are enforceable in the
same manner.
VI. Record Keeping and Information Disclosure
18. Respondent agrees to maintain records demonstrating compliance with all
requirements of this Consent Agreement for a period of at least five years following
completion of all work to be performed. For any reports, plans, or other deliverables
required to be submitted to PHMSA pursuant to this Consent Agreement, Respondent
may assert a claim of business confidentiality or other protections applicable to the
release of information by PHMSA, covering part or all of the information required to be
submitted to PHMSA pursuant to this agreement in accordance with 49 C.F.R. Part 7.
The claim of confidentiality shall be marked in writing on each page, and shall include a
statement specifying the grounds for each claim of confidentially. PHMSA shall
determine release of any information submitted pursuant to this Consent Agreement in
accordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT
and/or PHMSA policies, and other applicable regulations and Executive Orders.
VII. Effective Date
19. The “Effective Date” as used herein is the date on which this Consent Agreement
has been signed by both Respondent and PHMSA. Unless specified to the contrary, all
deadlines for actions required by this agreement run from the Effective Date of this
agreement.
VIII. Modification
20. The terms of this Consent Agreement may be modified by mutual agreement of
the parties. Such modifications shall be in writing and shall be signed by both parties.
5



IX. Termination
21. This Consent Agreement shall terminate upon the completion of all terms set
forth in Section II and Appendix A as determined by the Director. Respondent may
request written confirmation from PHMSA that this Agreement is terminated. To the
extent ongoing monitoring is required, PHMSA may terminate this Agreement with
respect to all other requirements with the exception of such monitoring. Nothing in this
Agreement prevents Respondent from completing any of the obligations earlier than the
deadlines provided for herein.
X. Ratification
22. The parties undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Consent Agreement and to execute and legally
bind such party to this document.
23. The Parties hereby agree to all conditions and terms of this Consent Agreement:
For PHMSA: For Respondent:
___________________________ ____________________________
Rod M. Seeley Louis Denetsosie
Director, Southwest Region Interim President and CEO
PHMSA NNOGC
_____________________ _____________________
Date Date
6



APPENDIX A



Scope of Work for Third-Party Compliance Consultant and Implementation Plan,
Navajo Nation Oil and Gas Company
CPF No. 4-2012-5027S
This Scope of Work for Third Party Compliance Consultant and Implementation Plan
(Plan) has been prepared by Navajo Nation Oil and Gas Company (NNOGC) to resolve
the Notice of Proposed Safety Order (NOPSO) issued by the Pipeline and Hazardous
Materials Safety Administration on July 23, 2012 (CPF No. 4-2012-5027S) with respect
to the Running Horse Pipeline (RHP) as more fully described in the NOPSO. Compliance
Issues identified in the NOPSO include the following: atmospheric corrosion
inspections; cathodic protection; documentation of pipe and materials specifications
and characteristics; documentation of hydrostatic testing; settings of overpressure
protection devices; effectiveness of Operator Qualification program; consideration of
seam type in in-line inspection assessments; breakout tank inspections or documented
change in configuration of tanks; liaison with emergency responders; SCADA security,
performance, and alarm handling; repair practices, including the use of clock springs;
aerial patrolling; lock-out/tag-out practices; internal corrosion monitoring and
mitigation; and soil erosion and structural support.
NNOGC has made recent, significant efforts to improve its pipeline safety compliance
program including the addition of three new pipeline personnel with engineering,
regulatory and pipeline data management responsibilities, increased employee
technical training, and closer partnerships with outside consultants. The Plan
anticipates increased management involvement in compliance activities to allow for
effective supervision of employees and consultants and to ensure that improvements
are sustained for the long term.
As set forth in detail below, this Plan is comprised of three main parts.
Part I of the Plan describes the scope of work for a comprehensive review, to be
performed by an independent third-party consultant (TPC), of NNOGC’s overall
compliance with 49 C.F.R. Part 195. The TPC’s comprehensive review will include all
aspects of NNOGC’s 49 C.F.R. Part 195 compliance program including written
procedures, RHP inspection, testing, operations and maintenance practices, and record-
keeping and document management practices. At the conclusion of the Part 195
comprehensive review, the TPC will simultaneously present a report containing findings
and recommendations to NNOGC and the PHMSA Southwest Region Director (Director)
including a description of all deficiencies identified.
Part II of the Plan describes the development and execution of a comprehensive
Implementation Plan to address, as appropriate, the issues identified in the NOPSO and



the findings and recommendations of the TPC as a result of the Part 195 comprehensive
review. The TPC will identify deficiencies, devise solutions, and participate in the
development of the Implementation Plan that NNOGC will implement to ensure that its
RHP practices and procedures comply with regulatory requirements for the long term.
The Implementation Plan will address all areas requiring action identified by the TPC
during the comprehensive Part 195 compliance review, will set forth and include
proposed schedules for completion, and will be submitted to the Director for approval.
Upon approval of the Implementation Plan by the Director, NNOGC and its consultant
and contractors shall execute the Implementation Plan.
Part III of the Plan sets forth task-specific activities that NNOGC is undertaking or will
undertake in advance of, or in parallel with, the completion of the comprehensive Part
195 compliance review by the TPC and subsequent Implementation Plan. These task-
specific activities address certain issues identified in the NOPSO that can be resolved
outside of, but in conjunction with, the comprehensive Part 195 compliance review and
Implementation Plan.3
Part I. Scope of Work for Comprehensive Part 195 Compliance Review by Third Party
Consultant [Related to NOPSO Item 1A]
NNOGC will retain a TPC to comprehensively review and evaluate all aspects of
NNOGC’s 49 C.F.R. Part 195 compliance program, including the results of testing,
evaluations, or other activities currently performed by other outside consultants and
contractors. Selection of the TPC must be approved by the Director prior to initiating
the compliance review. The comprehensive Part 195 review will cover, among other
things, NNOGC’s written procedures, operations and maintenance practices, record-
keeping, and document management practices, and the resulting report shall be
submitted to the Director at the same time it is provided to NNOGC. When the
comprehensive review is complete, NNOGC and the TPC will prepare a comprehensive
Implementation Plan and schedule for the Director’s approval that implements the
actions necessary to bring the RHP into compliance.
Described below is the scope of work for the Part 195 compliance review that will be
performed by the TPC. The compliance time frames are measured from the date
PHMSA issues an order approving a Consent Agreement (Agreement) that will adopt
the requirements of this Plan.
1. TPC Selection: NNOGC shall select a TPC to perform a comprehensive review of all
aspects of NNOGC’s 49 C.F.R. Part 195 compliance program, including written
procedures, operations and maintenance practices, record keeping, and
2
3 Parts IV – VI contain administrative provisions on reporting, completion of work, and termination
applicable to all parts of the Plan.



2. document management practices. Selection of the TPC must be approved by the
Director. After receiving approval from the Director, NNOGC will hire the TPC.
The following milestone dates apply:
a. b. c. NNOGC will identify TPC candidates and provide credentials and
qualifications to the Director 60 days from Agreement.
The Director will notify NNOGC of its decision regarding the TPC 90 days
from Agreement.
NNOGC will hire the TPC 30 days from approval of the TPC by the Director.
Scope of TPC Work: The TPC shall perform the following:
a. Perform Initial Site Visit: The TPC will undertake an initial site visit at the
appropriate NNOGC offices to meet NNOGC employees, review the tasks
performed under Part 195, review NNOGC’s system of records, and collect
documents and data. The initial site visit shall include a tour of the RHP right
of way and facilities. The initial site visit shall occur within 60 days of when
NNOGC hires the TPC. The TPC shall be provided with a copy of the NOPSO.
b. Perform Comprehensive Review of Part 195 Compliance Program: The TPC
shall work in partnership with NNOGC to perform a comprehensive review of
all aspects of NNOGC’s Part 195 compliance program. The TPC shall perform
the following tasks:
i. Review Written Procedures: Perform a section-by-section review of all
of NNOGC’s written Part 195 compliance programs and procedural
manuals and identify any areas requiring action to meet Part 195
requirements. The TPC will complete its review of NNOGC’s written
procedures within 90 days of the initial visit.
ii. Review Data and Recordkeeping: Perform a review of NNOGC’s records
of compliance with the requirements of Part 195 and the systems for
generating and maintaining documentation of pipeline attributes and
compliance and maintenance records. The review shall include an
identification of any Part 195-required data which is unavailable,
verification that NNOGC’s work tracking systems accurately reflect
the compliance deadlines in Part 195, and identification of any areas
requiring action to meet Part 195 requirements. The TPC will
complete its review of data and recordkeeping within 120 days of the
initial visit.
3



iii. Review Operations and Maintenance Practices: Conduct an in-person
meeting and interview with each NNOGC employee with Part 195
compliance responsibilities in order to determine how NNOGC
implements its Part 195 compliance program, and to assess what
additional subject matter expertise may be necessary within NNOGC.
The TPC will observe NNOGC employees performing select activities
in the field and identify any areas requiring action to meet Part 195
requirements. The TPC will complete its review of implementation
and field practices within 120 days of initial visit.
c. Communicate TPC Progress: The TPC shall work with NNOGC to prepare bi-
weekly written status reports briefly describing the progress of the activities
listed in Section 2(b). The first report shall be submitted to the Director 30
days after the initial visit, with subsequent reports due bi-weekly thereafter
until the delivery of the TPC’s report in section 2(d).
d. Present Findings and Recommendations for Performance Improvement:
Upon completion of the comprehensive Part 195 compliance review, the TPC
will provide the TPC’s findings and recommendations to the Director at the
same time they are provided to NNOGC. The TPC’s report shall identify
areas requiring action. The TPC shall meet with NNOGC within 30 days of
the completion of the TPC’s review to begin the development of the
Implementation Plan. The TPC shall participate in the development of the
Implementation Plan for remedial action, as set forth in Part II, and oversee
the execution of the Implementation Plan(s).
Part II. Development and Execution of Implementation Plans
After completion of the comprehensive Part 195 compliance review, the TPC and
NNOGC will work together to develop a comprehensive Implementation Plan designed
to address the issues identified in the NOPSO and the TPC’s findings and
recommendations and assist NNOGC in taking action Part 195 compliance program.
The Implementation Plan, which may contain sub-plans, will set forth completion
schedules, and may include provisions allowing NNGOC to work with other outside
contractors to implement certain compliance activities. The TPC or NNOGC will submit
the Implementation Plan to the Director for review and approval. Upon approval by the
Director, NNOGC shall execute the Implementation Plan. The TPC will conduct ongoing
consultation, oversight, and training as necessary during the execution of the
Implementation Plan by NNOGC employees or outside contractors.
4



In addition to addressing the TPC’s findings and recommendations resulting from the
Part 195 compliance review, the Implementation Plan will also address the issues
described in the NOPSO, as set forth below:
1. Unavailable Data and Records: How NNOGC will handle data required by Part 195
but which is unavailable. [Related to NOPSO Items 1B – 1P]
2. Data Integration: [Related to NOPSO Items 1B-1P]
a. How NNOGC will integrate data about its pipeline into a comprehensive data
integration tool capable of displaying RHP attributes, and appropriate
inspection, maintenance, and repair data in a graphical overlay format.
b. What data will be used, and how unavailable data will be considered in the
integration.
c. How NNOGC will use the data integration tool to support NNOGC’s
compliance with Part 195 regulatory requirements.
3. Identifying and Addressing Compliance and Safety Issues: How NNOGC’s Part 195
compliance procedures and practices will be revised, as appropriate, to specify
actions NNOGC will take to address compliance or safety issues identified in day-
to-day operations and through its inspection and maintenance programs.
[Related to NOPSO Items 1A – 1P]
4. Integrity Management Program: How NNOGC’s integrity management program
(IMP) will be revised, as appropriate, to verify that NNOGC identifies all threats,
quantifies and assesses risks, implements appropriate and timely responses, and
selects and implements appropriate preventive and mitigative measures. [Related
to NOPSO Items 1D and 1K]
5. Operator Qualification: [Related to NOPSO Items 1G and 1J]
a. How NNOGC will verify that RHP employees are qualified to perform Part
195 covered tasks and that NNOGC’s Operator Qualification program meets
regulatory requirements.
b. How NNOGC will continue to provide RHP employees with necessary job
skills training.
c. How NNOGC will ensure that all covered tasks are included in the Operator
Qualification program and that qualification/requalification practices provide
a legitimate means for confirming the knowledge and skills needed to
perform a covered task.
6. Corrosion Control: How NNOGC will revise, as appropriate, its atmospheric, internal
and external corrosion control programs to verify that corrosion risks are
5



identified and mitigated and that corrosion data is being analyzed and acted upon.
[Related to NOPSCO Items 1L, 1M, and 1N]
7. Communications with PHMSA: The TPC and NNOGC shall work together to provide
the Director monthly reports regarding the status of the Implementation Plan.
Such reports shall describe the Implementation Plan tasks that have been
completed, remain ongoing, and are planned, and whether it is associated with
addressing a Safety Order item(s). The first report shall be submitted no later
than 30 days after the Director approves the Implementation Plan, with
subsequent reports due monthly thereafter until the completion report(s)
described below have been submitted.
8. Completion Report: Within 45 days of completing the Implementation Plan, the
TPC and NNOGC shall jointly prepare and submit an Implementation Plan
Completion Report to the Director.
Part III. Task-Specific Work Plans
Separate from the work to be performed in Parts I and II, NNOGC will perform several
Task-Specific Work Plans to address certain issues identified in the NOPSO which can be
resolved outside of, but in parallel with, the work described in Parts I and II. These
Task-Specific Work Plan projects are described below.
1. Mainline LF-ERW Seams. In addition to any seam evaluation and remediation work
performed pursuant to the broad review of NNOGC’s IMP under the
comprehensive Part 195 review , NNOGC will continue to use Non Destructive
Examination (NDE) methods to inspect the low frequency electric resistance
welded (LF-ERW) seams whenever the RHP mainline is exposed. NNOGC also will
employ an in-line inspection (ILI) tool capable of identifying long seam defects for
future assessments of the RHP mainline. NNOGC also will develop, as appropriate,
a procedure for addressing any seam defects discovered during future ILI and NDE
assessments. NNOGC will develop such procedure within 180 days of the
Agreement. [Related to NOPSO item 1D]
2. Corrosion Control. In addition to any corrosion control improvements identified as
a result of the comprehensive Part 195 review, NNOGC will remove the 2-inch
diameter deadleg piping at the Morgan Lake station no later than 12 months from
the Agreement. [Related to NOPSO Items 1L and 1N]
3. Maximum Operating Pressure and Station Upgrades. NNOGC will retain an outside
consultant to review available historical pipeline records, including hydrotest
records, and use relevant records to validate the established Maximum Operating
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Pressure (MOP) of the RHP mainline pipe and RHP stations. Such review and
validation efforts shall consider PHMSA Advisory Bulletin 12-06 (77 FR 26822) as
appropriate. NNOGC will also perform the RHP station piping modernization
projects specified below in order to support MOP validation. When review of
available historical records is complete, any information which is missing but
necessary is obtained or other solutions are identified, and any specified station
modernization work is complete, NNOGC’s outside consultant will prepare MOP
calculation worksheets that validate the bases for the MOP on the RHP mainline
and at the RHP stations and submit such documentation to the Director. Such
worksheets shall reference the specific documents relied upon to validate MOP
and either attach or provide a description of the location of such documents.
NNOGC will back up and retain all MOP-related documentation. [Related to
NOPSO Items 1B and 1C]
i. Engage outside consultant to
review historical pipeline records in support
of MOP 6 months from Agreement
ii. Replace the buried piping at Morgan Lake
Station and perform a hydrotest to establish
station MOP 12 months from Agreement
iii. Hydrotest remaining untested pipe
at Bisti Station 12 months from Agreement
iv. Install pressure reducing valve at the
connection between the RHP mainline
and the trucking facility at Bisti 9 months from Agreement
v. Retain outside consultant to perform a system
surge analysis that includes reviewing operation
of facility, addressing the adequacy of
overpressure protection devices and locations,
and recommending any changes. 6 months from Agreement
vi. Prepare MOP calculation worksheets
for the RHP mainline and stations 9 months from Agreement
vii. Engage outside consultant engineering firm
and verify that the surge tank at Montezuma Creek
has adequacy capacity and is qualified for MOP 9 months from
Agreement
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4. 5. 6. Milepost 39 Erosion. NNOGC has retained an engineering firm to explore options
for developing a long-term permanent solution to address the erosion at Milepost
39 (MP39) in order to ensure the structural integrity of the pipeline. Pursuant to
the engineer’s recommendation, NNOGC will rebury the line using horizontal
directional drill (HDD) technology. Field work related to the HDD is scheduled to
begin in April 2013. The project is expected to be completed in the summer.
NNOGC continues to monitor the erosion occurring at MP 39 by visually inspecting
the exposed RHP mainline pipe at this location and measuring the unsupported
span lengths after every rainfall. [Related to NOPSCO Item 1O]
i. ii. Engineering firm to provide recommendations
to NNOGC Completed
Rebury the line at MP39 using HDD 6 months from Agreement
Clock Spring Repairs. NNOGC will retain an outside consultant to review and assess
the three 2010 clock spring repairs. The consultant will evaluate whether clock
spring was the appropriate repair method and will make recommendations
regarding remediation, as appropriate. NNOGC also will evaluate whether RHP
staff or outside consultants will perform future clock spring repairs. [Related to
NOPSO Item 1]
i. Identify outside consultant 3 months from Agreement
ii. Evaluate and remediate, as appropriate, the 2010
Clock spring repairs 6 months from Agreement
iii. Evaluate who should perform future
clock spring repairs 9 months from Agreement
SCADA. In addition to the broader control room management program review that
will be performed under the comprehensive Part 195 review, NNOGC will install
an access control system for the SCADA control room at Montezuma Creek.
NNOGC will retain an outside contractor to conduct a study of the RHP mainline
leak detection system, and make recommendations regarding the benefits of
installing additional pressure monitoring devices along the RHP mainline. NNOGC
will then develop and implement, as appropriate, a plan for improving the
sensitivity of the RHP leak detection system. NNOGC will also retain an outside
contractor to perform a test of the SCADA automatic shutdown system, and to
assist NNOGC with the proper calibration of the SCADA automatic shutdown
functions. [Related to NOPSO Item 1G]
i. ii. Install SCADA control room access controls 12 months from
Agreement
Retain consultant to study RHP leak detection
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iii. iv. system and make recommendations for
improving system sensitivity 15 months from Agreement
Develop and implement plan to improve
leak detection sensitivity 18 months from Agreement
Test and calibrate SCADA automatic shutdown
System 21 months from Agreement
7. Aerial Patrols. NNOGC will review the adequacy of its current method of aerial
patrols, verify its effectiveness, and perform annual blind tests of its aerial
patrolling contractor, during scheduled patrols, and as otherwise necessary to
verify the adequacy of patrols. [Related to NOPSO Item 1I]
i. Review adequacy of current pipeline patrols Agreement
6 months from
Part IV. Communications with PHMSA.
a. NNOGC shall provide the Director monthly reports describing the status of
each action required in the Implementation Plan and the Task Specific Work
Plans. The first report shall
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